You might wonder what is moratorium when looking at loan terms. It’s simply a pause on your EMI payments for a limited time. During this break, you don’t need to repay the loan, and there’s usually no penalty. It’s a helpful option built into many loans to give you some breathing space when needed.
Keep reading to learn more about what is moratorium period and how it works.
Moratorium Period Meaning
Lenders define moratorium period meaning as a legally allowed break from repayment. It can be offered at the start of your loan or later in case of genuine financial stress. It’s a facility lenders offer when you’re unable to pay EMIs due to reasons like job loss, health issues or cash flow crunch.
It’s not automatic. You need to request it and your lender must approve it. But even though your EMIs are on pause, interest still adds up. Once the period ends, you must start regular EMIs again based on a revised schedule. Once the moratorium ends, your EMIs or tenure may increase to adjust for the missed payments.
How Does a Moratorium Period Work?
When the lender approves your request for a moratorium, they will halt your EMI payments. However, interest will still be levied and added to your total outstanding amount. Once the period ends, your lender will give you a new schedule as your outstanding amount will change. This leads to an increase in your EMI, your tenure or both, depending on the agreed plan.
You might also hear the term grace period, but it’s different from a moratorium. A grace period gives you a short window, usually up to 15 days after your EMI due date. Within this grace period, you can pay without a penalty. A moratorium, on the other hand, offers a longer break.
What is an Example of a Moratorium Period?
Let’s say you have a personal loan of ₹2 lakhs at 12% interest for 2 years. You’ve already paid 6 EMIs. Due to job loss, you opt for a 3-month moratorium. Here’s what happens:
Interest keeps adding up for those 3 months
Your outstanding loan amount increases
Your lender either extends the tenure or revises your EMI
So, you skip EMIs for a short time, giving you breathing room. But your overall loan cost goes up.
How Do Lenders Calculate Interest During the Moratorium Period?
Continuing with the earlier example, let’s assume you have a personal loan of ₹2 lakhs at 12% annual interest for a tenure of 2 years. Now, due to a temporary income pause due to a job loss, you opt for a 3-month moratorium.
During this period, your EMIs are on hold. But interest keeps adding up on the pending principal.
Here’s what happens:
Monthly interest: ₹2,00,000 × 12% ÷ 12 = ₹2,000
Total interest for 3 months moratorium: ₹2,000 × 3 = ₹6,000
This ₹6,000 gets added to your outstanding loan amount. Once the moratorium ends, your lender may either increase your EMI, extend the tenure or adjust both. This ideally depends on the repayment plan you choose.
Advantages and Disadvantages of the Moratorium Period in a Loan
There are some benefits you can enjoy by opting for a moratorium period in a personal loan or any other loan. In addition to these advantages, there are also some drawbacks that you may have to face.
Advantages
Disadvantages
Helps you avoid default when facing a crisis
Total interest payout increases
Gives you time to stabilise your finances
You may need to pay higher EMIs after
No impact on your credit score
Your loan tenure may get longer
No penalty charges during the break
Not available automatically, you must apply
Armed with this information about the provision and its pros and cons, decide if this option is worth it. One way to minimise the burden of repayment is to avail a loan on affordable terms. The Fibe Instant Cash Loan is one such option and you can get up to ₹5 lakhs at affordable rates. Moreover, you enjoy flexible tenures and zero foreclosure charges, allowing you to have a comfortable experience. Download our Personal Loan App or apply on our website to get started!
FAQs on the Moratorium Period
How is interest calculated during the moratorium period?
Lenders compute interest during this period using the simple interest formula. This interest is levied on the outstanding amount for the period and not the entire principal amount. This amount is then added to the payable amount, increasing the number of EMIs or the EMI amount.
What is the moratorium period for personal loans?
It is the period during which you don’t have to pay instalments and its length depends on the agreement between the lender and the borrower.
How much will the EMI increase after the moratorium?
It depends on how long the moratorium period was and the interest applied during it.
Can I pay EMI during the moratorium period?
No, you don’t have to pay any EMIs during a moratorium period on personal loan or any other loan.
What is credit control and why does it matter when you apply for a loan? Simply put, credit control meaning refers to how lenders decide who gets credit, how much and on what terms. It helps banks and NBFCs avoid lending to risky applicants.
If your credit score is low or you’ve missed EMIs, you might face rejection or higher interest rates. The good news? You can fix this. Pay your dues on time, keep credit use low and build a steady repayment record.
So, read on to explore how lenders use this system, what factors affect it and how it impacts your credit journey.
What is Credit Control?
In simple terms, it refers to the policies and practices that financial institutions have to manage and mitigate their risk of lending. Effective implementation of credit control allows lenders to lower the risk of non-payment or default, which will help them manage their cash flow.
Key Features of Credit Control:
Helps lenders stay financially stable
Only creditworthy customers get loans
Reduces default risk and improves cash flow
Tracks repayment behaviour to avoid over-borrowing
How Credit Control Works?
Credit control means setting up systems to manage and limit risk while giving credit. Here’s how the process usually works:
Assess borrower’s ability: Lenders check income, credit score and past repayment behaviour
Set credit limits: Based on this, they decide how much credit to offer
Track credit use: They regularly monitor how the credit is being used and if payments are made on time
Report to credit bureaus: Borrower activity is shared with bureaus like CIBIL, which affects credit scores
Take action when needed: If a customer defaults, they may reduce the limit, add late charges or block further credit
It’s not just lenders, even businesses use credit control. They do this to ensure they get paid on time and protect their cash flow.
Example of Credit Control
Business example: A manufacturer checks a distributor’s payment track record. If payments are delayed, they shorten the payment window or ask for partial upfront payment.
Consumer example: When you apply for a phone on EMI, the company or store checks your CIBIL score. If it’s low, they may ask for a down payment or decline the EMI offer.
Types of Credit Control
Now that you know the meaning of credit control, here are its types:
Credit Assessment
This is the primary process of credit control, as it involves evaluating the borrower’s creditworthiness based on the past credit behaviour. This can include:
Evaluating financial capacity through income statements
Checking credit history
Credit Terms and Conditions
Another type of control is defining the terms for lending, such as deciding on a comfortable, affordable interest rate, penalty amount and payment date. This step is important to maintain transparency and facilitate on-time payments from the borrower.
Credit Monitoring and Reporting
With this type of control, lenders can report any delinquencies, delays and defaults by the borrower. This allows them to effectively manage the risk and take the appropriate steps to avoid financial loss.
Debt Collection
This is an essential component involving strategies to recover the loan amount. For example, if the borrower is unable to pay the EMI due to unforeseeable circumstances, lenders can negotiate and adjust the repayment structure. They can also appoint collection agencies to recover the amount. Lenders may even pursue legal actions for this.
Credit Insurance
This type of control is ideal for protecting lenders against default arising due to bankruptcy, loss of job, health issues, insolvency or other reasons. With this, they can minimise their loss and maintain cash flow.
Importance of Credit Control
In addition to mitigating the risk of lending, the objectives of credit control involve:
It helps set clear terms for repayment of the borrowed amount and interest
It allows lenders to decide which borrower can afford the loan
It allows them to reduce the chances of facing financial loss due to the poor financial management of the borrower
It helps regulate the cycle of credit, as reporting the credit behaviour helps other lenders assess the borrower’s financial capacity
It helps protect the borrower from over-borrowing and falling into a debt trap
It helps maintain legal and ethical regulations set for lenders as well as borrows
Although there are many benefits, there are some limitations of credit control. With its implementation, financial institutions may face:
Increased administrative costs of credit management
Reduced sales due to strict policies and terms
Challenges in balancing sales growth and credit control
Damaged consumer relationships due to stringent terms and policies
Armed with this information, you can better understand your borrowings. It also enables you to make an informed decision and choose the ideal financing option. If you are looking for affordable and instant funds, you can rely on the Fibe’s Personal Loan.
You can get up to ₹5 lakhs for your umpteen financial requirements, be it planned or unplanned. It comes with an affordable interest rate starting at 2% per month, flexible tenure option and zero pre-closure charges. Download the Fibe Personal Loan App now or apply on our website to enjoy a comfortable borrowing experience.
FAQs on Credit Control
What are the credit control types?
This strategy involves 5 types of control:
Credit assessment
Credit terms and conditions
Credit monitoring and reporting
Debt collection
Credit insurance
What is the credit control cycle?
This is a systematic process followed by the lender to manage their lending. It includes evaluating the borrower’s credit profile, setting credit limit, monitoring credit use, tracking repayment and reviewing the account.
Do you know how the repo rate increase affects your personal finances? When you apply for a loan, lenders levy an interest rate. However, this isn’t a random number but a carefully calculated rate based on the prevailing repo rate and the institution’s policy.
Here are some essential points that you need to know:
The repo rate is the rate of interest at which financial institutions borrow funds from the RBI.
The Reserve Bank of India (RBI) decides this rate based on many economic factors.
Since it impacts the lender’s borrowing cost, it indirectly affects your personal finances, too.
Currently, the repo rate fixed by the RBI is 6.50%.
What is a Repo Rate?
The repo rate or ‘Repurchase Rate’ means the interest rate at which the Reserve Bank of India gives money to NBFCs and Banks in India. So, the cardinal rule is that the higher the repo rate, the higher the interest rate. Knowing this beforehand helps you better understand the repo rate effect on a personal loan and other forms of credit.
How are Personal Loan EMIs Affected by the Repo Rate?
Thinking how does repo rate affects the interest rates of your personal loans? Generally, the RBI increases the repo rate to combat high inflation. If the RBI wants to increase the circulation of money in the economy, it lowers the repo rate. On the contrary, if the RBI wants to reduce borrowing by banks, it increases the rate to minimise the liquidity in the market.
So, an increase in the repo rate affects a personal loan, as well as business, home and other loan interest rates. Since interest rates have a direct effect on your EMI amount, an increase in the repo rate will also increase your EMI.
On the other hand, lenders borrow funds at a lower interest when the RBI reduces the repo rate. In such cases, the interest rate also lowers as they offer loans at a lower rate.
Simply put, a cut in the repo rate decreases your loan EMIs while an appreciation in the repo rate will increase your loan EMIs.
What are the Factors Affecting Your Personal Loan EMI?
In addition to the repo rate effect on a personal loan, here are some other factors that affect your interest rates and EMIs.
Credit Score
Lenders charge a higher interest rate if you have a low credit score to mitigate the risk of providing the loan. If you apply with a good credit score, you can get credit on favourable terms, thereby minimising your borrowing costs.
Loan Amount
A higher loan amount also increases the risk for lenders. To enjoy lower EMIs and affordable interest rates, borrow only the amount you need.
Repayment Tenure
Interest rates and tenure have a reciprocal relationship; as one increases, the other decreases. Opting for a longer tenure will decrease your EMI, but remember that your interest payment will increase over the tenure.
Debt-to-Income Ratio
Lenders may hesitate to provide your loan at a lower interest rate if you already have an ongoing loan. However, if you have a good score, lenders can rest assured of your repayment capability and may consider your loan application on favourable terms.
Your Net Income
Showing a higher income is one way to opt for a lower interest rate on your personal loan. Generally, lenders prefer employed individuals with steady work experience.
Lender-borrower Relationship
When you apply for a loan with an existing or past borrower, they have your record of repayment history. Based on that, you can get a personal loan at a lower interest rate, decreasing your loan EMIs.
In conclusion, the repo rate changes based on the economic situation and RBI monetary policies. Hence, apply for a loan when the repo rate is lower as interest rates will be more affordable.
One such budget-friendly credit option you can consider is the Fibe Instant Cash Loan. With this type of credit, you can meet all your urgent financial requirements at affordable interest rates starting from 2% per month.
It also has a speedy approval process and flexible tenure option with minimum documentation requirements, helping you tackle your financial needs hassle free. Download the Personal Loan App or go to our website to get up to ₹5 lakhs in a few clicks.
FAQs on How Repo Rates Affect Personal Loans
Does the repo rate affect personal loans?
Yes! This rate set by the RBI affects the interest rate offered by the lender. This way, it has a direct effect on your personal loan as well as other types of credit.
How does a hike in repo rate affect your personal finances?
When the RBI repo rate for personal loans increases, the cost of borrowing subsequently increases. Thus, if you have a floating interest rate loan, your EMI will increase with the hike in the repo rate.
Is the increase in the repo rate good or bad?
An increased repo rate has many pros and cons. For example, the interest rate on loans may increase, but individuals with FDs and savings can get better returns.
With many convenient options available, you can effortlessly make an online loan payment. This is because modern financial service providers allow you to manage your loan EMI online. As such, you can pay easily through multiple online options at your convenience.
You can use a lender’s portal or third-party payment apps to conveniently:
Pay your current and/or previous EMIs
Make pre-payments
Foreclose your loan
Knowing about the options that facilitate these payments will allow you to effortlessly manage your loan in just a few clicks. Read to know how to pay EMIs online, its key benefits and some security measures to keep in mind.
How to Pay Your Loan EMIs Online?
Follow these steps to make secure and rapid online EMI payments:
Through Net Banking
Step 1: Visit your lender’s net banking or digital loan portal
Step 2: Log in with your customer ID and password
Step 3: Go to the loan section
Step 4: Select the loan account
Step 5: Enter the amount you want to pay
Step 6: Select your preferred payment method
Step 7: Complete the payment and wait for confirmation
Through Mobile App
Step 1: Download the lender’s mobile app on your device
Step 2: Register on the app and log in with your credentials
Step 3: Navigate to the loans section
Step 4: Select the account
Step 5: Enter your EMI amount and preferred payment method
Step 6: Complete the payment and save the confirmation
On the Third-Party App
Step 1: Launch the payment app and log in
Step 2: Go to the ‘Bills and Payment’ section and select the ‘EMI Payment’ option
Step 3: Enter the required loan details and EMI amount
Step 4: Choose your preferred payment option
Step 5: Authenticate the payment
Step 6: Confirm all your details and proceed with the payment
Note that the mobile app interface for all lenders may differ slightly. However, following the instructions on your app will help you complete the transaction promptly. Once done, you will receive a confirmation from your lender.
Here are some benefits you enjoy with online loan EMI payment.
Once you have made your EMI payment, set up reminders to ensure not to miss due dates
Most of the online services are secure and reliable
You get an instant receipt to keep a record of your payments
You can use different modes to pay such as net banking, UPI, mobile wallets, etc.
With the internet around, you can make payments smoothly anytime and anywhere.
The complete process takes just a few minutes
You do not need to verify or get permission from your lender
You get instant confirmation
You can even pay EMIs online on bank holidays
You can also make advance payments or pay overdue EMIs
Security Tips for Making Online Payments
Here are some security measures you must follow for online loan payments.
Choose a trusted platform when making the payment, especially when using third-party applications
Choose a user-friendly interface to avoid errors
Make sure the web portal or mobile app has the recommended security protocols
Verify if there are any transaction fees
Always recheck your account details and payment amount before submitting
With these tips, you can automate your loan EMI payment to avoid penalties and late payment charges. If you want to apply for a 100% digital loan with flexible tenure options, choose Fibe.
With our Instant Personal Loan, you can enjoy up to ₹5 lakhs with affordable interest rates and a completely hassle-free digital application process. With minimum documentation and quick approval, you can avail of this option for any urgent financial requirements. Download our Personal Loan App or visit our website to apply now!
FAQs on Online EMI Payment
How do I make a loan payment online?
To make an online EMI payment, you can log into the lender’s mobile or web portal or use third-party apps. On the portal, select your loan account, enter loan details and provide other information. Once done, you can choose a card, net banking, UPI or any other option to make transactions.
How is an EMI payment done?
To make an online payment, you can choose from many online and offline options, depending on your convenience. After providing your loan details, you will receive your payable amount, which you can pay using your preferred option. Upon completing the payment, the amount will be deducted from your account. Your outstanding balance will then be reduced based on your payment.
How can I pay EMI after the due date?
If you have any overdue EMIs, you can pay them online. On the net baking portal, enter your loan details to get the details of your past dues. Here, you must select the option to check your overdue or total payable amount and make payment.
How can I check my EMI online?
To check your EMI online, you can go to your lender’s net banking portal or on the mobile app. Some UPI-based payment apps also allow you to check your EMI and make payments directly.
India has four credit bureaus licensed by the Reserve Bank of India (RBI): TransUnion CIBIL, Experian, Equifax and CRIF High Mark. They collect repayment data from banks, NBFCs and other lenders, and use it to prepare your credit report and credit score. Lenders check these before deciding whether to lend to you and on what terms.
More Indians are checking. As per TransUnion CIBIL, 183 million Indians had checked their own CIBIL score as of December 2025, and the number checking for the first time grew 27% in a year.
This guide shows you how to get your report for free, read it, spot errors and get them fixed.
The Four Credit Bureaus
Credit bureaus are formally called credit information companies (CICs). They’re regulated by the RBI under the Credit Information Companies (Regulation) Act, 2005.
Bureau
Official website
TransUnion CIBIL
www.cibil.com
Experian
www.experian.in
Equifax
www.equifax.co.in
CRIF High Mark
www.crifhighmark.com
Individual credit scores from all four generally range from 300 to 900, with higher scores signalling a stronger credit record.
TransUnion CIBIL, set up in 2000, is the oldest of the four and the one most commonly used by lenders to assess loan and credit card applications. That’s why “CIBIL score” is often used to mean any credit score. Some lenders also check one or more of the other bureaus, so it’s worth reviewing all four reports.
How Credit Bureaus Work
Lenders report details of your loans and credit cards to the bureaus: how much you’ve borrowed, your repayments, any missed payments and your outstanding balances. As per the RBI’s credit information reporting directions, lenders must report this data every week from July 1, 2026. Lenders are also required to report to all four bureaus, so an error from one lender can appear on every bureau’s report.
When you apply for a loan or credit card, the lender checks your report and score with your consent, along with other details such as your income.
Why Your Credit Score Matters
Your score affects:
Approval: Lenders are more likely to approve applicants with a strong repayment record.
Interest rate: A higher score can help you qualify for a lower rate, which reduces your total borrowing cost.
Loan amount and tenure: Lenders may offer higher amounts or more flexible terms to borrowers with strong profiles.
Credit cards: A good score widens your choice of cards and can help you get a higher limit.
The main factors behind your score are your repayment history, how much of your credit limits you use, the age of your credit accounts and how often you apply for new credit. Keeping card usage below 30% of your limit is generally seen as healthy.
Go to the bureau’s official website (listed above) and choose the free annual report option.
Sign up with your name, PAN, date of birth and mobile number.
Verify your identity with the OTP sent to your mobile, and answer any security questions.
Download your report.
Checking your own report doesn’t lower your score. You can also check your score for free with Fibe’s credit score check.
Why it’s worth checking regularly: As per the same TransUnion CIBIL report, about 45% of people who monitored their score improved it within six months, and the average score among them was 728.
How often to check: Business Standard suggests reviewing your report every quarter, and at least every six months. You can space out your four free reports, one from each bureau, across the year.
Your score, between 300 and 900, is calculated from the Accounts and Enquiry sections of your report. If you have no credit track record, you’ll see “NA” or “NH” instead. See what NA or NH means.
Personal and contact details
Your name, date of birth, gender, ID numbers such as your PAN, addresses, phone numbers and email addresses, as reported by your lenders. Check every detail. Wrong details are a common cause of mixed-up records.
Employment details
Your occupation and income as reported by a lender when you opened an account.
Account information
This is the most important section. For every loan and credit card, it shows:
the lender and type of account, such as a personal loan or credit card
the account number and whether it’s held singly or jointly
the date it was opened and the date of your last payment
the loan amount, current balance and any amount overdue
a month-by-month record of up to 36 months of your payments
In the payment record, each month shows whether you paid on time or how many days late you were, along with codes such as STD and SMA. A yellow box above an account means it’s under dispute.
Enquiry information
Every enquiry lenders have made when you applied for credit, with the lender’s name, the date, and the type and amount of loan. Many enquiries in a short period can lower your score.
Errors to Look For
Errors are more common than many people assume. In January 2024, the RBI pointed to a rise in customer complaints related to credit information. Go through your report and check for:
An account you don’t recognise, which can be a reporting error or a sign of fraud
A closed loan or card still shown as open, or with a balance
An account wrongly marked as overdue after you’ve paid
The same loan or card listed twice
A wrong credit limit, which can make your card usage look higher than it is
A loan balance higher than what you actually owe
Accounts that haven’t been updated recently. CRIF suggests active accounts should show an update within the last 30 to 60 days.
Wrong personal details, such as your name, date of birth, PAN or address
________________________________________
If You Get an Alert You Don’t Recognise
As per the RBI’s directions on credit information reporting, bureaus must alert you by SMS or email whenever your credit report is accessed. If you get an alert you weren’t expecting, someone may be applying for credit in your name.
Download your report and check the Enquiry section for the lender named in the alert.
Contact that lender straight away and tell them you didn’t apply.
Raise a dispute with the bureau if an account you didn’t open appears.
If you suspect fraud, report it on the National Cyber Crime Reporting Portal (cybercrime.gov.in) or call 1930.
How to Dispute an Error
Gather your documents. Keep these documents handy – a no-dues certificate or loan closure letter, bank statements showing your repayments, a highlighted copy of the incorrect report, and your ID and address proof.
Raise the dispute. Log in to the bureau’s website, select the option to raise a dispute, choose the account or detail that’s wrong, and upload your documents. You can also complain to the lender that reported the error.
Note the date. Save the date and reference number of your complaint. Any compensation is counted from this date.
Wait for verification. The bureau checks the details with the lender. Your report is updated once the lender confirms the correction.
Example: The RBI circular illustrates this: if a complaint is resolved two days after the 30-day limit, the complainant receives ₹200 in total.
Why Your Score Differs Across Bureaus
Each bureau uses its own scoring model, and your data can differ slightly between them, so your scores may not match. If you’re applying for a loan, ask the lender which bureau it checks, and fix any errors on that bureau’s report first.
Errors in a Fibe Account
If an account reported by Fibe is wrong on your credit report, you can raise a dispute with the bureau and also contact Fibe directly:
Call 020-67639797 or email care@fibe.in with your Loan Account Number, the error and supporting documents.
If it isn’t resolved in time, escalate to grievance@fibe.in.
There are four RBI-licensed credit bureaus: TransUnion CIBIL, Experian, Equifax and CRIF High Mark.
Which credit bureau is most widely used in India?
TransUnion CIBIL is the most commonly used by lenders for loan and credit card applications, though many lenders also check Experian, Equifax or CRIF High Mark.
Which is the oldest credit bureau in India?
TransUnion CIBIL, which began as Credit Information Bureau (India) Limited in 2000.
Does checking my own credit report lower my score?
No. Checking your own report is a soft enquiry and doesn’t affect your score. Formal loan or card applications can.
How long does it take to fix an error in my credit report?
As per the RBI, complaints must be resolved within 30 days of filing. If they aren’t, you’re entitled to ₹100 for every day of delay.
Should I dispute with the bureau or the lender?
You can do either. The bureau will check with the lender either way, so contacting both can speed things up.
Why is my score different on each bureau?
Each bureau uses its own model, and your data can differ slightly between them. Focus on the bureau your lender uses.
How often is my credit report updated?
As per the RBI’s directions, lenders must report your data every week, so changes usually show up within days to a couple of weeks.
What’s the difference between a credit bureau and a credit rating agency?
Credit bureaus track the borrowing of individuals and businesses, mainly for lenders. Credit rating agencies such as CRISIL, ICRA and CARE rate companies, governments and the debt they issue, mainly for investors.
If you know how to find a CIBIL report and read it, you can easily assess your financial standing. When you download and read a credit report, it helps you understand your credit health and take the right steps to boost your creditworthiness.
A CIBIL report is a detailed file of the account holders’ financial history and repayment transactions. This includes records of loans taken, information on current and past credit card accounts, repayment defaults, etc.
Know how to read a CIBIL report, key terms you must understand in a credit report and more.
Here are the details included in your CIBIL report and their meaning.
CIBIL Score
The first section of the report is your credit/CIBIL score, which is a three-digit numerical representation of your creditworthiness, ranging between 300 and 900. To calculate this number, credit bureaus assess the following factors:
Repayment history
Credit mix
Credit utilisation ratio
Outstanding credit
Length of your credit history
Recent credit enquiries
Personal Information
The second section of the report includes your personal details, such as:
Name
Date of birth
Gender
PAN card number
Permanent and residential address
You must verify all this information to ensure there is no discrepancy when financial institutions send your report.
Contact Information
This section contains all your present and past records of contact details, such as:
Phone number
Landline number
Email address
Employment Information
This section contains information about your employment type, income and gross income.
Account Information
This is the most crucial section of your report, containing all your open and closed account details. This section includes:
Issuer/ lender’s name
Account type
Account number
Ownership information
Credit limit
Pending dues
Interest rates
Outstanding balance
EMI amount
Tenure, etc.
Financial institutions provide this information to credit bureaus periodically. In case you find any discrepancy in this section, you can raise a dispute for rectification.
Yellow Box
This box in the ‘Account Information’ section gives you an update on the raised dispute. Once your dispute gets resolved, the box will disappear from the updated report.
Enquiry Information
When you apply for a new credit, financial institutions make an enquiry to check your credit score. This section shows a record of such enquiries.
To read a credit report and understand it, here are some essential terminologies that you must know.
Term
Meaning
Amount Overdue
Unpaid amount to the financial institution
Credit Utilisation
Percentage of credit limit used
Credit Limit
The maximum withdrawal limit for a credit card
Collateral
Asset pledged as security
CN (Control Number)
A 9-digit number for your dispute raised
Sanctioned Amount
Total loan amount
Written Off Amount
Outstanding amount after loan settlement
How to Download a CIBIL Report
You can download one free report annually on the CIBIL website by clicking on the ‘Get Your Free CIBIL Score & Report’ tab. Enter your details and select ‘Accept and Continue’ to download your free report. If you want to get your report periodically, you can opt for a subscription.
Checking your report not only helps you keep a tab on your financial health but also allows you to spot errors and raise disputes if necessary. Since most lenders and credit card issuers require a CIBIL score of 750 or above, doing this will help you easily achieve that.
However, if your score isn’t high enough and you need instant funds, you can apply for a Fibe Instant Personal Loan and get up to ₹5 Lakhs instead. At Fibe, we employ an alternative scoring mechanism that allows us to provide financial assistance even to those new to credit.
What’s more, you can choose from a flexible tenure of up to 36 months and enjoy 100% digital application for a comfortable experience. So download our Personal Loan App or register on our website to apply now.
FAQs on Reading CIBIL Report
How do you analyse a credit report?
Here are the steps to follow to analyse your credit report.
Step 1: Understand the common terms
Step 2: Verify your personal and contact information
Step 3: Check the number of accounts and their details
Step 4: Review your credit history and take note of any missing or incorrect information
Step 5: Raise a dispute if there are any errors
What is shown in the CIBIL report?
A CIBIL report contains all your financial and personal information, such as:
Total CIBIL score
Personal details like date of birth, address and identification details
Contact information like phone number and email ID
Employment information
Account information
Enquiry information
How can I check my detailed CIBIL report?
You can download your free CIBIL report on their official website and check the required information.
Which credit report is accurate?
The report generated by TransUnion CIBIL is the most popular one used by most lenders.
The APR vs APY comparison is quite interesting as it focuses on interest calculations for two varied instruments. While the APY focuses on the gains you earn as an investor, the APR relates to the cost of borrowing. However, this isn’t the only difference between APR and APY.
Read on for insights to compare the annual percentage yield vs the annual percentage rate and to make informed decisions.
What is the APR?
APR commonly known as Annual Percentage Rate, dictates the cost of borrowing. It mainly applies when you avail of credit and provides a more holistic overview of the amount you owe.
This is because the APR includes all associated charges applicable to the instrument. As such, you get a clearer picture of the total cost, which isn’t possible if you only assess the interest rate. Typically, the APR will include:
Administrative fees
Documentation charges
Processing fees
Verification charges
This list isn’t exhaustive but highlights a few charges you incur when you opt for a loan. It is also important to note that there are two types of APRs based on the interest rate.
Variable APR: Here, the interest rate fluctuates based on macroeconomic factors, so the APR may be set within a range.
Fixed APR: Here, the interest rate is set right from the start and represents the actual cost of the credit you avail.
APY is the abbreviation for ‘Annual Percentage Yield’ and it dictates the actual rate at which your money grows in the given timeframe. This is where the difference between APR and APY is most apparent, but like the APR, the APY offers a clearer representation.
This is because the APY accounts for interest compounding, which affects the total earnings. For instance, suppose the interest rate you get is set at 8% for an investment of two years and the compounding frequency is quarterly. Then, the APY works out to 8.24%.
Do note that this is only applicable to investment instruments that have a compounding frequency. For simple interest instruments, the APY and the interest rate are identical.
Like the APR, the APY also has two types.
Variable APY: Here, the interest rates may change due to external factors and so the APY will fluctuate.
Fixed APY: Here, the interest rate and the compounding frequency do not change and will remain the same until maturity.
Annual Percentage Yield vs Annual Percentage Rate: Key Differences
The following table highlights the main differences between APR and APY.
Parameter
APR
APY
Applicability
Loans and revolving credit instruments
Investments
Interest calculation
Does not account for interest compounding
Accounts for interest compounding
Formula
((Interest + Fees / Loan amount) / Number of days in loan term)) x 365 x 100
(1 + r/n) n – 1 Here, r= interest rate, n= compounding frequency
Limitations
Doesn’t accurately represent the true cost of availing credit but it is a viable estimate to consider
Doesn’t account for the risks and any other external factors that can affect interest earnings
APY rates move up and down often based on various factors. However, since it determines the rate of financial growth, a higher APY is always better. APY rates applicable to savings accounts are generally higher when the monetary policy is tight. In addition to that, there are saving accounts that are low-cost and high-yield in nature that consistently provide competitive APYs.
What is a Good APR Rate?
APR is the total cost associated with borrowing money. Therefore, a lower APR is better for you than a higher one. The rate will also vary based on the following:
Purpose of the loan
Duration of the loan
Macroeconomic conditions affecting the lending policies
In general, the best APR would be 0%. This means no interest on the borrowing, even if it’s for a short-term introductory period.
How To Calculate APR and APY
You can calculate APY easily using the following formula:
APY is (1+r/n) n – 1
In this formula,
r = The period rate
n = The number of compounding periods
Use the following formula to calculate APR:
APR= [{(Fees + Interest)/ Principal}/ n] *365*100
In this formula,
Interest = The total interest expected for the credit
Principal = The loan amount
n = The number of days left in the loan term
APR vs APY: When Do the Differences Matter?
On comparing the annual percentage yield vs annual percentage rate differences, it is clear that these serve two very different purposes. The differences only matter when assessing the viability of loans and investment instruments.
This is because:
APY highlights the interest you earn from an investment
APR highlights the cost of borrowing with the interest rate as one of the contributing factors
Remember, the APR and APY do not apply to the same instruments. You never have to choose between the two. As such, comparing the APR vs APY only helps when looking to understand more about the terms.
With answers to popular questions such as, ‘What is APR?’, ‘What is APY?’ and others, you can make better decisions when investing or borrowing. When it comes to the latter, always choose lenders that focus on transparency and affordability.
At Fibe, you can get an Instant Cash Loan of up to ₹5 lakhs and without worrying about any hidden charges. What’s more, you enjoy a completely digital journey alongside a flexible repayment experience. The funds you get have no end-use restrictions and you can foreclose the loan at no extra charges too.
Download our Personal Loan App or visit the website and get started today!
FAQs About the Difference Between APR and APY
Are APY and APR the same?
No. A key difference between APR and APY is that they are used for two different purposes. APR represents the true cost of borrowing and APY represents the interest you can earn from investments.
How do you calculate APR and APY?
You can calculate both the APR and APY using digital calculators or by using their respective formulae, which are:
APR= ((Interest + Fees / Loan amount) / Number of days in loan term)) x 365 x 100
APY= (1 + r/n) n – 1, where ‘r’ is the interest rate and ‘n’ is the compounding frequency
Is APR better than APY?
When it comes to APR and APY, one cannot be better than the other because they are used for different instruments. The APR is for assessing loans and credit instruments. On the other hand, the APY is for investments because it accounts for interest compounding.
Your PAN card is linked to every loan and credit product you take in India, including personal loans, credit cards and BNPL services. Since lenders report all borrowing activity against your PAN, checking loans linked to it regularly can help you track your active credit accounts and spot any suspicious activity.
When we use lending, we see more cases of people misusing our PAN cards and pretending to be us. A lot of people do not even know that someone has taken a loan in their name until their credit score goes down suddenly, or they start getting calls to pay back the loan. This is why it is an idea to check your credit report from time to time to make sure your money is safe.
So if you want to know how to check which loans are linked to your PAN card this guide will tell you everything you need to know about the ways to do it the steps you need to follow and what you should be careful about when checking loans, on your PAN card.
Why Should You Check Loans Linked to Your PAN Card?
Checking active loans linked to your PAN card is important not only for tracking your finances but also for protecting yourself from fraud and credit-related issues.
1. Detect Fraudulent Loans Early
Cyber fraud and identity theft cases have increased significantly with the rise of paperless lending. Fraudsters may misuse stolen PAN details to apply for instant loans without the owner’s knowledge.
By checking your credit report regularly, you can quickly identify suspicious accounts and take corrective action before the issue affects your creditworthiness.
Let’s suppose you apply for a home loan and suddenly discover your credit score has dropped due to unpaid EMIs on a loan you never took. Checking your credit report earlier could have helped identify the fraudulent account sooner.
2. Track Your Overall Debt
Many borrowers today use multiple forms of credit simultaneously — such as personal loans, credit cards, BNPL services and consumer durable loans.
Keeping track of all active loans helps you:
Understand your total liabilities
Plan your monthly budget better
Avoid over-borrowing
Improve debt management
According to TransUnion CIBIL insights, younger borrowers in India increasingly rely on multiple short-term credit products, making regular credit monitoring more important than ever.
3. Maintain a Healthy Credit Score
Your repayment history accounts for a major portion of your credit score calculation. Even a missed EMI on a forgotten loan account can negatively impact your score.
Regularly reviewing your loan accounts helps ensure:
EMIs are being updated correctly
Closed loans are marked as closed
No incorrect defaults are reported
A healthy credit score can improve your chances of getting loans approved at better interest rates.
4. Improve Loan Eligibility
Banks and NBFCs assess your existing debt before approving new loans. If your credit report shows high liabilities or unknown active accounts, your loan eligibility may reduce.
Checking your active loans helps you plan future borrowing more strategically.
For instance: If you are planning to apply for a car loan, knowing your current debt obligations can help you reduce outstanding balances beforehand and improve approval chances.
5. Identify Reporting Errors
Sometimes lenders mistakenly report incorrect information, such as:
Closed loans marked as active
Wrong outstanding amounts
Incorrect payment delays
Such errors can affect your credit score if left unresolved. Monitoring your credit report allows you to raise disputes quickly.
What is PAN Card Fraud or Misuse?
Any instance where your PAN information is used to forge your identity or gain access to financial products or accounts is considered PAN card fraud. These incidents have become more common with the increasing use of PAN for KYC verification across banking and lending services.
Some common ways fraudsters may misuse your PAN card include:
Applying for loans in your name
Opening bank accounts using your PAN details
Renting hotels or vehicles using your identity
Using your PAN card for VISA verification
Attempting unauthorised withdrawals or fund transfers
Fact: PAN card details are frequently targeted in phishing scams where fraudsters impersonate banks, lenders or KYC officials to collect sensitive information.
If such misuse goes unnoticed, it can negatively affect your credit score and financial credibility.
How to Check Active Loans on Your PAN Card
There are multiple ways to check all loans linked to your PAN card. Here are the most reliable methods:
Method 1: Via Credit Bureau Websites (CIBIL, Experian, Equifax, CRIF High Mark)
India has four RBI-authorised credit bureaus that maintain your credit history and loan records. By accessing your credit report, you can view all active loans associated with your PAN.
Steps to Check Active Loans via Credit Bureau Websites
Step 1: Visit the official website of any credit bureau
Step 2: Register using your PAN card details, mobile number, email ID and date of birth
Step 3: Complete OTP verification
Step 4: Log in and access your credit report
Step 5: Review the ‘Accounts’ or ‘Loan Details’ section to check all active loans
If you are already registered, you can simply log in to access your report directly.
For example: If your report shows a personal loan from a lender, you never interacted with, it could indicate identity theft or unauthorised borrowing.
Method 2: Via the Lender’s Net Banking or Mobile App
Most banks and NBFCs allow borrowers to check their loan details through net banking portals or mobile apps.
Steps to Check Loan Status via Lender Apps
Log in to your lender’s mobile app or internet banking account
Navigate to the ‘Loans’ or ‘My Accounts’ section
Select the active loan account
View details such as outstanding amount, EMI schedule, tenure and repayment history
This method is useful if you want to track a specific loan account with a particular lender.
Example: A borrower with both a home loan and personal loan from the same bank can monitor EMI due dates, repayment history and prepayment options through the bank’s app itself.
Method 3: Via Fintech Apps
Several fintech platforms and financial management apps provide access to your credit profile and active loan details after consent-based verification.
Steps to Check Loans Using Fintech Apps
Download a trusted fintech or credit monitoring app
Register using your PAN number and mobile number
Verify your identity via OTP
Access your credit profile dashboard
Review your active loans and credit accounts
These apps often provide additional insights such as:
Credit score tracking
Repayment reminders
Credit utilisation analysis
Personalised financial recommendations
Fact: India’s fintech ecosystem has grown rapidly in recent years, with millions of users relying on digital financial platforms for credit monitoring and loan management.
What Information Can You See in the Credit Report?
Your credit report contains detailed information about your borrowing history and repayment behaviour. Some key details include:
Information Type
Details Available
Active Loans
Personal loans, home loans, auto loans, etc.
Credit Cards
Active credit card accounts and limits
Outstanding Amount
Pending loan balances
EMI Payment History
Timely and delayed payments
Loan Status
Active, closed, written-off or settled
Credit Enquiries
Loan applications made with lenders
Credit Score
Your current creditworthiness rating
Why This Information Matters
Lenders look at this information to see how well you pay back loans and how good you are with money before they say yes to giving you a loan.
For example: If your report shows you asked for a lot of loans in a short period, lenders might think you want to borrow too much money, which could make it harder for you to get a loan in the future.
How to Get a Credit Report
Your credit report has all the information about your loans, credit cards. How well you pay them back and it is all linked to your PAN card. Here is how you can get a copy of it:
Step 1: Go to the CIBIL website
Step 2: Click on the option that says ‘Get Free CIBIL Score & Report’
Step 3: Put in your PAN number, mobile number, email address and other personal details
Step 4: Confirm your details with a special code
Step 5: Choose the free option and look at your report from the dashboard
You can get one free credit report every year from each credit bureau that is allowed to give them out. If you see something fishy going on with your loans or someone using your money without asking tell someone away so it does not happen again.
It is really important to have a credit score so you can get loans easily and pay less interest. You can also use the Fibe Credit Score Analyser tool to see what is affecting your score and what you can do to make it better.
If you need money now but you do not have a good credit history you can apply for the Fibe Instant Cash Loan and get up to ₹10 lakhs depending on if you are eligible. With payment plans and no extra charges, for paying back early paying your loans on time can also help make your credit profile stronger.
What to Do If You Find a Fraudulent Loan on Your PAN?
If you discover a loan that you did not apply for, take immediate action to minimise financial damage.
1. Raise a Dispute with the Credit Bureau
File a dispute with CIBIL, Experian, Equifax or CRIF High Mark and report the unauthorised account.
2. Contact the Lender Immediately
Inform the lender or NBFC about the fraudulent loan and request an investigation.
3. File a Police Complaint
Register an FIR or cybercrime complaint with supporting documents and evidence.
4. Report the Incident on the Cybercrime Portal
You can report financial fraud online at the National Cyber Crime Reporting Portal.
5. Monitor Your Credit Report Regularly
Continue checking your credit report to ensure the fraudulent account is removed and no further misuse occurs.
For example: If a fraudulent instant loan app has issued a loan using your PAN details, reporting it quickly can prevent EMI defaults from affecting your credit score for years.
How to Prevent PAN Card Misuse
Protecting your PAN details is essential to avoid identity theft and financial fraud. Here are some useful precautions:
Never share your PAN card details unnecessarily
Avoid uploading PAN copies on unsecured websites
Mask sensitive information when sharing PAN photocopies
Check your credit report regularly
Use trusted apps and lenders only
Avoid clicking on suspicious links or phishing emails
Keep your Aadhaar, bank and PAN-linked mobile number secure
Report lost or stolen documents immediately
Pro Tip:
When sharing a PAN copy for verification, mention the purpose on the photocopy, such as ‘For KYC Only’, to reduce misuse risks.
Being proactive can help protect your financial identity and maintain a healthy credit profile.
FAQs on Checking Loan Status Using a PAN Card
Can I get loan details using a PAN card?
Yes. Your PAN card is linked to your credit report, which contains details of all loans taken in your name. You can access this information through CIBIL, Experian, Equifax or CRIF High Mark.
Can I check the number of active loans on my PAN?
Yes. Your credit report displays all active loans linked to your PAN number, including lender details, outstanding balance and repayment status.
How do I check active loans in my name for free?
You can access one free credit report annually from each authorised credit bureau by registering with your PAN card details on their official websites.
How do I check fraudulent loans in my name?
Download your credit report and review the active loan accounts section carefully. If you notice any unfamiliar loan, raise a dispute with the bureau, contact the lender and file a police complaint immediately.
How can I check how many loans are on my PAN card?
You can check all loans linked to your PAN by downloading your credit report from CIBIL, Experian, Equifax or CRIF High Mark. The report lists all active and closed loan accounts.
Can someone take a loan using my PAN card without my knowledge?
Yes, if fraudsters gain access to your PAN details and supporting documents, they may attempt identity theft or fraudulent loan applications. Regularly monitoring your credit report can help detect such activity early.
What is the difference between checking loan status on CIBIL vs directly with the lender?
Checking through CIBIL or other credit bureaus provides a consolidated view of all loans linked to your PAN across multiple lenders. Checking directly with a lender only shows the loans you have with that specific bank or NBFC.
Why do lenders need bank statements, you wonder? Well, these documents record your income and expenditure. So, lenders use them to check the stability of your earnings while ensuring that you have enough funds in your account to successfully repay the loan.
This evaluation affects your chances of approval as well as the amount you may get. Read on to learn what lenders are looking for when they ask for your bank statements.
Information Lenders Check in Your Bank Statements
When you submit these documents, financial institutions check the following:
Monthly Income
When you apply for a loan, lenders ask you to state your monthly income. With the help of the bank statements, they verify the following:
The income that you get from your employer
The frequency at which you receive the payments
Expenses and Payments
Before approving your application, financial companies check your spending patterns and your recurring expenses. This is important as they decide on approval after checking if you can add another EMI to your budget or not.
These recurring expenses may include:
Your loan EMIs
Your credit card bills
Your electricity and gas bills
Your internet and phone bills
Your monthly subscriptions
School/tuition fees of your children
Withdrawals
In addition to your income and expenses, financial institutes also check the average cash withdrawals you make through your account. Here’s what they check:
If the withdrawals are regular and of smaller amounts, they are considered acceptable
If the withdrawals are irregular and of huge amounts, lenders may view them as red flags
Cash Reserves
To pay your loan successfully and on time, you need to maintain an optimal balance in your bank account. By asking for your bank statements, lenders check the cash reserves you have. Here’s what they conclude:
If you have an optimal balance in your bank account, they will approve your application quickly
If the balance is on the lower side, they may view you as a high-risk borrower
New Credit Accounts
Loan companies also see if you have any new credit accounts. This is because when you have multiple payment obligations, managing your finances may be difficult, and you may default on your loan. They look for credit accounts like:
Points to Keep in Mind While Submitting Your Bank Statements
While providing your documents, consider these points to safeguard your finances:
Check the Authenticity of the Financial Institution
Before submitting your private documents, do the following:
Check if the financial institute is legitimate
Look for past customers and check their reviews
Check if the lender’s website runs on the HTTPS protocol
Ensure that the website or the portal of the financial institution is end-to-end encrypted
Pay Attention to Where Lenders Intend to Use the Information
Prior to sending your documents, pay attention to why the lender needs your financial information. You should only send your financial documents for the following:
While applying for loans and credit cards
While using a rental service
While filing or appearing in a legal case
Clear Your Doubts and Queries Thoroughly
Since these documents hold your private data, its natural to be worried about submitting them. To relieve your worries, clear your doubts in these ways:
Contact the customer care representative of the financial institution
Go through the terms and conditions of the loan or credit card
Check the FAQs section on the lender’s website or portal
Monitor Your Bank Account for any Suspicious Activities After Submission
Just submitting the required documents is not enough. To ensure the safety of your finances, monitor your bank account consistently for a few days or months. In case you find any suspicious activities in your account, report it to the following:
The financial institution that holds your bank account
Cybercrime branch of your city/country
Now that you have an answer to, ‘Why do lenders check bank statements’, you can plan your application smartly. If you want to get funds with minimal formalities, consider getting an Instant Cash Loan of up to ₹5 lakhs from Fibe.
These funds are available at competitive interest rates and flexible repayment plans. Download our Personal Loan App or apply directly through our website.
FAQs on Why Lenders Check Bank Account History
Do lenders look at bank transactions?
Yes, lenders ask for bank statements to assess your financial standing via:
Your monthly income
Your spending patterns
Payments towards loans and credit cards
Payments towards recurring expenses
Which financial statement is important to lenders?
Lenders generally ask for these if you’re applying for a personal loan:
Income statement
Salary slips
If you’re getting a business loan, they ask for these documents:
Knowing how to manage multiple loan accounts is not rocket science. Instead, it is about being disciplined and organised, both skills that financially independent adults need to inculcate.
With easier and quicker access to credit, having multiple loans and credit cards is very common. But if you are unable to keep up with repayment, you may hurt your creditworthiness and your overall financial well-being.
Effective management of all your loan accounts will help you:
Pay on time
Avoid late payment penalties
Save more without straining your monthly budget
Effective Strategies to Manage Multiple Loan Accounts
Here are some ways you can be more responsible when paying off more than one debt.
Consider Debt Consolidation
With a personal loan to consolidate debt, you can get sufficient funds to close all your loans early. This way, instead of paying multiple loan EMIs, you can merge all your debts into one.
Not only does this reduce the net interest you need to pay but it also helps you pay only one EMI and worry about one deadline. This also helps reduce the risk of defaulting. Of course, you will need to qualify for such a loan, so ensure your income and employment match the required parameters.
Choose a Balance Transfer
Another way to manage multiple loan accounts is by reducing the payable interest. Opting for a balance transfer can thus be a good solution. When you transfer your outstanding balance to a new lender charging a lower interest rate, you can bring down your EMIs. The surplus you save can go towards paying off your loans early.
You can also choose a lengthier tenure to reduce your instalments even more. So, if you are finding it challenging to pay off multiple loans at the same time, go for a balance transfer.
Pre-close Loans to Save Interest
Pre-closing allows you to reduce your debts quickly and saves you from paying more as interest. Since you are charged interest on your outstanding principal amount, when you fully pay this amount, you don’t have to pay the interest.
Making a lump sum payment instead of paying in EMIs across the tenure is what this strategy is all about. Pre-closing the loan may be a smart idea if you have surplus funds available. However, most lenders charge a pre-closure penalty, so check on it before you plan pre-closure.
Use the Avalanche Method
Want to save money on interest? Instead of foreclosing, make a list of all your debts and their interest rates. Based on this, pay off the loans with the highest interest rates first. Instead of paying all of it in a lump sum, pay a little more than the EMI amount. The additional money reduces the principal amount, which results in lower interest.
This way, you reduce your EMI every month and use the extra money towards principal repayment. You must continue the cycle until your loan with the highest interest is paid off before moving to the next high-interest loan.
In addition, here are some other smart tips that can help you manage your loans better
Don’t miss your EMI due date, as late payment charges may add to your financial burden
Limit the use of credit cards until you’ve paid the loans to reduce the risk of defaults
Prioritise paying your EMIs before credit card dues, as defaults and late payments on personal loans have a greater impact on your credit score
Avoid borrowing a small loan to manage monthly repayments, as it can negatively affect your credit score
Try to keep your credit utilisation ratio under 40% to improve your credit score
Opt for auto-deduction or ask your lender to send a reminder for due dates
Convert all your credit card bills into EMIs to simplify your repayments
Get additional sources of income or ask for a raise
If you’re looking to consolidate your debts, consider opting for the Fibe Instant Cash Loan. You can easily get up to ₹5 lakhs to manage your loans and other bills, cover medical emergencies and more.
Affordable interest rates, flexible tenure options, and an app that makes repayment hassle-free are some of its advantages. Moreover, you can repay your loan without any pre-closure charges. Download our Personal Loan App or visit our website for an easy application process.
FAQs on Managing Multiple Loans
How do you manage multiple loans?
Here is a quick review of some of the methods to manage your loans.
Pay off loans with the highest interest first
Create and follow a budget
Consolidate your debts
Don’t overspend on unnecessary things
If you get a raise, divert the funds towards repayment
Follow the repayment schedule and don’t miss the due date
Does prepaying loans help when managing many loans simultaneously?
Yes, prepayment of loans helps you reduce the principal and thus decrease your EMI or loan tenure. It helps you save on interest.
