Is It Safe to Share Your Bank Statement For a Loan Application 

Applying for a loan and wondering what bank details you can share? It is a very common doubt, because your bank statement holds personal financial information, and feeling unsure about misuse is completely normal. 

Yes, sharing your bank statement is safe when you send it to a bank or an RBI-registered NBFC through an encrypted channel. What makes it risky is the opposite: an unverified app, a link that arrived over WhatsApp, or a platform that will not say what happens to your data afterwards. Read on for why lenders ask for your statement, which details are safe to hand over and which you should never share with anyone. 

PRO TIP 

Short version: your bank statement, account number and IFSC code are fine to share with a regulated lender. Your net banking password, card PIN, CVV and any OTP are not fine to share with anyone, ever, including someone who says they are calling from your bank. 

Is It Safe to Share Your Bank Details for a Loan? 

Yes, sharing your bank statement is safe as long as it is sent to an RBI-registered lender through encrypted channels. It is a regular part of getting a loan approved. Lenders ask for your statement only to understand your income flow, financial stability and repayment capacity, nothing more. 

The key is how and where you share it. Avoid unverified apps, random links or platforms that do not look trustworthy. Choose lenders who are regulated, use strong encryption and clearly explain how your data is stored or deleted. With those checks in place, sharing your statement is safe, simple and worry-free. 

Risks of Sharing Your Bank Statement 

Being clear-eyed about the risks is what lets you avoid them. Anyone asking is it safe to share bank statement files deserves the full picture: a statement in the wrong hands does not hand over your money, but it does hand over a detailed map of your financial life. That can lead to: 

  • Convincing phishing attempts: someone who knows your salary date, employer and bank can make a fake call sound legitimate, which is how most account takeovers begin 
  • Identity profiling: your statement links your name, address, account number and spending pattern in one document, which is the raw material used to impersonate you 
  • Data resale: unregulated apps may pass your information to third parties, and once shared onward you have no practical way to pull it back 
  • Pressure selling: a leaked income profile often turns into a stream of calls about loans you never asked for 
  • Exposure of others: your statement also reveals names and account details of family, landlords and anyone you pay regularly 

WATCH OUT 

The single biggest risk is not the statement itself. It is being persuaded to share a credential afterwards. No genuine lender, bank or regulator will ever ask you for an OTP, a UPI PIN or a net banking password, at any stage, for any reason. 

One habit reduces most of this exposure: share only the months a lender actually needs, usually the last 3 to 6 rather than a full year, and keep the file password-protected in transit. 

Importance of Bank Statements in a Loan 

Your bank statements do more than show transactions. They help in several key ways: 

  • For loans and credit cards: lenders use them to check your income and verify your details before approving a loan or credit card 
  • For tax filing: you or your CA might need them while filing income tax returns, and they make things simpler at year-end 
  • For money management: statements help you track income, spending and savings, and avoid overdraft penalties 
  • For spotting fraud: they let you catch and report any unusual or suspicious transactions quickly 

Since they contain sensitive information, always store them safely. Most are password-protected, which is a small but strong step towards keeping your data secure. Also read: best banks for savings accounts in India. 

What Information Is Safe to Share in Your Bank Statement? 

This is where most of the confusion sits. Some details are designed to be shared; others are designed to stay with you alone. 

Detail Safe to Share With a Regulated Lender? Why 
Bank statement PDF (last 3 to 6 months) Yes Standard income proof; send the original PDF through the lender’s app or portal 
Bank account number Yes Needed to credit your loan amount and set up repayment 
IFSC code Yes A public branch identifier, printed on every cheque leaf 
Name and address as per bank records Yes Required for KYC matching 
PDF password for the statement Yes, with care Send it separately from the file, and only to a lender you have verified 
Net banking user ID and password Never Gives full account control; no lender needs this 
Card number, CVV, expiry, ATM PIN Never Payment credentials, not verification documents 
UPI PIN or MPIN Never Authorises payments out of your account 
Any OTP Never An OTP is the final approval step for a transaction or a login 

So, is it safe to share bank account number details on their own? Generally yes. Your account number exists so money can be paid in, which is why it sits on your salary slip and every cheque you have written. On the same logic, is it safe to share account number and IFSC code together? Also yes, for a legitimate purpose. Those two fields are what any NEFT, IMPS or UPI credit needs to reach you. 

DID YOU KNOW? 

Account number and IFSC code let someone send money to you, not take money from you. Any debit needs an authorisation only you can give, such as an OTP, a UPI PIN or a mandate you approve. That is why they are treated differently from your PIN or password. 

That said, low risk is not zero risk. Publishing your account number on social media or a public listing invites unwanted attention, so share it with a specific person for a specific reason rather than broadcasting it. 

How Is Your Data Used by Financial Institutions? 

The next step is knowing how the information will be used by whoever is asking for it. Before you upload anything, check these four things: 

  1. Learn what data the service stores and for how long 
  1. Check whether the data you are sharing can or will be passed on to other third parties 
  1. Make sure you understand how to tell the service to stop accessing your accounts, and how to delete data you have already shared 
  1. Ask whether the website or app automatically keeps or stores your information or passwords 

All four answers should be easy to find in the privacy policy. If a platform makes them hard to find, treat that as the answer. Satisfied on these points, sharing your bank statement is safe. 

Should a Loan Company Ask for Online Banking Details? 

Online banking details fall squarely into the sensitive category, and in the wrong hands they leave you genuinely vulnerable. This includes your customer identification number, net banking passwords and PINs. No legitimate loan company will ask for them. Lenders rely instead on documents you submit, or on a secure statement-fetch journey where you authenticate on your bank’s own page. 

You may need to share the password that opens your statement PDF. That is a different thing entirely from your banking password and is fine to share with a verified lender. Send it through a separate channel from the file. 

How to Share Bank Account Details? 

When sharing your bank details or bank statements, be cautious of a few things: 

  • Use secure platforms: share only through encrypted channels such as the lender’s official app or portal, which protects your information in transit 
  • Send password-protected files: use a password-protected PDF or zipped folder, and share the password separately 
  • Use trusted lender apps: upload only through the lender’s official app or website, which makes applying for an instant loan on bank statement verification far more secure 
  • Avoid public networks: never share banking details over public WiFi or unsecured messaging apps 
  • Verify the recipient: check the lender is a bank or registered NBFC and the app is the official one, not a lookalike with a similar name or logo 

QUICK STAT 

If money does leave your account without your approval, report it to your bank immediately. Under the current framework you have zero liability in a third-party breach provided you notify the bank within 3 working days of receiving the intimation. A revised framework takes effect on 1 January 2027, under which you must report to both your bank and the cybercrime helpline 1930 within 5 calendar days. 

How to Share Your Bank Information on Fibe? 

At Fibe, we never auto-save your information or passwords. We encrypt your data and use a PCI DSS App-based journey to keep it secure. Fibe is also ISO/IEC 27001 and SOC 2 certified. 

To share your bank statement for a loan application and get instant cash, you can use either of the following options. 

Option 1: Make Use of Online Banking 

  • Log in to your salary bank account through Fibe 
  • Ensure that your past 3 months’ pay has been credited 
  • Obtain fast loan approval from Fibe 

Option 2: Submit Bank Statements 

  • Check that the bank statement is for your salary account 
  • Ensure that your past 3 months’ pay has been credited 
  • Submit the original PDF format 

Both options are simple, quick and secure. 

New technology brings convenience, but it also gives scammers more openings. Stay alert whenever you share bank details for a loan: use strong passwords, share the minimum a lender genuinely needs and be careful what you grant access to. 

For a safe and convenient experience sharing your bank statements and getting the funds you need, download the Fibe Personal Loan App. 

FAQs on Sharing Bank Statements 

1.Is it safe to send a PDF bank statement? 

Yes, it is safe to send your bank statement in PDF format to reliable individuals or services. Most PDF statements require a password to open, so share that password only with trusted lenders or financial institutions, and send it separately from the file. 

2.What bank details are safe to share? 

You can share your bank statement, account number and IFSC code with a regulated lender. Never share your net banking user ID or password, card number, CVV, ATM PIN, UPI PIN or any OTP, with anyone, including someone claiming to be from your bank or the lender. Legitimate lenders never need these to verify your income. 

3.What is the safest way to send bank statements? 

The safest way is through the lender’s secure portal or official app. These have security measures that keep your data encrypted in transit and at rest. 

4.Do lenders verify bank statements? 

Yes, lenders verify your bank statement when you apply for a personal loan on bank statement. They check your income and confirm you are eligible. In this process your name, account type, average balance history, salary credit and savings are all reviewed. 

5.Is it okay to share a bank statement for a loan? 

Yes, it is completely okay as long as you are sharing it with a trusted lender or financial institution. Regulated lenders use your statement only to verify income and eligibility, and store it securely. 

6.What is the safest way to share bank details? 

Through your lender’s official app or secure portal. These platforms use encrypted systems that keep your account number, IFSC and bank statements protected from misuse. 

7.Can someone steal money from my account with just a bank statement? 

Not directly. A statement shows your account number, transactions and balance, but moving money out needs an authorisation only you can give, such as an OTP, a UPI PIN or a net banking login. The danger is indirect: a fraudster who has seen your statement knows your salary date, employer and bank, which makes a fake call far more convincing. Treat any unexpected contact about your account with suspicion, however much the caller seems to know. 

8.Is it safe to send a screenshot of my bank statement instead of a PDF? 

It is less safe and less useful. A screenshot has no password protection, sits unencrypted in your gallery and chat backups, and is easy to alter, so most lenders will reject it and ask for the original PDF anyway. Send the bank-generated PDF through the lender’s app instead. 

9.Is it risky to send a bank statement by email? 

Email is the weakest common option, because a copy stays in your sent folder and the recipient’s inbox indefinitely and either account could later be compromised. If email is the only route, send a password-protected PDF, share the password by a separate channel such as a phone call, then delete the message from your sent folder. Uploading through the lender’s app or portal is always better. 

From GTA to Hitler, And Even Football: The Funny Side Of Coronavirus

Coronavirus has pretty much forced everyone out of their normal lifestyles and has created an air of uneasiness and gloominess across the world. As this duration of this pandemic increases, this tends to create mental health issues for many, which is just going to add on to an already bad situation. Plus, the internet is constantly flowing with bad news. 

It is absolutely essential to stay positive during these tough times. As an old, wise headmaster once said, “Happiness can be found even in the darkest of times if only one remembers to turn on the light” (who said Dumbledore isn’t quotable?)

While we love to help people in financial straits, and spread positivity through general mental peace tips, like the importance of Yoga, this time, we decided to spread some laughter and humor. Laughter, after all, is a very important weapon in our arsenal to help remain positive throughout even the worst of the times. 

In fact, the good folks at VeryWellMind have written a great piece on how humor can help relieve the stress caused by Coronavirus. They’ve explained how cortisol secreted when we laugh is a great stress buster, and how it can help improve our overall mental health.

With this in mind, we, at EarlySalary, decided to take a look at some of the funniest memes, jokes and trends shared across various platforms with the sole intention to spread some laughter and positivity.

Brace yourselves, the memes are coming

#1 Birthday meme, by u/omega4life in r/memes.

r/memes is one of our favorite destinations for our daily humor fix. This subreddit has some of the best and original memes to be shared across the internet. The community has plenty of great memes, but this particular meme, titled Maybe a corona meme, by u/omega4life is extremely funny. Take a look!

P.S. The best of Reddit is mostly in the comments section, so go check the meme out on Reddit!

#2 Mask meme, by Lumpysauce in Instagram

There have been a lot of people against wearing masks, claiming that it’s an infringement on their freedom and/or causing mild respiratory distress, with some claims even stating that masks are “killing us”. This is not a political forum though, but we’d kindly ask you that you wear your mask to help get over this pandemic as soon as possible. However, a wide majority of people are angry at people refusing to wear masks, leading to hilarious memes, such as the mask meme by @lumpysauce on Instagram.

#3 Wembley Meme, by Wembley Stadium’s twitter account

Plenty of us had great plans for the year 2020. 2020 had other ideas. This emotion was best expressed by Wembley Stadium’s official twitter account through this meme

Plenty of football fans were surely expecting to see a packed Wembley, but hey, maybe next year.

#4 Hitler has Coronavirus, and He’s Not Happy by YouTuber Puzzling games

If any of you folks have ever watched a movie called downfall, you know exactly what to expect from this meme. If you don’t, imagine an angry Hitler being ranting at the present scenario. It’s 4 minutes of complete frustration, which is subtitled beautifully to capture the emotions of the present scenario, go have a look!

#5 A dead meme returns by ultimate_uwu-master in memedroid

A lot of us know of the classic game by Rockstar Studios, Grand Theft Auto San Andreas, which sees the protagonist, Carl “CJ” Johnson thrown into the streets of his rival gangs with little cash when he utters a line which has become meme-worthy for years to come. This meme by ultimate_uwu-master brings attention to the fact that there has been some pandemic or the other in the 20th year of the last three centuries, go take a look!

This was our top 5 memes that we found the funniest during these dark times? What did you think of this list? Do you have more memes for us? Do share it with us through our socials with #MemeswithES and let’s spread some joy together, shall we?

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.

Extending Financial Wellness Into Retirement, With Technology

Financial Wellness is an integral part of everyone’s life. Essentially, financial wellness refers to effectively managing one’s economic life. It can include different aspects, such as spending while keeping one’s financial capacity in mind, being prepared for emergencies, having access to and making use of tools and information necessary for making sound financial decisions, and planning for the future. Even though it is an important concept, it is often overlooked and neglected. 

In fact, 69% of employees are stressed out about their finances, and up to 72% worry about their finances at work. Thus, the concept of financial wellness has become imperative to both employers and employees. 

When we talk about financial wellness, it’s best to not limit ourselves to the present scenario. Financial wellness extends well into the future, as it refers to a person’s overall financial health and the absence of money-related stress. 

Starting Early

One of the many concepts on which financial wellness is based upon is adopting healthy financial habits in the long run. Adequate savings and spending habits that employees learn during their professional careers can be carried well into retirement years. 

When we talk about retirement plans and saving for retirement, it’s not limited to people who will be retiring in a span of 5-10 years. Retirement plans have to be put into action as soon as one establishes their career, at a young age. A majority of young employees might see that, if they calculate, they are significantly unprepared for retirement, and need to save more. Financial wellness is primarily accumulation driven, which has now become an outdated approach, especially with the advent and rise of technology. 

Many current wellness programs, however, are ineffective. This is because they focus primarily on providing information or access to additional content or resources, such as: 

  • Personal financial management applications, 
  • Financial advisors, or financial coaches. 

The problem arises because these alternatives require significant time and effort. Hence, they are rarely accessed by employees and are rarely paired with concrete, actionable steps for extending financial wellness. 

When it comes to planning for one’s retirement, sooner is always better. 

  • New employees make a majority of important financial decisions during company on-boarding. As they tip-toe their way through the HR setup, they choose a retirement plan, set a paycheck direct deposit, and decide on health insurance. 
  • Another important area where financial wellness programs should be focussed on is promotions or job changes since these are key moments where finances are modified. 

Tech & Financial Wellness

Technology plays a crucial role in helping employees plan for financial wellness well into retirement:

  • With the development of apps that help employees with direct saving, emergency lending, and financial literacy, this assistance is becoming more digital, accessible, and less time consuming as compared to its conventional, outdated counterparts. 
  • Features such as chat and personal-goal settings available in these applications allow companies to not only educate but also communicate and engage. This is a revolutionary step because employees need more than just education. They need step-by-step guides that offer instructions on how to formulate and execute a plan.

It’s imperative to understand that these initiatives are not beneficial only for employees approaching the retirement age. According to a recent study, over 67% of millennials have some sort of retirement savings plan. This hints that the younger generation can benefit immensely from a technology-based financial wellness platform with a human touch. 

Financial wellness tools can help provide financial balance and adequate knowledge and guidance to set young employees up for success. It is only normal that currently, we see an increasing number of companies desire highly motivated employees with the greatest productivity, enhancing their benefits experience with these tools. 

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, and be a part of the #OneInAMillion experience.

A Closer Look At The Tech Behind Instant Personal Loans for India

Compiled By: Anil Sinha
About Anil: He is the Head of Engineering at Fibe, with over 15 years of experience, Anil is passionate about technology and has strong Leadership skills driven by core human values. He has worked on various techno-functional leadership roles with hands-on code and delivered complex products in the space of distributed data processing, especially related to trade processing and risk analytics.

In the time of a pandemic that’s changing the way we live our lives, technology is bolstering ahead to cope up with the repercussions of the new normal. From cloud computing powering some of the biggest consumer tools and services to enabling working from home, it is constantly evolving to meet the needs of a world that has been forced to stay home. A financial crunch can be frequent in times of uncertainty and doubt, and the COVID-19 pandemic is no exception. This is where organizations like ours come into play and at the service of those who need fast and effective financial solutions. 

By offering instant personal loans with a minimum of basic requirements, we at Earlyalary are fortunate to be at the forefront of a fintech revolution. Financial Technology is a relatively new sector that combines technology and financial systems. With our technology adapted to be compatible with the ever-growing requirements of the fintech world, we have been able to develop an agile and more scalable system that is focussed on automation. This ensures smoothness of day to day operations. 

Automation testing and system monitoring

Investing in platforms that enhance and speed up processes is a crucial aspect of developing the tech behind instant personal loans. At Fibe, we have realized and acknowledged this from the very beginning. As a result, we have extensively invested in automation testing and system monitoring. This has helped us become more agile, respond to requests quickly, and effectively monitor all activities.

Utilizing data lakes

Instant Personal Loans

The concept of data lakes is gaining in importance, and rightly so. Data lakes help in managing large volumes of data – crucial to credit risk management – effectively and are honestly crucial to our success. By creating a data lake that is responsible for all types of our customer data, our overall system sees a marked enhancement in its strength and robustness. A data lake ensures the instant availability and high quality and reliability of the information so crucial to conducting our business and meeting our goals. At Fibe, our data lake has helped in making our analytics models far more capable and powerful, while strengthening overall processes.

Partner Management Platforms

A dedicated partner management platform is an excellent way to make partner integration smoother and easier. It brings many advantages as it automates operational tasks and recons. It also helps with auto failure detection and in some cases even auto-fixes. The EarlySalary team is fortunate to be involved in a variety of business partnerships with leading businesses, such as with aggregators from the marketing sector, and with lenders for co-lending. Our platforms are structured around a plug and play model that ensures that these integrations are seamless.

While the evolution of technology and its adoption and implementations are often at exponential rates, it’s reasonable to assume these metrics would see an even faster rate change in the light of the coronavirus pandemic. This would not be limited to just the fintech sector but will spread across all industries. Expect an increase in demand for cloud services and data analytics services, as well as for new avenues such as cybercrime security. Covid-19 has brought with it a wide range of changes that will have an impact on the way people think, work, and even spend. 

I believe that this data is crucial in need to identify the needs of the people, in order to serve them better. Customer centricity is of fundamental importance and priority, and we continue to work on areas that focus on improving customer experience through technology. We strive to increase the number of instant approvals for our loans, by reviewing our scorecard to provide better services to genuine customers. The tech behind instant personal loans continues to improve on a daily basis, as we race to ensure near-perfect optimization of processes and serve their customers better than ever before.

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, and be a part of the #OneInAMillion experience.

How Did HR Teams in India Manage Covid-19?

During the tragic COVID-19 crisis, HR teams across the world were presented with a new set of challenges to keep employees motivated and safe. Organizations began building new work arrangements and are now restructuring HR processes and operations with a digital focus. HR departments are recalibrating priorities, changing focus towards the management of the workforce remotely, and reimagining workplace models. This blog explores how HR teams in India managed COVID-19 and how your organization can start to do just that.

Sprint Planning

From a recent survey by EY, the biggest concern for around 70% of organizations is decreased productivity as a result of remote working. The survey also highlights that 72% of organizations believe that COVID-19 will impact work beyond 6 months. This has led to several organizations digitizing operations, shifting to virtual recruitment methods, and leveraging emerging technologies like Artificial Intelligence, Robotic Process Automation, and Machine Learning. 

This change was led by the need for delineating key responsibilities, building work alignment, and work control. Organizations are now adopting structured work allocation and communication protocols to provide meaningful work to employees. Department heads and HR teams are rethinking workforce models and resource plans to keep employee engagement high. Performance management processes are being modified and benefits are being restructured. 

HR Teams

Many firms are now using collaborative dashboards for daily check-ins and relying on smaller teams, with clear ownership of tasks and accountability for execution. Teams are also asked to keep an eye on communication among members (to the extent appropriate). Teams are also maintaining daily and monthly calendars to organize daily huddles. Standard and structured templates are being used to update members within the team at specified intervals. Some firms are also keeping a moratorium on work hours, to maintain work-life balance and let employees have some downtime. 

Improving Work Control

Many firms are leveraging the gig economy for more agility and talent deployment. The EY survey also shows that nearly 55% of firms consider employee cost as an issue in the near future. The main steps taken to build work control are:

  • Articulation of key policies and procedures, providing greater autonomy to local leaders and managers with tools and information.
  • Quick, on-demand access to accurate information about task progress to frontline managers and supervisors. Local leaders have been given more autonomy, the authority to effectively address localized issues and needs.
  • Employee training to support each other through flexible work arrangements.

There is an increased focus on empathic and personalized communication. From on-call doctors and psychiatrists to virtual gyms, HR departments are working hard to keep employee morale high. Communication strategies based on daily check-ins, one-on-one calls, and team sync-ups for collaborative and integrated working are the backbone for ensuring productiveness among remote workforces. This also includes providing platforms to consult experts within and outside the organization, and raise questions, bugs, feature requests, etc. Video conferencing is aiding the mutual exchange of knowledge and reducing the sense of self-isolation. For example, the Mahindra group is using Cisco WebEx across all their locations. 

Leveraging Technology

Many companies are also setting up Virtual Private Networks (VPNs), virtual assistants, and chatbots for real-time information flow to promote instant and secure messaging for the smooth transfer of information among employees. Mobile-enabled individual messengers such as Slack, Salesforce, Zoom, Microsoft Teams, etc. are also being used for work allocation with simpler and less formal conversations in time-sensitive environments.

As per CP Gurnani, CEO of Tech Mahindra, the company may start “with 25% employees” working from home. “Most organizations will break away from large campuses to distribution centers. Work from home doesn’t mean work from home forever. There will be a Friday meeting, etc. But instead of my campus being 10,000 people in one place, it can be 500 people in a smaller town.”

To counter issues around data security and employee engagement, HR teams are setting up robust “rules of engagement”. This makes work from home more efficient as managers set expectations for the frequency, means, and ideal timing of communication for their teams. Bosch’s Chinese division had to instill a new understanding of trust and train its managers to work and manage remotely and emphasize a results-driven approach over the older presence-driven model.

Downside

There are some tough decisions being made as well. Some firms are revising compensation structure, halting recruitments, or delaying increments. As per a recent Layoff 2020 survey by MyHiringClub.com and Sarkari-Naukri.info, 68% of the employers surveyed have either started the layoff process or are planning to. 

Conclusion

Famous author, William Davies mentions that ‘to experience a crisis is to inhabit a world that is temporarily up for grabs’. While it may be difficult to stay positive for tomorrow amongst all the drastic changes, HR teams have prioritized communication, prompt reporting, and put remote working to test. The emphasis of HR teams throughout the crisis has been to reinvent business processes going with the grain of human behavior. This has helped to turn struggles and pain into new ways of thinking, better approaches, and innovations. After all, it’s important to prioritize mental health in times like these.

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, and be a part of the #OneInAMillion experience.

Can we Claim Tax Benefits While Availing a Personal Loan

It is only when we start earning that the fuss about tax saving begins. The very moment we get our paycheque and see the taxed amount, we realize the importance of effective tax planning. While there are many ways to reduce your tax burden, most of us often fail to take advantage of all the tax-saving avenues available. More often, even the most experienced professionals lack awareness beyond Section 80C.

Take for example the case of tax benefits on a personal loan. Did you know that generally, personal loans are not at all taxable? This is because the loan amount is not accounted for as a part of your income while filing your income tax return. However, you must ensure that you avail the loan from a legal source such as a bank or other financial institutes or loan apps such as Fibe loan app. In this blog, we break down some myths and tell you how you can claim tax benefits while availing a personal loan. 

When Can I take Tax Deductions on Personal Loan?

A personal loan is a multipurpose loan that can be used to finance some of the most important milestones in your life, right from marriage to a new venture. One common myth about it is that the interest paid on personal loans is not tax-deductible. 

However, under some circumstances, you can avail of tax benefits even on a personal loan. The caveat here is the purpose towards which the personal loan is utilized. The IT Act allows tax benefits in these 3 cases:

  • Personal Loan for Purchase, Construction or Renovation of Residential Property

You can get tax deductions under Section 24 on personal loans if the amount is used to purchase, build, or renovate your home. Interest accrued from the borrowed capital is deductible from your net income or net annual value of the property for which the amount is used. 

You can also claim tax benefits up to Rs 2 lakh on personal loan taken for a self-owned property. The entire interest amount can be claimed as a deduction for a personal loan towards a rented home. The principal amount of personal loans for home improvement is also eligible for a tax deduction of up to Rs 1,50,000 under Section 80C.

  • Personal Loan for Investing in your Business

While there are dedicated debt funds available for growth financing of your business, you can also opt for a personal loan for your business requirements. You can claim tax benefits by deducting the interest paid from gross revenue i.e. the net taxable profit from the business. This is called a tax shield as this interest will be considered as a business expense and the exemption limit is not defined.

  • Personal Loan for Asset Acquisition

If you use the personal loan amount for incoming-producing assets such as shares or gold, then also you can get tax benefits. At the time of selling such assets, the interest amount included in asset acquisition lowers your capital gains, thereby reducing your capital gains tax liability on the sale transaction.

Bottomline

Yes, you can claim tax benefits while availing a personal loan. As you can see, there is more to tax savings. 

However, a word of caution here. Don’t take a personal loan just to claim tax benefits. You should also ensure that you have all the relevant documents such as the sanction letter, expense vouchers, authorized certificate from your bank, auditor’s report, and the lender certificate as proof to be able to claim your deduction on a personal loan. 

If you want an instant personal loan, opt for an online personal loan through the Fibe app to make sure you make the best possible use of all the options available. Attractive interest rate, instant approval, and hassle-free disbursement, Fibe instant personal loan app has it all and more. 
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, and be a part of the #OneInAMillion experience.

Should you opt for the Personal Loan Moratorium? Read this before you decide

The COVID-19 pandemic and resulting initiatives such as lockdowns across the world have impacted the livelihood of millions globally as well as in India. As a result, many borrowers in India have witnessed a sharp decline in their income making it difficult if not impossible for them to keep making timely loan repayments. To provide relief to such borrowers, India’s Central Bank, the Reserve Bank of India (RBI) initially introduced a 3-month moratorium on term loan repayments for the March to May period. This was subsequently extended for a further 3 months in May for the June to August period. But this is a temporary relief, so to make an informed decision you should consider the following key aspects of RBI loan repayment moratorium.

Applicability of the Moratorium

RBI’s moratorium guidelines specify that it applies to borrowers of all term loans such as home loan, personal loan, car loan, etc. that were sanctioned before 1st April 2020. So if you have already applied for and been approved for the moratorium in March, you can potentially not make any EMI payments for up to 6 months starting on 1st March 2020 and ending on 31st August 2020. After the end of this period, you will, however, have to resume the normal monthly EMI payments once again.  

What’s more, you can apply for the moratorium even if you have multiple loans outstanding with the same lender or with different lenders. But do keep in mind that while you are free to apply for this facility, it is at the discretion of the lender to actually grant this request. For example, some lenders have put in place the criteria that an applicant’s loan account needs to be up to date i.e. no missed payments/defaults till 29th February 2020 to qualify for the moratorium.      

Moratorium Impact on Credit Score

RBI has specifically stated that any EMI payments missed during the moratorium period will have no impact on your credit score provided the lender has approved your moratorium request. Lenders too have confirmed that they will not be reporting missed payments as defaults during the moratorium to credit bureaus and also no late payment fees or penal interest on overdue amounts will be charged during the approved moratorium period.

The Interest Accrual Consideration

While not having to make EMI payments during a cash crunch is a good thing, there is an interest accrual cost that you need to consider. During the moratorium period, interest will continue to accrue on your outstanding personal loan principal at the start of your moratorium period. You can find your outstanding loan principal in your latest personal loan account statement. Alternately, you can use a free personal loan EMI calculator that shows your outstanding principal amount based on your originally sanctioned loan amount, loan start date, and interest rate. Let’s understand how the interest accrual calculation works with an example:

Let’s assume your loan principal outstanding at the start of the moratorium is Rs. 1 lakh and your loan interest rate is 12% p.a. Also, suppose you have availed the full 6-month moratorium.

Based on the above assumption, the monthly nominal rate of interest = 12%/12 months = 1% per month i.e. 1/100 per month Interest for the 1st month of moratorium
= 100,000 x 1/100 = Rs. 1000
Total Interest accrued for 2 months of moratorium = (100,000 + 1,000) x 1/100 + 1,000= Rs. 2010. The principal outstanding is increased by the interest accrued in the previous month, hence principal loan outstanding for the second month is Rs. 1 lakh + Rs. 1,000 (interest for the first month)

By using the same calculation, you will get the following figures:

Total Interest for 1 month of moratorium Rs. 1000
Total Interest for 2 months of moratorium Rs. 2010
Total Interest for 3 months of moratorium Rs. 3,030
Total Interest for 4 months of moratorium Rs. 4,060
Total Interest for 5 months of moratorium Rs. 5,101
Total Interest for 6 months of moratorium Rs. 6,152

Thus in our illustration, you will end up paying an extra Rs. 6,152 as interest accrued for the moratorium period of 6 months. Obviously, if your outstanding loan amount or interest rate is higher, the interest pay-out will also be higher. So, while the personal loan moratorium may not cost you in terms of late fees or penal interest charges, you will have to incur the extra interest cost as shown above.

The Best Course of Action

Many experts have already said this, but it does hold – “Apply for the personal loan moratorium only if you have no choice. If you do not have cash flow issues, stick to your repayment schedule like before”. This advice is practical as every borrower’s situation is unique. Some may be less impacted by the COVID-19 crisis than others and in such a case it does not make sense to pay the extra interest by opting for the moratorium. On the other hand, if you now lack the means to continue paying your loan EMI every month right now, the moratorium will give your much-needed relief as well as some time to try and sort your current financial issues, albeit at the cost of accrued interest.  

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, and be a part of the #OneInAMillion experience.     

Financial Wellness – All about having the financial freedom to make choices.

In the present evolving workforce, businesses are revaluating how they approach employee benefits. In the endeavors to draw in and hold top ability, organizations are meaning to make all the more engaging advantages programs. They are thinking about new, progressively extensive ways to deal with benefits. Considerably more significantly, they are pondering the make-up of their workforce and which benefits their employees’ worth most.

Millennial-age employees have various unique difficulties and are searching for specific advantages from their bosses. One of the worries of numerous millennial employees is financial wellness.
Financial wellbeing is about being in control of your day-to-day finances and having the financial freedom to make choices that allow you to enjoy life.

Some of the signs of financial wellness include:

Being able to pay monthly EMIs or rent
A feeling of control over the financial situation
Having money for necessities
Can afford to maintain a good standard of living
Feeling of secure employment in the current job
Being able to pay for healthcare costs
Saving enough for retirement
Low level of financial stress 
Ability to handle three months unpaid without problem (under emergency crisis)
Confident in ability to afford healthcare-related payments

It is important to note that salary and financial wellness are not entirely dependent on one-and-other. A higher salary does not really bring about better financial wellness. Financial wellness is related to giving your employees the assistance and knowledge they need to smoothly manage their finances.

Millennials are the largest generation in the workforce, and they battle with financial wellness significantly more than prior generations.

How Does Financial Wellness Impact Your Workplace?

Failure to put resources into your workforce’s financial wellness can have an adverse impact on your bottom line. The first concern is the financial stress your employees face daily.  Businesses with the workforce that are worried about their finances suffer from:
Lower productivity
High attrition rate
Higher absenteeism
Low working morale

How To Help Employees Become Financially Well?

There are some systems and programs an organization can put in place to help its employees become more financially well.

Providing employees access to financial literacy helps empower them to take control of their personal finances. For this assist them with a benefits package that includes financial advice, investment assistance, and help in financial management is highly desirable.

In today’s digital age, employers making work easy for them is accorded a higher priority rather than a higher salary, although good pay certainly remains desirable. Further, employees also like to be cared for, and attractive benefits packages show that the employers care. Employee benefits are, therefore, very important to attract and retain a skilled workforce. There are many instant loan apps available in the market which comes handy while managing the financial crisis.

In addition to all these if possible, get them access to some credible financial coaches. Offering access to a dedicated advisor can give employees peace of mind knowing they have a finance expert to turn to for advice.

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, and be a part of the #OneInAMillion experience.

The Convergence of Machine Learning and Big Data In Credit Risk Management

Compiled By: Balakrishnan Narayanan
About Bala: He is the head of analytics at Fibe, with over 15 years of extensive experience within the banking and finance industry. At EarlySalary he is responsible for building machine learning and analytical capabilities within the risk, marketing, and customer analytics. For Bala’s passion for solving complex business problems, in 2019, he got listed in the top 100 Data Scientists in Asia at Machinecon, Singapore.

Sources of credit – banks, financial institutions, and more – play a crucial role in sustaining economies and keeping cash flowing in the market. Any miss-assessment – via policies, market trends, etc – not only harms these sources, but their repercussions severely intensify in case of a wide-scale credit blunder. A historical example of such far-reaching chaos is the 2008 housing bubble market crash that traces its origin back to bad credit decisions and flawed lending judgments. The subsequent global financial horrors and the recession period is a trauma from which the market still hasn’t entirely recovered. Therefore it becomes critical for financial institutions to deal in credit whose risk has been adequately assessed. 

Primarily, institutions have a credit risk management system in place to check such miscalculations and avoid any high risk involved credit permission. A credit risk management system assesses the risk in granting credit to a customer, whether an individual or a company, based on their credit score, financial standings, and banking history. The efficiency of the credit risk management system in India might have saved us from a fiasco like the aforementioned 2008 crash, but like every other system and entity, credit risk management is also an area open to upgrades.  Tech developments like Big data and Machine Learning (ML) have brought much-needed advancements in the field of credit risk management systems. These aren’t new paradigms, despite their recent terminology. Even as early as 2014, 45% of bankers found data analytics to be useful in preventing fraud and non-repayment.

Now, more than half a decade later – how has our hold on data evolved? The answer lies in taking a deeper dive into big data and machine learning.

Big Data

We are now, more than ever, living in an age of data. Each and every activity of ours, whether in the real world or the digital realm, contribute to the formulation of our personal data. Compound this for each and every individual and you generate humongous stockpiles that are beyond the capacity of regular, or even moderately advanced data-processing tools. The field of big data comes to our rescue here, with capabilities in processing and analyzing the massive amounts of data we generate. Its incorporation in credit risk management has opened an infinite supply of crucial insights that goes beyond the general banking and assets related information. This helps in improving the credit risk management assessment. 

  • With additional data, like an individual’s payment behavior, interaction with other financial portals, and their projection of financial endowment on social media, we’re assisted in assessing their credibility and crafting better interest rates. For example – does this person often splurge on items unusually expensive for their income level? Do they follow betting pages on their social media? There is data to generate everywhere we look.
  • Data also helps people with no prior credit history in getting loans through similar analysis of their social media activity and other real-world non-financial activities. 
  • The availability of vast data forms an excellent source to analyze the behavioral and financial activities of non-customer individuals and companies and then offering them customized loans based on the result of credit risk management and getting new customers. Recently, in the aftermath of Covid-19’s initial stages, we were able to analyze customer data to assess how Indians were moving across the country prior to the lockdown. This gave us valuable insights into where to offer our services, and fine-tune our loans for specific regions.

Big data thus offers an in-depth look at customers’ activities and evaluates their legitimacy in being a good credit prospect. On the other end, machine learning analyses our data for future trends and predictions. 

Machine Learning

Machine learning provides superior analytical frameworks in examining data clearly and identifying the key patterns in relation to the customer behavior under vivid circumstances. This involves running different ML techniques to gauge necessary results based on risk assessment. 

  • Improved future predictions on customers’ ability and willingness to pay based on current data.
  • Identifying patterns driving the financial activities of the customer.
  • Constructing the financial behavioral profile of the customer in various circumstances.

Machine learning can involve self-improving and recursive algorithms via a range of techniques – supervised, unsupervised, and reinforcement learning. Without diving too deep into them – these concepts allow our tools to study data and learn from them on their own. For example, our data may be quick to dismiss customers with an interest in betting as worthy borrowers, but insights from machine learning may well reveal that in some special circumstances, such as when the candidate is from a mathematical background, they happen to be fairly skilled in the field, generate steady income and are excellent borrowers.

The convergence of Big Data and Machine Learning

The convergence of Big Data and Machine learning, therefore, is revolutionary assimilation to credit risk management. Their disruptiveness has not only improved the credit risk management system but aided in the expansion of the credit industry overall. The following is just a glimpse of their consequences in the credit sector:

  • Authorization of good credit, and a safety net for banks from the debacles of bad credit. 
  • Crucial insights for penetrating the ‘New to Credit’ segment with no credit history, with a personalized marketing strategy based on simulations. This can heavily expand the customer base. 
  • Accurate fraud detection with pattern recognition.

Since Big Data and ML are elaborating credit risk management systems, it is time to look at a key question. 

The Future of Credit Risk Management System

The credit risk management systems of today should thrive when propelled by big data and machine learning. The inclusion of artificial intelligence (AI) in the system will also offer crucial insights into how financial institutions may improve customer acceptance rates, and offer them accurate rates of interest. Together with the advancements in the individual technologies, a more specialized credit risk management system is on the horizon. 

A key fact that needs to be acknowledged is that these technologies are themselves in a stage of infancy and continue to see upgrades – both small and big leaps – with passing each day. We continue to suffer from biases in data that creep in every now and then in our algorithms. But as many would agree – this will only be improved as we feed our systems more data to fine-tune themselves. As a result, these biases will diminish over time and offer us the opportunity to work with more evolved and capable credit risk management systems. Technology is a field of anticipations and subsequent awes. Let’s see what the future holds for credit risk management. 

Instant Cash Loan App: How Fast Is Disbursement & How to Get Approved in Minutes

A cash crunch rarely gives notice. A gadget stops working the week before a deadline, a medical bill lands mid-month, or a travel booking has to be confirmed today. Running from branch to branch with a folder of photocopies is nobody’s idea of a solution, and it is no longer necessary. An instant cash loan app puts the entire borrowing process on your phone, which is why easy online loans have become the default option for salaried borrowers who need money quickly. 

The question most people actually want answered is not whether these apps work. It is how fast. This article covers how to apply on the Fibe app, how long each stage genuinely takes, what can slow disbursal down and what an app gives you that a traditional bank loan does not. 

PRO TIP 

Quick answer: an eligibility check takes a couple of minutes and needs no documents. A full application needs digital KYC, and once approved, Fibe disburses directly to your bank account in about 2 minutes. 

How to Apply for an Instant Cash Loan on the Fibe App 

You can complete the entire borrowing process online, and you can check your eligibility before submitting a single document. Here is how to apply for an easy cash loan online on the Fibe app: 

  1. Register on the app using OTP-based mobile verification 
  1. Share a few basic details to begin the eligibility check, which needs no documents at this stage 
  1. Upload your address proof 
  1. Upload an identity proof, preferably your PAN card 
  1. Provide your employment and salary details 
  1. Complete video KYC, where you verify yourself on camera in a short, guided session. This is a regulatory requirement and replaces the branch visit entirely 
  1. Link your bank account for direct disbursal, so the approved amount lands in your account without a manual transfer step 
  1. Review the Key Fact Statement showing your interest rate, all fees and the APR, then accept to complete the application 

Instant loan apps are password protected, as is every transaction made through them, which protects your data against identity theft. Even if someone were to crack your password, the money can only be transferred to your own linked account. No third party can change those account details. 

Depending on your profile, you may also be asked to upload a cancelled cheque leaf from your salary account or an additional document. Your loan agreement is emailed to you soon after. 

WATCH OUT 

You will see searches for an ‘instant cash loan in 5 minutes without documents’. Be sceptical of any app promising it. KYC is a legal requirement for every lender in India, so documents are always needed. What a good app removes is the paperwork, not the verification: everything is uploaded digitally in a few minutes rather than photocopied and carried to a branch. 

Disbursement Time: How Long Does It Take to Get Your Money? 

This is the part worth understanding stage by stage, because ‘instant’ means different things at different points in the journey. 

From Application to Approval Decision 

For a complete application from an eligible salaried applicant, the decision is usually made within minutes. Fibe assesses your application using internal policy checks, credit bureau data, income models and behavioural indicators, and none of that needs a human to open a file. This is what people mean when they search for 5 minute loan approval, and for a straightforward profile it is a realistic expectation rather than marketing. 

From Approval to Money in Your Account 

Once approved, disbursal is fast because the transfer is automated and goes straight to the bank account you linked. Fibe disburses directly to your account in about 2 minutes. Under current rules, funds must be credited straight to the borrower’s own account rather than routed through any intermediary, which is both a safety feature and part of why it is quick. 

What Can Slow Disbursement Down 

  • Incomplete or mismatched details, especially a name that does not match your PAN or bank records 
  • A failed or interrupted video KYC session, usually caused by poor lighting or an unstable connection 
  • Additional documents requested for a first-time or thin-file applicant 
  • Bank-side delays, since a credit still depends on your bank processing the incoming transfer 
  • Applying late at night or over a long weekend, when some verification checks queue until the next working window 
  • An eNACH mandate that fails to register, which can hold the final step 

Most of these are avoidable. Keeping your PAN, address proof and bank details consistent, and doing the video KYC somewhere well lit with a stable connection, removes the majority of the friction. 

App Timeline vs a Traditional Bank Loan 

Stage Fibe Instant Cash Loan App Traditional Bank Personal Loan 
Application Minutes, on your phone, any time of day Branch visit or online form, during working hours 
Documentation Digital uploads, no photocopies Physical documents, often self-attested 
Verification eKYC and video KYC, automated checks Manual verification, sometimes a field visit 
Approval decision Usually within minutes Typically 2 to 7 working days 
Disbursal after approval About 2 minutes to your linked account 1 to 3 working days 
Foreclosure No foreclosure charges with Fibe Charges commonly apply 

The honest summary: banks often win on interest rate for large, long-tenure borrowing. Apps win decisively on speed, which is what matters when the expense will not wait. 

Advantages of the Fibe Instant Cash Loan App 

Here is a look at how a quick loan approval from an instant loan online app can help you. 

Hassle-Free Application Process 

Instant cash loan apps have an open registration and application process. Doing your homework by checking loan eligibility and EMIs with an online EMI calculator improves your chances of approval. With on-the-go access and instant approval, a cash loan app can help you whenever an emergency comes up. Open the Play Store or App Store, find a reliable money loan app like Fibe and upload the required documents to get funds transferred directly to your bank account. 

No Middleman 

The biggest advantage of an instant cash loan app is privacy and security. On Fibe, OTPs and fingerprints verify every request or transaction. Your data is secured through encryption, and in-app permissions ensure you share only the information that is necessary, no more and no less. 

Disbursal in Minutes 

eKYC, online documentation and automated approval cut the time an instant cash loan app needs to disburse. The lending process is simple, the decision is typically made within minutes of your application, and the amount goes directly to your bank account. If you have been searching for how to get money instantly, this is the mechanism that actually delivers it. 

Applications Considered Even With a Low CIBIL Score 

Short-term financial pressure can dent your credit score. The good news is that a low score does not automatically mean rejection with an instant loan app, because the assessment looks at income patterns and other indicators alongside the bureau score. New-to-credit applicants with no score at all are considered too. Approval still depends on your overall profile, so it is worth checking your score and calculating your EMI in the app before you apply. 

Regulatory Compliance and Transparency 

This one gets overlooked, and it is arguably the most important. A compliant app has to tell you the truth about what a loan costs, in a standard format, before you commit. In practice that means: 

  • A Key Fact Statement showing the Annual Percentage Rate and every fee, shared before you accept the loan, so you can compare offers on the same basis 
  • A cooling-off period of at least one day during which you can exit the loan by repaying the principal and proportionate interest, plus any processing fee that was disclosed upfront 
  • Disbursal straight into your own bank account and repayments made directly to the lender, with no intermediary account in between 
  • Named grievance redressal officers, with the right to escalate to the RBI’s Complaint Management System if a complaint is not resolved within 30 days 
  • Limits on data collection: only what is needed for the loan, with your consent, stored in India, and no access to your contacts or call logs 
  • No increase in your credit limit without your explicit consent 

DID YOU KNOW? 

Use this as a checklist before you download anything. If an app will not show you a Key Fact Statement with an APR, will not name its lending partner, or asks for access to your contacts, those are the signals to walk away, however attractive the offer looks. 

To sum it up, the Fibe instant cash loan app offers credit when you want it and wherever you want it, with no prepayment charges and flexible repayment options from 6 to 36 months. 

Download the Fibe Personal Loan App to check your eligibility in a couple of minutes and get up to ₹10 lakhs credited directly to your bank account. 

FAQs on Fibe Loan App and Disbursement Time 

1.How long does it take to transfer money after loan approval? 

With Fibe, the approved amount is credited directly to your linked bank account in about 2 minutes. The transfer is automated, so no manual step sits between approval and disbursal. In rare cases your own bank may take a little longer to reflect the credit. 

2.What is the instant cash loan app disbursement time? 

For a complete application from an eligible applicant, the approval decision is usually made within minutes and disbursal follows in roughly 2 minutes. So the realistic end-to-end expectation is minutes rather than days, provided your details match your KYC records. First-time applicants who are asked for an extra document should allow longer. 

3.What documents are required to apply on the Fibe loan app? 

You need a PAN card as identity proof, an address proof, and proof of income in the form of salary slips or bank statements. You will also complete video KYC and link your bank account for disbursal. There is no physical paperwork: everything is uploaded in the app. An eligibility check can be done before you submit any documents at all. 

4.How do I download the Fibe instant cash loan app? 

Search for the Fibe app on the Google Play Store or the Apple App Store and install it, or download it from the Fibe website. Check that the developer name matches before installing, since lookalike lending apps are common. Once installed, register with OTP-based mobile verification to begin.