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.
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.
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.
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.
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:
Register on the app using OTP-based mobile verification
Share a few basic details to begin the eligibility check, which needs no documents at this stage
Upload your address proof
Upload an identity proof, preferably your PAN card
Provide your employment and salary details
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
Link your bank account for direct disbursal, so the approved amount lands in your account without a manual transfer step
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.
Compiled By: Sandeep Raghunath About Sandeep: He is the Head of Human Resources at Fibe, with 10+ years of international experience in HR across industries.
Remember the rush in the crowded metros at the office hours? Remember the group meetings of the corporate projects? Remember those long office hours at the workplace?
Now, that phase of our life has become something of the past. This pandemic has impacted our lives and our way of living. Earlier, being social was considered to be a critical aspect of our lives, almost a skill. But with the recent turn of events, being at home is the best decision one could make.
But sooner or later, all of us will move past this COVID-19 pandemic. This may not happen tomorrow or one week from now. Hence, we should accept the fact that returning to a normal routine would take a lot of time. Encouragingly, countries like China and South Korea are gradually beginning to come back to their ordinary lives.
A key question that would arise is what “normal” would be like after the COVID-19 pandemic. As per the current scenario, the Indian workforce is compelled to operate from home.
Setting up a workplace would be a challenging task after the pandemic. To prop tasks up while limiting the hazards, most organizations have adopted new and better approaches for employees that have left their workplaces, production lines, stores, and different offices generally unfilled.
What changes could be implemented after COVID-19 with respect to workplaces?
According to Apex Leadership, some changes that could be observed in workplaces are:
General Changes
If the workplace re-opens after the situation becomes normal, the very first few changes would include the comfort of being alone rather than being with a group.
General protocols would be impacted and questions like, ‘Is there any important reason to perform this operation online?’ would be changed to ‘Is there any valid justification to do this face to face?’
Screening at office gates
A fairly essential suggestion – organizations will try to operate virtually but workplaces, where physical attendance is compulsory, will certainly consider the concept of thermal screening of employees at the office gates. Checking employees and guests for fever before entering the workplace would be mandatory, and having rules like leaving some seats empty and making workstations far apart from each other would be some steps that would be taken up by organizations after the situation becomes normal.
Work From Home Culture.
The coronavirus did what years of digital transformation could not – we figured out how to work remotely over the internet after the onset of the pandemic. And this change may be here to stay. The work from the home model would be the primary choice for both employees and organizations and this may compel industry-wide mass adoption, even for those that were not in favor of having a virtual workforce. It is, after all, a leaner, more flexible model.
Additionally, WFH proves to be a cost-cutting method for companies as office rent, and multiple other overheads are reduced significantly from the company’s expenditure.
Replacement of Traditional Models
Being the first to arrive at the workplace and the last one to leave was already a flawed way to look at productivity, and it’ll certainly not be considered an indicator of the productivity of an individual going forward. In a post-COVID-19 world, employees will be evaluated on the work they complete in a given time frame, rather than just sitting for long office hours.
Interaction with Customers and Stakeholders
The most impacted aspects of the workplace would include interactions with customers and stakeholders. The current scenario might change how organizations meet with customers and stakeholders, alongside everyday tasks. Perhaps the trickiest part of the new working environment will be the way organizations connect with their customers and stakeholders. Customary interpersonal meetings have already been replaced with video calls.
Introduction to online communication courses
Most organizations will try to train their teams for the new normal. Modules on remote working, management, should see a steady video conference course to use for customers, stakeholders, and others. But finding the correct harmony between the face to face and virtual gatherings is vital.
To Sum up
Are organizations equipped to handle a new working environment? No one has witnessed changes of this magnitude in their lives. While most organizations have business continuity plans set up for calamitous occasions like fire, seismic tremors, and floods, etc, only a few organizations were prepared for the degree of disturbance brought about by COVID-19. It’s why hiring freezes and even downsizing are in effect.
How our work environments will change once this pandemic is over and the world returns to normalcy is yet to be seen. But it’s a reasonable guess that the new normal will be more inclined towards a work from home environment.
Download the instant loan app here, and be a part of the #OneInAMillion experience.
“Do not save what is left after spending, but spend what is left after saving”. This infamous quote by investing tycoon and philanthropist Warren Buffet summarises the criticality of managing your finances effectively and consistently. Financial wellness or financial well-being can be summarised as efficiently managing one’s economic life. It includes many factors such as rational and controlled spending, being well-equipped for financial emergencies, having adequate access to resources to manage and make feasible financial decisions, and planning for the future. Yoga is often known as a ‘physical exercise’, with different asanas and positions that require flexibility and practice. However, it is a discipline that results in mental as well as physical well-being, if done regularly and properly. On the occasion of World Yoga Day 2020, we explore the relationship with Yoga & Financial Wellness – which is both an enabler of both mental and physical harmony.
In our fast-paced world, mental health, in particular, has taken a back seat. This truth is out there for everyone to see:
Mental illnesses affect over 19% of the adult population, but less than half of the affected people actually do something about it.
The two most common mental illnesses are anxiety disorders and mood disorders. More than 18% of adults suffer each year from anxiety disorders such as obsessive-compulsive disorder, panic disorder, and general anxiety disorder.
Mood disorders such as depression and bipolar depression affect nearly 10% of adults each year, and the numbers are rising.
Hence, it’s important to recognize mental health as essential as physical health. Yoga has proven to improve mental health significantly. After all, it increases body awareness, relieves stress, reduces muscle tension, inflammation, sharpens attention and concentration, and calms the nervous system.
Yoga and financial wellness have an unconventional relationship. Finances are one of the leading causes of stress, and to gain overall wellness, one’s mind, body, and money should be in order. Yoga is a well-known stress reliever, but that’s not all. Here are a few ways in which yoga can enhance and improve financial wellness:
Assessing and acknowledging difficult financial situations
The first step to financial well-being is acknowledging our existing problems and shortcomings, such as debts, unpaid loans, especially personal loans, etc. and assessing the situation in order to have a broad idea about your overall financial standing. Yoga asanas such as Savaasna and Sukhasna aid you in relaxing and contemplating. Thinking about difficult financial situations can be stressful and overwhelming.
However, incorporating yoga can help in reducing stress, alleviate pressure, and has an important role in making sure that you are financially fit and thriving. At EarlySalary, we’ve long been keen on assisting professionals in evaluating and managing their finances to promote better productivity at work.
Formulating a financial plan
One of the many principles of Yoga is aligning the mind, the body, and the spirit. These three are essential to the overall well-being of a person. We can draw a parallel in the financial world by drawing a balance between return requirement, risk appetite, and liquidity needs. These are important for efficient financial management. Formulating a detailed and well-balanced financial plan that takes into account your existing assets and liabilities, and helps you being well-aligned to your short term and long term goals is key to financial well being. EarlySalary has partnered with more than 250 companies and assisted over 4 million employees in overcoming their financial worries.
Calming and relaxing the mind for rational thinking
Being calm and composed is imperative to making rational and sane financial decisions. Yoga has principles such as:
Sattave, a state of harmony and
Tamas, a state of inertia,
that help in relaxing the body and the mind to make room for reasonable, calculated contemplation and decision making.
Being able to take a step back and assessing your financial situation, along with taking a break from the daily stress of hectic work life can help take a huge burden off and make you more patient and mindful while managing your finances. Financial stress also leads to the issues of employee turnover and absenteeism on part of the employees. With partners such as Bajaj Allianz, Apollo Munich, and Coverfox, EarlySalary ensures that the premium of insurance plans is paid on time. It also assists employees in times of medical emergencies by providing emergency loans to cover hospital bills and to pay EMIs of previous loans.
Adopting a positive and optimistic mindset
“The positive thinker sees the invisible, feels the intangible, and achieves the impossible.” This quote by Winston Churchill summarises the importance of positive thinking and the power of an optimistic mindset. To stay on the right track, one needs to be focussed.
Asanas such as Vrikshaasna and Bakasana help you improve your concentration and focus. These help you stay on track and regularly follow up with your overall plan.
A positive mind is a healthy mind, and optimism empowers you and makes you confident enough to make major financial changes that you might have been avoiding.
Clearly, yoga contributes significantly in making you more optimistic and helps you make positive financial decisions.
Yoga Is As Essential As Financial Wellness
Financial wellness is closely connected to your physical and mental well-being. The overall purpose of yoga is to release one’s body and mind of stress and tension that might be a product of poor finances or a financial crisis. Yoga gives you the time and space to set your goals and be thankful for what you have, making it easier for you to point out your financial goals and map effective plans that equip you to manage your money well.
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In many homes across the world, especially within our nation, fathers have been traditionally responsible for the financial well-being of their children. This has extended to their role of teaching a child how to sustain themselves when they are on their own. This Father’s Day, let’s celebrate some of the absolutely vital, key pieces of advice that our fathers remembered to share with us!
#1 Save
A fairly obvious piece of advice that fathers would never forget to announce – the act of saving is essential if you want to sustain your wealth throughout life, and opposed to those who live a lavish lifestyle and then struggle to make do. Fathers are usually the first ones to inculcate the concept of saving money in every child. This financial advice can prove to be the deal-breaker for many kids as they grow up. It is often the father who urges their child to begin saving a chunk of their salary, from the very first paycheck!
#2 Invest
“No risk, no reward!” – a statement that is often heavily emphasized by fathers, especially when it comes to generating more wealth for oneself. The financial advice of investing along with where and what to invest in is often felt like a cardinal role by many financially equipped fathers. The importance of having your monetary feet in many wells is essential to create wealth beyond your immediate capacity.
#3 Pay on time
Perhaps a moral lesson because of the stigma attached to it – “Don’t be a defaulter!” goes a long way. Whether it is to avoid bad debt or to understand the consequences of late payment or just to inculcate good principles. Timely payment is a piece of advice that can change the life of those who follow it religiously. From banks taking away collateral to loan sharks, there are a variety of unpleasant scenarios that can arise from paying your bills late or rather not adhering to the concept of timely payment. Fortunately, new age instant loan apps like Fibe aren’t harsh on borrowers and offer flexible repayment options.
#4 Financial Independence
It is often the father who urges their child to begin saving a chunk of their salary, from the very first paycheck!
Weaning off the financial dependence on your family, or even partner is a dream many would like to live as quickly as possible. Fathers hope to make that dream come true by never forgetting to share the importance of being financially independent, right from when we start earning.
#5 Financial Prudence
Throughout our life, we have to balance our investment and savings, the way of life of buying “just what you need” is important.
“Don’t buy anything until you can afford it twice.” A famous principle to live by. Living life under your budget is hinted at from an early age when we’re not allowed to buy sweets just because we want them. Throughout our life, we have to balance our investment and savings, the way of life of buying “just what you need” is important. Purchasing and owning the quality that is required rather than what is marketed better or what might get one social point is essential to have a bigger savings account; one of the most valuable financial advice given by our fathers!
#6 Property
This may be last on the list but we’re sure it’s an idea that’s certainly drilled into our heads by our fathers. Investing in a property after a few years into your career is a concept many fathers champion. They’d often even say – the earlier you start, the lower is your EMI for the same amount of loan.
This Father’s Day, let’s come together to thank our fathers for their priceless financial advice. Share your fatherly stories with us by using the hashtag #PapKehteHain and tagging us.
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Personal Loans are arguably the one-size-fits-all solution for all urgent and uncategorized needs for money. Unlike specified loans – like a home loan or an auto loan – these loans are usually unsecured, which essentially means that you can get them without any collateral and the money can be utilized for any purpose. The flexibility in terms of utilization of the loan is what makes it so attractive – put them on covering wedding expenses, to fund your foreign travel or any contingent expenses which may come your way.
In addition to being easy to get, they are much more economical as compared to borrowing via a credit card, as there is a difference of almost 2x in their interest rates. Plus, credit card debts adversely impact your credit score and also are subject to a credit limit, which is highly variable, and likely annoying. You don’t want to run out of money on a foreign trip or in the middle of a wedding shopping spree, do you?
Tapping on the growing need for personal loans in contemporary times, Several banking and non-banking financial entities have made the process of getting personal loans simpler and in some cases, instant. Some of the popular avenues that you can explore to get a personal loan are mentioned below:
Through a Commercial Bank
All traditional banks have the option of granting personal loans to existing clients as well as new ones. The reach of these banks is much more than any other institution. In fact, more bank accounts have been created in India in the last year than all the bank accounts in the US.
Most of the banks follow a set pattern for the application process of the personal loan. Almost all provide various different plans depending upon factors like the amount of the loan, the duration, previous credit history, nature of the loan among others. Earlier, most of the banks had a tedious process for this which involved a mountain of paperwork and other formalities.
However, in recent times, they have simplified this process to a large extent and have created a single-window application process. They have even moved forward from all the paperwork and allow getting the personal loan using net banking, through the Bank website or the ATM, sitting comfortably at home. An example of this is HDFC or SBI Saral Personal Loan.
Through a Cooperative Bank
Even though these banks operate at a smaller rate and have a comparatively smaller user base as compared to commercial banks, most cooperative banks have the provision of granting a personal loan. The benefit of availing a personal loan from such a bank is that the formalities are simplified, as they are regulated by RBI and work for giving additional benefits to the society instead of being run for a profit motive. Also, as opposed to commercial banks, their average interest rate lies between 14% to 18%. Additionally, the processing fee is fairly low in such personal loans.
However, there are certain shortcomings attached to taking a loan from these banks. They are:
More often than not, these are only available to targeted groups like women, MSMEs, or agriculturists.
The maximum limit of loans is also significantly lower ie. usually only up to 5 lacs.
A personal loan application is valid as long as you are a member of that cooperative, which means you have to buy the shares of that particular bank.
They have a restricted number of options that one can avail
However, owing to the less stringent regulations, getting a personal loan from these banks is an attractive avenue, especially in case you want a small loan or if you are in a rural area. Some of the popular cooperatives offering personal loans are Abhyudaya Bank and Saraswat Cooperative bank, among others.
Online Lenders
Rapid advancements in the India fintech sector has enabled a whole new market of personal loans in the country, while simultaneously taking the entire banking industry by storm. In fact, it is touted that in due course of time, it’s argued that Indian fintech may give conventional banks a run for their money, pun intended.
The reason for their growing popularity is simple. Fintech offerings personal loans:
Are easily accessible,
Give you a loan at a great interest rate,
Are quick, with rapid disbursement right into your account.
All of this, without making you run from pillar to post. What’s not to love? Even Todd Nelson, senior vice president of online lender LightStream agrees when he says “There’s no need to go to a bank branch, fill out paperwork, then wait to get an answer and finally receive your funds. You can get a loan at your convenience via a computer, tablet, or smart device.”
The Indian market is swarming with these portals giving instant personal loans at a simple click. They are collateral-free and require next to zero formalities for the disbursement of personal loan. It is important to make a wise and important choice when you are spoiled for choices with lenders like EarlySalary and others. You can check out the best money lending app in our previous post.
EarlySalary is one of the market leaders on personal loans in the country, with great features such as a flexible repayment option, instant loan disbursement, and incredibly low-interest rates to name a few. There are a number of additional advantages EarlySalary offers that your bank just won’t. So, log into Fibe and put an end to your money woes now!
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.
The employer-employee relationship has come a long way in today’s time, having evolved from being merely a linear chain of command in the workplace to a dynamic and multi-faceted relationship transcending the boundaries of a workplace.
In times where financial wellness and financial planning are an inalienable part of every individual’s life not just in the professional sphere but also the personal one, it becomes pertinent for the employers to make certain stipulations to take care of it. A well-rounded way to do so is by way of providing them with a financial wellness program.
What does a Financial Wellness Program mean?
Evolved out of the growing need to handle complex financial situations of organizations as well as individuals, a financial wellness program aims to provide adequate information and assistance to employees with regards to handling their personal financial situations. It includes assistance on matters like consumer credit building, financial goal setting, financial crisis management, personal and household budgeting among others.
With the right guidance, employees will be able to take care of their personal goals and also effectively contribute more towards the organizations’ goals. However, there is no straight-jacket formula to launch and maintain a successful financial wellness program. It involves several facets, such as:
Workshops and training programs by financial professionals
Dedicated Portfolio managers for individual financial needs
Partnership with Financial wellness organizations
Easy loan schemes and tie-up with Banks
E- support by way of an online portal, AI or even an App
Why Financial Wellness Programs are critical
Financial wellness is a prerequisite for a productive employee. In fact, according to a 2017 report on optimizing financial wellness programs, employees with low financial wellness and high financial stress cost their employers directly, in the range of tens of thousands of INR per employee, annually.
This financial stress is detrimental to the efficient functioning of any organization. This was clearly illustrated by a 2018 report by the firm John Hancock which observed that 69% of the workforce was stressed about their finances, with 72% admitting to worrying about their personal finances at work, and one in three doing so more than once a week. This directly affects their health and also their productivity at work.
It is clear as day that the traditional approach to employee benefit is no longer effective and if the growing needs of the employees are not taken care of, it seems to have dire effects on the overall performance of the organization.
What do financial wellness programs bring to the table?
Even though it may seem to many that handling personal finances of individuals may lie outside the scope of the workplace, this isn’t necessarily true in today’s evolving work scenarios. In fact, as employers move towards rolling out financial wellness programs, they are also routinely expanding its already existing contours. The reasons for this are obvious. Even back in 2018, ASSOCHAM estimated a savings of over $20 billion for Indian organizations adopting financial wellness programs. Meanwhile in the West, according to research from the Bank of America, half of the employers (53%) in the US now offer such programs compared to only 24% in 2015. This goes on to prove that the benefits of the said program accrue to both the employer and the employee. Some of the major benefits to employees include:
Lower stress to the individuals about financial wellness
Easier asset creation in terms of real estate, investments among others with the assistance of the employer
Better planned long term investments for post-retirement security
All of these contribute to making an individual professional more focussed, efficient, and dedicated. As an HR professional would know, this not only helps in personal growth but also assists teams with the bigger picture.
Apart from the obvious benefit of having a dedicated workforce, some other benefits which accrue to the employers include:
Increased employee productivity leading to better results
Improved task force management
Lower employee absenteeism
Lower employee turnover
A conducive work environment that attracts better prospective employees and goodwill in the market
Lesser need for paycheck garnishment
Stability in the organization attract better clients and investors
Increases the prospects of expansion
Executed correctly, it can be a win-win situation for both employees and the organization.
Having clearly understood the importance of financial wellness programs and the kind of benefits that accrue from it, it is a no brainer and all organizations should include it as a sine qua non in their employee benefits scheme. In fact, that is precisely the reason why an increasing number of organizations are enthusiastically opting for it.
However, the next very important aspect to be considered is that the program should not just merely be one launched to check the box off your list of initiatives. Your employees should actually, truly derive the intended benefits. In today’s time, with several of these programs available, finding the right one can be a tough choice. Fibe recognized this need early on and offered corporates a simplified solution with the Fibe financial wellness programme. With features like instant advance salary, school fee financing, provisions for medical emergencies, it is a one-stop solution for all financial needs for the employees in these uncertain times.
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 bring on the new vibe of finance.
