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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.

What is Financial Literacy and why is it important?

Financial literacy enables you to make better financial decisions and avoid fraud. In today’s world, knowing about money management, income, savings, and investment is crucial.

This knowledge arms you with the right financial information and the ability to know, monitor, and enhance your financial resources. By leveraging your finances, you can boost your life today and, in the future, too.

To learn more about the aspects of financial literacy and its importance, read on.

What is Financial Literacy?

Financial literacy is the understanding of financial skills and sources, including financial management, budgeting, lending, taxation and investments. Having this information helps you make better choices, which positively impacts on your financial well-being.

Today, evolved financial resources and products are widespread. Most consumers depend on credit cards, loans, mortgages, etc., for purchasing items. Investments and insurance solutions have also found their place in the current scenario, making it crucial for you to understand and use these resources effectively.

Professionals should have a basic knowledge of concepts like compound interests or the time value of money. You must also know the management of wages or household budgeting, paying off debts, evaluating credit cards and loans, etc. The lack of financial literacy can be lethal for stable and long-term financial success.

Also Read: Why Financial Literacy Is Important For Youth

Why Financial Literacy Matters

According to the S&P Ratings Services Global FinLit Survey, only 33% of adults worldwide have acceptable levels of financial literacy. This statistic sheds light on the importance of financial literacy on a national and global level.

To understand the challenges you can face when you don’t have enough information, consider these questions:

How many adults can’t afford emergency expenses?
Why have credit card debts grown?
How many adults don’t have backup plans for retiring?

Financial literacy helps you save enough and avoid these challenges. Most millennials, who incidentally make up the largest share of the workforce, are unprepared for a financial crisis. The job loss due to COVID and lack of financial literacy have led to a rise in mortgage foreclosures too.

In such a scenario, being smart about your finances can make a huge difference. Financial literacy can also help protect you from fraud, which is, unfortunately, becoming more common.

Trends Making Financial Literacy More Important

There are five trends that demonstrate the importance of making informed and productive decisions about finances:

Complexity

There are various options to invest and save today. They offer varying interest rates and tenures, forcing consumers to make decisions they are not adequately informed to make. Complex financial instruments add to the decision-making pressure and impact investments in assets.

Changing Financial Environments

The financial environment is now a global market, with many participants and even more factors to influence it. Financial markets tend to exhibit levels of volatility historically unseen. Naturally, retail investors find creating and implementing a stable path difficult.

Tenfold Increase in the Number of Choices

There are so many options – brokerage firms, banks, NBFCs, insurance firms, credit unions, credit card companies, financial planners, mortgage companies, and other financial service companies – all vying for assets. This creates more confusion for the consumer.

Need For Retirement Plans

In the past, people relied on pensions to support them during retirement. Professionals managed pension funds and the financial burden was on the organisations that sponsored them. The working person did not contribute to his own plan and was almost never made aware of the investments or status held by the pension.

Today, pensions are rare. Employees are expected to participate in plans, make the right financial choices, and decide how much to contribute to retirement savings. Moreover, owing to the longer lifespans supported by progress in the medical world, financial planning for retirement has become crucial.

One way that Fibe (Formerly EarlySalary) has helped power financial wellness for corporate India is by providing financial training to the workforce and helping them face the challenges that the future holds.

Advantages of Being Financially Literate

Being financially literate brings a number of benefits to the fore. Here are some of the benefits that you should know:

It allows you to make better decisions about credit, investment, insurance and other related facilities
It helps you create a sound and structured budget and reduce your expenses
It helps you manage investments and debt with sound financial knowledge
It helps in fulfilling your goals and objectives
It saves you from financial stress and anxiety

Components of Financial Literacy

Here are some aspects of financial literacy that you should know:

Budget Creation

Budgeting requires balancing four components, including spending, investment, savings, and credit. Creating a sound budget results in financial prosperity and stability.

Borrowing

Borrowing is another essential component as the number of credit options has increased exponentially. As such, it is crucial to understand interest rates, tenures and loan structures.

Investing

Investing helps you achieve financial growth; however, you need to make the right decisions. For this, you will need to learn about interest rates, yields, diversification and risk mitigation.

Taxation

Most of your income, investments, and spending attract taxes. Thus, gaining knowledge about different forms of taxation is also an essential component of financial literacy.

Bottom Line

It is not easy to learn how to be financially literate, but once mastered, it can ease life’s burdens tremendously. Managing your funds also means knowing when to borrow and how to borrow smartly. With Fibe, you can get Instant Personal Loans of up to ₹5 lacs without any hassle. Download the Fibe Personal Loan App or register on the website to start the journey!

FAQs about the Importance of Financial Literacy

What is the impact of financial literacy?

The main impact of financial literacy is that it helps people make wiser decisions. Having this knowledge helps achieve short-term and long-term goals, be it children’s education, marriage, buying a home, or investing.

What is the importance of financial literacy for students?

By starting early, students can understand complex financial products and terms. This helps them become responsible adults who can handle credit, insurance, budgeting and overall money management better.

What are some examples of financial literacy?

Some examples of financial literacy include:

How to borrow smartly and repay on time
How to invest based on risk appetite
How to track, plan and prioritise monthly expenses
How to save taxes

What are the 5 principles of financial literacy?

The 5 main principles of financial literacy revolve around the following:

Earning and understanding your salary structure
Saving up for future goals and investing smartly
Safeguarding yourself and your assets with insurance and emergency funds
Spending within your means
Borrowing smartly

Is financial literacy a life skill?

Yes, financial literacy is a core component of the essential life skills you need. Having a handle on your personal finances helps you achieve your objectives and become self-sufficient.

References:

https://www.mdpi.com/1911-8074/14/3/118#:~:text=Analyzing%20data%20from%20European%20countries,42%25%20(Klapper%20et%20al.https://corporatefinanceinstitute.com/resources/management/financial-literacy/

The Most Reliable Strategies for Promoting Financial Wellness in the Workplace

Have you ever considered:

How many employees are living salary to salary or paycheck to paycheck?
The relationship between productivity and financial wellness?
How many employees have their retirement savings exhausted before actual retirement?
How many employees, both men, and women, actually agree that their compensation is keeping up with their cost of living?

Most employees are not vocal with their employers about their financial issues. According to data from the Employee Financial Wellness Survey by PwC, only 43% of men say their compensation is keeping up with their cost of living. The number is even lower for women – at 30%. No surprises, then, that increasingly, financial wellness is seen as a must-have employee benefit.

Armed with financial information, data, and the advantage of easy access to employees, employers, have a unique opportunity to introduce programs to improve individuals’ financial literacy and well being.

For the success of such financial wellness programs, employers must start with a clear strategy inculcating business objectives. Financial wellness includes understanding the areas of an employee’s economic life that are influenced by an organization and then taking steps to improve it.

Integrate Benefits

Make your workforce understand

Explain what a complete financial wellness offering appears and how the programs that you introduce in the future can support it. List all the financial benefits that you offer, ranging from banking services to retirement plans.

Know your audience

Understand your audience – in this case, your employees. This should help in catering to the needs of a diverse range of employees.

Simplify the process

Make it simple for employees to find and use your financial wellness programs, including automated solutions. Always ensure a quality service. This helps in generating and maintaining positive perceptions and increases the usage of such programs.

Generalize

Remember that sometimes, the employees are not the financial decision-maker in their family. Make it possible for the employee to involve other family members in accessing the plans.

Single portal

Keep a single portal or platform for all your benefits offerings. Research your population’s priorities, and depending on that, promote content in segmented ways.

Feedback

Analyze what’s working and what’s not. Adjust according to the feedback.

Explore established and emerging solutions

Financial Diagnosis:

There are many programs that help diagnose employees’ financial wellness issues and also implement custom solutions to meet those needs. Partner with vendors – such as Fibe – that can offer financial assistance and insights to your employees

Emergency Back up

Consider auto-enrollment benefits to an emergency savings program such as EarlySalary. This ensures that your employees’ financial situations are secured.

Cash Management

A variety of firms can help your employees understand the right ways when it comes to spending and saving. Owing to innovation and technological progress, there are sophisticated methods of tracking money habits online.

Easy Investing

Simplify the complexities inherent in investing and make information easier to understand for your workforce.

Action Plans

Introduce a variety of tools that help your employees develop financial action and budget plans.

Show the full picture

Several vendors and platforms are available to help employees understand their financial states and cycles – from spending to savings, and including everything in between.

Fibe’s Financial Wellness program can help your employees feel financially secure. We’ve partnered with more than 280+ corporates and have delivered effective financial wellness services to more than 50,000 employees.

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 #OneSmallStep experience.

Restructuring Your Personal Loans – The Solution Is Debt Consolidation

Debt consolidation relates to the process of taking out a new loan to pay off other debts, generally unsecured ones. Manifold debts are merged into a single one in which the payoff terms are favorable to you. A debt consolidation loan is that unsecured personal loan which is taken to combine all other debts into one.
It is most often used to combine and pay off credit cards, personal loans, student loans, and other debts.

How does it work?

A majority of borrowers apply through their bank, credit card company, or credit union for a debt consolidation loan.

It is the perfect place to start, given that you have a great relationship or payment history with your institution. If you are rejected or turned down by any chance, you can explore the private mortgage companies or lenders.

Creditors are compliant in doing this for numerous reasons. Debt consolidation maximizes the plausibility of soliciting from a debtor. These loans are generally granted by financial institutes such as banks and credit unions. However, there exist other functional debt consolidation service institutions that grant these services to the general public.

The essence of getting a debt consolidation

No collateral is required to acquire a sizeable fund

Personal loans are unsecured loans. There is no need to commit your valuable assets and then keep losing your precious sleep, thinking about the time to pay off when you take a personal loan.

If your credit history has a good record, and you have a good relationship with your financial institution, you can get the consent for a sizable sum adequate to repay your current dues without worrying about collaterals.

Interest rates are reduced on your outstanding dues

Short-term continuances like credit card dues usually come with substantial charges on pending amounts. Their collective effect can cause your debts to rise, and if you are already coping up with repaying your previous debts, the added charges can obviously be a burden you’d rather avoid.

Using a personal loan with a reasonable interest rate for debt consolidation empowers you to dispose of enormous penalty charges and proposes a cost-efficient solution for returning dues.

Improve your credit scores

Maxing out your credit cards, and therefore, credit utilization rate, negatively impacts your credit score. Credit utilization is an estimate of the volume credit you use out of the total limit made available to you. A personal loan is, however, not considered in your credit utilization.

You can dramatically reduce your utilization rate by debt consolidation and make timely repayments to boost your credit score.

Enjoying a longer tenure to repay the monthly dues

Most financial institutions offer repayment tenures ranging from 1 year to 5 years for personal loans. Hence, you can easily relieve the strain on your budget by going for easily equated monthly installments (EMI) over an extended period.

Things to Keep in Mind

Let’s now look at the few things you need to keep in your mind while you are consolidating your debt:

Recognize the pending loans and other debts. Be mindful about the total due amounts
Have a thorough look at the tenure
Go for a personal loan or a debt consolidation loan from convenient options like Fibe (formerly EarlySalary)
Most importantly, i.e., when you receive your loan, stick strictly to the payment cycle.

How to Get a Debt Consolidation Loan

The conventional method for a personal loan application involves visiting the office and filling out essential forms. It is often mandatory to submit the KYC forms in the form of a hard copy. They usually take a significant amount of time to complete processing.

But the process of consolidating debt (i.e., getting a single loan to manage all your loans) doesn’t need to involve visits to offices, especially not in the post-COVID era. Those searching for a faster application process for an online personal loan.

An increasing number of people now seek online services such as Fibe and get a loan without stepping out of their homes. An online personal loan is the best approach for here – it occupies far lesser processing time and even involves no physical documentation.

Online personal loan apps like Fibe have revolutionized the way we look at loans. Not only do we get a personal loan with instant approval, but the process is entirely online, and without hassle. For more information on the benefits of Fibe loans and how to avail them, click here.

In other words, you’re saving time, and you’re saving money. Calculate your precise EMI amounts, and therefore your savings, by using this personal loan calculator.

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.

Tips for adjusting your budget when facing a crisis

After the 2008 global financial recession, this is what Martin Khor, the then Director of South Centre, wrote – “ The causes of the global financial crisis are to be found in the financial and economic policies of the developed countries, primarily the United States (US). Developing countries are not responsible for it, but they are now seriously affected”.

An ongoing crisis like the current pandemic is a looming threat to not just a particular nation, but the entire world. People panic with their finances; they don’t know how to use them in a good way.

In India, the start of the pandemic brought with it negative news. The stock market fell by as much as 30%, e-commerce platforms had to shut their operations, corporate layoffs increased, the GDP growth fell to 3.1% during the fourth quarter of fiscal year 2020 and the common public was left to fend for themselves, scared and frightened. (See Economic impact of the COVID-19 pandemic in India)

In scenarios like these, it’s paramount for people to understand how to construct their budget and get through tough times without falling into debt traps.

Understanding A Crisis and Overcoming Financial Stress

Identifying problems: What is the primary problem causing financial challenges? This could be an existing loan with high interest or an exorbitant monthly bill. Identify it first and learn to mitigate the risks. It helps in getting a permanent solution to your troubles and plugging the gaps in your financial situation.

Setting priorities: Panicky behavior is the biggest obstacle during a crisis. Considering setting priorities between your finances; and necessary expenses. Understanding the situation and listing out needs vs wants will help.

Address the problem: Stop delaying making decisions because of panic, fright, or lethargy. Don’t ignore the rat hole in your kitchen. Decide to confront the crisis and start working on it.

Developing a plan and budget: Consider creating a budget. It will help in getting your finances back on track. A detailed, well set out plan always helps in reaping future benefits.

Tracking progress: Don’t just sit back after making a plan. Execute it and track your progress. See if it works, and if not, start working on a different plan. Keep on your toes and keep working your way up.

Learning to adjust budgets in times of crisis

Cutting down unnecessary expenses: Ask yourself – do you need that Netflix subscription right now? Can you survive without getting yourself some sweet treats? Do you need the latest smartphone in the market?

Economics, as defined by Lionel Robbins, is summarized as ‘making choices in the face of scarcity’. This is what everyone would do well to remember, making the essential, and important choices. Consider your utmost necessities. They could be your usual groceries, paying off basic utility bills like water and electricity, or fuel charges.

Considering substitution: Consider this – your budget doesn’t allow you to eat out or have some sweet treats. You can’t afford expensive books or going to movies. What do you do then? You substitute them. Create treats at home, read through online open-source libraries, and watch old uploaded movies online. Substitutions might not be exactly what you desire, but it can satisfy your cravings in a cinch!

Staying on track with debt payments: Remember, the more you delay paying off existing loans, the more you get stuck in the debt trap. Take it slowly but ensure your debts don’t become a raging mountain. It helps to get financial help sooner rather than later because the more you second-guess your financial choices, the less you can put your hard-earned money to good use. It helps your financial stability and you would sooner come out of the crisis.

Considering assistance from financial organizations: Taking up this step wasn’t the norm in earlier times, but not today. There are many quality instant loan apps all around ready to help you with your cash crunch while offering a simple, easy to use interface right from your smartphone for the whole process. With proper budgeting and expense planning, you wouldn’t consider yourself into falling into any debt traps.

Fibe is one of the forerunners hereby being India’s earliest consumer lending platform. They have helped in getting short tenure instant loans to people in the form of salary advances and have now passed a million instant loan disbursals.

Yes, it’s no hidden secret that a crisis can be scary. But at the end of the day, all that matters is how you manage yourself and confront the crisis. Things can become hard, but we could find our way through by using various methods and techniques.

Think smart, work hard, and keep yourself stress-free!

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 #OneSmallStep experience.

Bolstering Financial Wellness Programs for Remote Employees

After the pandemic, work from home has become a norm rather than an anomaly. A sudden, big shift in the corporate landscape has been witnessed, and organizational activities such as meetings, deadlines, action plans are now well-tuned to work while we sit comfortably in our living rooms.

However, there is a major problem – related to employee financial wellness – surfacing because of the Covid-19 crisis. Many businesses have already implemented pay cuts and withdrawal of benefits to stay afloat. It is not that this financial wellness concern is seeking global attention only at the moment; it was in question even in the pre-pandemic times. But this time around, its importance is rather much realized (for more details on this, refer to our previous blog here).

What does financial wellness bring to the table?

To put it simply, financial wellness programs involve steps taken by employers to bolster benefits for employees and enable them to manage their personal and professional finances effectively. With due assistance, the employees are enabled to address a range of issues – credit score building, financial goal setting, financial crisis management, personal and household budgeting, and so on. Not only is this the ethically right thing to do, but it’s also prudent. These moves boost overall productivity at an organizational level. It is only logical that if employees have their finances not generating any stress, they raise the bar on output.

Importance in the pandemic hour

In 2019, data from a financial firm, John Hancock, showed that as many as 69 percent of workers had stress due to their shaky financial position. In fact, as many as 72 percent of the employees admitted to having been anxious about their personal finances at work, which adversely impacted their performance.

Thus, with Covid-19 creating spillovers across the globe, the ongoing year must differ from 2019: economic downturn, shutdowns, and job cuts. Also, more people this year are not so financially well-equipped, and even if the employees work from home, there are some teething problems such as electricity and Wi-Fi bills cropping up, and they need to be immediately addressed.

Therefore, it can be said that remote employees should be pulled out of the financial crunch by their employers as pointed out in a study by Travis Credit Union. The study concluded that 73 percent of employees believe the COVID-19 pandemic will change financial habits in the future. Therefore, due to the rise in such contingent expenditures coupled with a reduction in pay in a lot of cases, it has become imperative for the employees to have some sort of guidance on financial management. The employer, during these unsettling times, should rise to the occasion and work out these new problems.

Ways to engage remote employees in financial wellness programs

There are several ways in which employers can help remote employees with financial wellness without them being physically present:

Organizing online workshops and seminars on stress management with respect to personal finances, taxation, etc. can churn out benefits. As per March 2020’s Betterment for Business report, 77% of millennials and Gen Z savers say that thinking about their finances causes them stress. Stress is one of the primary factors reducing employee performance, which ultimately affects productivity.
An employee discount program by negotiating with different hospitals, restaurants, tourist attraction agents, and grocery vendors can be initiated to ensure the most basic of necessities, especially in crisis situations.
Implementing merit-based reward policies during these testing times will provide positive incentives for the employees.
Extending some short-term emergency lending services is also a way out to help the employees in case of an unfortunate incident under precarious circumstances.

There are also several other ways the organization can introduce to redress the balance for its employees in this post-COVID-19 fix. Several third-party organizations have come up with financial wellness programs that the employer can pay for while other aspects are outsourced. This can be the game-changer for remote employees, providing adequate financial support within the confines of their homes. At Fibe, we’re happy to be amongst the leaders in this segment. Organizations can partner with Fibe and offer instant personal loans, education fees financing, medical emergency loans, and many more financial tools for their workforce. Register here and make sure that your employees’ financial management needs are taken care of.

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 #OneSmallStep experience.

Build a Positive Credit Score with Good Credit Habits

Your financial habits will majorly impact your financial standing which is why maintaining healthy habits comes to the picture. This is true especially when it comes to your credit profile, as it can help you build a positive credit score. However, building a favourable credit profile is much more than spending and borrowing and doesn’t happen overnight.

While it is possible to get a loan without a credit score, you must consistently practice good credit habits. Clearing your credit card bills and paying your loan EMIs on time helps building a positive CIBIL or credit score. Uncertain about how to improve credit score?

Here are top 5 credit habits to consider for improving your credit score:

Prioritise your financial commitments

Planning financial goals and weighing all credit options is essential to build a positive credit score. Most lenders evaluate your repayment capacity from your debt-to-income ratio. This ratio determines your monthly liabilities compared to the total income you earn. Simply put, it is the percentage of your entire income from which you have to pay your rent, credit card bills and loan EMIs.

So, you must plan and prioritise your financial goals. If you are wondering how to increase your credit score, try keeping your debt obligations much lower than your income. Calculate your income to EMI ratio before borrowing and keep the ratio under 30%. Strategic financial planning like this is crucial to building a positive credit history.

Managing credit limits

Wondering how to increase CIBIL score? The answer is simple. Apply for credit only when you need it and have the repayment capacity. Be careful of how regularly you apply for credit cards. Applying for new credit too often will lower your score. In any case, a credit card with a considerable credit limit is excellent and you must maintain a low credit utilisation ratio. Utilising a large portion of the assigned credit not only adds to your responsibilities but may also affect your repayment capacity.

If you are new to credit, your credit utilisation ratio is the percentage of credit you have utilised against the total available credit limit. For example, if you have a total credit limit of ₹5 Lacs and make purchases worth ₹75,000, your current credit utilisation ratio is 15%. In this case, it is a healthy ratio as it is recommended that you utilise only up to 30% of your total credit limit.

Always keep track of your credit transactions, especially your credit card activity. Alternatively, you can also opt for automatic payments to avoid delayed payments. Inform your lender about starting this service and have the money debited from your account on a set date every month. It will ensure timely payments that can help build a positive credit score.

Simply put, anything indicating the non-performance of your credit accounts harms your credit score. So, if you are stressed thinking about how to improve CIBIL score, all you need to do is keep tabs on your credit card utilisation. If its low, it is easily manageable, as opposed to a higher outstanding, which may be a lot more challenging to repay.

Budget your spends

Budgeting monthly and annual expenses help you eliminate cash crunch situations. This will also help you stay on top of payments and show lenders that you are a responsible borrower.

Payment history is one of the most influential factors in CIBIL score improvement. The cardinal rule to follow is to try and put aside a sizable sum of money in a separate account as an emergency fund. This will help avoid defaults, repossessions, foreclosures, and third-party collections.

This fund can also help you meet your credit obligations and unexpected expenses during a financial crisis. With proper budgeting, achieving a positive credit score is relatively easy.

Maintaining older accounts

The simplest way to learn how to increase CIBIL score is to understand the role of your credit accounts. Your accounts reflect usage, repayment patterns, and key markers of financial management, and help establish a history with credit. Naturally, it is better that you maintain your older credit accounts, as these showcase a longer history with credit. This is good for your CIBIL score.

Similarly, maintaining an account for extended periods is a good credit habit, as your credit score also depends on the credit utilisation ratio. Hence, closing credit accounts may often lower your available credit and harm your credit profile. Instead, consider keeping accounts open if they have a good payment history and a low or zero balance.

Healthy credit mix

Maintaining a balanced credit mix of secured and unsecured loans is vital. A quick unsecured loan can help you bridge short-term credit needs, so try and balance by taking secured loans like car loans or home loans to balance the portfolio and build a positive credit score.

However, avoid availing too much credit, as these instruments can increase your debt burden. Apply for different types of loans depending on your requirements and develop a good credit score. There’s no need to stress about how to increase CIBIL score, as with this option, you can gradually improve your credit profile.

Monitor your credit score

It is vital to keep a tab on your score with constant monitoring. Checking your credit report not only helps you assess the score but also helps detect any errors in the credit report. So, regular monitoring is an effective way to boost the credit score and understand your borrowing and repaying habits.

Bottomline

Once you avail a loan or get a credit card, your credit history forms. This history is critical in boosting your credit or CIBIL score. The CIBIL score is a 3-digit number that determines your credit profile. It ranges from 300-900. It also reflects your credit behaviour and borrowing habits across a timeline. It is important for you to showcase good credit habits as lenders evaluate credit profile, repayment habits and behaviour patterns.

The best way to develop good long-term credit habits is through financial discipline. It is important to boost your credit score as this can provide you with umpteen benefits in other aspects of life too. Check out our beginner’s guide to borrowing and credit if you’re looking to get started.

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