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5 Ways to Plan your Monthly EMIs on Instant Money Loans

When it comes to loans, perhaps even before you finalise the loan amount, the first thing that comes to your mind is repayment. This is the right way to go about it as you are responsible for paying your loan on time. So, when you are borrowing, plan the budget accordingly and ensure that it accounts for all expenses, yearly and monthly. EMI payments are a key part of the loan experience and must not be overlooked.

Generally, your Equated Monthly Instalments (EMIs) depend on the amount of money you borrow and the repayment tenure. These factors, combined with the given interest rate determine your EMI amount. Failing to plan repayment can be stressful and may even hurt your savings. This is why we have curated a checklist to help you plan your monthly instalments on Instant Money Loans!

Here are 5 ways to plan EMI payments on Instant Money Loans:

List down your monthly expenses

This is considered to be one of the most important steps. When you’re availing an instant money loan, it is important to consider your overall expenditure and total income. This can help you determine the amount you have to repay every month through EMIs without affecting your finances.

Before figuring out the repayment plan, chart out all your expenses to understand where your money is spent and minimise unnecessary expenses. Moreover, it is also important to plan for emergency expenditures such as medical bills and family expenses, so that your loans do not affect your regular and household expenses.

Keep a separate account for servicing the loan

To track your spends and plan EMI payments better, maintain separate accounts based on your expenses. This makes monitoring easy, efficient, and accurate compared to having a single account for managing all expenses. Additionally, you can also identify patterns and types of expenses that may be draining your savings.

Ideally, you should make a separate account to handle all your monthly instalments. This way, you can divert the required funds at the start of the month and ensure that your payments are done on time. While having a separate account and segregating the money, make sure you are disciplined and using the separate account for loan payments only. Do not use it on unnecessarily or for luxury expenses and ensure that you maintain the required balance so that your loan payments go through.

Reinvent how you approach your finances

‘Do not save what is left after spending, but spend what is left after saving.’ This is the golden rule you must apply when keeping a tab on your expenses. For example, if you spend 10% of your salary on eating out every month, consider reducing it or finding alternative ways to fulfil that need. The more you save, the easier and better your EMI repayments will be.

By eliminating unnecessary spends, you pave the way for more stable finances down the line. You can even use a digital EMI planner to visually understand your monthly outgo and plan accordingly. The main takeaway should be to rethink your approach to finances and practice healthier money management habits, especially when repaying a loan. Mismanaging your money could lead you to miss loan payments and defaulting on your loan attracts a hefty penalty.

Look for minimal or zero prepayment charges

Loans can often have hidden charges that ultimately cost you more and make your EMIs unaffordable. You may also end up paying a huge sum every month, which may not be feasible for an extended period of time. In such a scenario, you should consider paying a portion of the outstanding principal ahead of time. This is called prepaying the loan and some lenders may charge a fee for doing so.

Hence, before taking instant money loans, look for companies that offer minimal prepayment charges. Fibe’s instant money loans come with zero prepayment charges if you decide to repay the loan earlier than the agreed duration. Plus, there are no other hidden charges too!

Prioritise your loans

Due to the convenient and hassle-free nature of instant money loans provided by lenders such as Fibe (Formerly EarlySalary), you can take more than one loan provided you close one and then apply for your next loan. For instance, it isn’t uncommon to serve customers with a Fibe loan and SBI loan, both active and being serviced regularly.

In such situations, you should know to prioritise wisely. Based on the EMI amount you owe, the period for repayment, etc., sort these loans so you can first pay off the loans with the highest interest rates. If you miss paying a loan with a high interest on time, you can end up paying a heavy penalty than any other loan with a lower interest rate.

When it comes to borrowing money through loans, consider all the factors involved wisely. This includes the lender and you should pick one that has the right features for you. Fibe is one such lender to consider, as you can get a personal loan without any hassles. Thanks to the digitised process, you can skip the lengthy paperwork. You also have access to attractive interest rates with no prepayment charges.

Download the instant loan app here or simply log in to our website and be a part of the #OneInAMillion experience.

Personal Loans Hidden Charges: Fees and Penalties Explained

When applying for a personal loan, understanding the total cost of borrowing is just as important as checking the interest rate. Apart from interest, lenders may charge processing fees, late payment penalties, foreclosure charges, documentation costs and other fees.

Being aware of these personal loan hidden charges before accepting an offer can help you plan your finances better and avoid unexpected expenses later.

Here are the major personal loan charges you should know about.

Personal Loan Processing Fee: How Much Do Lenders Charge?

A processing fee is one of the most common charges associated with a personal loan. It covers costs related to reviewing your application, verifying documents and processing the loan.

The personal loan processing fee may either be charged upfront or deducted directly from the loan amount at the time of disbursal. It is generally non-refundable and can range between 0.5% and 5% of the loan amount, depending on the lender.

For example, if you are approved for a ₹2 lakh personal loan and the lender charges a 2% processing fee, the processing charge would be ₹4,000 before applicable GST.

Always check whether the processing fee is a flat amount or calculated as a percentage of the sanctioned loan amount.

Personal Loan Processing Fee: What You Actually Pay

The processing fee mentioned by the lender may not always be the final amount you pay because GST is generally applicable to loan-related services and charges.

The standard GST rate applicable to such services is 18%. This means that if a processing fee is ₹5,000, an additional ₹900 may be payable as GST, taking the total processing-related cost to ₹5,900.

Processing fees may also be deducted from the sanctioned loan amount. Therefore, the amount actually credited to your bank account can be lower than the amount sanctioned.

Before accepting an offer, check:

The processing fee percentage or fixed amount

Applicable GST

Whether the fee is deducted from the disbursal

Whether the fee is refundable in case of cancellation

The total amount you will actually receive

These details should also be checked against the lender’s Key Fact Statement (KFS).

Prepayment & Foreclosure Charges on a Personal Loan

Personal loan repayment generally includes both principal and interest. If you have additional funds available, you may want to repay part or all of your outstanding loan before the original tenure ends.

Doing so can help reduce the interest you would otherwise pay over the remaining tenure.

However, some lenders may levy prepayment or foreclosure charges, which can range from around 2% to 5% of the outstanding loan amount, depending on their policies and the loan agreement.

Lenders may charge these fees because early repayment reduces the interest income they would have earned through regular EMIs.

Before taking a loan, check:

Whether part-prepayment is allowed

Whether there is a minimum lock-in period

The applicable prepayment charge

Whether full foreclosure attracts a separate fee

Some lenders, including Fibe, offer personal loans with nil foreclosure charges, allowing eligible borrowers to close their loan early without a foreclosure fee.

Late Payment Penalties & EMI Bounce Charges

Paying your EMI by the due date is important. If an EMI is delayed, the lender may levy a late payment charge. Depending on the lender and loan agreement, late payment fees may go up to approximately 1% to 2% of the EMI amount or may be charged as a fixed amount.

An additional charge may apply if an EMI repayment mandate, NACH instruction or auto-debit fails because of insufficient funds or another reason.

Such EMI bounce charges are generally levied for each failed repayment attempt and vary across lenders.

Apart from the immediate charges, repeated missed or delayed EMIs may also affect your repayment history and credit profile.

Also Read: What Happens If Personal Loan EMI Is Missed

Other Personal Loan Charges You Should Know

Apart from processing, foreclosure and late payment charges, there are several other costs you should check before taking a loan.

Cancellation Charges

Cancellation charges may apply if you cancel a personal loan after completing certain stages of the application or after approval or disbursal.

The amount varies between lenders and may range from a flat ₹1,000 to around ₹3,000, along with applicable GST.

Always check the cancellation policy before accepting and signing the loan agreement.

Repayment Mode Swapping Charges

If you change your repayment method during the loan tenure, for example, switching from cheque payments to auto-debit, the lender may levy a repayment mode swapping charge.

Some lenders may charge around ₹500 plus applicable GST for making such a change.

Effective Interest Rate and APR

Personal loan interest rates can vary significantly depending on the lender and borrower profile. Rates may range approximately from 10.99% to 44% p.a., and could be higher in certain cases.

Factors such as your credit score, income, financial stability and existing relationship with the lender can influence the interest rate offered.

However, the interest rate alone does not show the complete borrowing cost.

The Annual Percentage Rate (APR) provides a broader picture because it considers the interest rate along with applicable charges associated with the loan. Comparing APRs can therefore help you evaluate loan offers more accurately.

Other Applicable Charges

Additional charges may vary depending on:

The type of lender

Loan amount sanctioned

Borrower’s repayment behaviour

Location or state

Services requested during the loan tenure

Depending on the loan and lender, stamp duty, legal charges or other applicable fees may also be payable.

Documentation, Stamp Duty & Administrative Charges

Some lenders may charge separately for documentation, administrative services or reissuing loan-related documents.

Duplicate Documentation Charges

If you request duplicate copies of loan-related documents, the lender may levy an additional charge.

Documents can include:

Loan statements

No Objection Certificates (NOCs)

Repayment documents

Other loan-related records

Duplicate documentation charges may generally range from around ₹200 to ₹500 plus applicable GST, depending on the lender.

Stamp Duty

Stamp duty may be payable on a loan agreement depending on applicable state laws and the loan amount. The exact amount can therefore differ based on where the loan agreement is executed.

Administrative and Legal Charges

Certain lenders may levy administrative or legal charges for services associated with processing or servicing the loan. These charges should be clearly disclosed before you accept the loan.

GST on Loan-Related Charges

Previously, service tax and VAT applied to various loan-related services. Today, applicable loan service charges generally attract Goods and Services Tax (GST).

The standard GST rate on applicable loan processing services is 18%.

For example, for every ₹100 charged as an applicable service fee, ₹18 may be added as GST.

GST can sometimes be overlooked when borrowers compare headline fees, so make sure you include it while calculating the overall cost of borrowing.

How to Avoid Hidden Charges on a Personal Loan

Charges associated with a personal loan should not come as a surprise. Before accepting an offer, take time to understand the complete fee structure and repayment terms.

Here are some ways to identify and avoid unexpected personal loan charges.

Check the Key Fact Statement (KFS) Line by Line

The Key Fact Statement (KFS) is one of the most important documents to review before accepting a personal loan.

It summarises important information about the loan, including applicable fees and the overall cost of borrowing.

Don’t just check the loan amount and EMI. Review each line related to processing fees, penal charges, foreclosure terms, third-party charges and the APR before providing your consent.

Compare the APR, Not Just the Interest Rate

Two personal loans with similar interest rates can have different overall borrowing costs because their processing fees and other charges may differ.

This is why you should compare the Annual Percentage Rate (APR) rather than looking only at the advertised interest rate.

APR provides a more comprehensive indication of the annual cost of the loan by considering the interest rate along with applicable charges.

Ask Your Lender Directly

Communicate with the lender and ask for clarity regarding the complete fee structure.

If you are unsure about a particular fee, penalty or condition, get it clarified before accepting the loan rather than assuming that it does not apply.

Read the Loan Document Carefully

Once you apply for a loan, the lender provides documents containing important details about the loan, including applicable fees and charges.

Read these documents carefully, particularly the sections dealing with:

Processing charges

Repayment terms

Late payment penalties

EMI bounce charges

Prepayment and foreclosure

Cancellation

Additional service charges

Visit the Lender’s Website

You can also visit the lender’s official website to review its published rates and charges.

If important fee information is difficult to find or unclear, ask the lender for clarification before proceeding with the loan.

Before availing of a personal loan, research your options, understand the terms and compare different offers. This can help you make an informed borrowing decision and select an offer suited to your requirements.

With Fibe, you can get an Instant Personal Loan of up to ₹10 lakh through a 100% digital application process. Fibe also offers nil foreclosure charges, giving you greater flexibility to repay your loan early. Download the Fibe Personal Loan App or apply through the Fibe website to check your eligibility and available offer.

FAQs On Personal Loan Hidden Charges

1.What are the additional charges on a personal loan?

Apart from the personal loan interest rate, common charges may include:

Processing fees

Preclosure or foreclosure charges

Late payment fees

EMI bounce charges

Repayment mode swapping fees

Duplicate documentation charges

Stamp duty

Applicable GST

The exact charges vary across lenders, so check the Key Fact Statement and loan agreement before accepting an offer.

2.Can I prepay my personal loan without any extra charges?

This depends on the lender’s prepayment and foreclosure policy. Some lenders charge a fee for early repayment, while others do not.

At Fibe, personal loans currently have nil foreclosure charges, allowing borrowers to close their loan early without paying a foreclosure fee.

3.What are loan placement fees?

Loan placement fees are generally charged by brokers or intermediaries for facilitating a financial transaction or helping complete a loan application.

They may be calculated as a percentage of the transaction value or charged as a fixed brokerage or service fee.

Always confirm whether you are dealing directly with the lender or through an intermediary and understand any applicable fee before proceeding.

4.How much is the processing fee for a personal loan?

Processing fees vary depending on the lender and may generally be charged as a percentage of the sanctioned loan amount.

Some lenders may charge up to approximately 5% of the loan amount. At Fibe, personal loan processing fees currently start from 2% of the loan amount plus GST.

5.How can I reduce my processing fees?

Processing fees can add significantly to your borrowing cost.

Depending on the lender, promotional offers or preferential pricing may sometimes be available for certain borrowers, such as existing customers or applicants with strong credit profiles.

Compare multiple offers and check the complete fee structure before choosing a loan.

6.What are foreclosure charges for a personal loan?

Foreclosure charges are fees that some lenders levy when you repay and close your entire outstanding personal loan before the scheduled end of the tenure.

The charges and eligibility conditions vary by lender and should be mentioned in your loan documents.

At Fibe, personal loans currently have nil foreclosure charges.

7.How is the processing fee for a personal loan calculated?

A personal loan processing fee is generally calculated as a percentage of the sanctioned loan amount, although some lenders may charge a fixed amount.

For example, if your sanctioned loan is ₹3 lakh and the processing fee is 2%, the fee would be ₹6,000 before applicable GST.

Always check whether the fee will be paid separately or deducted from the amount disbursed to you.

8.Is GST applicable on personal loan processing fees and other charges?

Yes. 18% GST is generally applicable to processing fees and various other service charges associated with a personal loan.

GST is not charged on the principal amount of the loan itself. Check your KFS and loan documents for the exact taxes applicable to individual charges.

9.What happens if my personal loan EMI bounces or fails?

If your EMI payment fails because of insufficient funds or another issue with your repayment mandate, the lender may charge an EMI or NACH bounce fee for the failed transaction.

A delayed payment may also attract applicable late payment charges. Repeated missed payments can affect your repayment history and may negatively impact your credit profile.

To avoid this, ensure sufficient funds are available in your repayment account before the EMI due date.

7 Life Goals You Can Achieve Using a Personal Loan

A personal loan is an unsecured loan designed to help folks meet their financial needs. By definition, a personal loan is one where you don’t need to pledge any security or collateral while opting for it. The lender provides the borrower with the flexibility to use the funds as per their own requirements. On closer look, we see that they work fairly similar to secured loans:

Most lenders will look at a person’s creditworthiness, among other factors, to determine their interest rate.
Borrowers evaluate the purpose of their loan to determine whether they need to borrow in the first place and if they have the ability to make timely payments.

On that note, it’s natural to wonder – what sort of needs do personal loans satisfy when dedicated loans – such as those for cars, homes, etc. – already proliferate the market?

Personal loans provide solutions for managing everything from wedding expenses, travel costs, and home decor, to construction and renovation, expenses of a medical emergency, debt consolidation, and others. An individual can pay the money back with interest on the basis of monthly installments over a period of time that usually ranges between two to five years.

Let’s take a look at some of these expenses – particularly those that are often ‘life goals’ for many of us.

#1 Education fees

A fairly obvious life goal if there ever was one – education is an enabler, and a great equalizer, regardless of our background, financial status, ethnicity, and more. It’s arguably one of the most critical investments we make in our lives. This is why a personal loan that pays for our education expenses, or even our children’s school fees, fulfills a crucial need.

#2 Medical expenses

Medical bills can come up suddenly and may become difficult to repay; this is when instant personal loans come in handy. We’d all like to be in a position to address any such emergencies when they crop up. Quick medical loans can cover a high medical bill or even an expensive cosmetic surgery.

#3 Business investments

A business or startup is a goal for many of us. And once it’s up and running, growth quickly becomes our next goal. These pursuits require capital, which is why loans for business expansion can be crucial.

#4 Wedding expenses

In due course of the wedding planning process, couples and families get a closer look at the hefty amounts they’d be paying – from florists and caterers to event venues and wedding planners. Weddings are costly, so many couples turn to personal loans for weddings to cover the expenses, breaking the cost of a wedding into manageable monthly payments.

#5 Debt consolidation

Personal loans can be used to convert several kinds of debt into one fixed monthly payment. This can make it easier for a person to keep track of their bills and also pay off debt on a schedule. The largest benefit of debt consolidation is cost savings. And isn’t it everyone’s life goal to be free of debt as soon as possible? Or at the very least, make it less of an annoyance?

#6 Home improvements or repairs

Home renovations add obvious value to one’s home and make it a better place to live. It’s where we spend the majority of our lives, after all. A borrower can finance their home improvement projects via personal loans, which typically cover most such expenses. And of course, when we’re renovating our home with an unsecured personal loan, it’s a pleasant reminder of a credit system that isn’t asking us to put up our home as collateral. We don’t have to risk losing our home, or quite frankly, any other asset, to a bank or institution.

#7 Investing in a vehicle

It can take a long time to save for a car or two-wheeler, despite it being a dream for many. With inexpensive rates on a personal loan, we know exactly what our regular repayments will be and how long it will take for them to pay the loan off. The result? A more informed, educated purchase of a vehicle with a car loan or two-wheeler loan. Our wheels can be here quicker than we may have anticipated!

Clearly, personal loans serve several needs. But in a market crowded with them, how do you identify the one that suits you best?

Enable Your Life Goals With Fibe

Fibe is an instant loan mobile app that enables salaried professionals to borrow money for virtually any urgent cash requirement they may have. In other words – no questions asked.

Fibe’s online platform is backed by a strong team that aims to build a new credit culture, combining traditional credit scoring with new parameters linked by technology. It’s backed with risk assessment concepts that enable a revolutionary new business allowing everyone to borrow hassle-free!

Along with salaried employees, Fibe can also be availed by self-employed individuals as well as business corporates to receive a cash advance in order to meet their urgent credit needs.

Why Fibe For Personal Loans

Loan amount: Earlysalary offers loans that start from Rs. 8,000, and go up to Rs. 5 lakh.
Digital process: The process to apply for an Fibe personal loan is entirely digital. No paperwork involved.
Flexible tenure: One can conveniently repay their Fibe personal loan within a flexible tenure featuring 3 to 6 EMIs.
Zero prepayment charge: No charges are applicable if you foreclose your personal loan.

When there’s an urgent need for a quick cash loan, it’s common to see very few genuinely feasible options available. One usually tends to seek a personal loan from traditional banks, which can be a time-consuming process and requires a lot of paperwork and multiple documents.

The internet has catalyzed a transition to new-age systems that honestly save us considerable time, efforts, and hassle. And instant loans are a logical evolution of the era. Frankly, if we can purchase anything sitting in the comfort of their home, why shouldn’t we get access to credit for those expenses in the very same way?

It’s this philosophy that’s helped Fibe lead the market as one of the best loan apps that one can use. Based in Pune, the model has been revolutionizing the way money lending occurs in India. In short – Fibe’s personal loan app is the easiest and fastest way to get instant loans in this new decade.

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the personal loan app here, or log in to our website and be a part of the #OneSmallStep experience.

SBI Personal Loan Vs Fibe Loan: Which One Is Right For You?

When it comes to personal loans, instant approval is a characteristic no customer would decline. In fact, such a feature is prioritized. Fortunately, competitive credit markets give us plenty of choices. Based on your needs and requirements as a borrower, you can choose from a plethora of options available with banking institutions. SBI has several personal loan offerings, such as e-tatkal loans, and the more popular Xpress Credit Personal Loan. On the other hand, portals like Fibe are changing the game for young professionals seeking quick and convenient loans. These can range from wedding, vacation, home renovation, medical emergency, education, and much more. Let’s look at how SBI’s Xpress Credit Personal Loan compares with Fibe’s Personal Loan and which one is more suitable for you!

SBI Personal Loan vs Fibe Loan

Eligibility

A personal loan is the most common type of loan, and for 2020, its demand has spiked significantly. One must be eligible to apply for a personal loan, and eligibility criteria differ from lender to lender. Here are the eligibility criteria for SBI’s Xpress Credit Personal Loan and Fibe’s Personal Loan.

SBI Xpress Credit Personal Loan: To apply for an SBI Xpress Credit Personal Loan, the following is the eligibility criteria :

Individuals must have a salary account with SBI
The minimum monthly income must be INR15,000
The maximum loan amount is INR 25,00,000
The borrower should be between 21 to 58 years of age

Fibe Personal Loan: To apply for Fibe’s Personal Loan, the following are the eligibility criteria:

Individuals must be Indian Residents
Minimum monthly income must be INR 20,000 to INR 22,000 depending on the area of residence
The borrower should be between 21 to 55 years of age

Minimum Loan Amount

The minimum loan amount is an important factor to consider when applying for a personal loan as it must be in accordance with the reason why you’re taking a loan in the first place. In this case, Fibe takes the cake due to a much lower minimum loan amount, which enables young individuals to make quick decisions and only borrows the amount they need, negating the surplus.

SBI Personal Loan: The minimum loan amount for SBI’s Xpress Credit Personal Loan is INR 25,000

Fibe Personal Loan: The minimum loan amount for Fibe’s Personal Loan is INR 8,000

Interest Rate

As a borrower, you’d want to pick a lender that offers the lowest interest rate while taking out a personal loan. The following are the interest rates for SBI and Fibe:

SBI Personal Loan: The interest rate per annum for SBI’s Xpress Credit Personal Loan ranges from 10.50% to 16.40%.

Fibe Personal Loan: Since the personal loans provided by Early Salary are usually short term, the monthly interest rate ranges from 2% to 2.5%.

Prepayment Charges

Prepayment charges or a prepayment penalty is the fees or charge that an individual has to pay the lender or bank if they decide to repay the loan before the end of its term. Prepayment charges can be avoided by taking loans from institutions that give out loans without these penalties, such as Fibe.

SBI Personal Loan: The prepayment charges for SBI Xpress Credit Personal Loan are 3% of the prepaid amount

Fibe Personal Loan: There are no prepayment charges or penalties if you decide to repay your loan before the end of its term

Process

SBI Personal Loan: Applying for SBI’s Xpress Credit Personal Loan has been simplified through minimum documentation requirements. However, it is not entirely digital and repayment is only through bank transfer from the salaried account.

Fibe Personal Loan: Applying for a Personal Loan through Fibe is a quick, hassle-free process that is mostly digital. The personal loan can be repaid through different means such as:

Auto Payments
Net Banking
UPI
Adding Fibe as a beneficiary in your bank account and transferring money

Long Term Advantages

SBI Personal Loan: Long term advantages of taking an SBI Xpress Credit Personal Loan are:

SBI claims low processing charges – these are set at 1.5% of your loan amount.
SBI offers a provision for a second loan
Subject to eligibility, SBI claims to offers loan up to 20 Lakhs
SBI also claims minimum documentation

Fibe Personal Loan: The long term advantages of taking an Fibe Personal Loan are plenty:

Flexible loan amounts, starting from INR 8,000 to INR 5 Lakhs, with very lenient eligibility criteria. So it’s practically possible for you to receive a loan of the maximum amount.
A digital process with minimum documentation. Absolutely no paperwork.
Pay as you use: Pay interest only on the amount you use from the credit limit given to you
Zero repayment charges
Flexible tenure, with the option to repay in a tenure ranging from 90 days to 365 days

Parameters	Fibe Loan	SBI Xpress Credit Personal Loan
Eligibility	Salaried individual, Indian Resident	Must have a Salary account with SBI
Interest Rate	2% to 2.5% per month	10.50% to 16.40% p.a.
Borrower’s Age	21-55 years	21-58 years
Process	Short, quick, digital	Paperwork involved, therefore slower
Pre-Payment Charges	Zero prepayment charges	3% on prepaid amount
Long-Term Advantages	Flexible tenure, pay as you use, lesser minimum loan amount, digital process	Provision for a second loan
Minimum Loan	INR 8,000	INR 15,000

Hence, there are several things to consider before taking out a personal loan, which depends on why you’re taking the loan.

In today’s fast-paced world, Fibe provides individuals with quick loan solutions with instant approvals and exclusive features such as zero repayment fees, to ensure that the process is hassle-free and digital. Be sure to check out the eligibility criteria before applying for any loan, and read through the terms and conditions carefully to choose the most suitable and appropriate personal loan for your needs!

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the personal loan app here, or simply log in to our website and be a part of the #OneInAMillion experience.

How Great Companies Deliver the Best Financial Wellness Programs

A Financial Wellness Program usually expands from standard employee benefits and goes past retirement arranging and contributing data. A balanced one will promote, for employees, everything from precise understanding and appropriate use of money to the point of building not just a stable, but symbiotic relationship with money.

This is a perspective many evolving corporates are increasingly realizing. But before they begin tackling these opportunities, they are asking some fundamental questions. Such as:

Why should a Financial Wellness Program be provided?

Financial Stress negatively affects the workforce. Multiple examinations, including those from the American Psychological Association and Northwest Mutual, have found that cash issues have been the #1 stressor for young professionals.

This pressure culminates in depression, sleepless nights, and even out and outfits of anxiety, thus incrementing truancy, decreasing efficiency, and fueling high employee turnover. Many reasons employees are worried about their financial circumstances to have little to do with their heads or compensations.

Many young professionals are increasingly troubled with educational debt, more so than any other generation. They are beginning their career with immense budgeting problems.
Soaring medical care costs are another reason for worry for all ages.
The most recent decade’s downturn cleared out gigantic lumps from individuals’ retirement portfolios, pushing back their retirement timetables even as individuals dreaded for their positions.

Although employers are unlikely to be the reason for the monetary pressures the employees’ experience, they are uniquely placed to address these challenges. An ideal approach to battle the stress that accompanies monetary concerns is to get instructed (become a financial literate), structure a proper arrangement with objectives, and oversee expenses reasonably until and unless there is an achievement of the goals.

Employers can, and should, enable their employees to do these things. And many of them already are.

Top Companies Implementing FWP

Global brand Paypal is one of the most significant examples of overcoming adversity in American corporate history. The brand found that a considerable lump of its employees had minimal extra cash (4%-6% of full pay) after lodging, food, and transportation costs. So PayPal revealed a program to address four things:

Pay compensation that underpins budgetary wellbeing and increment of total wages,
Bring down the cost of benefits, termed as “regressive tax”,
Put forward opportunity for everybody to be an investor and proprietor of the organization and
Focus on financial management and training programs.

Microsoft, unsurprisingly, runs a thriving financial wellness program too. Called Live Well 365, the program combines health, fitness, and financial wellness in a comprehensive package. A dedicated portal, complete with a thriving blog disseminating financial education, form part of a broader offering featuring insurance plans, health tips, and more.

Several Indian corporates – including popular brands such as Myntra, Wakefit, BigBasket, HUL, NoBroker, and many others are progressively approaching financial wellness as one of the critical precepts of employee prosperity. These associations ensure that employees can deal with their funds better and set aside savings for stormy days.

In August 2019, Myntra introduced ‘Thrive’, a wellness framework for employees, in which financial prosperity is one of the fundamental principles. The organization is inviting experts in asset and wealth management to educate employees on ventures to spare tax, just as developing their riches for a protected future.

BigBasket (a company based out of Bangalore) has emphasized giving financial advice to lady employees. “Women have an extremely crucial role in supervising funds and interest in many families, and we started monetary literacy programs for women associates working at our distribution hubs,” Tanuja Tewari, VP of HR, BigBasket, was quoted as saying to The Economic Times. As the organization hopes to enhance its female workforce at the dissemination habitats, there are plans to teach all lady employees at the firm.

HUL runs successful financial wellness and education programs to teach representatives on the requirement for financial planning. The organization has additionally tied up with international experts for knowledge meetings on accessible financial instruments, said a representative.

Wakefit conducts internal training sessions with employees where it shares the tips and deceives of investing at a beginning phase and how a little segment of pay spared and put can go far in making sure about their future.

Conclusion

Hopefully, this discussion was enlightening and informative. While there is a range of online loan apps for professionals, brands like Fibe (Formerly EarlySalary) go one step ahead – by offering financial wellness services to corporates and their employees. The result? Lowered attrition, employee turnover decreases significantly, and the employees are free of the stress and pressure.

Financial Literacy and Financial Wellness are crucial not just for the long term, sustainable growth, but, as many would agree, are also the right concepts deserving of corporate attention.

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the instant loan app here, or log in to our website and be a part of the #OneSmallStep experience.

What is a Prepayment Penalty

personal loans, prepayment penalty, prepayment penalties

Thinking about repaying your personal loan early? Well, many borrowers want to know whether paying off a loan before time will save money or cost extra. The truth is, some lenders charge a prepayment penalty on personal loan when you close your loan early – either partially or fully. These are called pre closure charges for personal loan, and they can impact your savings.

This blog explains what are prepayment penalties in simple terms, why lenders charge them, how they work, and most importantly – how prepaying can help you save interest, reduce loan tenure, and regain control over your finances.

What is a Prepayment Penalty?

A prepayment penalty is a charge levied by lenders when you pay off your personal loan before the agreed term – whether in full or part.

Lenders earn interest from your EMIs, and when you repay early, they lose part of this expected income. To make up for this, they may charge a percentage of the outstanding principal or a flat fee.

💡 Why It Matters:

Interest Savings: By prepaying, you save on future interest costs.

Loan Tenure Reduction: Early repayment shortens your loan term, helping you become debt-free faster.

Financial Flexibility: Prepayment gives you a fresh start and lets you regain control of your finances.

Credit Score Impact: Consistent EMI payments and a successful prepayment can improve your creditworthiness.

Lock-in Period: Some lenders have a lock-in period (e.g., 6–12 months) during which prepayment is not allowed. Always check this before planning a prepayment.

How Does a Prepayment Penalty Work?

Lenders use prepayment penalties to recover lost income from interest. Here’s how it usually works:

Percentage of Balance: A fee based on a fixed percentage of the remaining principal amount.

Interest Cost Method: Some lenders calculate the penalty based on the interest you would have paid for the remaining tenure.

Flat Fee: A fixed, pre-decided amount that applies regardless of when you prepay.

👉 Pro Tip: Before prepaying, calculate the penalty amount and compare it with the total interest you will save. If savings outweigh the fee, prepayment makes financial sense.

How to Calculate Prepayment Penalties

Knowing the exact calculation method helps you make an informed decision:

Check your loan agreement for how your lender calculates pre closure charges for personal loan.

Use an online prepayment calculator to compare the penalty vs. interest saved.

Plan your timing – prepaying after the lock-in period ensures you avoid unnecessary penalties.

The Dos and Don’ts of Prepayment Penalty Clauses

Here’s a quick table to help you stay smart about prepayment:

Dos	Don’ts
Read your agreement carefully – Understand prepayment terms, charges, and lock-in periods.	Don’t prepay blindly – Check if the interest saved is higher than the penalty.
Compare lenders – Pick those with zero or minimal pre closure charges for personal loan.	Don’t refinance without math – Calculate costs before switching to a new loan.
Time your prepayment wisely – Prepay right after the lock-in period ends.	Don’t ignore fine print – It may include clauses about partial prepayments.
Choose lenders like Fibe – No prepayment penalties mean full savings and faster debt freedom.

Get an Instant Personal Loan with No Prepayment Penalties

Fibe offers instant personal loans with 0 foreclosure charges, so you can repay anytime, save more on interest, and finish your loan sooner.

Download the Fibe Personal Loan App or visit our website to apply and take control of your financial journey today!

FAQs on Personal Loan Preclosure Charges

Is it good to close a personal loan early?

Yes. If there are no pre closure charges for personal loan, early closure helps you save interest and reduce debt faster.

Does prepayment affect the CIBIL score?

No, prepayment does not negatively affect your score. In fact, it can improve your credit profile by showing strong repayment behavior.

Will prepayment reduce the interest?

Absolutely. Prepayment reduces your outstanding principal, which means you pay less interest overall.

5 Habits of Women Who are Smart With Their Money

Ever wondered why some women are better than the others at handling finances? Is managing money in a better way rooted in genes? Are some just more intelligent or more qualified? A bit of both perhaps. A 2017 Fidelity study shows that women save a larger proportion of their income than men. Another study built on this financially savvy narrative, pointing out that women participate in greater numbers in financial wellness exercises – such as retirement planning.

Handling your finances efficiently is part of a smart lifestyle. Financially literate women achieve it by practicing it on a daily basis. It’s a habit. Just as you take the time to address the effects of stress on your mental health, it is essential to prioritize your financial health.

So what is that these smart women do? What makes them better?

Let’s find out what we should follow in order to handle our money better.

Keep lifestyle costs in check

Often, women may be labeled as spendthrifts. But a smart woman knows how to prioritize. She keeps a check on her and her family’s spending habits. A financially intelligent woman also knows when to say no. She spends wisely and doesn’t fall into the temptation of unrestricted indiscipline, retail therapy, or the like. Financial smartness is determined by the ways we manage our expenditure and our lifestyle. A smart woman tends to follow a set budget without compromising on the quality of life.

Deal with your Vices

Without meaning to stereotype in any way – most women do enjoy shopping a lot more than men. Again, this isn’t stereotyping – science and data-backed studies back this up. So, as part of a gender that may make extended, impulsive purchases, like getting a coffee before work or a drink after work, smart individuals need to learn to deal with such vices. Smart women keep low-cost substitutes within reach, which help them curb unnecessary spending.

Catching up with friends over a happy hour is important, but making a routine of grabbing drinks or food just because it’s convenient is not what a financially smart woman would do. Don’t hit up the vending machine for a snack; keep a bag of almonds or fruit gummies in your purse.

Emergency Funding

Whether it be in the form of FDs or gold, which can be liquidated at any time, or cash stocked on the top shelf of the closet, women generally have considerable savings In addition to these, most financially smart women have an emergency fund, separate from their savings. An intelligent woman hardly ever panics. This is because she always has a contingency plan. She is calm always because she knows that she is ready for an emergency.

Convert your jewelry to gold investments

Nobody’s against physical gold or silver, and of course, it’s great that you can both afford them. But investments are the smarter way to save. In fact, according to Canadian fintech startup Mylo’s data, women are twice as likely to avoid investment losses as men. Safe to assume that diversified, tried-and-tested investments like gold help.

With commodity investments like gold, you can earn through interest and save by cutting the making charges of physical jewelry. Research thoroughly and decide how much you should invest in gold investments, and how much you should spend in buying physical jewelry.

Keep a tab on recurring costs

Of course, you can put your internet or phone bill on auto-pay; it is hassle-free. But don’t just forget about it indefinitely. Always schedule a time to reassess your monthly bills. Research and negotiate your recurring costs; it helps you get better rates: insurances, cell phone bills, or even Netflix subscriptions. You’ll be surprised when you get new and improved rates, once you can cancel the old ones.

For women relying on credit to bolster their financial success, monitoring interest rates is another challenge. A considerable amount of money can be saved by refinancing your loans when you can take advantage of a lower interest rate. You can check out Fibe; it provides instant, superior, short-term loans at low-interest rates.

Ladies, This List Isn’t Exhaustive

While these habits might help you get started, remember that it’s not always one size fits all regarding spending and saving. You can figure out a long-term plan that fits your lifestyle by taking time to explore your relationship with money. You can also consider taking professional help from organizations, like Fibe, where they personal loan and solutions for almost all kinds of emergencies.

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the instant loan app here, or log in to our website and be a part of the #OneSmallStep experience.

The Complete Guide to Getting a Two-Wheeler Loan in Minutes

It’s undeniable that getting your own vehicle brings a sense of freedom, and the first vehicle one generally owns is a two-wheeler. The experience of driving a two-wheeler is liberating, and in addition to being cost-effective, a two-wheeler is the perfect means of transport for everyone.

If you have been thinking of shelving away your dreams of owning a scooter or a bike just because you seem to lack the necessary funds or would rather put your funds aside for emergencies, we have some good news for you! You can achieve your dreams of owning a personal two-wheeler vehicle with the help of external financing in the form of 2-wheeler loans.

Read on for more about a two-wheeler vehicle loan, the eligibility criteria you need to meet, and more.

Why Should You Go for a Two-Wheeler Loan?

1. Two-Wheeler Loans are Safe and Affordable: Regulated by government and RBI guidelines, two-wheeler loans offered by various financial organisations in India are a transparent and secure option for you to get the two-wheeler you have been dreaming of.

Make sure you know all the associated charges and fees clearly before you apply instant loan and figure out your repayment beforehand as well.

2. You Get to Put Your Savings Aside for Emergencies: For the general populace, the cost of a two-wheeler is quite a substantial drag on resources. However, if you apply for a 2-wheeler loan instead of using your savings for a vehicle, you free up your existing funds. You can keep cash aside for emergencies as well as personal expenses.

Additionally, you can use the funds at hand to invest in instruments of your choice, like mutual fund schemes, stocks, insurance policies or other assets.

Now that you know bike loans (or scooter loans) are a safe and beneficial option, read our complete guide to taking a swift two-wheeler vehicle loan with ease.

Understanding the Basics:

If you are applying for a two-wheeler loan online for the first time, start by having a clear idea of the terminology associated with such loans. Here are common terms you need to know to plan your loan and select a lender.

1. Loan Amount: First up is the two-wheeler loan amount, and the title is pretty self-explanatory. This is the amount you will be borrowing and is also called the principal amount.

2. Loan Eligibility: Lenders check your two-wheeler loan eligibility to assess if you qualify for the loan amount you are applying for. To do this, they consider the cost of the two-wheeler of your choice and your repayment capabilities.

3. Repayment Capacity: How is your repayment capacity checked? Lenders look into your current monthly income and spending habits, as well as the records of any other loans you may have previously taken. Your repayment capacity directly affects your eligibility for taking a certain loan amount as a loan.

4. EMI: EMI is the acronym for Equated Monthly Instalment. This is the amount you will be expected to pay back to your lender every month. Each instalment of your two-wheeler loan EMI consists of a portion of your two-wheeler vehicle loan amount and the interest accumulating on the loan.

5. Interest Rate: This aforementioned interest being accrued on your principal amount is calculated on the basis of a fixed or floating percentage known as the interest rate.

6. Loan Tenure: This is the duration of your bike loan. The loan tenure is the number of months you would need to repay your loan amount comfortably.

7. Processing Fees: Finally, this is a fee you have to pay the lender for the processing of your two-wheeler loan application.

Now that the terminology is out of the way, here is how you should ideally plan for a two-wheeler loan.

Planning Your Two-Wheeler Loan:

If you are planning to take a two-wheeler loan, use this checklist to your advantage.

1. Check Your Loan Eligibility: Some of the standard criteria to get a two-wheeler loan in India include:

If you are a working professional, your age should be a minimum of 21 years to apply and a maximum of 60 years when the tenure ends
If you are self-employed, you should be a minimum of 21 years old and a maximum of 65 years when the tenure ends
You are supposed to have a certain minimum monthly income, depending on the type of city you are in

You also need to be a resident in the same city for at least one year with a phone number at the residence/office
Lending institutions also typically also consider your CIBIL score to determine your loan eligibility

2. Research: With a wide range of two-wheeler loan choices available in the Indian market today, it becomes difficult to choose the best. Understand the benefits provided and eligibility terms set by a lender. Compare a few banks and NBFCs, and then select the one which suits your needs and preferences the best.

3. Calculate EMI: It’s critical to calculate the two-wheeler loan EMI before you initiate your credit application. Determining the monthly amount you would be paying during your loan tenure can help you better understand how a personal loan may affect your monthly expenses. This way, you can come up with a comfortable repayment plan.

Online lenders usually provide an EMI calculator so you can see what kind of amount you are likely to be paying monthly to repay your loan amount and interest. Calculating your two-wheeler loan’s EMI is incredibly simple. The Fibe EMI calculator, for instance, can calculate your two-wheeler loan EMI based on the details you feed into it.

With it, you can avoid manual calculations, as the calculator takes into account your loan amount, tenure and interest rates and determines your two-wheeler loan EMI. Using an EMI calculator before applying for your two-wheeler loan is a smart way to begin the process.

4. Have a Repayment Plan: Formulating a repayment plan beforehand can reduce a lot of stress for you. Along with planning your monthly budget for the loan tenure, put money aside for emergencies and don’t forget to count in the expenses of fuel and various other service charges related to your two-wheeler. This way, you can ensure you will pay your EMIs on time and without strain.

5. Know the Factors Affecting Interest Rates: While you cannot control the lender’s policies or economic climate, you can get a more competitive rate of interest on your two-wheeler loan. How? Make sure your financial standing is good and that you have a stable income. This will help you get the best rates on your two-wheeler loan.

6. When to Take The Loan: Finally, it is crucial to keep your eyes peeled for attractive discounts and offers, especially around festive times. This may allow you to avail of benefits like reduced processing fees and more, which will decrease your overall costs.

Finally, coming to the actual application process, here is a list of steps you need to follow to get a bike loan, online or offline.

Steps to Follow to Apply for a Two-Wheeler Loan:

Check out the guide below to get going with a two-wheeler loan.

1. Select the Lender: Consider factors like processing charges, interest rates, features, coverage, customer service and more. This will help you select the ideal lender for your two-wheeler loan – online or offline.

2. Confirm Loan Eligibility: Most online lending websites calculate your eligibility for a two-wheeler loan on their own, which makes the process a lot more straightforward. All you’d usually have to do is provide some information they ask for.

3. Apply: With most lending organisations, you can complete the application process for a two-wheeler loan entirely online. Most require you to fill in your personal and bank details as well as details about your two-wheeler. This includes on-road price, name of the dealer, RTO location and more.

Ideally, you should pick a lender who asks for minimal proof/documentation and offers quick processing for a hassle-free two-wheeler loan application process.

4. Submit Documentation: Finally, to complete your two-wheeler loan application, you’ll typically need to provide some or all of the following documents:

Identity proof (Voter ID, Aadhaar Card, Passport, driver’s license, etc.)
Residence proof (Voter ID, Aadhaar Card, etc.)
PAN Card
Income proof (salary slips or IT returns)
Passport-size photographs

And there you have it! This concludes everything you need to know to apply for a two-wheeler loan.

A lot of us usually hesitate before getting a loan, assuming that it entails a complex and lengthy application and disbursal procedure, high-interest rates, processing fees and more. However, applying for a Fibe Two-Wheeler Loan is an instantaneous and hassle-free process. Even newly salaried employees and those without a salary slip can apply for the Fibe Two-Wheeler Loan.

In fact, the Fibe Two-Wheeler Loan comes with flexible repayment tenures and zero prepayment charges. Apply for it to get up to ₹5 lacs for your two-wheeler purchase. Moreover, we don’t require you to pledge collateral or ask for a down payment – unlike most traditional financial institutions. At Fibe, you can also benefit from a fixed interest rate during your entire repayment tenure. Lastly, you can complete your application for a Fibe Two-Wheeler Loan fully online.

What’s Next After Two-Wheeler Loans?

The dream often starts from a two-wheeler and expands to other future investments and financial goals. Regardless of the variety of your aims, Fibe personal loans are here to help!

FAQs on Two-Wheeler Loan

Can I get a two-wheeler loan without income proof?

Usually, you need to show some evidence of your ability to repay the loan, which is why lenders ask for income proof.

What are the documents required for a bike loan?

To get a bike loan, you need to submit documents, such as your PAN card, passport-size photographs, your identity proof (Voter ID, Aadhaar Card, Passport, driver’s license) and your residence proof (Voter ID, Aadhaar Card). You also need to submit documents as income proof (salary slips or IT returns). In addition, lenders may require documents relating to the bike and its price.

What is the maximum tenure for a bike loan?

The maximum tenure for a bike loan typically ranges between 1 year to 5 years.

What is the rate of interest for a 2-wheeler loan?

You can take a personal loan for a two-wheeler from Fibe at affordable interest rate.

Who is eligible for a two-wheeler loan?

The bike loan eligibility criteria at Fibe require you to be an Indian resident. If you are a salaried employee, you need to be between the age of 21 years to 60 years, and if you are a self-employed individual, the maximum age limit can go up to 65 years. Also, you must have a minimum monthly income of ₹18,000 if you live in a metro city and ₹15,000 if you live in a non-metro city.

Is a two-wheeler loan good or bad?

Two-wheeler loans are a great way of getting funds for purchasing your vehicle, and you can get a bike loan online or offline. Alternatively, you can get a personal loan from Fibe and use it towards purchasing your two-wheeler. These loans come with no restriction on end use along with other benefits.

Which month is best to buy a 2-wheeler?

Purchasing a two-wheeler from October through December can be a great decision. During these months, you get massive discounts due to the festive season, and dealers clear their inventories by offering money-saving deals.

The Millennial Way of Splurging on Experiences – Made Possible With Personal Loans

Millennial, experience economy, personal loans

Millennials rate experiences above all else. The world may have inclined towards materialistic possessions thus far, but for this demographic, all that is trumped by the real experiences that stay forever. After all, those are the moments to be lived for.

Experiences are what makes someone who they are. Nothing can be taken into the afterlife, but experiences can be cherished forever. And the best example of splurging on experiences is how ‘Millennials’ or the ‘Gen Y’ do it. Their spending on getting experiences has seen an upward trend. Eventbrite commissioned a study revealing that 78% would prefer indulging in experiences rather than materialistic items, like going out for dinner or some concert. This is the generation of ‘experience economy’.

The rise of the experience economy has been primarily due to the advent of social media. People are looking at pictures of families and friends gorging on a sumptuous meal in an undersea restaurant or skydiving in Spain. All this has given a greater connection to amass experiences. Further, after listening to the earlier generation’s stories, Gen Y tends to recreate the same habits and enjoyment as their parents or grandparents.

How is the experience-splurging taking place?

It is all about creating budget-friendly experiences. Millennials are adopting various creative ways to explore.

Creative accommodation

There has been an increase in rented accommodations rather than buying them. This is due to different reasons, including tight-pockets. Experiences are expensive; hence there is a practice of cost-cutting in case of accommodation. No wonder a rise in studio-apartments around the world is taking place. Further, rather than resorting to a hotel during vacation, millennials prefer their ways. Camping under the stars, staying in an Airbnb, or taking up capsule rooms like in Japan, the accommodation market has adjusted according to the millennials’ creative and budget needs; after all, they are the ones driving this ‘experience economy’.

Personal touch

Rather than taking up a high-paying job, many would take up a position with better human interaction. Further, a better work-life balance and career development are on top of millennials’ minds. Paul Cross, the founder of Everfast, said, “Today, modern science has debunked the myth that consuming things made of atoms makes you happier. It does, but the happiness is short-lived. We now know that happiness through experiential consumption—going to festivals with friends, is long-lasting and highly preferential.”

Frugality in lifestyle

Millennials cut down on expenses that are cut down to make way for better experiences. They tend to choose cheap food and transportation to compensate for spending on getting their bucket list goals fulfilled. Hitchhiking has been the newfound love of such travelers, and they prefer food from shacks or roadside spots or would instead prefer to have it made by them. After all, it is about selective splurging.

Dreams made possible with personal loans

Source: Livemint

In May 2016, Buzzfeed published an article on the “urban poor”. It defined urban poor as “Objectively and relative to a vast majority of Indians; they aren’t “poor” at all. But they are indeed hungry and broke a lot. These are the metro-dwelling twenty-something who have internalized the pressures surrounding them, and spend most of their salaries on keeping up the lifestyles and appearances that they believe are essential to earning those salaries.”

The experience splurging has been the cause of major debt among the millennials. But when experience has been rated higher than anything, intelligent choices should be taken. For instance, taking personal loans is not a bad idea. So, are today’s youth broke millennials or smart borrowers?

India’s largest instant personal loan & salary advance platform, Fibe has a loan for all purposes. Be it last minute paying of utility bills, taking an impromptu vacation, or buying stuff at a flash sale; everything is possible at the tap of a finger in a few minutes. An instant cash loan starting from Rs. 5,000 to Rs. 2,00,000 for a tenure of up to 12 months, for example. Travel and shopping EMIs have been among the lowest, to be paid in 3-6 months. Wish to learn a new skill? EarlySalary has got you covered. Personal loans are a way to go for Millenials willing to splurge on experiences.

The experience economy is the new buzzword today, led by the millennials. Splurgetting is a new term created by their practices. But everything comes for a price. Well-thought financial wellness would mean low millennial stress and a smooth and seamless transition into fun and happiness. Fortunately, millennials aren’t afraid to talk about money.

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the Fibe app here, or simply log in to our website and be a part of the #OneSmallStep experience.

A Beginner’s Guide For Choosing and Comparing The Best Personal Loan Offers

Personal loans are ideal for both aspirations and pressing financial needs. Called an unsecured loan, this type of credit is extremely popular, making up 28% of all bank credit in India. Unsurprisingly then, there’s no shortage of lenders seeking to meet this market demand. Some even give you instant approval after applying, and you can have access to the full sanction of the loan in just 24 hours.

You can choose an instant personal loan depending on your wishes. It’s why it’s considered the best way for you to raise funds, be it for weeding, for a vacation, or medical treatment. Before you apply for a personal loan though, you must be aware of some essential things you need to consider before choosing your loan plan:

Tips for Choosing the Desired Personal Loan

Compare the Rates of Personal Loans

It is always the most important part before choosing your loan; you should know which one best fits you. Lower interest rate implies lower EMIs. So before you apply for a personal loan, make sure that you check all the possible lenders’ interest rates.

Select Your Loan Amount

When opting for loans, make sure you’re confident about the amount of money you require. You always apply for the amount you need instead of selecting an amount recklessly. Choose a lender who offers a substantial amount of loan and ensure that it covers all your expenses. Your EMI largely relies on the rate of interest and the amount of your loan, so you need to select a suitable amount that you can positively return in due time without facing any penalties.

Check on Extra Fees and Charges

While choosing a loan, compare the fees and charges in addition to the interest rates. The extra fees and charges include late payment fees, processing fees, prepayment fees, etc. The costs might be higher or lower, depending on the lender. You can apply for a loan on lenders like Fibe that promise no hidden charges and no prepayment fees. Before applying for a loan, ensure that you consider these factors to avoid spending more than you may have anticipated.

Enquire About Flat Interest Rates vs. Reducing Balance Rates

Some lenders offer an option for you to choose between flat interest rates and reducing interest rates. In flat interest rates, the amount of interest is calculated on the whole amount and applied to your EMIs throughout the entire tenure. In reducing interest rates, the interest on your loan reduces over the loan tenure as the loan amount is paid periodically. Before applying for a loan, choose your preferred mode.

Keep An Eye On Your Credit Scores

Your credit report is a summary of the loans you’ve taken and your repayment history. It includes details of credit cards, unpaid bills, accounts, and other activities and is impacted by several factors. As you may guess, it is crucial to keep a regular check on your credit scores to avoid any fraud or miscalculation. It’s also equally crucial to keep your credit score in check if you’re applying for a loan from a bank. While you can repair your credit score with a variety of actions, you may also want to explore new-age lenders that allow you to take a personal loan without a credit score.

Know About the Loan Processing Time

Always enquire about the required documents and the time for the loan to be sanctioned. Some banks take more time to approve loans than the others, so compare the duration required before applying. Banks with the option of online submission of documents require lesser time than the banks you need to visit.

Personal Loan Offers, Guide to Personal Loan

If you’re on the lookout for instant cash, head over to instant loan portals such as Fibe, which assure an instant disbursal of funds, in the order of hours, if not minutes.

Read the Terms and Conditions Carefully

It is crucial to know and understand each and every term and condition thoroughly. Always ensure you study the loan document carefully if you do not want to face any difficulties in the future. Ignorance of the clause isn’t valid grounds for violations, or even avoiding consequences. If required, take help from an advisor.

You can apply for instant personal loans up to Rs. 2 lakhs at Fibe. Here you can enjoy easy cash transfer, flexible repayment tenure, and no prepayment charges. Register with us now to enjoy the benefits as early as possible. Just makes sure you meet the rather liberal eligibility criteria:

Criteria for Applying for a Personal Loan

The age of the applicant has to be between 21 to 60 years.
The applicant needs to be an Indian citizen.
The applicant must have a steady job (both public and private meets the requirement) with a salary, preferably above INR 15,000 or 25,000, depending on the amount

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs!

Download the instant loan app here, or simply log in to our website and be a part of the #OneInAMillion experience.