Identifying and Dealing With Financial Fraud: All You Need To Know

Identifying and dealing with financial fraud on time is essential to protect your finances. Nowadays, scammers are using various methods to steal your hard-earned money. Knowing about these different types of fraud can help you spot them on time and stay clear of them. 

So, read on to learn more about financial scams and how to deal with them.

What is Financial Fraud?

Financial fraud occurs when a scammer steals your money and other assets through misrepresentation, deception and illegal practices, which ultimately leads to financial loss. There are various types of fraud, such as:

  • Online shopping fraud
  • Credit card and loan fraud
  • Investment fraud
  • EMI fraud
  • Advance fee fraud
  • Tax refund fraud
  • Identity theft
  • Bank account fraud

Also Read: Fake Loan Apps: What Are They and How to Identify Them?

Ways to Identify Potential Financial Fraud

Here are some tips to spot common fraud and deal with them:

  1. Checking the Benefits Offered

Most fraudsters offer perks that are too good to be true in a bid to attract you. They gain your trust and harm your financial health by offering extraordinary deals and investment opportunities.

Steer clear of such marketing gimmicks if you notice advertisements that include:

  • Guaranteed high returns
  • Double your investment
  • Zero-risk investment

To protect yourself from such fraud, follow these tips:

  • Ask for official documents 
  • Cross-check the information
  • Verify the identity of the service provider
  1. Verifying Email ID and Numbers

Another way of staying protected from fraud is noticing the medium of contact. Fraudsters often create fake email addresses to contact you. They may also call you from various numbers. A recent type of fraud includes fraudsters calling you and asking for money in the name of your friends and family.

Follow these tips to stay protected:

  • Check the email address domain
  • Notice the display name of the sender
  • Hover over links and attachments, but do not open them
  • Look for grammatical mistakes
  • Check the phone numbers on a caller ID checker
  1. Evaluating Documents

A red flag that can help you spot fraud is the documents the fraudsters provide, which, in most cases, you can’t cross-check. To scam you, fraudsters can create fake documents such as:

  • Brochures
  • Account statements
  • Bank notices
  • Misleading advertisement material
  • Terms and conditions

These scams are common in the case of bank accounts. Fraudsters contact you as bank representatives and scam you by showing fake documents, which helps them gain your trust. Here are some tips that you can follow to avoid such instances:

  • Cross-check notices and information from the bank
  • Don’t make payments without confirming with the bank
  • Keep your financial information private
  • Check for unauthorised transactions from your account
  1. Assessing Freebies and Special Privileges Offered

Fraudsters that scam you on the pretext of selling financial products generally offer exciting freebies and privileges. This is true, especially in the case of credit cards, where they offer various benefits as their selling points. Before purchasing any financial product from an agent, visit the provider’s official website and confirm the information with their representatives.

To stay protected, avoid the following types of advertisements from non-authorised entities:

  • Free subscriptions
  • Introductory offers
  • Limited time offers
  1. Reviewing Transaction Amount and Mode

Another way to catch financial scams is to notice the transaction amount and the transfer mode. Since these types of fraud are illegal, fraudsters look for ways to split the payments to avoid getting under the authorities’ radar. Avoid making any payments in case they request the following:

  • Multiple smaller transactions instead of a single transaction
  • Requesting money in different bank accounts or phone numbers

Ways to Deal with a Financial Fraud

If you become a victim of a fraud, here are steps that you can take to control the damage:

  • Stop further payments
  • Collect proof of transactions
  • Contact your bank to stop unprocessed payments
  • Change your PINs and passwords
  • Report to the concerned authorities
  • Check your insurance to recover the lost assets

Now that you know how to avoid financial fraud, take proactive steps to protect your finances. Today, there are various frauds in the loan and credit card industry as well. While getting credit, you need to be vigilant and choose a trustworthy institution.

One such lender you can consider is Fibe. With ISO/IEC 27001 Certification and PCI DSS App-based journey, you can safely get an Personal Loan of up to ₹5 lakhs. You also need to meet minimal requirements and pay zero foreclosure fees. Download the Fibe Personal Loan App or log in to our website for 100% digital application and seamless access to funds. 

FAQs on Financial Fraud

How do you detect financial fraud?

Here are some common characteristics of financial scams:

  • Offering benefits that are too good to be true
  • Providing free products and services and exclusive privileges
  • Asking you to transfer funds in smaller amounts or multiple accounts
  • Contacting through suspicious email addresses and phone numbers
  • Documents that you can’t verify and cross-check

How do you deal with financial fraud?

Here are some tips you can rely on:

  • Updating your PINs and passwords
  • Collecting proof of transactions
  • Contacting your bank to stop unprocessed payments
  • Checking your insurance to recover the lost assets
  • Reporting the incident to the authorities

What are the methods of preventing financial fraud?

Check out some tips to stay protected from fraud:

  • Educate yourself about common types of fraud
  • Check the contact information of the sender
  • Cross-check information before making or authorising payments
  • Stay away from benefits and freebies that are too good to be true
  • Avoid clicking on unknown links
  • Update your PINs and passwords regularly

Expectations of the Fintech Sector from Union Budget 2024-25: All you need to know

As the dates for the release of the Economic Survey and Union Budget 2024 are close, leaders across industries and taxpayers have begun speculating what Finance Minister Nirmala Sitharaman will have for them. Since it is going to be an Interim Budget to be announced just before the General Elections in 2024, the Central Government may roll out various support schemes and policies for different sectors.

The Indian fintech industry, too, has a well-defined wish list for the new Union Budget. The Union Government introduced regulatory reforms for the fintech sector last year. Hence, the industry leaders expect further announcements from the Union Budget 2024 that contribute significantly to financial inclusion and broader economic development. 

To know more about the Union Budget 2024 expectations for the fintech sector, read on.

Incentives for Growth in Rural Segments

Here’s a quick recap of the existing scenario:

  • Due to a lack of adequate infrastructure, there are still many areas untouched by the digital payment revolution
  • The Government of India currently utilises the Payments Infrastructure Development Fund (PIDF) to develop digital payment infrastructures in Tier 3 cities and rural areas

Given that the fintech industry has pioneered technological innovations, the government may consider extending support and introducing regulatory reform. Check out some expectations from the Budget:

  • Many leaders in the fintech sector want the Union Government to announce incentives to promote the growth of digital payment infrastructure in underserved and unserved areas
  • The government may provide support to certain fintech companies in the Union Budget that are targeting customers living in these regions
  • This will even drive further financial inclusion and bring the rural segment into the financial mainstream

Increased Support for Digital Payments

A quick glance at the yesteryears can be summed up briefly in the following way:

  • From ₹2,017 crores in 2017-18, the volume of digital payments has recorded a Compound Annual Growth Rate (CAGR) of 45% to 13,462 crores in FY2022-23
  • In the Union Budget 2022 and 2023, the government has allotted a financial outlay of ₹1,500 crores as support for the digital payment ecosystem in India

Here’s what to expect:

  • The Central Government may increase this financial support in the Union Budget 2024
  • PricewaterhouseCoopers (PwC) expects the government to increase it to ₹6,000 crores
  • It also expects an allocation of additional ₹2,000 crores for compensation of losses for RuPay debit card transactions

Due to the immense increase in the volume of UPI transactions, it would be necessary for the government to increase this support to fully support the banks for Merchant Discount Rate (MDR) loss. MDR is a fee that banks charge for processing digital transactions. The increased support will increase the accessibility of digital payments across India.

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Promoting New Talent in Digital Finance Space

As fintech companies show the highest intent for hiring in the Banking, Financial Services and Insurance (BFSI) spectrum, the industry possesses huge potential to support India’s demographic dividend. Akshay Mehrotra, Co-founder and CEO at Fibe, has also emphasised that it is the right time for India to incentivise the growth of the fintech sector in the Union Budget aligning with youth’s aspirations. 

He has said, “Amid a slowdown and grim global economic outlook, the Indian economy appears to be in a favourable and optimistic spot. As per the projections of the International Monetary Fund, World Bank and Reserve Bank of India, India’s growth projections for FY24 range between 6.3 to 6.5%. 

With the Interim Budget expected for 1st February 2024, there is an eagerness for an approach that resonates with the aspirations of the youth in this digital era. The government, focusing on the ‘Make-in-India’ push in the technology sector, is likely to roll out more initiatives to strengthen India’s position in the digital landscape and promote new talent.

Given the increased penetration of new-age technologies in businesses and to augment the economic impact of Generative AI, we expect increased collaboration between the public and private sectors and increased investments for training and upskilling the growing young workforce.”

He further remarks, “With an eye on economic resilience and sustainability, we hope to see a Budget that not only addresses the challenges of today’s digital economy but also builds a stimulus of financial inclusion and paves the way for a robust and progressive future for youngsters. 

We hope that the Budget will not only nurture economic growth but also provide a space for the transformative power of Lending Tech companies, thereby weaving a narrative of financial empowerment that reaches every corner of our diverse nation. This will help in building a responsible lending and borrowing ecosystem,” he added.

Here’s a quick snapshot of what the fintech sector can expect from the upcoming Budget:

  • This is an opportune time for the Central Government to introduce measures that foster long-term growth and sustainable development of the fintech sector
  • In addition to the above-mentioned speculations, many industry leaders expect the government to boost regulations for a safer environment for digital payments

Moreover, there are speculations that the upcoming Budget presented by Nirmala Sitharaman may permit payment banks to extend credit facilities and introduce additional use cases of Central Bank Digital Currency (CBDC).

Why Fintech May Get a Boost in Union Budget 2025: Everything You Must Know

With the Union Budget 2025 knocking at the door, massive speculations are arousing in all sectors as to what this budget will offer. This year’s budget is expected to be focused on promoting economic growth, unveiling targeted reforms, and boosting investments in critical areas, ensuring long-term development and financial inclusion. In addition, many sectors expect to get a tax relaxation from Nirmala Sitharaman.

Nonetheless, experts from various sectors expect big movements in the new Union Budget, especially in the fintech sector. The fintech market is one of the biggest growth drivers of the Indian economy, which is expected to report the highest growth among 13 large economies included in Goldman Sachs Research’s global outlook. So naturally, many are expecting the sector to witness a boost with the Interim Budget.

To know more about why the fintech sector may receive incentives and additional support in the Union Budget 2025-26 and what are the 2025 budget expectations, read on.

Why Fintech May Get a Boost in Budget 2025

The following are some of the prominent positive indicators of why the fintech sector may get a significant boost in the 2025-26 Budget presented by Nirmala Sitharaman:

Trends from Previous Budgets 

In the previous budget, Nirmala Sitharaman eased regulatory norms to promote the use of Digilocker for documentation. The expansion of these services also proved to be a great boost for individuals and financial service providers.  

It was also announced that the government will set up 100 labs in engineering institutes for developing apps for 5G services. This will help Indian fintech companies to explore new possibilities. With this support from the previous Budget, the sector is expecting the same from the upcoming one.

Key Enabler of Digital Payments

In the Union Budget of 2021 and 2022, the government extended financial support of ₹1,500 Crores to build digital payments infrastructure; but the same was cut down nearly 40% in the interim budget of 2024. However, the volume of digital payments has witnessed a steady CAGR of 44% from the financial year 2017-18 till FY 2023-24. The volume of digital transactions increased from 2,071 crores in 2017-18 to 18,737 crores in the financial year 2023-24.

Based on the steadily increasing allotments for UPI infrastructure in every year’s union budget, the fintech sector can expect another boost for the digital payments sector, especially for the UPI infrastructure.

Enables Direct Benefit Transfers (DBTs)

DBT was introduced to prevent leakages in transferring benefits of various schemes. Under this, the transfer happens directly to the beneficiary’s Aadhaar-linked bank account, with no intermediary. Fintech plays a crucial role in this, its development in underserved and unserved areas can enable a wider reach. Hence, leaders of the sector are expecting this year’s Union Budget to equip fintech companies with the support required to promote their services in Tier 3 cities and rural areas.

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What Fintech Expects From Budget 2025

The Indian fintech space has witnessed one of the most fast-paced growth in the world with more than half of the startups founded between 2016 and 2021 being fintech companies. So, the expectations from the budget are in line with the growth and how to further propel it. 

Ashish Goyal, Co-Founder and CFO of Fibe has shared his expectations from the upcoming Union Budget in this regard. “Empowering the entrepreneurial spirit is the cornerstone of economic growth and in the upcoming Budget, we anticipate strategic measures to foster a robust entrepreneur ecosystem. We expect the Government to remain a key catalyst in developing the startup ecosystem.” 

Hinting at the regulatory reforms introduced last year, he said, “The Government has undertaken several security measures to ensure consumer protection while accessing finance online and we expect a regulatory framework to restrict illegal lending by unauthorised players to further strengthen the ecosystem. We hope that the Government continues to expand the digital infrastructure to support deep penetration of financial services which reduces the cost of delivery of services.” 

“ONDC (Open Network for Digital Commerce) and OCEN (Open Credit Enablement Network) shall be supported to create incentives for investment in technology and R&D to ensure this. We also urge the Government to consider the implementation of a uniform KYC framework across all financial services that will not only enhance efficiency but also bolster financial inclusion. This measure aligns with our collective vision for a digitally empowered and financially inclusive India, driving economic growth and encouraging a responsible lending and borrowing ecosystem,” he added, on other measures that the government can announce in the Union Budget.

The government, in the past Union Budgets, introduced regulatory frameworks that allow for innovative fintech services with an aim to easily increase financial inclusion and improve service delivery in underserved areas. Fintech expects that the upcoming Union Budget 2025-26 will maintain the momentum for the promotion of digital payments and deepening financial inclusion. The fintech sector expects some ease in regulatory frameworks, incentivisation of digital adoption, and improving access to credit for MSMEs. 

These steps are likely to ensure that fintech continues to be a growth catalyst for India and sets the path for a genuinely booming economy.

Loan Fraud: Easy tips on how to detect and avoid it

Loan fraud instances have increased with advancements in the fintech sector. So, they can happen to anyone who uses financial services. That said, these fraudsters often target individuals who can’t get funding through traditional means, such as:

  • Elderly
  • Students
  • People with no secure job
  • Uneducated adults
  • People with low or no credit scores

Scammers entrap in several ways, which include misusing personal and other sensitive data, leading to financial loss. As such, it’s crucial to identify them and take precautions to safeguard your identity. 

Read on to learn some loan fraud detection techniques, measures for prevention and more. 

What is Loan Fraud? 

When there is any deceptive action during the loan process from the lender or the borrower, it is known as loan fraud. Being a victim of this fraud can lead to substantial financial loss or identity theft. There are many ways such fraud may take place, some of which are:

  • Impersonating reputed banks and lenders
  • Stealing your information to take out unauthorised loans
  • Charging exorbitant and unnecessary fees
  • Completing the process without providing the loan
  • Using your identity to make unauthorised transactions 
  • Promising to eliminate existing debt at a nominal fee

6 Signs of Loan Fraud

These loan fraud detection tips will help you avoid potential identity or monetary loss. 

  1. No Physical Address

Lack of physical address should be a first warning sign. Without an address, catching them can be difficult for the authorities. So, scammers generally don’t have one or mention a fake address. Check the details to ensure you are borrowing from a legitimate lender. 

  1. Non-Disclosure of Fees and Charges

Another common way is when the supposed lender charges multiple hidden fees on the loan without discussing them at the time of application. You will also not find any mention of such charges on their websites. 

  1. Request for Non-refundable Advance

If the lender asks to make an upfront payment for your loan, consider it a red flag. It is one of the most common types of personal loan fraud. Most financial institutions adjust the processing fees in the loan amount after approval rather than before the application process. So, if they are asking for a high fee even before processing the loan, choose another lender.

  1. Sense of Urgency

Some con artists will reach out to you with a ‘limited time offer’ or ‘time-bound scheme’ that ends within a few hours. Genuine companies don’t have such short-term offers and theirs generally are valid for a few days, giving you the time to make a well-informed decision. 

  1. Assured Funding 

When you apply with a genuine lender, they thoroughly assess your eligibility and review your application before approving it. So, they don’t offer any guarantee that you will get the funds. As such, if anyone’s offering a guaranteed approval, you should be cautious and steer clear of it.

  1. Unsolicited Communication

Banks and financial institutions only reach out to you with loan offers if you have enquired or are an existing customer. If you get a call randomly, you must investigate how they got your contact details. Also, make sure you don’t do any of the following: 

  • Respond to their calls or emails 
  • Click on any links 
  • Provide any details 

Also Read: Personal Loan Scams: You Can Be The Next Target

How to Prevent Personal Loan Fraud?

Here are a few tips through which you can avoid being a victim of personal loan fraud:

  • Do proper research on the lender’s reputation and customer feedback
  • Check if the lender’s website is secure
  • Avoid paying upfront fees 
  • Read the terms and conditions carefully
  • Avoid being tempted by offers and schemes that seem too good
  • Check your bank account for a fraudulent transaction
  • Verify the lender’s documents 
  • Stay updated with the latest scams and measures to help you avoid them

Using these loan fraud detection tips, you can easily identify fraudsters and keep your finances and data safe. Borrowing from genuine lenders who have best-in-class security measures is a great way to keep your information secure. Fibe has a PCI DSS App-based journey and ISO/IEC 27001 Certification. As such, you can get funds without any risks or hassles.

With Fibe’s Personal Loan, you can get a transparent loan of up to ₹5 lakhs with a 100% secure digital application process. That’s not all. Our competitive interest rates, quick approval, minimum requirement and no hidden charges give you the ease of simplified, secure and affordable borrowing. Download the Fibe Personal Loan App or visit our website to get started! 

FAQs on Loan Fraud

How do you detect loan fraud?

There are many signs that you may be dealing with a fraudster. Some of these are: 

  • No regard for your credit history and existing credits 
  • Missing physical addresses 
  • Unsecured websites 
  • Upfront fees 
  • Assured approval
  • Extraordinary offers

What is the meaning of loan fraud?

It refers to any activity where the fraudster offers credit to collect your personal information and documents. Once they have your sensitive information, they can apply for loans in your name. 

What to do in case of loan fraud?

In such a case, you must do the following: 

  • Lodge an FIR at your nearest police station 
  • Report the case to the cyber-crime cell through

How do you detect fraudulent transactions?

Checking your account balance regularly and opting for SMS alerts for transactions can help catch and avoid unauthorised payments.

Personal Loan for Gifting: 5 Ways To Make Your Celebration Special

Availing of a personal loan for gifting is a straightforward and rapid solution for arranging the funds you need. The funding you get comes with no restrictions, so you can use it for umpteen expenses, including giving special gifts to your loved ones. 

Read on to know why you should choose a personal loan for gifting and easy tips on choosing the right lender. 

Features and Benefits of a Gift Loan

If you are wondering whether a personal loan is the right option for a gift, then consider these factors. 

  • Easy Online Application 

Most lenders allow you to apply digitally from their web portal or app, which makes the application process straightforward and hassle-free. For instance, at Fibe, you can apply in just 3 easy steps, which are:

  • Download the app or register on the website
  • Apply with basic details 
  • Upload the required documents for verification
  • Quick Disbursement

Thanks to fintech advancements, you can get your loan approved instantly and sanctioned in just a few hours. Additionally, it is an unsecured loan, so the processing is quicker than secured loans, leading to faster access to funds.

  • No Collateral Required 

When applying for a gift loan, you do not need to pledge any security as it is an unsecured loan. As such, you can keep your assets secure and enjoy stress-free repayment. 

  • Minimum Documentation 

You can apply with basic KYC documents and income proof to get your best loan offer. This ensures you can get funds whenever you want without any lengthy and time-consuming paperwork. At Fibe, you can get funds by submitting only the following documents:

  • Proof of identity
  • Proof of address
  • Proof of Income
  • Selfie
  • Flexible Repayment 

Lenders allow you to choose from a range of tenure options, which enables you to pay the loan comfortably and without burdening or stretching your budget. 

  • Customised Offers 

The loan offered to you is tailored to your finances, which you can use as per your needs. Generally, lenders offer loans based on your finances and several other factors, such as:

  • Credit score
  • Debt-to-income ratio 
  • Income
  • Repayment history
  • Lower Interest Rates 

These loans have a competitive interest rate, which is often lower when compared to credit cards. This makes it an affordable option to get funds for giving the best gifts. 

  • Unrestricted Use

Personal loan funding comes with no limitation on how and where you can use it. So, you pay for gifts, emergency expenses, travel, or any other requirement with no questions asked by the lender.

Also Read: Benefits of a Personal Loan

Tips for Getting a Personal Loan for Gifting

Here are some tips that will help you secure the best loan offer:

  • Compare multiple lenders’ interest rates and other terms before you apply
  • Choose a digital lender for smooth application and quick sanction 
  • Apply during the festive season or other sales to keep costs low
  • Set a budget to determine your desired loan amount
  • Leverage your excellent credit score and history to bargain for a lower interest rate
  • Borrow only the amount required and use an EMI calculator to plan repayment

You can choose from several lenders offering great deals. So, make sure you use the above tips to choose the most cost-effective option to meet your needs without any hassles. Fibe is a leading lender offering Personal Loan of up to ₹5 lakhs at rates starting at 2% per month and tenure going up to 36 months. 

You can also enjoy 2-minute disbursal, minimum paperwork, no collateral, no pre-closure charges and many other benefits. Once you’ve paid your loan completely, you can apply again in 3 days easily, making future borrowing just as simple. Visit our website or download the Fibe Cash Loan  App to get started! 

FAQs on Personal Loans for Gifting  

Is it a good idea to avail a personal loan for gifts?

Whether it is an ideal choice depends on your finances and requirements. If you need a big sum without depleting your savings, then it can be an ideal option. This is because the loan is available without collateral, at affordable interest rates, and with budget-friendly EMIs. 

What is a gift loan?

It is a type of personal loan through which you can get funds for buying a present. These generally come with no end-use restrictions, so you can finance any need you want.

How to use personal loans for gifting?

Once your loan gets disbursed, you can use the loan amount to buy any gift you want and repay in EMIs for the approved tenure.

4 Types of Credit Ratings and Scores in India You Need To Know About

There are different types of credit ratings and scores assigned by credit bureaus. As a borrower, your history with credit and current loans is summarised into a three-digit credit score. Credit ratings are usually assigned to organisations or companies who take on debt, but the two and often used interchangeably. 

Credit information companies assign scores between 300 to 900. This numeric representation of your credit behaviour gives a lender important information about your likelihood of being disciplined about repaying. 

Having a higher score improves your chances of getting credit with better terms. With this fact in mind, understanding the various credit scores in India is important. 

Types of Credit Scores and Bureaus 

To offer different types of credit facilities, banks and NBFCs generate your reports from one of the four credit bureaus in the country. The Reserve Bank of India licenses all these bureaus to collect the required details for generating credit reports and scores. 

Despite this functional similarity, you can have a different score based on the bureau you check it from. Let’s understand them better:

  • TransUnion CIBIL Score
  • This is the oldest credit bureau in India and one of the most popular too. 
  • Most major banks and financial institutions rely on it to get an insight into a borrower’s repayment history
  • While you can check your score for free once, to keep track of it you can sign up for a subscription package, which starts from ₹550 for one month. 

CIBIL scores and what they mean:  

CIBIL Range Rating
300-499Poor
500-649Average
650-749Good
750-900Excellent
  • Equifax Score
  • This credit information company has been operating in India since 2010. 
  • Its score ranges from 300 to 900. 
  • After you have generated your free annual report and score, you can get a monthly or annual subscription starting at ₹250.

Experian scores and what they mean:

Equifax Range Rating
300-579Poor
580-669Fair
670-739Good
740-799Very Good
800-900Excellent
  • CRIF HighMark Score
  • Operating since 2011, CRIF HighMark offers credit reports and scores for not only individual retail consumers but also microfinance borrowers and companies.
  • Apart from a free annual report, you can get your CRIF score and report for ₹399 a month.

CRIF HighMark credit scores and what they mean:

CRIF HighMark Range Rating
300-549Low
550-649Medium
650-749High
750-900Excellent
  • Experian Score
  • Experian is a global credit reporting agency that was also licensed by RBI in 2010. 
  • Its score range is the same as the other credit information companies, and you have a better chance of approval with an Experian score of 700 or above. 
  • It also allows you to get a free credit report annually and sign up for memberships for subsequent checks. 

Experian credit score and what they mean:

Experian Range Rating
300-500Poor
580-669Fair
670-739Good
740-799Very Good
800-900Excellent

Which Credit Rating Should You Choose? 

While all these types of credit ratings and scores are similar, they are based on subtle differences in assessment factors. Common factors that these agencies use to assign your score are:

  • Repayment history 
  • Length of experience with credit 
  • Debt-to-income ratio
  • Existing debts 
  • Recent applications for credit 
  • Different types of credit you have experience with

While banks and NBFCs send details to all these bureaus, their algorithms may assign different scores for the same individual. Thus, you may get a very good rating from one bureau and a good rating from another. 

In such a case, you should ask your lender which credit score and report they accept. Generally, lenders in India check the TransUnion CIBIL Score when assessing your application.

Since your score affects your loan application easily, keep an eye on it. The easiest way to check your score for free is on Fibe. All you need to do is register, enter basic details and verify your identity to get your credit report and score.  

What’s more, you can get an Personal Loan at pocket-friendly interest rates and no prepayment charges too. Download the Fibe Personal Loan App or register on the website to apply. 

FAQs on Types Of Credit Scores

Why are there different types of credit scores?

Different types of credit ratings or scores used in India are: 

  • TransUnion CIBIL 
  • Equifax 
  • CRIF HighMark 
  • Experian 

What type of credit score is best?

All scores have equal validity and reliability, but most banks and NBFCs rely on the CIBIL Score, making it the most popular option.

Which credit score is used most in India?

The most used credit score is the one generated by TransUnion CIBIL. 

8 Ways to Reduce Personal Loan EMIs

The EMI for personal loan repayment is a figure that can either put a strain on your finances or help you repay stress-free. Since it has a large impact on your monthly budget, choosing the lowest possible EMI can be helpful. You can then have funds at hand to address other goals and obligations as well as to build an emergency corpus. 

While you can check your personal loan instalment beforehand using an EMI calculator, paying a minimal amount hinges on certain factors you can watch for. If you’re wondering how to reduce EMI of existing personal loan? You can use some simple strategies like never missing an EMI, opting for a longer repayment tenure or even negotiating a lower interest. 

8 Effective Tips on How to Reduce Your Personal Loan EMI 

Lowering your monthly repayment amount and paying off your loan comfortably is easy. Try out these strategies. 

Lower Your Loan Amount 

Borrowing less is the easiest way to reduce your EMIs as this amount is based on your loan’s principal. See the table below to check out how the EMI reduces when the loan amount varies while keeping the interest and tenure the same: 

Loan amount Interest Tenure EMI 
₹2,29,000 14% 12 months ₹20,561 
₹1,82,000 14% 12 months ₹16,341 
₹1,36,000 14% 12 months ₹12,211 

Apply the same logic to your existing loan by lowering your loan amount with partial prepayments. If you have surplus funds and are wondering, ‘Can I reduce my personal loan EMI?’, the answer is yes! 

You can chip away at the loan’s principal by paying more than your monthly instalment. This will reduce your subsequent instalments and also help you reduce the interest you pay. Do consider the charges and conditions that financial companies may have in place before you plan prepayment. 

Opt for a Balance Transfer 

Apart from the loan amount, the interest rate also affects your EMI. By transferring your remaining loan to another financial company, you can enjoy lower rate. Take a look at how EMIs are affected when only in the rate reduces and the tenure and principal is the same: 

Loan amount Interest Tenure EMI 
₹2,00,000 20% 12 months ₹18,527 
₹2,00,000 16% 12 months ₹18,146 
₹2,00,000 14% 12 months ₹17,957 
₹2,00,000 12% 12 months ₹17,770 

Before you go ahead and transfer your personal loan balance, consider the new lender’s charges and terms: 

  • Processing fee 
  • Prepayment charges 
  • New tenure 

This way, you can ensure that transferring the balance to a new lender is the right decision when exploring how to reduce personal loan EMIs. 

Ask for a Longer Tenure 

Increasing the repayment timeline also helps you reduce your instalment. See how the EMI changes when the tenure changes, keeping all else constant: 

Loan amount Interest Tenure EMI 
₹2,30,000 14% 3 months ₹78,462 
₹2,30,000 14% 9 months ₹27,069 
₹2,30,000 14% 18 months ₹14,240 
₹2,30,000 14% 36 months ₹7,861 

You can ask your existing lender to extend the timeline or switch to a new lender to decrease your EMI. For those asking can we reduce EMI of personal loan without prepayments, this is one of the simplest methods. 

Lower the Rate of Interest 

One of the best solutions to how to lower EMI of personal loan is by reducing the interest rate. A mere cut of 1–2% will bring enormous savings in your entire tenure. Here’s how you can lower your rate of interest: 

  • Negotiate with your existing lender if you have a good track record of repayment 
  • Choose a personal loan balance transfer to a lower rate lender 
  • Use your credit score to be eligible for special rate promotions 

By lowering the rate, you are lowering the instalments directly, which makes repayment easier on your budget each month. 

Improve Your Credit Score 

If you are inquiring whether we can lower EMI of personal loan without reducing the loan amount or tenure, then enhancing your credit score is a good idea. A high score not only makes you a more reliable borrower to lenders but also assists you in getting lower interest rates. To enhance your score: 

  • Pay all bills and EMIs in time 
  • Do not overuse credit cards and maintain usage below 30% 
  • Maintain a healthy proportion of secured and unsecured loans 

In the long run, a more robust credit history can make you eligible for more favorable loan terms and reduce your personal loan EMIs. 

Use Extra Income for Prepayment 

Another easy technique of how to minimise EMI of existing personal loan is to utilise any extra income in part-prepayment. If you get bonuses, incentives, tax refund, or freelance income, applying them toward your loan will minimise the running balance. This implies: 

  • Reduced future EMIs 
  • Shortened tenure of loan 
  • Lower total interest outgo 

Before prepaying, verify your lender’s policies whether they are charging or not. A single prepayment during the course of your loan can simplify repayment immensely. 

Avoid Missing EMI Due Dates 

Paying your EMIs after the due date adds to your liability, as you will have to pay penalties for late payments. Delayed payments also affect your creditworthiness, which can make future borrowings more expensive. 

It can also have a negative impact on your request for a lower rate or a longer tenure. So, ensure you pay every EMI for a personal loan on time. Set up auto payments or reminders to avoid missing the due date. 

The above tips can help if you’re wondering how to reduce EMI of personal loan in a practical way. But if you want to have manageable EMIs from the start, use an EMI calculator before applying for an instant loan. 

Create an effective repayment plan 

Use an EMI calculator to plan repayment of your personal loan better. This simple online tool gives you an estimate of your repayment instalment based on your loan terms. You can adjust the loan amount and tenure to reach a suitable combination where your EMI fits your budget. Learning how to manage loan EMI for new or ongoing personal loans is key to keeping repayment within your budget. 

Simply use the Fibe EMI calculator to know your ideal tenure and amount for stress-free repayment. Apply in just a few clicks by downloading our Personal Loan App or registering on our website. 

Get a Fibe Personal Loan. We offer funding of up to ₹5 lakhs with attractive interest rates and repayment tenures going up to 36 months. What’s more, you can prepay at no charge! 

FAQs on Lowering Your EMI 

Can I reduce my personal loan EMI amount? 

With the right financial planning and making partial prepayments, you can easily reduce your personal loan EMIs. In addition, if you have a good credit score, you can request your lender increase your tenure for a more suitable EMI. 

Does prepayment reduce EMI? 

Absolutely. Making prepayments reduces the principal amount, which can help reduce your personal loan EMIs. 

Is it possible to reduce EMI or tenure? 

Yes. You can request your lender to reduce your loan tenure. However, it is important to understand that reducing your tenure will increase your EMI for a personal loan. You can use an EMI calculator to know the ideal tenure and ensure the instalment amount fits your budget. 

Union Budget 2024: Key Highlights Updates

Knowing the Budget 2024 live updates is crucial as it reveals updates about government schemes and taxes that benefit citizens. The Union Budget is the annual statement outlining the financial plan that the government proposes for the upcoming fiscal year. It provides detailed information about the following: 

  • Revenue
  • Expenditure
  • Policy initiatives
  • Economic projections
  • Tax proposals

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in the Parliament on July 23, 2024. To know the key highlights and other Budget 2024 updates, read on.

Key Highlights of the Union Budget 2024-25

The Finance Minister outlined the government’s plans for spending and taxation for the coming year. Check out the key highlights of the Budget 2024 live updates-

  • The Finance Minister outlined nine priorities for this fiscal year and the coming years. 
  • These include productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development and next-generation reforms.
  • The Union Government will undertake a comprehensive review of the agricultural research setup to increase productivity and develop climate-resilient varieties.
  • The government will bring 6 crore farmers into the farm and land registry and enable Jan Samarth and Kisan Credit Cards in 5 states. 
  • Nirmala Sitharaman announced 3 schemes for the ‘Employment Linked Incentive’ as part of the PM’s package. These will be based on enrolment in the Employee’s Provident Fund Organisation, focusing on first-time employees. 
  • Another scheme will provide incentives to both employees and employers from the manufacturing sector for EPFO contributions for the first four years of employment. The Union Government will reimburse employers up to ₹3,000 per month for two years for each additional employee.
  • The Union Government has also announced financial support for higher education in domestic institutions by offering loans of up to ₹10 lakhs.
  • The Government will introduce a new scheme with an outlay of ₹100 crores as part of a credit guarantee scheme for MSMEs in the manufacturing sector.
  • The Finance Minister has announced enhancing the limit of MUDRA loans to ₹20 lakhs under the TARUN category.
  • Under PM AWAS Yojana Urban 2.0, the government will make an investment of ₹10 lakh crore for the housing needs of 1 crore urban poor and middle class. 
  • The Finance Minister has allocated ₹11.11 lakh crore for capital expenditure, which amounts to 3.4% of India’s GDP.
  • To promote Rupee investment overseas, Sitharaman has announced further simplification of the Foreign Direct Investment (FDI) rules.
  • The Government will also roll out the NPS Vatsalya program. This will allow parents to invest in NPS on behalf of their children.
  • The Finance Minister has also proposed to reduce the Basic Customs Duty (BCD) on mobile phones, mobile Printed Circuit Design Assembly, and mobile charges to 15%.
  • The Union Government will also reduce the customs duty on gold and silver to 6% and the duty on platinum to 6.4%.
  • The Budget proposes an increase in the long-term capital gains on all financial and non-financial assets from 10% to 12.5%. Additionally, an increase in the short-term capital gains tax rate from 15% to 20% was announced.
  • The Finance Minister has also set the limit of exemption for capital gains at ₹1.25 lakh per year.
  • The Union Budget has also proposed to increase the Securities Transaction Tax (STT) on the Futures and Options trading to 0.02% and 0.01%, respectively.
  • The Finance Minister has proposed an increase in the standard deduction under the new tax regime from ₹50,000 to ₹75,000.
  • The Union Budget also proposes revision in tax rate structure in the new tax regime. Here is the revised tax rate
    • 0% for income from zero to ₹3 lakhs 
    • 5% for ₹3 lakhs to ₹7 lakhs 
    • 10% to ₹7 lakhs to ₹10 lakhs 
    • 15% for 10 lakhs to ₹12 lakhs 
    • 30% for ₹15 lakhs and above

Key Highlights of the Interim Budget 2024-25

Since 2024 was an election year, the government presented an Interim Budget in February. During the Union Budget announcement, the Finance Minister mentioned that administrative actions and implementation of schemes announced in the Interim Budget are underway. The following are some key points announced in the Interim Budget:

  • The government is working towards making India ‘Viksit Bharat’ by 2047, enabling opportunity and growth for all with needed infrastructure and development. The focus groups for this social justice initiative are Garib (Poor), Mahilayen (Women), Yuva (Youth) and Annadata (Farmers). 
  • Over 11.8 crore farmers received direct financial assistance through the PM-KISAN SAMMAN Yojana, and the government helped 25 crore people be free from multidimensional poverty through schemes like the PM-Jan Dhan Yojana, PM-SVANidhi, PM-JANMAN Yojana.
  • The Skill India Mission has helped train 1.4 crore youth, upskill and reskill 54 lakh youth and establish 3000 ITIs. Moreover, 7 IIMs, 7 IITs, 15 AIIMSs, 16 IIITs, and 390 universities have been established to meet the needs of higher learning. 
  • The Finance Minister also announced that the average real income of the people increased by 50% while inflation has remained at moderate levels. 
  • Around 43 crore loans amounting to ₹22.5 lakh crore were sanctioned under PM Mudra Yojana to give wings to the entrepreneurial dreams of India’s youth. In addition, Fund of Funds, Startup India and Startup Credit Guarantee Schemes also help support the youth and their entrepreneurial aspirations. 
  • A fund of ₹1 lakh crore will be established with a 50-year interest-free period to encourage the private sector to scale R&D. The corpus will be for providing long-term financing and refinancing at low or nil interest rates to boost innovation and technology. 
  • The tax receipts for FY 24-25 are estimated at ₹26.02 lakh crore, and the average processing time for ITR has been reduced to 10 days this year, facilitating quicker refunds
  • The Finance Minister proposed that there be no change in the direct and indirect rates, including import duties.
  • The government will raise ₹14.13 lakh crore by issuing dated securities during 2024-25.
  • The Finance Minister proposed to withdraw tax demands of up to ₹25,000 up to 2009-10 and up to ₹10,000 for FY 2010-11 to 2014-15, which is expected to benefit 1 crore taxpayers.

Budget 2024: When and Where Was it Available

Finance Minister Nirmala Sitharaman presented the Budget for the financial year 2024-2025 on July 23, 2024 at 11:00 am. The real-time showcase of the interim budget presented by Nirmala Sitharaman was available in the following ways:

  • Live telecast by Doordarshan and Sansad TV 
  • YouTube channels of Doordarshan and Sansad TV 
  • YouTube channel of The Press Information Bureau (PIB) 
  • Website and YouTube channels of various news networks

The real-time updates of Budget 2024-25 are also available on the apps of news channels. Some also offer an analysis of the Budget, which can help you better understand its impact. You can also view the Budget 2024-25 speech and key highlights on the official website (https://www.indiabudget.gov.in/) or app (Union Budget). Stay tuned for the latest Budget updates for 2024 on Fibe.

Can we take two personal loans at a time: All you need to know

‘Can we take two personal loans at a time?’ is a common question you may have when you need substantial financing. The good news is that you do so. These additional funds allow you to handle various unexpected or planned expenses like:

  • Medical emergencies
  • Payment of utility bills
  • Making a down payment for a car
  • Paying your child’s tuition fees

Read on to know more about getting two personal loans simultaneously, important things to consider and alternative options.

A guide to multiple personal loans 

Once you qualify for them based on the terms set, you can get 2 personal loans at the same time from different lenders. Usually, your second application for unsecured credit may be approved by the same financial company. Further, certain conditions may apply, such as paying a specific number of EMIs on your first loan before you get your second loan. 

Lenders consider the following to assess your repayment ability no matter how many loans you apply for:

  • Credit score
  • Income and employment
  • Age
  • Existing loans
  • Credit utilisation ratio
  • Debt-to-income ratio

Things to consider before opting for a second personal loan

Here are some points you must consider before getting another loan:

Impacts Your Creditworthiness

When you send in your application for multiple loans one after another, your CIBIL or credit score reduces. This is because lenders run a hard inquiry to check your score whenever you send your loan application. 

This helps them assess your repayment ability and reject applications that carry higher chances of default. Multiple applications within a short span of time can impact your creditworthiness and thus decrease your score. 

DTI Ratio Goes Up

As you may know, the debt-to-income ratio refers to the amount of debt you have in comparison to your income or earnings. Banks or NBFCs check this ratio before approving your second loan application. 

Since you have existing debts, securing another loan will increase your debt obligation and thus increase this ratio. This may lead a rejection of your application. Try to keep your total DTI ratio at less than 40% of your income to increase the chances of loan approval.

Can Result in a Debt Trap

The more credit you have to repay, the more you strain your income. Thus, a second loan can impact your affordability and result in delayed EMIs. This may attract late charges and penal interest, which increases your obligations even more and can lead you into a debt trap. 

Planning your EMIs beforehand can help protect you from this scenario. You must assess the following before deciding to apply for a second loan:

  • Monthly income
  • Current loans
  • Existing credit cards
  • Short and long-term financial goals

Additional Costs

Loans come with various types of costs, such as:

  • Processing charges
  • Interest payments
  • Foreclosure charges
  • Document charges
  • Late payment fees
  • Administrative charges

Before finalising your loan option, it is important to consider these charges. This can help you reduce your borrowing costs and make your loan repayment easier. A higher interest rate means larger EMIs, which can affect your finances. Remember to research and compare various lenders and choose an option with lower charges.

Wait to Get Additional Financing

If you have applied for a loan with multiple lenders or already service a large number of loans, you may need to wait to get additional loans. This is because a high number of loans show a high reliance on credit and multiple rejections can lower your score. 

This can lead to rejection of your loan application since the lender might question your creditworthiness. Therefore, limit your loan applications, or if you have recently taken up a loan, wait for some time before applying for a second loan. 

Choosing the right lender can help you get the funds affordably and hassle-free. With Fibe’s Instant Cash Loan, you can get up to ₹5 lakhs at nominal interest rates. You enjoy other perks like an easy online application, minimal paperwork and zero pre-closure charges. Download the Personal Loan App or log in to our website to get the funds and cover your financial needs effectively!

FAQs on Two Personal Loans At The Same Time

Can I borrow 2 loans at the same time?

With a low debt-to-income ratio and meeting the eligibility criteria, you can get two loans. 

Does having 2 personal loans affect credit score?

Multiple loans can lower your credit score since your repayment capacity decreases. Multiple hard inquiries within a smaller gap can also lead to a lower score.

Is it good to have two loans?

If you can repay it without strain, you can benefit from an additional loan to meet your needs. However, it can have some disadvantages, like:

  • Risk of debt-trap
  • Lower credit score
  • Higher debt-to-income ratio
  • Additional borrowing costs

How to apply for multiple personal loans?

You may be able to get additional loans from different lenders following the online or offline application procedures. You can also do so on relevant apps and check the eligibility criteria and other requirements before applying.

Written Off in CIBIL: Meaning, Impact on Your Credit Score & How to Recover

A written-off status in your CIBIL report means the lender has marked your loan as unpaid after you missed EMIs for 180 days or more. You still owe the money and your credit score drops sharply. You can remove this status only by repaying or settling the dues and getting the lender to update CIBIL.

Knowing how to remove the ‘written-off’ status from the CIBIL report is crucial to increasing your probability of securing a loan. This is because loan default may lead to rejection of your loan applications.

A written-off status in a CIBIL report means the following:

  • You have not paid your EMIs against the borrowed amount
  • You did not make any repayments for 6 months
  • Your credit score and future borrowing capabilities may be affected

Read on to learn more about what is written off in CIBIL and ways to avoid loan defaults.

What Does Written Off Mean in CIBIL?

Written off meaning in CIBIL indicates that you have not paid your EMIs for more than 90-180 days. This is when lenders categorise your loan as a loss. This does not mean your loan is forgiven. You still have to repay the outstanding amount. This status remains on your report until you clear or settle the outstanding balance.

How Does a Written-Off Status Impact Your CIBIL Score?

A written-off status can affect your credit score in many ways and make future borrowing harder. Here’s how it can affect your creditworthiness:

  • Large score drop: Your CIBIL score can fall by 50 to 100 points or even more, depending on your past repayment behaviour. This drop happens because missed EMIs signal a high risk to lenders.
  • Lower approval chances: With a written-off tag on your report, lenders may hesitate to approve new loans or credit cards, as it shows you struggled to repay earlier.
  • Higher interest rates: Even if a lender decides to offer you credit, they may charge a higher interest rate to compensate for the risk.
  • Long-term impact: The written-off remark can stay on your report for years unless you clear or settle the dues. This can affect your borrowing options until the status is corrected.

How to Remove the Written-Off Status From a CIBIL Report?

Here is a simple step-by-step process to help you clear the written-off remark from your report.

Step 1: Contact your lender
Reach out to the lender and ask for the total outstanding amount, including penalties or charges.

Step 2: Discuss repayment options
If you cannot pay the full amount, request a settlement plan. Explain your situation honestly.

Step 3: Clear the outstanding dues
Pay the amount mutually agreed upon. This can be a full repayment or a settlement amount.

Step 4: Collect your NOC/NDC
After payment, ask for a written No Due Certificate or No Objection Certificate. This is proof that the loan is closed.

Step 5: Ask the lender to update CIBIL
The lender will send updated repayment details to CIBIL. This removes or changes the written-off status.

Step 6: Check your CIBIL report
Within a few weeks, your report will reflect the updated status. You can even raise a dispute on the CIBIL website if the status still reflects written off.

Tips to Avoid ‘Written-Off Status’ in Future

Here are simple habits that can help you stay on track and avoid a written-off remark.

  • Plan your EMIs: Choose a loan amount and tenure that fits your monthly income
  • Compare offers: Select lenders with reasonable interest rates and clear terms
  • Read the agreement: Check for hidden charges or strict penalties before signing
  • Track your expenses: Follow a simple monthly budget to avoid missing payments
  • Talk to your lender early: If you expect repayment trouble, reach out before an EMI is missed

How to Rebuild Your Credit Score After ‘Written-Off’ Status?

Here are a few easy steps that can help you slowly improve your score and regain healthy credit.

Step 1: Pay your dues on time
Make sure all EMIs, credit card bills and utility payments are cleared before the due date. Consistent on-time payments can really help rebuild your score.

Step 2: Keep your credit utilisation low
Try to use less than 30 percent of your credit limit. Low usage shows lenders that you manage credit responsibly.

Step 3: Avoid taking too many loans
Multiple loan applications can reduce your score further. You should borrow only when necessary.

Step 4: Check your CIBIL report regularly
Keep an eye on your report for any errors. Raise a dispute if you see incorrect information.

Step 5: Use small credit products
Taking a low-limit credit card or a small loan and repaying it on time can also slowly improve your credit profile.

Clearing a written-off status might take time, but it gets easier once you repay or settle your dues and keep your credit habits on track. With consistent payments and regular credit checks, you can rebuild your score and improve your borrowing chances significantly.

And if you’re ready to move forward financially, Fibe offers quick Personal Loans up to ₹5 lakhs with a simple online journey. Just download the Fibe Personal Loan App now to get started!

FAQs on How to Remove a Written-Off Status from the CIBIL Report

How long does a write-off stay on my CIBIL report? 

A written-off status can stay on your report for up to 7 years unless you repay or settle your dues and get the lender to update CIBIL.

Can written off debt be removed from a credit report? 

Yes, but only after repayment or settlement. Once the dues are cleared and the lender sends updated data to CIBIL, the written-off tag is removed.

How do I clear my written-off amount? 

You must contact your lender, get the outstanding amount, pay the dues and collect an NOC or NDC. Only then can the lender update your report.