A credit score is one of the most reliable financial indicators that can assess an individual’s creditworthiness. The Equifax ePORT portal helps lenders, like NBFCs and banks, access any individual’s credit data. It also provides borrowers’ credit histories.
It is an online one-stop portal with vast access to individual credit data. This portal contributes to the business-to-business processes for any company, regardless of its scale.
What is Equifax ePORT?
Equifax ePORT is an online B2B marketplace. This allows lenders to have access to a vast database of consumers. Businesses of every scale and size can benefit from this platform. It is a one-stop shop for risk analytics, fraud solutions, scoring, and employment checks. This portal has these segments:
Personal Information
Account History
Public Records
Inquiries
Key Features to Know
The Equifax credit report portal is secure and personalised. Here are some of its lucrative features:
This is a common entry point and main source of information for businesses of every size
Businesses can get access to secure information based on location and character
The designated repo and distribution system makes Equifax product info easy to access
The platform lets users pick any products from the real-time integrated marketplace
It offers faster and easier access to product information with solutions
It speeds up response times to requests, which helps your customer support
It offers premium features, such as security, customisation, administration, and user preferences
This portal helps businesses by providing analytics, credit reports, ID verification, compliance support and much more. Some of its features include the following:
This single platform has a wide range of commercial products with a large customer base
This portal requires little to no manual effort to gain access to quality data
With this portal, a business can thrive with better efficiency
The inbuilt fraud mitigation tool of this portal blocks fraudulent activities and simplifies user operations
Businesses can retrieve data quickly to provide immediate answers to customer questions
There is no minimum volume required to access this portal
The portal supports consumers’ growing needs, offering full scalability
Businesses can access this tool anytime to enhance client support metrics
Steps to Register/Login
You must be a registered Equifax customer to use this portal. Follow these steps first to register and then to log in:
Step 1: Visit the official Equifax ePORT website
Step 2: Click on the ‘CLICK HERE to Register for ePORT Today!’ button
Step 3: Choose a method that suits you best on the ‘Contact’ page
Step 4: Enter the required details, such as your company name, address (same as CIS), Equifax member number, and security digits
Step 5: Note the login ID and password assigned to you
Step 6: Log in with your new login ID and password to access the portal successfully
For a lender, the credit report of Equifax is a valuable tool as it can help create its customer base. However, it is no use for any individual customers. For this, you need a credit score calculator, which gives you instant results.
With Fibe, you can easily check your credit score online in just a few minutes. You can also get a credit health report to improve it. Check your score free online and get access to affordable credit!
FAQs on Equifax ePORT
How can I reach out to Equifax for any queries?
There are various options that you can avail to reach Equifax with your inquiry. You can visit their website or reach out to them via their app. You can easily find their support number online or email them. You can also use social media to raise a query.
Can individuals use Equifax ePORT, or is it only for businesses?
No, this portal is not for individual users or consumers. This portal is exclusively for businesses.
Is Equifax ePORT secure for managing consumer credit data?
Yes, this portal is a secure option to manage customer data related to credit. Various encryptions and authentications protect this portal.
What types of information does Equifax gather?
From consumer information, commercial information, income verification and risk management, Equifax gathers a range of data. An Equifax credit report gathers three types of information, which includes personal, public, and credit account information.
What is considered a good Equifax credit score in India?
If your Equifax score is above 670, then it is considered a good Equifax report in India. If it is near 850 then it would be considered as great.
Forms 15G and 15H are self-declarations historically used by eligible resident taxpayers to request non-deduction of tax at source (TDS) on specified income when their estimated tax liability for the year is nil. For bank, co-operative bank and specified post-office interest, the Section 194A TDS threshold was increased from 1 April 2025 to ₹50,000 for non-senior citizens and ₹1 lakh for senior citizens. Crossing the TDS threshold does not automatically mean tax is ultimately payable; the final tax liability depends on the taxpayer’s total income and applicable tax rules.
These declarations can help eligible taxpayers avoid unnecessary TDS on eligible income, but they do not make the underlying income tax-exempt. The income must still be considered while computing total taxable income and filing the income-tax return, where applicable.
Current tax update for 2026-27: For tax years beginning on or after 1 April 2026, the Income-tax Act, 2025 and Income-tax Rules, 2026 consolidate the declaration earlier furnished through Forms 15G and 15H into Form 121. The eligibility principles continue broadly on the same basis. This article explains the familiar Form 15G/Form 15H terminology and also flags the current Form 121 requirement where relevant.
What is Form 15G and Form 15H?
Form 15G is a self-declaration used under the earlier Income-tax Act framework by eligible resident individuals below 60 years of age and certain other eligible resident persons, such as HUFs, to request that specified income be paid without TDS when the prescribed conditions are met. Form 15H serves a similar purpose for eligible resident senior citizens aged 60 years or above.
These declarations may apply to eligible income where TDS would otherwise be deducted, including:
Interest on fixed deposits and recurring deposits with banks and eligible institutions.
Interest on specified post-office deposits.
Interest on securities, including eligible interest from corporate bonds or debentures.
Eligible EPF withdrawals where service is less than five years and the withdrawal exceeds ₹50,000, subject to the applicable EPFO and tax rules.
Insurance commission in cases covered by the applicable TDS provisions.
Certain payments from life-insurance policies, National Savings Scheme deposits, rent and income from specified units, where the law permits a declaration for non-deduction.
For Tax Year 2026-27 onward, eligible declarations for these categories are made through the consolidated Form 121 rather than separate Forms 15G and 15H.
Difference Between Form 15G and Form 15H
The main 15G and 15H difference is the age and eligibility of the person making the declaration. The table below summarises the key distinctions under the earlier Form 15G/15H framework.
Particular
Form 15G
Form 15H
Who can submit
Resident individual below 60 years, HUF or other eligible resident person, excluding a company or firm
Resident individual aged 60 years or above
Tax liability condition
Tax on estimated total income for the year should be nil
Tax on estimated total income for the year should be nil
Additional income condition
The aggregate specified income covered by the declaration should not exceed the applicable maximum amount not chargeable to tax
The separate declaration-income cap applicable to Form 15G does not apply; estimated tax on total income must still be nil
NRI eligibility
Not available to non-residents
Not available to non-residents
Current position from 1 April 2026
Earlier Form 15G declaration is consolidated into Form 121
Earlier Form 15H declaration is consolidated into Form 121
Eligibility Criteria
Eligibility is not based only on age. The person must satisfy the prescribed tax-liability and income conditions for the relevant year. For the earlier Form 15G/Form 15H framework, the broad criteria are as follows.
Who Can Submit Form 15G
A resident individual below 60 years of age, an HUF or another eligible resident person other than a company or firm.
The estimated tax payable on total income for the relevant year should be nil.
The aggregate amount of specified income covered by the declaration should not exceed the applicable maximum amount not chargeable to tax.
A valid PAN should be furnished as required.
Non-residents, companies and firms cannot use Form 15G.
Who Can Submit Form 15H
A resident individual who is 60 years of age or above during the relevant year.
The estimated tax payable on total income for the relevant year should be nil after considering the applicable tax provisions and rebate, where available.
Unlike Form 15G, Form 15H does not have the same separate cap on the amount of specified income covered by the declaration.
A valid PAN should be furnished as required.
Non-resident senior citizens cannot use Form 15H.
From Tax Year 2026-27 onward, taxpayers should check the eligibility and filing instructions for Form 121, which replaces the separate Form 15G/Form 15H declaration format.
Example of Who Can Submit These Forms
The examples below are illustrative and show the broad logic under the earlier Form 15G/Form 15H framework. Actual eligibility depends on the tax regime, the nature of income, deductions or rebates available and the law applicable for that year.
Age
Illustrative Income Profile
Estimated Tax
Form Eligibility
23
Only eligible interest income; specified income exceeds the applicable basic exemption limit
Nil
Form 15G may not be available because the specified-income condition is not met
55
Salary plus eligible interest; total tax is nil and specified income stays within the applicable limit
Nil
May submit Form 15G if all other conditions are met
67
Pension plus eligible deposit interest; total tax is nil after applicable provisions
Nil
May submit Form 15H if all other conditions are met
71
Eligible interest and pension income; total tax is nil after applicable provisions
Nil
May submit Form 15H if all other conditions are met
What is Form 15G Used For?
Form 15G was used to request non-deduction of TDS on specified income when an eligible taxpayer expected the tax on total income for the year to be nil and the other prescribed conditions were satisfied. It did not exempt the income itself from tax.
Common situations in which an eligible Form 15G declaration could be relevant included:
Interest on bank fixed deposits and recurring deposits.
Interest on eligible post-office deposits.
Interest on securities such as eligible corporate bonds or debentures.
Eligible EPF withdrawals where TDS rules apply.
Insurance commission and certain life-insurance policy payments covered by the relevant TDS sections.
Certain rent payments and income from specified units where a declaration is permitted under tax law.
For tax years beginning on or after 1 April 2026, the equivalent declaration should be made through Form 121 under the current rules.
How to Fill and Submit Form 15G and Form 15H
For earlier tax years in which Forms 15G and 15H applied, the declaration could generally be submitted to the bank, institution or other payer either online or offline, depending on the payer’s facility. The broad process was:
Choose the correct form based on your age and eligibility: Form 15G for eligible non-senior resident taxpayers and Form 15H for eligible resident senior citizens.
Enter personal details such as name, PAN, residential status, address, contact information and the relevant financial year.
Provide details about whether you were previously assessed to tax, where required by the form.
Enter the estimated income for which the declaration is being made and your estimated total income for the year.
Provide details of other declarations already submitted during the year, including the number of declarations and aggregate income covered.
Add the relevant investment, account, deposit or income details for which you are requesting non-deduction of TDS.
Review the declaration carefully and sign or authenticate it as required.
Submit it to each relevant deductor or payer through the available online or branch process and retain an acknowledgement or record of submission.
For Tax Year 2026-27 onward: Use Form 121 instead of separate Forms 15G and 15H and follow the current Income Tax Department or payer-specific submission process.
Time of Submission
Ideally, submit the applicable declaration at the beginning of the financial or tax year, from 1 April, or as soon as a new eligible deposit or income arrangement is opened. Early submission helps the payer process the request before TDS becomes due.
If TDS has already been deducted before a valid declaration is processed, submitting the declaration later may not reverse the tax already deducted. If your final tax liability is lower or nil, you can generally claim the eligible TDS credit or refund while filing your income-tax return.
Things to Remember While Filing 15G and 15H
Do not submit the declaration if you do not satisfy the prescribed conditions or if tax is payable on your estimated total income.
A false or incorrect declaration can attract prosecution or penalties under the applicable income-tax law. Always provide accurate income estimates and details.
Form 15G or Form 15H is not a substitute for an income-tax return. You may still need to file an ITR depending on your income and filing requirements.
If TDS is deducted despite your eligibility, you can claim the TDS credit and, where applicable, a refund through your income-tax return.
NRIs cannot submit Form 15G or Form 15H because these declarations are available only to eligible residents.
A fresh declaration is generally required for each relevant year and may also need to be updated if your estimated income or tax position changes.
Sections of Form 15G and Form 15H
Under the earlier declaration format, taxpayers had to provide details about themselves, their estimated income and the income for which non-deduction of TDS was requested. The exact fields may vary by version, but the key information included the following.
Key Details in Form 15G
Name, PAN and residential status.
Address, email ID and contact number.
Relevant financial year.
Whether the declarant was previously assessed to tax and, where applicable, the latest assessment year.
Estimated income for which the declaration was made.
Estimated total income for the year.
Details and aggregate income of other Form 15G declarations submitted during the year.
Identification details of the deposit, security, account or other income source.
Place, date and signature or prescribed authentication.
Key Details in Form 15H
Name, PAN, date of birth and residential status.
Address, email ID and contact number.
Relevant financial year.
Whether the declarant was previously assessed to tax and, where required, the latest assessment year.
Estimated income for which the declaration was made and estimated total income for the year.
Details of other Form 15H declarations submitted during the year and the aggregate income covered.
Details of the deposit, security, account or other income source for which non-deduction was requested.
Place, date and signature or prescribed authentication.
The payer or deductor completes the prescribed payer-side details and reporting requirements. For Tax Year 2026-27 onward, taxpayers should refer to the fields and instructions in Form 121 under the Income-tax Rules, 2026.
Forms used for non-deduction of TDS can help eligible taxpayers manage cash flow, but they do not replace sound tax planning. If you need additional funds for personal expenses, Fibe offers personal loans of up to ₹10 lakh, subject to eligibility and internal credit assessment. Eligible borrowers can choose repayment tenures from 6 to 36 months. Review the applicable rate, charges and Key Fact Statement before accepting a loan offer.
FAQs On 15G and 15H Forms
1.What is the limit of 15G and 15H exemption?
There is no single fixed “15G/15H exemption amount” that applies to everyone. Under the earlier rules, Form 15G required the tax on estimated total income to be nil and also imposed a limit linked to the applicable maximum amount not chargeable to tax on the specified income covered by the declaration. For Form 15H, the key condition was that the estimated tax on the senior citizen’s total income should be nil. Tax slabs, rebates and the applicable tax regime can change, so use the rules for the relevant year. From Tax Year 2026-27, use Form 121 under the current framework.
2.How many times do we need to submit Form 15G?
Form 15G was generally submitted for each relevant financial year to every deductor or payer from whom eligible income was expected. If your estimated income changed materially, or if you opened a new deposit with another payer, you could need an additional or updated declaration. From Tax Year 2026-27, follow the Form 121 process.
3.Is Form 15G required for PF withdrawal if you have been employed for less than 5 years?
EPFO states that TDS may apply when an employee withdraws accumulated EPF before completing five years of service and the withdrawal exceeds ₹50,000. Under the earlier framework, an eligible member could submit Form 15G or Form 15H along with PAN to request non-deduction. For claims in Tax Year 2026-27 onward, EPFO has moved to the consolidated Form 121 process. Other exceptions to TDS can also apply, so check the latest EPFO rules for your claim.
4.Do we need to submit 15H every year?
Under the earlier framework, an eligible senior citizen generally had to submit a fresh Form 15H for each financial year in which non-deduction of TDS was requested. From Tax Year 2026-27 onward, the relevant declaration is Form 121, which should be furnished for the applicable tax year as required.
5.What happens if I don’t submit Form 15G or 15H and TDS gets deducted?
If TDS is deducted, it is credited against your PAN and can generally be claimed while filing your income-tax return. If your final tax liability is lower than the TDS deducted or is nil, you may be eligible for a refund after filing the return and completing the applicable processing. A later declaration does not necessarily reverse TDS that has already been deducted.
6.Can NRIs submit Form 15G or Form 15H?
No. Forms 15G and 15H are declarations for eligible resident taxpayers. Non-resident Indians cannot use these forms. They should follow the TDS and lower or nil deduction procedures applicable to non-residents, where available.
7.Do I need to submit Form 15G/15H at every bank branch separately?
You need to furnish the declaration to each relevant deductor or payer from whom you expect eligible income. Within the same bank, whether a separate branch-wise submission is required depends on the bank’s systems and policy; many banks process declarations centrally for deposits linked to the same customer profile. Check the bank’s instructions, especially if you hold deposits under different customer IDs or entities. For Tax Year 2026-27 onward, follow the bank’s Form 121 submission process.
Paytm Postpaid is a short-term credit facility on UPI that lets eligible users make merchant payments now and repay later. The current Paytm Postpaid offering is provided in partnership with Suryoday Small Finance Bank and can offer a credit limit of up to ₹60,000, subject to eligibility and the offer shown in the Paytm app.
Because Paytm Postpaid is a formal credit facility, the way you use and repay it can affect your credit profile. Timely repayment can support responsible credit behaviour, while missed or delayed repayments may negatively affect your credit history and score if reported by the lender to credit bureaus.
Understanding Paytm Postpaid repayment terms, charges and safe usage practices can help you use the facility more responsibly and avoid unnecessary costs.
What is Paytm Postpaid?
Paytm Postpaid is a Credit Line on UPI that allows eligible users to make supported merchant payments using a pre-approved credit limit instead of paying immediately from their bank account.
Credit limit of up to ₹60,000, subject to eligibility and the offer shown in the app.
Can be used for merchant payments through UPI QR codes, supported websites and apps, and eligible services within the Paytm app.
The credit line is revolving, so the available limit can be restored after repayment, subject to applicable terms.
Paytm Postpaid is meant for merchant payments; person-to-person transfers are restricted.
Repayment terms, applicable charges and the due date are shown in the Paytm app before or during activation and billing.
Paytm Postpaid Charges
Paytm currently promotes Paytm Postpaid as short-term, interest-free credit. However, interest-free does not always mean cost-free. Depending on the transaction and your account terms, other charges may apply.
Charge type
What to know
Signup fee
Paytm states that there is no signup fee simply for activating the service.
Convenience fee
A convenience fee may apply on usage or at bill generation. Current Paytm guidance indicates that this can range from 0% to 3% plus GST, depending on the applicable offer and transaction.
Late payment charges
Charges may apply if the bill is not repaid by the due date, as per the terms shown for your account.
Mandate bounce charges
Additional charges may apply if an auto-repayment mandate fails.
Platform or bill-payment fees
Certain Paytm services can carry separate platform or convenience fees depending on the payment category and method used.
Always check the latest charges displayed in the Paytm app before accepting or using the facility, as fees and account terms can change.
Does Paytm Postpaid Affect CIBIL Score?
Yes, Paytm Postpaid can affect your CIBIL score because it is a credit facility. The lender may report your credit-line usage and repayment behaviour to credit bureaus. If you repay on time and manage the credit line responsibly, it can help demonstrate healthy credit behaviour. Delayed or missed payments, on the other hand, can negatively affect your credit profile.
Credit reporting can include bureaus such as TransUnion CIBIL, Experian and CRIF High Mark, depending on the lender’s reporting arrangements. The exact impact on your score is not fixed and can vary based on your overall credit history, outstanding balances, repayment record and other factors.
It is therefore better to avoid claims such as a missed Paytm Postpaid payment always reducing a score by a fixed number of points. Credit-score changes differ from one borrower to another.
How to Use Paytm Postpaid Safely
Repay on time
Track your due date and ensure sufficient funds are available before repayment.
Avoid overspending
Treat the available limit as borrowed money, not additional income.
Check charges before paying
Review convenience fees, late-payment charges and other applicable costs before using the facility.
Use only what you can repay
Keep your usage within an amount that fits comfortably into your next repayment cycle.
Monitor your credit report
Check your credit report periodically to ensure the credit line and repayment status are being reported accurately.
Paytm Postpaid vs Credit Card: What Should You Consider?
Paytm Postpaid is designed for short-term merchant credit on UPI, while a credit card can offer a wider set of payment, rewards and billing features. Which option works better depends on your spending habits, repayment needs and the charges applicable to you.
For example, the Fibe Axis Bank Credit Card is a lifetime-free RuPay credit card with zero joining and annual fees. It offers 3% cashback on eligible food delivery, entertainment and local commute spends, 1% cashback on other eligible spends, up to four complimentary domestic airport lounge visits per calendar year subject to applicable conditions, and a 1% fuel surcharge waiver on eligible transactions.
Before choosing between Paytm Postpaid and a credit card, compare the repayment cycle, applicable fees, benefits and your ability to clear the total amount due on time.
FAQs on Paytm Postpaid and Credit Score
1. What are the consequences of not paying your Paytm Postpaid bill?
If you miss the repayment due date, late-payment or mandate-bounce charges may apply. A delayed or missed repayment may also be reported to credit bureaus and can negatively affect your credit profile. Continued non-payment may lead to restrictions on the credit line and recovery action in accordance with the lender’s terms.
2. Is a CIBIL score required for Paytm Postpaid?
Paytm does not publicly state a single minimum CIBIL score that guarantees eligibility. Access to Paytm Postpaid is subject to the lender’s credit assessment, KYC, internal policies and the offer available to you in the app.
3. Does activating Paytm Postpaid impact your credit score?
Opening a formal credit line can become part of your credit profile if the lender reports it to credit bureaus. The effect on your score can vary. Timely repayment and responsible usage can support healthy credit behaviour, while missed payments can hurt it.
4. What credit score is needed for Paytm Postpaid?
There is no publicly disclosed fixed minimum credit score for Paytm Postpaid. The lender determines eligibility based on its internal assessment and the customer’s overall profile.
5. Which credit bureaus receive your Paytm Postpaid repayment data?
Repayment data for formal credit facilities may be reported by the lender to credit bureaus such as TransUnion CIBIL, Experian and CRIF High Mark. Exact reporting coverage can depend on the lending partner and applicable reporting arrangements.
6. Has Paytm Postpaid changed its lending partner recently?
Yes. The current Paytm Postpaid Credit Line on UPI was launched in partnership with Suryoday Small Finance Bank in September 2025. Earlier versions of Paytm Postpaid had been offered through NBFC lending partners.
7. Are there any charges other than the late-payment fee on Paytm Postpaid?
Yes. A convenience fee may apply, and Paytm’s current guidance indicates that it can range from 0% to 3% plus GST depending on the applicable offer or transaction. Mandate-bounce charges and certain platform or bill-payment fees may also apply. Check the app for the latest charges before using the facility.
8. Can I convert my Paytm Postpaid bill into EMIs?
Eligible users may receive an option to convert certain Paytm Postpaid bills into EMIs. Paytm states that 3-month or 6-month EMI options may be offered depending on usage and repayment history. This facility is not guaranteed and is subject to the offer available on your account.
One might think getting a credit card for a low CIBIL score is hard. It’s harder, certainly, but it isn’t closed off. Certain issuers will extend credit even when your score is well short of perfect, and the right card can double up as a tool to repair the score itself.
First, though, it helps to know where you actually stand. A CIBIL score runs from 300 to 900. Most issuers treat anything below 650 as low, and below 550 as poor. If your report shows NA or NH instead of a number, that’s a different situation altogether: it means you have no credit history yet, not a damaged one. Both are workable. They just call for different cards.
This guide covers the CIBIL score bands, how much credit score is required for a credit card, the four card types open to you at a low score, the documents you’ll need and how to apply without denting your score further.
QUICK STAT
Your repayment history carries roughly 35% of the weight in your CIBIL score and your credit utilisation another 30%, which together account for about two-thirds of the number. Issuers and lenders report your activity to the bureaus every 30 to 45 days, so changes show up within a month or two rather than overnight. (Source: TransUnion CIBIL, score factor weightings)
Understanding CIBIL Score Ranges: What Is Considered Low?
Cutoffs vary from one issuer to the next, so treat these as indicative bands rather than fixed rules. They’re still the fastest way to work out which cards are worth applying for:
CIBIL score band
What it signals
Realistic credit card access
NA or NH (sometimes shown as -1 or 0)
No credit history on record yet
Secured cards and entry-level cards built for new-to-credit applicants
300 to 549 (Poor)
Defaults, write-offs or sustained missed payments
Unsecured approval is very unlikely. A secured card is the practical route
550 to 649 (Fair)
Late payments or heavy credit use in the recent past
Some issuers will consider you, at lower limits and higher charges
650 to 749 (Good)
Broadly sound repayment behaviour
Most mainstream cards become realistic options
750 to 900 (Excellent)
Consistent, on-time repayment across accounts
Best card variants, highest limits and fastest approvals
DID YOU KNOW?
NA or NH is not a bad score. It’s the absence of one. Issuers often find a clean slate easier to work with than a damaged history, which is why first-time applicants sometimes get approved faster than someone rebuilding from 540.
How Much Credit Score is Required for a Credit Card?
There’s no single minimum. Each issuer sets its own bar and reads it alongside your income, how stable your employment looks and what you already owe. That said, the industry pattern is fairly consistent:
750 and above: approval is straightforward and you get the better variants, higher limits and lower charges
700 to 749: approval is likely for standard and mid-range cards, though premium products may get extra scrutiny
650 to 699: possible but not guaranteed, usually at a modest limit. A secured card is the surest bet in this band
Below 650: unsecured approval is difficult. Secured and credit-builder cards are the realistic options
So when you see the CIBIL score required for a credit card quoted as 750, that’s the comfortable number, not the compulsory one. What matters more is the cutoff just above your current score, because that’s the band you’re actually trying to reach.
Types of Credit Cards for Low CIBIL Score
To get a mainstream credit card, you generally need a fair to excellent credit score. With a poor score you still have options, and each of them lets you build your score gradually while you use it. Here are the four worth knowing about.
Secured Credit Card
Any regular credit card is an unsecured form of credit, given purely on the strength of your creditworthiness. A secured credit card works differently: you open a fixed deposit with the issuer and that deposit acts as collateral. Because the risk sits with your own money, your score barely matters to the approval decision.
Backed by a fixed deposit with the issuing bank
Credit limit is set as a percentage of the deposit, typically 75% to 90%
Your FD keeps earning interest for the whole period the card is active
Reported to the bureaus exactly like an unsecured card, so on-time payments build your score
Using your low CIBIL credit card sensibly and clearing bills on time will move your score in the right direction. Miss payments and the bank simply liquidates the FD to recover the dues, which is why approval is easy but the discipline still matters.
PRO TIP
Open the FD slightly larger than you think you need. A Rs. 50,000 deposit at a 90% limit gives you Rs. 45,000 of headroom, which makes it far easier to keep utilisation under 30% than a Rs. 10,000 deposit would.
Credit Cards Issued by Your Primary Bank
If you’re just starting to build a credit history, a free card from the bank you already bank with can be a strong option. Banks can approve you even when you’re young, have never handled credit and have no score at all, because they can see your salary credits and balances directly. Equally, they may extend a card despite a low CIBIL score if you hold sufficient funds or have been with them for years.
Unsecured Credit Cards with High Fees
Some issuers offer cards that don’t require a high CIBIL score and don’t ask for a deposit either. They price that risk in through higher joining fees, higher annual fees and steeper interest on revolving balances. Used carefully, these cards can lift your score enough to let you switch to something cheaper with better features. Used carelessly, the charges compound quickly. Read the Most Important Terms and Conditions document before you accept one.
Credit-Builder and Add-On Cards
Two newer routes are worth putting on your list. Credit-builder cards are entry-level products designed specifically for thin-file and low-score applicants, often with a small limit, no annual fee and score-tracking built into the app. They’re less about rewards and more about generating a clean 12-month repayment record.
An add-on card, sometimes called a supplementary or secondary card, is issued against a family member’s existing account. Your parent or spouse remains the primary cardholder and stays liable for the bill. The catch is that reporting practice varies: some issuers report add-on activity under the primary holder’s name only, in which case it does nothing for your own score. Ask the issuer directly before you rely on it.
How to Apply for a Credit Card with a Low CIBIL Score
The sequence matters here. Applying scattershot is how people turn a fair score into a poor one, because every application leaves a mark. Work through it in this order:
Pull your CIBIL score and full report first. You’re entitled to one free report a year from the bureau. Know your exact number before you apply, not after you’re rejected
Fix the errors you find. A closed loan still showing as active, or an account that isn’t yours, can hold your score down by a wide margin. Raise a dispute with the bureau and wait for it to resolve
Match the card type to your band. Use the table above. Applying for a premium card at 580 is a guaranteed rejection and a wasted enquiry
Start with a bank you already have a relationship with. An existing salary account or a long-running savings account gives the issuer data your CIBIL report doesn’t show
Check pre-approved offers rather than applying cold. Pre-approved eligibility checks are soft enquiries and don’t touch your score, unlike a full application
Apply for one card at a time. If it’s declined, wait 3 to 6 months and fix the underlying reason before trying again
Declare your income accurately and keep documents consistent. A mismatch between your application and your bank statements is a common, avoidable rejection
Once approved, treat the card as a score-building instrument. Small spends, paid in full, every single month
WATCH OUT
Every full application creates a hard enquiry on your report, and rejections are recorded too. Several applications inside a few weeks reads as credit hunger to an underwriter and can pull your score down further, which is the opposite of what you’re trying to achieve.
Documents Required to Apply for a Credit Card
Keeping these ready shortens the process considerably, and incomplete paperwork is one of the most common reasons a low-score application gets rejected outright:
Category
What issuers usually accept
Identity proof
PAN card (mandatory), Aadhaar, passport, voter ID or driving licence
Address proof
Aadhaar, passport, recent utility bill, registered rent agreement or bank statement
Income proof (salaried)
Latest 3 months’ salary slips, Form 16 and 6 months’ bank statements
Income proof (self-employed)
ITR for the last 2 years, audited financials and 6 months’ bank statements
Photograph
Recent passport-size photograph
For a secured card
Fixed deposit receipt or booking confirmation with the issuing bank
Two things to note. Your PAN is non-negotiable, since it’s how the issuer pulls your credit report. And if you’re applying for a secured card, income proof requirements are usually lighter or waived altogether, because the deposit is doing the work your salary slip normally would.
How to Improve Your CIBIL Score for Better Credit Card Options
A low CIBIL score credit card is a stepping stone, not a destination. Improving the score underneath it is what unlocks cards with lower charges and better features. These are the levers that actually move the number:
Pay every credit card bill and EMI on time. Repayment history is the single heaviest factor, so this one habit does more than the rest combined
Keep your credit utilisation below 30%. Utilisation is the amount you’ve used divided by your total available limit. On a Rs. 50,000 limit, keep the outstanding under Rs. 15,000
Avoid applying for several cards at once, since too many hard enquiries in a short window drag the score down
Check your CIBIL report regularly for inaccuracies, because an error you haven’t spotted is still costing you points
Keep your oldest card open even if you barely use it. Closing it shortens your credit history and shrinks your total limit, which pushes utilisation up
Build a mix of secured and unsecured credit over time, as credit type and duration together carry meaningful weight
How Long It Actually Takes: Ravi’s Timeline
Ravi, 27, works in sales in Nagpur. Two missed EMIs on a consumer durable loan in 2024 had pulled his CIBIL score down to 612, and three card applications in the same month made it worse rather than better.
He stopped applying. He opened a Rs. 25,000 fixed deposit with his salary account bank and took a secured card against it, which gave him a limit of Rs. 22,500. He kept his monthly spend on the card between Rs. 4,000 and Rs. 6,000, roughly a quarter of the limit, and cleared the full statement balance every month. He also disputed a closed loan that was still showing as active on his report.
By month 11 his score had crossed 700 and his bank pre-approved him for an unsecured card with no annual fee. Nothing clever happened here. He paid on time, kept utilisation low and stopped applying. Individual results vary with what’s on your report, but 6 to 12 months of clean behaviour is a fair expectation.
Once your score is back in the healthy range, pick a card that doesn’t eat into what you’re earning back. The Fibe Axis Bank Credit Card is India’s first numberless credit card, with zero joining and annual fees, up to 3% cashback on online food delivery, entertainment and local commute plus 1% on other spends, RuPay UPI linking and 4 complimentary domestic lounge visits a year. Check your eligibility on the Fibe app or website. Approval depends on your credit profile, so it’s worth building your score first using one of the options above.
FAQs on Credit Cards for a Low CIBIL Score
1.How to get a credit card if my CIBIL score is low?
The most reliable route is a secured credit card, where you pledge a fixed deposit as collateral and the issuer sets your limit as a percentage of it. You can also approach your primary bank, which can lean on your account history rather than your score, or apply for a high-fee unsecured card. Any of these will build your score over time and let you move to a regular card with better benefits at lower cost.
2.What credit card options are available for those with a low CIBIL score?
Four, broadly. Secured cards backed by a fixed deposit, cards from your primary bank based on your relationship, unsecured cards with high fees that price in the risk, and credit-builder or add-on cards designed for thin-file applicants.
3.Do credit cards for low CIBIL scores have higher fees or interest rates?
Usually, yes. High-fee unsecured cards carry steeper joining fees, annual fees and interest on revolving balances, because the issuer is pricing in the risk of lending to a weaker profile. Secured cards are the exception: since your fixed deposit covers the risk, their charges are often closer to a standard card and you keep earning interest on the deposit.
4.Which credit card is the easiest to obtain with bad credit?
A secured credit card against a fixed deposit. Approval barely depends on your score because the deposit covers the issuer’s risk, which makes it the most accessible option and a practical way to rebuild your credit profile.
5.How can I apply for a credit card with a low CIBIL score?
Check your CIBIL score and report first and dispute any errors you find. Then match the card type to your score band, start with a bank you already have a relationship with, look at pre-approved offers rather than applying cold and submit one application at a time. Keep your identity, address and income documents consistent with what your bank statements show.
6.What documents are required to apply for a low CIBIL score credit card?
PAN card, which is mandatory, plus identity and address proof such as Aadhaar or passport, a recent photograph and income proof. Salaried applicants need 3 months’ salary slips and 6 months’ bank statements. Self-employed applicants need 2 years of ITRs. For a secured card you’ll also need the fixed deposit receipt, and income proof requirements are often lighter.
7.What is the minimum CIBIL score required to get a credit card?
There’s no universal minimum. Most issuers prefer 750 and above for standard unsecured cards, treat 700 to 749 as likely approval and consider 650 to 699 case by case at lower limits. Below 650, secured and credit-builder cards are the realistic options. Each issuer reads the score alongside your income, employment stability and existing obligations.
8.My application was rejected. How long should I wait before applying again?
Wait 3 to 6 months and use that time to fix the reason for the rejection rather than reapplying immediately. Each fresh application adds a hard enquiry, and a cluster of them in a short period signals credit hunger to underwriters. If you can, ask the issuer why it was declined so you’re addressing the actual problem.
You can access your CRIF High Mark free credit report to ensure details of your credit history are accurate. This assures smooth access to credit cards and other forms of credit. Inaccuracies and errors in your credit report can hinder this process. These include:
Incorrect personal information
Errors in Account
Identity theft
It is best practice to check your credit report occasionally to find errors, if any and take the required steps to fix them. To understand whether you have an error or not, you will have to follow these steps:
Obtain a copy of your credit report
Review it
Gather supporting documents to comprehend whether there is any inaccuracy
How to Correct Errors in Your Credit Report
After you find an error, take steps to fix it with CRIF High Mark. Get your free CRIF High Mark credit report and follow these steps to raise a dispute with CRIF High Mark:
Step 1: Log in to the official CRIF High Mark portal
Step 2: Share your details on the login page to locate your account linked in the CRIF report
Step 3: Select the ‘My Report’ option and click on the ‘Raise a Query’ tab
Step 4: Select the dispute category that best describes your issue
Step 5: Enter the details of your query or correction required
Step 6: Click on the ‘SUBMIT’ button
Once you raise your CRIF High Mark dispute you will receive an acknowledgement from CRIF. Then, CRIF will contact the concerned lender. The course of action will vary depending on whether the lender accepts the dispute or rejects it.
Upon acceptance by the lender, CRIF will make the changes and notify you. On rejection too, you will be notified. If you are unsatisfied, you can escalate your concern.
Vital Things to Remember When Filing a Dispute with CRIF High Mark
Filing a dispute is a crucial step towards protecting your financial standing. However, the process requires careful attention to detail to ensure a successful outcome.
Please mention your CRIF High Mark Reference Number or Report ID, available in the top right corner of your report
The subject line should be your CRIF High Mark Reference Number
Share details of your CRIF Account (S. No.) along with your contact information and the disputed account information
If there’s an actual error, only then it will be treated as a Complaint or Grievance
The rest of the raised dispute will be labelled as Requests or Queries
Upon receipt of your correspondence from the bureau, you will receive a Ticket Number.
Common Errors in Your Credit Report
Here’s a list of commonly faced errors you can easily resolve with this process.
Inappropriate Current Balance: Sometimes, the report reflects inaccurate payment instalments
Inexact Personal Credentials: Check the spelling of your name, address, DOB and PAN
Wrong Account Number: Verify your account number if you have multiple accounts
Inaccurate information can have significant consequences on your financial health. Fortunately, there are steps you can take to identify and correct these errors.
Check if your balance is updated properly and it is also reflected in your CRIF High Mark score
Always double-check your name, address, date of birth and PAN number
Confirm if there’s an outstanding loan and if it is mentioned in your CRIF High Mark complaint, too
The idea is to maintain a healthy credit profile and addressing an error is a part of it. It is your job to ensure that lenders receive accurate information about you so that your applications for credit have the best chance for approval.
In case you are looking to upgrade your life, opt for the Fibe Instant Cash Loan. Get our Personal Loan App or register on our website to get a loan of up to ₹5 lakhs with minimal documentation.
FAQs on How to Correct Errors in CRIF High Mark Credit Report
Why is it important to correct errors on the CRIF High Mark credit report?
Making corrections to the CRIF free credit report will help you with the following:
And above all, you have peace of mind that you are doing well financially.
What steps should I take if I discover mistakes in my CRIF credit report?
Address the problem with the CRIF High Mark by following these steps:
Log in to the official CRIF High Mark portal
Share your details on the login page
Click the ‘Raise a Query’ tab and select a dispute category to describe your issue
Enter your query or the required correction
Click the ‘SUBMIT’ button and wait for a revert
What kinds of errors can be fixed on a CRIF credit report?
The CRIF score check may have errors in personal and account information as well as credit limit. You can fix these issues by raising a dispute with CRIF High Mark.
How to rectify CRIF score?
To rectify your CRIF score, you can follow these steps.
Step 1 – Go to the CRIF High Mark Website
Step 2 – Create an account
Step 3 – Review your report
Step 4 – Gather supporting documents
Step 5 – Submit the dispute online
Step 6 – Contact the lender
Pay your bills on time and keep your credit use within the limit to boost your credit score.
When credit card transactions go wrong, knowing the chargeback meaning and sending a request can help you secure your finances. It plays a vital role in providing security and confidence to you as a cardholder against fraud or incorrect product deliveries from merchants or retailers.
You can place a chargeback request in case of receiving damaged goods when your cancellation request is not actioned. You can do the same when you’ve swiped your card but have not received any product. This request is valid for a number of transactions. However, this process needs the cooperation of the relevant merchant so you can get the chargeback credited easily.
Choosing a reliable credit card issuer with a robust dispute resolution cell and faster chargeback processing is also important. This way, you can request a chargeback from credit card companies easily.
What is a Chargeback Request?
Credit cards come with a lot of perks and benefits. Chargeback is considered one of the vital advantages of safeguarding you from certain frauds related to payments and purchases. It is the process of reversing the payment by the credit card issuer during:
Failed product or service delivery: If the merchant has been unable to provide the service/ product for which you have made a payment
Product issues: If the delivered product is damaged or is different from what you have ordered
Unauthorised payment: If a purchase is made without your knowledge
Incorrect transaction amount: If the merchant charges you an amount that does not match the product/service delivered or completed
Automatic deduction for cancelled services: If you’ve cancelled a subscribed service and still been charged for it
You can dispute a chargeback with your credit card issuer in the following steps:
Contact your credit card provider and give all information regarding the dispute like communication with the respective merchant and purchase-related data. This will help the card issuer in resolving the dispute.
After that, your credit card issuer may ask you to fill out the claim form. You can download the form and submit it through e-mail after filling in the necessary details.
You may receive an interim chargeback credit. This is a temporary credit issued by the card issuer to your account until the dispute gets resolved.
Guide to Chargeback Processing
When you request your credit card issuer to look into an invalid transaction, they may ask for certain details to assess your request:
After the evaluation, your credit card provider will initiate the interim chargeback credit. Then, the card issuer reaches out to the respective merchant regarding the dispute. The merchant can accept or challenge the chargeback:
If the merchant accepts the chargeback
If the merchant challenges the chargeback
Your credit card provider will transfer the amount deducted from your credit limit back to your accountThe amount is permanently deleted and not included in your credit card statement
The merchant submits the rebuttal form with evidenceYour credit card provider either reverses or upholds the chargeback after evaluating the evidenceIf the decision is in your favour, the chargeback amount credited to you will be permanentIf the decision goes in the merchant’s favour, then the interim chargeback will be reversed, the amount will be included in your statement, and you will have to pay the bill by the due date
In case the merchant does not agree with the card issuing company, it can appeal the decision by involving arbitrators. VISA, RuPay and other card networks may now be involved, and their decision will be considered final. The fee for the arbitration process will be the responsibility of the losing party.
Refunds can be carried out quite easily and involve minimal processes. They are thus different from a chargeback claim which is a complex procedure involving the credit cardholder, credit card issuer, merchant and even credit card network providers like Visa and MasterCard.
While the merchant itself offers you a refund, a chargeback is initiated by the credit card company. Similarly, you contact the merchant directly in case of a refund and not the issuing company. Refunds are also much faster than chargeback processes, which may involve up to 4 months or more.
It is essential to understand the filing of a claim for chargeback, meaning you can enjoy a stress-free experience in case a fraud occurs. If you’re looking for a credit card with increased security, you can opt for the Fibe Axis Bank Credit Card. It is India’s first numberless credit card with zero annual or joining fee.
What’s more, you get up to a flat 3% cashback on eligible transactions, waiver on fuel surcharge, free access to domestic airport lounges and a hassle-free UPI payment option. So, what are you waiting for? Download the Fibe App and apply for it now to enjoy unlimited perks.
FAQs on Chargeback
Is chargeback a refund?
Chargeback, meaning the system that allows you to safeguard your finances in case you feel you have been cheated, is different from a refund. It involves contacting the credit card company and raising a dispute through a claim form instead of contacting the merchant directly.
What is an example of chargeback?
If you’ve cancelled a subscribed service and the service provider still charges your credit card for it, you can file a chargeback request.
How does a chargeback claim work?
You can file a chargeback claim by contacting the credit card issuer, who will then reach out to the merchant. Your transaction details are then discussed, and either accepted or the merchant files a rebuttal.
What is the chargeback time limit?
Usually, you can file a claim 90 to 120 days from the date of purchase. However, it depends on your credit card company.
When you search what is balloon payment, the main thing you want to know is whether it can actually make your loan affordable and if it’s the right choice for you. Simply put, a balloon payment is a loan structure where you pay smaller EMIs during the tenure and a large lump sum at the end. This gives you better liquidity in the short term, but it comes with risks if you cannot arrange the final amount. The balloon payment meaning is important to understand because it impacts affordability, total interest paid, and your risk of default.
What is Balloon Payment?
A balloon payment refers to a large one-time repayment due at the end of a loan’s tenure. Unlike a regular EMI loan where payments are evenly spread through amortisation, balloon EMI structures keep instalments smaller at the start and leave a big final instalment at the end. This repayment method can suit borrowers who expect a lump sum inflow (like a bonus, asset sale, or maturing investment) but carries the risk of heavy financial strain if not planned properly.
How to Benefit from Balloon Payments?
You can consider balloon EMIs in these cases:
If you plan to sell an asset (house, car, etc.) at the end of the tenure and use the proceeds for repayment.
When you expect a future lump sum (bonus, maturity, business payout) to cover the balloon payment.
In the early stage of your career where income growth is expected, lower EMIs now and bigger payment later fits your plan.
If you want lower EMIs for short-term liquidity while managing other financial obligations.
Process of Calculating Such Payments
Calculating your instalments and the payment due at the end of the loan’s repayment window may seem complicated, but online balloon payment calculators can help. Here’s how you can understand how they are worked out:
The repayment amount will include the principal amount and interest rate as well as the tenure you are borrowing for.
To calculate your lump sum payment, use the loan’s interest to find the future value of all your monthly payments at the end of the loan’s term.
The difference between your original loan amount and this future value is your payment, which you owe at the end of the tenure.
Home Loans / Mortgages: Pay only interest as EMIs and settle the principal with a balloon payment at the end.
Vehicle Loans: Pay up to 50% of the loan in a final balloon EMI while the rest is paid in regular instalments.
Business Loans: Keep EMIs small for cash flow flexibility and repay the large balloon at tenure-end.
Risk Factors Associated with Balloon Loans
While balloon EMIs seem attractive, here are the risks you must consider:
Creditworthiness requirement: Only borrowers with strong repayment capacity and income proof qualify.
High final repayment: Balloon payment is usually 50% or more of the total loan, which can cause severe financial stress.
Default risk: Missing the balloon EMI can damage your credit score and lead to asset repossession.
Strict eligibility: Lenders are cautious and approve such loans only for applicants with proven repayment ability.
Refinancing need: Many borrowers rely on refinancing to cover the balloon payment, which may add cost and extend debt.
Balloon Loans vs Other Loan Types
Amortisation vs Balloon Loans: In amortised loans, you repay both principal and interest in equal EMIs. In balloon loans, you pay smaller EMIs initially and face one large final repayment.
Balloon vs Interest-only Loans: In interest-only loans, you pay only interest during tenure and repay the principal later. In balloon loans, you may repay both principal + interest in smaller instalments but still owe a big balloon EMI at the end.
A balloon loan is useful if you’re confident about your ability to pay the final lump sum. If not, it can be risky. For hassle-free and predictable repayment, you can opt for the Fibe Instant Cash Loan. Get up to ₹5 lakhs, enjoy affordable EMIs and even prepay early with 0 foreclosure charges. Download the Fibe App today for a smooth borrowing experience.
FAQs on Balloon Payments
What is a balloon loan example?
Housing loans, auto loans and business loans may offer you the freedom to make balloon payments.
What is balloon payment meaning?
This repayment structure is when you make small or no payments during the term of the loan and make a large lump-sum payment at the end of the loan’s tenure.
Is balloon payment a good idea?
It depends on your financial situation and needs, as it involves a huge payment at the end of the repayment window but gives you more financial flexibility throughout the tenure.
What is a 5-year balloon payment?
This refers to when you have to make the final payment against your loan at the end of 5 years.
Invoice discounting can help your business get instant working capital. If your business has its cash tied up in unpaid invoices, this facility provides an apt solution. You can use these funds to cover operational costs or maintain a smooth cash flow. You can also choose to invest the acquired funds in assets. To know more about invoice or bill discounting and its advantages and eligibility, read on.
What is Invoice Discounting?
Bill discounting is an invoice financing tool that helps your business get instant cash. You can visit a bank or an invoice discounting platform and get funds against any unpaid customer invoices. The customer pays their dues to the bank directly and the bank charges you a commission for the service. This way, you can maintain smooth business operations by getting your receivables sooner.
Advantages of Bill Discounting
This tool provides various advantages to businesses in running a smooth operations. Some of these advantages are:
Gives you increased cash flow and instant access to cash
Speeds up the working capital cycle
Remains confidential, as there is no obligation to inform clients
Helps your business retain control
Allows you to pay interest only on borrowed money
May offer dad debt protection
Enables business expansion
Monetises receivables stuck in unpaid invoices
Reduces dependence on secured bank loans or other types of debt
Offers competitive pricing based on your business or personal credit ranking/rating
You may have to provide audited financial statements or other relevant documents to demonstrate the financial status of your business.
Invoice Information
You must provide details about the business invoices you want to discount. The details should include:
Customer’s name
Invoice amount
Payment terms
Invoice Discounting vs Invoice Factoring
In addition to this, invoice factoring is another invoice financing solution that can help your business get working capital. Refer to the following table to learn more about the differences between the two solutions.
Factors
Invoice Discounting
Invoice Factoring
Meaning
Access funds against unpaid invoices and retain control
Sell unpaid invoices where the factoring company handles credit control
Control
Businesses manage sales ledger and customer relationships
Factoring company manages sales ledger and collections
Confidentiality
Financing is undisclosed to customers
Customers are aware of the arrangement
Collections
Businesses collect payments
Factoring company collects payments
Flexibility
Choose which invoices to finance
More structured, often involves all invoices
Costs
Lower fees, more business responsibility
Higher fees, comprehensive service
Bad Debt Protection
Not provided
May include bad debt protection
Creditworthiness
Focus on business credit rating
Focus on customers’ credit rating
When pursuing business endeavours, unpaid customer invoices could tie up the inflow of revenue. Invoice discounting ensures that you have the working capital you need to achieve your business dreams.
To remove bottlenecks in personal finances, take a Fibe Personal Loan and accomplish your goals. It can provide you with a loan of up to ₹5 lakhs with minimal paperwork and competitive interest rates. Register on our website or download the Fibe App to acquire the funds you need.
FAQs on Invoice Discounting
Is invoice discounting profitable?
Invoice discounting can be a good solution for any business in need of immediate working capital.
Is invoice discounting legal in India?
Yes, invoice discounting is legal in India. The factors that establish its legality are:
It is governed by the Factoring Regulation Act, 2011
Invoice discounting platforms fall under the purview of the PSS Act, 2007
TReDS regulates invoice discounting, executing rules and tools for growth
What are the advantages invoice discounting?
Some of these are as follows:
Confidentiality
Instant cash
Collateral-free finance
Businesses have full control
Unlock tied-up cash
Better cash flow
What are some disadvantages of bill discounting?
A few disadvantages of bill discounting include:
High commission charges
Overuse can lead to a bad reputation in the industry
Maintaining cash flow is one of the priorities of any business owner, irrespective of the scale of the enterprise. This is why channel financing is becoming a well-known solution for the unhindered productivity of many businesses.
It is an innovative solution that provides working capital to the manufacturer or supplier without adding a burden on the customer. With third-party involvement, a smooth transition takes place for convenient business practices.
Read on to learn the meaning of channel finance, how it works, its features, benefits, eligibility and more.
What is Channel Financing?
Also called supply chain finance, this is a lending facility that provides working capital to businesses through different channels. In simple terms, it is a small instant business loan that allows you to arrange funds before the bills are cleared.
Opting for this, you can lower your credit cycle to zero by arranging upfront cash for your raw material, delivery, production and other expenses. This way, you can improve the supply chain management system without digging into your savings.
Channel Financing Example
To better understand how the channel finance facility works, consider an example. Assume ABC Company is a supplier of a product, and XYZ Company places a bulk order. Now, to manufacture the product, ABC needs raw materials, a workforce, funds for transportation, and other miscellaneous expenses.
After calculating the complete cost of production for the order, ABC raises an invoice. They send a copy of the invoice to the financing company and the customer, which is XYZ Company in this case.
The lender will verify the documents for loan approval. If XYZ Company accepts the invoice, the loan is then disbursed. Using these funds, ABC Company will manufacture and deliver the product to the XYZ Company. XYZ Company will pay the cost to the lender, closing the loan.
Features and Benefits
The following are some reasons why channel financing is beneficial for all the entities involved in the supply chain management system.
Swift Approval
With the majority of lenders allowing online applications, you can apply and get the funds within a few hours. This helps you save time and get funds quickly. However, it is important that you keep all your documents ready and double-check all details mentioned.
Zero Collateral
Channel financing is an unsecured loan, which means you do not have to provide any valuable asset to get the funds.
Increased Efficiency
In business, delayed payments are common. If you rely on a customer to clear the invoice to start production for next order, your business can slow down. By opting for this facility, you can avoid cancelling orders due to insufficient funds.
Convenient Cash Flow
It gives you a head start on your production without relying on the customer to make an advance payment.
Easy Repayment Plan
The process is very organised, as lenders maintain cash flow without adding financial liability to either entity involved. The customer is aware of the total payable cost and can easily pay the complete amount after delivery. This also maintains transparency for them while reducing the risk for manufacturers.
Eligibility and Documents Required
While all channel finance companies have their specific policies, here are some criteria that you can consider for most lenders.
Must be a micro, small, and medium enterprise
Must have a business vintage of at least 3 years or as per the policy of the lender
Must meet the minimum turnover limit of the lender
Must be an Indian resident
Must be between 21 and 65 years of age
In addition to that, you need to provide the following documents at the time of application. Keeping this list handy helps you save time in the process and get quick approval.
KYC documents, such as PAN card and Aadhaar card
Certificate of business
Income tax return for last year
Profit and loss statements
Address proof of business
Bank statement
Thanks to the digital application process and fintech advancements, it is easy to compare and choose the best option for borrowing. This way, you can manage all your financial needs without hassle. Similarly, you can arrange funds for your personal requirements with top lenders online.
Fibe Instant Cash Loan is one such option that gives you up to ₹5 lakhs without collateral through an online application. We have easy-to-meet eligibility criteria that allow us to extend loans to applicants who are not eligible for traditional bank loans. This is because we rely on an alternative credit scoring system. Thus, you can apply even without a high credit score.
Enjoy swift disbursal, minimum paperwork, affordable tenure, and a customisable repayment plan. You can also close the loan before tenure ends without any penalties. Apply now by downloading our Personal Loan App or registering on our website!
FAQs on Channel Financing
What is the interest rate for channel financing?
Similar to any other loan, channel finance interest rates depend on many factors:
The creditworthiness of both parties
Marketing conditions
Tenure
Loan amount, etc.
What is the difference between channel finance and supply chain finance?
Channel finance is more comprehensive than supply chain finance, encompassing the distribution network.
What is loan channelling?
It is a synonym for channel finance that provides loans to small scale businesses.
The Union Government extends collateral-free Prime Minister Mudra Loans to help finance micro, small or medium enterprises. This financial aid can help you start, enhance or expand your business based on your goals.
To know more about the Mudra loan scheme, including what it entails, its eligibility and the documents required, read on.
What is the Mudra Loan
A Mudra loan funds startups and growing businesses under the Pradhan Mantri Mudra Yojana for the non-corporate sector. Here, ‘Mudra’ is an acronym for Micro Units Development and Refinance Agency Ltd. The Mudra loan scheme works to empower small businesses with financial aid for growth.
Types of Mudra Loans
Per the PMMY loan (Pradhan Mantri Mudra Yojana) provisions, MUDRA has created various categories of loans, such as:
Shishu: Loans up to ₹50,000
Kishor: Loans from ₹50,000 up to ₹5 lakhs
Tarun: Loans from ₹5 lakhs up to ₹10 lakhs
These categories are based on the entrepreneur’s or micro unit’s growth stage and financial needs. The government’s priority is to offer Shishu loans to encourage small-scale proprietors in India’s rural and urban areas.
Mudra Loan Providers
There are many providers of Prime Minister Mudra loans. You can avail of this loan through qualified member lending institutions, such as:
Public Sector Banks
Non-Banking Finance Company (NBFC)
State-operated co-operative banks
Rural banks from the regional sector
Micro Finance Institution (MFI)
Private Sector Banks
Small Finance Banks (SFBs)
Eligibility For a Mudra Loan
Meeting some general eligibility criteria helps you qualify for this loan. These are:
Age:
Minimum: 18 years
Maximum: 65 years
Eligible Entities:
Individuals: Including proprietary concerns, partnerships, private limited companies, public companies and other legal entities.
Enterprises: All non-farm enterprises engaged in manufacturing, trading and services. Agriculture-allied activities are also included under the PMMY scheme.
Entities: Private and public limited companies, sole proprietorships, partnerships, LLPs, NGOs, trusts and cooperative societies.
Eligibility Criteria for Individuals
Indian citizen
No criminal record
No bank or financial institution payment failure
Good credit history
Educational qualification
Business activity
You may be required to demonstrate skills, experience or knowledge relevant to the proposed activity.
Other Criteria
Applicants should be engaged in income-generating activities
Non-farm enterprises should be involved in trading, services and manufacturing sectors
Paperwork Required for Mudra Loans
Once you know the eligibility for a Mudra loan, you will have to work on gathering documents. The documents you need for a PMMY loan depend on the type of loan you select. Check the tables below:
Paperwork for a Shishu Loan
Document Type
Details
ID Proof Self-attested
Choose one: 1. Aadhaar Card 2. Voter’s ID Card 3. PAN Card, Passport 4. Driving Licence 5. Government Photo ID
Address ProofSelf-attested
Choose one: 1. Telephone or Electricity Bill 2. Latest Property tax receipt (Less than 2 months old) 3. Passbook or bank account statements (attested by bank officials) 4. Aadhaar Card 5. Passport 6. Voter’s ID Card 7. Domicile Certificate 8. Certificate issued by a Government Authority/Local Panchayat/Municipality
Applicant’s Photograph
2 copies of recent colour photographs, not older than 6 months
Quotation of Machinery/Items
Quotation for machinery/items to be purchased, including the following details: Supplier name details and price
Proof of Business Identity/Address
A copy of the following as per relevance: • Relevant Business Licences • Registration Certificates • Other documents related to business ownership and address
Paperwork for Kishore and Tarun Loans
Document Type
Details
Identity Proofself-attested
Choose one: 1. Passport 2. Aadhaar Card 3. Driving License 4. PAN Card 5. Voter’s ID card
Address Proofself-attested
1. Recent telephone and Electricity bill 2. Property tax receipt – not older than 2 months 3. Voter’s ID card 4. Aadhaar Card 5. Passport of Proprietor/Partners/Directors
Photograph of Applicant
2 copies of recent colour photographs – not older than 6 months
Proof of Business Identity/Address
1. Licenses 2. Registration certificates 3. Other documents related to business ownership and address
Bank/Financial Institution Default Status
Applicant should not be a defaulter in any bank or financial institution
Statement of Accounts
Last 6 months’ statement of business account from your existing bank, if any
Financial Statements
The last two years’ balance sheets income tax/sales tax returns – for cases from ₹2 lakhs and above
Projected Financials
Projected balance sheets for one year (working capital) or for the loan period (term loan) – for cases from ₹2 lakhs and above
Sales Achievement
Sales achieved during the current financial year up to the date of application submission
Project Report
Report on the proposed project, including technical and economic viability
Company Documents
1. Memorandum and Articles of Association of the company 2. Partnership Deed of Partners
Asset & Liability Statement
Statement from the borrower, including Directors & Partners, if no third-party guarantee is provided
Application Process for a Mudra Loan
Now you need to understand how to apply for a Mudra Loan. You can get Prime Minister Mudra loans through two means. These are:
Offline Process
You can apply for this loan offline by following these steps:
Find and visit your nearest eligible Member Lending Institution
Submit the loan application form with proper information
Complete other loan formalities with the required documents
After applying for the loan wait for verification and approval
Once approved, you will get the loan in your bank account
Online Process
You can get an e-Mudra loan by following these steps:
Gather all necessary documents
Visit the PM MUDRA official website
Select the Udyamimitra portal
Click ‘Apply Now’
Click on what best describes you as an applicant from this list:
New Entrepreneur
Existing Entrepreneur
Self-employed Professional
Enter your name, email and mobile number
Click on ‘Generate OTP’
Enter the OTP to register
Fill in your personal and professional details
Click on ‘Loan Application Center’
Choose your loan type:
Shishu
Kishore
Tarun
Enter data about your business (including industry, business name and activity)
Enter owner information, existing banking facilities and choose a preferred lender
Attach all required documents
Submit the application
Save the Application Number (to check the status)
At every stage of business, you require funds for your operations, expansions and diversification. If you need to supplement business financing or do not qualify for a Mudra loan scheme, you can get the needed funds from Fibe.
The Fibe Instant Personal Loan offers up to ₹5 lakhs and helps you get competitive interest rates by submitting minimal paperwork. This is an entirely digital process with instant approval. This enables you to cater to urgent monetary requirements with ease.
Zero preclosure charges and a 36-month repayment timeline help you borrow and repay the loan comfortably. Register on our website or download our Personal Loan App to acquire the funds you need to start or grow your business.
FAQs on Mudra Loans
What is the interest rate of a Mudra loan?
Interest rates for these loans are deregulated. Each associated lending institution charges its own interest rates in adherence to RBI guidelines. Usually, the rates on these loans are nominal.
What is the ₹10 lakh loan from the government?
The Tarun Mudra loan under the PMMY offers up to ₹10 lakhs for small businesses. You can apply for it from various financial institutions.
What is the benefit of a Mudra loan?
A Mudra loan offers many benefits. Some of these are:
Easy eligibility criteria
Collateral-free facility
Easy loan disbursal process
Multi-faceted utilisation of funds
Which bank is the best for a Mudra loan?
Numerous public sector banks, state-operated co-operative banks, private sector banks, rural banks from the regional sector and small finance banks provide a Mudra scheme loan. Compare each bank’s fees, interest rates and requirements and choose the one that best matches your needs.
What is the fee for a Mudra loan?
For amounts up to ₹50,000, there is usually no processing fee applicable on a Mudra loan. For amounts that are more than that, lenders may charge a processing fee along with GST.
