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How to Check CIBIL Score with PAN Card: Free Online Steps & Guide

This guide explains how to check your CIBIL score with a PAN card; covering free steps on the TransUnion CIBIL website and on Fibe, why PAN is the primary ID used, what happens when you change your PAN and how key factors like repayment history and credit utilisation affect your score.

Yes, you can check your CIBIL score with a PAN card and it takes less than 5 minutes. Your PAN (Permanent Account Number) is the unique 10-character alphanumeric identifier issued by the Income Tax Department of India. Because every PAN is linked to your financial history across banks and lenders, credit bureaus like TransUnion CIBIL use it as the primary identifier to pull your credit file.

Your CIBIL score — a 3-digit number between 300 and 900 — is one of the first things lenders check when you apply for a personal loan or credit card. A score of 750 or above is generally considered strong. Knowing yours before you apply lets you spot problems early and avoid a hard inquiry that can temporarily lower your score.

Why is PAN Card Used to Check CIBIL Score?

India has multiple government-issued IDs — Aadhaar, Voter ID, Passport, Driving Licence. So why does CIBIL specifically rely on PAN?

The answer is straightforward: PAN is the only document that is directly linked to your financial transactions. Every loan you take, every credit card you open and every income tax filing you make is mapped to your PAN. This creates a clean, consolidated financial trail — exactly what a credit bureau needs.

Stats :
As of 2024, over 70 crore PAN cards have been issued in India, making it the most widely used financial ID for credit verification. (Source: Income Tax Department of India)

Credit bureaus receive data from banks and NBFCs tagged to PAN numbers. When you submit your PAN to check your CIBIL score, the bureau instantly matches it to your credit accounts, loan repayments and enquiry history — then generates your score and report.

Steps to Check CIBIL Score on TransUnion CIBIL’s Website

Keep your PAN card handy before you begin. Here is the process on the official TransUnion CIBIL website:

Step 1: Visit the TransUnion CIBIL website and click ‘Get Your Free CIBIL Score’.

Step 2: Enter your name, email address and date of birth.

Step 3: Select ‘PAN’ as the ID type and enter your 10-digit PAN number.

Step 4: Click ‘Accept and Continue’.

Step 5: Complete OTP verification sent to your registered mobile number.

Step 6: View your free credit score and full credit report.

Tip:

CIBIL offers one free credit report per year under RBI guidelines. You can check your score any number of times on platforms like Fibe without it affecting your score, these are ‘soft enquiries’.

How to Check Your Credit Score for Free on Fibe?

You can also check your credit score at no cost on Fibe. The process is quick and does not require you to visit any external website:

Step 1: On the Fibe website or app, navigate to ‘Check Credit Score’ and click to proceed.

Step 2: Enter your mobile number and verify it with the OTP you receive.

Step 3: Add your email ID and complete the OTP verification.

Step 4: Fill in your personal details and enter your PAN number.

Step 5: Complete your KYC and access your credit score and full report instantly.

Importance of PAN Card for CIBIL Score Check

Without a valid PAN, checking your CIBIL score becomes significantly harder. Here is why the PAN card is indispensable in this process:

Unique financial identity: No two individuals share the same PAN. This eliminates any confusion when retrieving your credit file from the bureau’s database.

Links all credit accounts: Every loan, credit card and overdraft facility you have ever held is tagged to your PAN — giving the bureau a complete view of your borrowing history.

Mandatory for formal credit: Banks and NBFCs are required to collect PAN for any loan above ₹50,000. This makes PAN the common thread across your entire credit profile.

Prevents identity fraud: Because PAN is issued only after a government-level identity verification, it significantly reduces the risk of someone else accessing your credit file.

Tax and credit linkage: Your income tax returns filed against your PAN can also be considered by lenders when assessing repayment capacity.

Note:

If you do not have a PAN card yet, you can apply online through the NSDL or UTIITSL portals. Aadhaar-based e-KYC is accepted for this process

Effect of PAN Card Change on Your CIBIL Score

A common concern is whether changing your PAN card, for example, after a name correction or damage — affects your CIBIL score. Here is what actually happens:

Scenario	Impact on CIBIL Score
Applying for a new PAN card (first-time)	No impact
Correcting name or date of birth on existing PAN	No impact — the PAN number stays the same
Getting a duplicate/reprint of an existing PAN card	No impact — same PAN number, same credit file
Holding two PAN cards simultaneously	Illegal under the Income Tax Act. If flagged, your PAN can be cancelled, which would disrupt your entire credit history.
PAN-Aadhaar link not completed	Transactions using an unlinked PAN may be rejected, which can indirectly affect loan disbursals.

Warning :

Never apply for a second PAN card. Holding 2 PANs is a punishable offence under Section 272B of the Income Tax Act, with a penalty of up to ₹10,000. It can also cause your credit file to fragment across 2 identifiers.

Using a PAN Card for Checking Your CIBIL Score

Beyond credit score checks, your PAN card serves as the backbone of your financial identity in India. The Income Tax Department introduced PAN in 1972 and today it is mandatory for a wide range of financial activities — from opening a bank account and investing in mutual funds to filing taxes and applying for a passport.

For credit purposes specifically, PAN card usage covers two broad areas:

Verification and authentication: Financial institutions and credit bureaus use your PAN to verify your identity and pull the correct credit file — especially important when multiple individuals share the same name.

Financial record tracking: Banks and NBFCs are required by RBI regulations to report all credit activity to bureaus using PAN as the primary identifier. This ensures your credit history is accurate and up to date.

Factors that Affect Your CIBIL Score

Once you have checked your CIBIL score, the natural next question is: how do you improve it — or keep it where it is? These are the 7 factors that directly influence your number:

1. Repayment History

This is the biggest single factor. Missing an EMI or a credit card payment, even by a few days, leaves a negative mark on your credit report. Take Ravi, a salaried professional in Pune: he missed 2 EMIs on a personal loan during a job transition. His score dropped from 760 to 690 in just 2 months. Setting up auto-debit is the simplest fix.

2. Credit Utilisation Ratio

This is the percentage of your available credit limit that you are using. If your credit card limit is ₹1,00,000 and your outstanding balance is ₹60,000, your utilisation is 60% which is too high. Keep this figure below 30% to maintain a healthy score. Paying down your outstanding balance or requesting a limit increase (without spending more) are both effective strategies.

Stats

According to TransUnion CIBIL data, borrowers with credit utilisation below 30% are significantly more likely to maintain a score above 750.

3. Credit History Duration

The longer your oldest credit account has been open, the better. A 10-year-old credit card with a good repayment record adds far more value to your score than a 6-month-old one. Avoid closing old accounts simply because you are not using them — the age of the account still counts in your favour.

4. Credit Mix

Lenders like to see that you can handle different types of credit. A good mix might include a home loan (secured), a personal loan (unsecured) and a credit card. Having only unsecured credit can be a slight negative signal.

5. New Credit Enquiries

Every time you apply for a loan or credit card, the lender does a ‘hard enquiry’ on your CIBIL report. Each enquiry can reduce your score slightly. Applying for 3 loans simultaneously — even if you need only one — sends a signal of credit hunger to lenders. Space out your applications.

6. Status of Unresolved Loans

Loans marked as ‘settled’ (where you negotiated a lower payoff amount) stay on your credit report for 7 years and are viewed negatively by lenders. If you have old unpaid debt, pay it off fully and ask the lender to mark the account ‘closed’ rather than ‘settled’.

7. Errors or Discrepancies in Your Credit Report

Sometimes errors creep in — a payment marked late when it was made on time, or an account that does not belong to you. These can unfairly lower your score. Check your CIBIL report at least once a year and raise a dispute through the CIBIL website if you spot any inaccuracies. Resolutions typically take 30 days.

Now that you know how to check your CIBIL score with a PAN card, use that knowledge to stay on top of your credit health. If you need funds for urgent travel, higher education, medical expenses or home repairs — a Fibe Personal Loan gives you up to ₹10 lakhs instantly at competitive rates. Download the Fibe app or visit our website to apply.

FAQs On Checking CIBIL Score with a PAN Card

1. Is it possible to check my CIBIL score using a PAN card?

Yes. You can check your CIBIL score with a PAN card on the official TransUnion CIBIL website or for free on the Fibe app and website. Your PAN is the primary identifier used to pull your credit file from the bureau’s database.

2. Can I check my CIBIL score without a PAN card?

Yes, you can use other government-issued IDs such as your Passport, Voter ID or Aadhaar number on the CIBIL website. However, PAN is the most reliable option because it is directly linked to all your financial accounts and credit history.

3. Is it free to check my CIBIL score by PAN card number?

Yes. TransUnion CIBIL provides one free credit report per year. Platforms like Fibe offer unlimited free credit score checks. These are soft enquiries and do not affect your CIBIL score in any way.

4. How can I get my loan details using a PAN card?

All your active and closed loan accounts are listed in your CIBIL credit report, which you can access using your PAN card. The report includes the lender name, loan amount, outstanding balance, EMI schedule and repayment status.

5. Will my CIBIL score be affected when I apply for a new PAN card?

No. Applying for a new PAN card or getting a reprint or correction does not affect your CIBIL score. The score is based on your credit behaviour — loan repayments, credit utilisation and enquiries — not on PAN-related applications.

6. What should I do if there is an error in my CIBIL report obtained using a PAN card?

Log in to the TransUnion CIBIL website, navigate to the ‘Dispute Resolution’ section and raise a dispute against the inaccurate entry. CIBIL will contact the relevant lender and aim to resolve the issue within 30 days. Keep a record of your dispute reference number.

7. How often should I check my CIBIL score?

Checking your score once every 3 to 6 months is a healthy habit. Doing so on platforms like Fibe qualifies as a soft enquiry and has zero impact on your score. Regular checks help you spot errors early and track improvements over time.

8. Does having a PAN card automatically mean I have a CIBIL score?

Not necessarily. A CIBIL score is generated only after you take on some form of credit — a loan or a credit card. If you have never borrowed, you may have an ‘NH’ (No History) or ‘-1’ status on your CIBIL report, which is different from having a low score.

Aadhaar Password: How to Open e – Aadhaar Card PDF Easily

Downloaded your e-Aadhaar and can’t open the PDF? Feeling stuck at the password prompt, wondering what it could be — your name, Aadhaar number or something else? Don’t worry, you’re not the only one facing this. The e-Aadhaar PDF comes with a built-in password for security, and it’s usually a combination of your personal details.

Read on to understand exactly what that password is, how to enter it correctly and
why the file password is protected.

What is an e-Aadhaar Card?

An e-Aadhaar card is basically a digital version of your physical Aadhaar card. It’s issued by the Unique Identification Authority of India (UIDAI) and contains all the same information — your Aadhaar number, name, date of birth, address and photograph.

What makes it convenient is that you can download it anytime from the UIDAI website and it’s considered just as valid as the printed Aadhaar card. It even comes with a digital signature from UIDAI to ensure authenticity. So, whether you’re applying for a service or just need to verify your identity, the e-Aadhaar works perfectly and you don’t have to worry about misplacing the physical card.

Also Read: Top 5 benefits of an Aadhaar card.

e Aadhaar Card Password Format

The password of an e-Aadhaar card is an 8-character long code that requires your card details. It is a combination of the first four characters of your name and your year of birth.

To understand e-Aadhaar card password format, consider the following hypothetical examples:

Name	Year of Birth	Password
JATIN KUMAR	1973	JATI1973
SURESH SHARMA	1985	SURE1985
JIA	1999	JIA1990
P.K. BHATIA	1993	P.K.1993

Why is an e-Aadhaar Password Required?

The password of an e-Aadhaar card generated by UIDAI is a security measure implemented to safeguard your privacy. Since this file is available to be downloaded online, it makes your personal and biometric information vulnerable to identity theft. So, password encryption is a safety measure, ensuring only you can download and view your card.

How to Download Your e-Aadhaar Card?

Here’s a quick guide to help you download your e-Aadhaar from the UIDAI website:

Go to the UIDAI official website (uidai.gov.in).

Scroll down and click on ‘Download Aadhaar’ under the ‘My Aadhaar’ section.

Select the option ‘Aadhaar Number’ and enter your 12-digit Aadhaar number.

Solve the captcha to prove you’re not a robot.

Click ‘Send OTP’ – you’ll get a one-time password (OTP) on your registered mobile number.

Enter the OTP and click ‘Verify and Download.’ Your e-Aadhaar will be downloaded as a PDF.

To open the file, you’ll need an 8-digit password. It’s the first 4 letters of your name (in CAPITALS) + your birth year.
Example: If your name is John and you were born in 1990, your password will be JOHN1990.

Once downloaded, open the file in the PDF software and unlock it using the e-Aadhaar card password in this format: XXXXYYYY, where the first 4 characters represent the first 4 letters and the last 4 characters represent your birth year.

How to Open Aadhaar Card PDF with Password After Download?

After following the steps mentioned in downloading your e-Aadhaar, you will discover that the PDF will be password protected. This ensures that every Aadhar cardholder’s privacy is safe and secure. But you can easily open the PDF using the following steps and your password for Aadhar card:

Firstly, you must know the file path which leads to the downloaded PDF file on your computer, and you must have a PDF reader that supports password protection and password removal.

After this, you have to locate the PDF file in the PDF viewer to unlock by typing in the password for the file.

After loading the file on the PDF viewer, there will be a way of typing the password before the file’s content is displayed. Type your password there and wait for the file to open.

Aadhaar card password format is different for every individual. It is an 8-letter combination of alphabets and numbers: the first four letters of your name in upper-case followed by the year of your birth in four numbers (/YYYY/).

Also Read: Link Aadhaar With a Bank Account.

With all the benefits in mind, you can rely on your e-Aadhaar Card as your ID-proof when you don’t have a physical copy. However, you must remember the Aadhaar card password format to unlock the file and access your card details. This is especially important when applying for credit, as lenders request it as a part of KYC documentation.

One way to get funds quickly using your e-Aadhaar is the Fibe Personal Loan. You can access up to ₹5 lakhs at pocket-friendly interest rates in just a few minutes. All you need to do is meet our simple eligibility criteria and submit a few basic documents.

So, download our Personal Loan App or register on the website and apply for speedy approval.

FAQs on e-Aadhaar Card Password

What is the password to open an Aadhaar in PDF?

The 8-digit password of e-Aadhaar card is a combination of your name and birth year. The first four digits are the first four letters of your name, followed by your birth year.

How can I unlock my Aadhaar card using a password?

If you have locked your Aadhaar card, then you can unlock it using a Virtual ID (VID), which is a temporary 16-digit random number. To generate a VID, send ‘RVID’ followed by the last four digits of your Aadhaar number to 1947 from your Aadhar-linked mobile number. Once you have your VID, you can visit the official UIDAI website and select the option to unlock. Then, enter your VID and generate the OTP or TOTP. After you enter the OTP, your Aadhaar card will be unlocked.

Is masked Aadhaar password protected?

Yes, a ‘masked Aadhaar card’ PDF is secured by locking the password so no other person can change anything. The password for e Aadhaar PDF is always the first 4 alphabets of your name and the year of birth in four-figure format.

Is e-Aadhaar equally valid like a physical copy of Aadhaar Card?

According to the government guidelines, an e-Aadhaar is valid just as same as a physical copy of the ‘Aadhaar card’ for all purposes.

How to Apply for Aadhar Card Online
What is Masked Aadhaar Card	What is Aadhaar Pvc Card
How to Link Aadhar to Ration Card	How to Link Aadhaar Card with Pan Card
How to Link Aadhar with Bank Account	How to Link Mobile Number to Aadhar Card
Aadhaar Card Benefits	Check Aadhaar Card Status Online

Credit Note: Its use, components and other important details

Businesses issue a GST credit note under special circumstances that allow them to correct any discrepancies in bills and invoices. It helps businesses maintain their account books without any discrepancies. Issuing credit notes is more convenient than reissuing new invoices, making them more favourable.

Read on to know the meaning of a credit note, its format, steps, procedure and more.

What is a GST Credit Note?

These are documents issued by sellers to adjust the amount of goods supplied in the original invoice. Sellers or suppliers issue this tax invoice in acknowledgement of a debt invoice raised by their buyer.

Sellers can use the credit memo to adjust the amount in future transactions instead of discarding the original invoice and creating a new one. This way, it becomes easier for them to track their transactions and maintain the balance in their books.

Suppliers can also issue a credit note to amend the GST liability of the original invoice. In this case, it can also be referred to as a GST credit note. A credit note also reduces the customers’ liability since they will get a discount or refund in the future.

To understand how a credit note works, here’s an example. Suppose you made a purchase worth ₹1 lakh, out of which ₹20,000 worth of products get damaged during the delivery. If you have already made the full payment for the goods, then you must ask for a refund.

After the supplier reviews the invoice, they will issue a credit memo that promises to refund or adjust the amount in future purchases. So, the next time you buy goods, you can get ₹20,000 off your billing amount by providing the credit note issued by the seller.

Also Read: What is GST? Important points to know

5 Uses of a Credit Note

Businesses can issue this document under Section 34(1) of the CGST Act 2017 to amend the tax liability of a tax invoice that has already been issued. Here are some instances where suppliers can issue a credit note:

If the amount on the invoice was more than the payable amount
If the buyer returns the goods, in case of quality issues, damage, pilferage or delivery of the wrong item
If the invoice did not account for discounts
If any pending payments against the invoice are cancelled
If the buyer received less quantity than what is mentioned in the invoice

GST Credit Note Format

According to the Harmonized System Nomenclature Service Accounting (HSN SAC) codes, a credit note should include the following details:

Name of the buyer and the supplier
Address and GSTIN of the buyer and the supplier
Nature and type of document
Serial number of up to 16 characters and date of issue
Quantity, rate amount and tax applied on the goods
Net taxable amount
Supplier’s or their representative’s signature

Steps to Generate a Credit Note

Issuing and generating this document is fairly easy once you identify the error in the original invoice. Once done, here is what you need to do to create this note:

Step 1: Confirm that you are eligible to issue a credit note as per the GST rules
Step 2: Choose a credit memo template
Step 3: Add the business and original invoice reference number
Step 4: Add the date and unique credit memo identification number
Step 5: Add value, quantity, description and other details from the original memo
Step 6: Calculate the new amount by deducting the value of the goods from the original amount
Step 7: State the reason for issuing the document clearly
Step 8: Provide a copy to the recipient and save one for future reference
Step 9: Revise your GST returns as needed and pay any adjusted tax amount, if necessary.

Also Read: Impact of GST on Personal Loans

Debit Note vs Credit Note in GST

Similar to a credit note, sellers can also issue a debit note, which helps them adjust tax liabilities and invoice value for the opposite reason. Check this table to know how they differ:

Basis of Difference	Debit Note	Credit Note
Issuance	When the taxable value in the original invoice is less	When the taxable value in the original invoice is more
Tax Liability of Buyer	Increases the tax liability of the buyer	Decreases the tax liability of the buyer
Credit Adjustment	It requests a credit adjustment to the account of the seller	It requests a credit adjustment to the account of the buyer

Such documents help you maintain your balance sheet and monitor the cash flow, which is crucial for a business to run smoothly. To maintain your cash flow, you can get a personal loan, which comes with no end-use restrictions. You can apply for a Fibe Personal Loan and get up to ₹5 lakhs in just 2 minutes at affordable rates and flexible tenures.

Download our Personal Loan App or register on the website to apply online with minimal documentation.

FAQs on Credit Note

How do you write a credit note?

Here’s how you can issue this document:

Step 1: Verify you can issue the note as per the GST rules
Step 2: Pick a template for the credit note
Step 3: Provide your business details and original invoice number
Step 4: Add the date and a unique credit memo number
Step 5: Enter details of the goods from the original memo
Step 6: Compute the new invoice value
Step 7: Provide the reason behind issuing the document
Step 8: Provide a copy to the recipient and keep one for yourself
Step 9: Update your GST returns and pay the extra tax if needed

What is a credit note in short form?

Since it is also called a credit memorandum, its short form is ‘credit memo’.

What is a credit note PDF?

It is a soft copy of the credit invoice issued by the supplier.

Who gives a credit note?

The seller or supplier issues the credit memo or note to the buyer to amend the original invoice.

What is a credit note in a balance sheet?

In double-entry bookkeeping, sellers will debit the credit memo under revenues but credit it in the buyer’s account or accounts receivable.

What is a credit note in GST with example?

It’s a document that a GST-registered supplier issues to the buyer to adjust or reduce the liability in the original tax invoice due to errors or omissions.

For example, suppose a supplier initially charges a buyer ₹50,000 on a tax invoice but later realises an overcharge of ₹2,000 as GST. To rectify this error, the supplier will issue a credit note of ₹2,000 to the buyer.

Cess Full Form: What is Cess on Income Tax, Meaning & Calculation

This article explains what cess on income tax means, its full form, and how the 4% Health and Education Cess is calculated, with worked examples across income slabs. It also breaks down the difference between cess and surcharge, the types of cess levied in India, and who is liable to pay.

Cess on income tax is an additional levy the Central Government charges on top of your regular income tax to fund a specific public welfare goal, such as education, healthcare or infrastructure. Unlike normal taxes that go into the general government fund, cess money can only be spent on the purpose it was collected for. The current Health and Education Cess stands at 4% of your total income tax liability, including surcharge.

If you have ever typed “what is cess in income tax” into a search bar, here is the short version: it is not a separate tax. It is a top-up on the tax you already owe, ring-fenced for a particular national programme. This guide covers the cess full form, how it is calculated with examples, the different types of cess in India, and how it differs from a surcharge.

DID YOU KNOW?

Cess is collected on top of income tax, not instead of it — and it can legally be spent only on the purpose it was created for.

Cess Full Form in Tax

The cess full form is Central Excise and Service Tax. In everyday use, cess simply means a charge collected for a designated purpose. The government cannot dip into this pool of money for unrelated spending, even during a budget crunch.

Cess full form in tax: Central Excise and Service Tax

It is an additional charge on income tax, not a standalone tax

Purpose-specific: funds cannot be diverted elsewhere

Temporary in nature: discontinued once the goal is met

Common types include Health and Education Cess, Road Cess and GST Compensation Cess

What is Cess on Income Tax? Meaning and Context

Cess is a contribution paid in addition to your regular income tax. The government deposits it into the Consolidated Fund of India, but it can only be withdrawn for the programme it was created for, such as health, education or disaster relief. Think of it as a labelled jar inside the government’s main account — the money sits there but nobody can spend it on anything outside the label.

How to Calculate Cess on Income Tax? Formula and Example

The formula is straightforward: Cess = Total Income Tax Liability x Cess Rate (currently 4%).

Here is a worked example:

Say your annual income is ₹20,00,000 and your total income tax liability works out to ₹4,00,000. At a 4% cess rate, you would pay ₹16,000 as cess, taking your total payable tax to ₹4,16,000.

Particulars	Details
Annual Income	₹20,00,000
Total Income Tax Liability	₹4,00,000
Cess Rate	4%
Cess Amount	₹4,00,000 x 4% = ₹16,000
Total Tax Payable	₹4,00,000 + ₹16,000 = ₹4,16,000

The table below shows how this plays out across different income levels, assuming no surcharge applies.

Taxable Income (Approx.)	Tax Liability (Before Cess)	Cess @ 4%	Total Tax Payable
₹7,00,000	₹20,000	₹800	₹20,800
₹10,00,000	₹75,000	₹3,000	₹78,000
₹15,00,000	₹1,87,500	₹7,500	₹1,95,000
₹20,00,000	₹4,00,000	₹16,000	₹4,16,000
₹50,00,000	₹13,12,500	₹52,500	₹13,65,000

QUICK STAT

A taxpayer earning ₹50 lakhs with a tax liability of ₹13,12,500 pays roughly ₹52,500 in cess alone — even before any surcharge is added. (Source: Illustrative calculation based on applicable income tax slab rates)

Purpose of Collecting Cess on Income Tax

The government collects cess to fund national projects or emergency needs that the regular budget does not stretch to cover. It serves a few practical purposes:

Supports specific sectors: funds flow directly into health, education and rural development

Fills budget gaps: extra money reaches sectors that need it beyond standard allocations

Drives welfare schemes: helps launch or sustain programmes like the mid-day meal scheme or healthcare insurance drives

Acts as a temporary measure: raises funds efficiently for short-term national goals, then gets withdrawn

Difference Between Cess and Other Taxes

Here is a simple comparison to understand how cess differs from a regular tax.

Basis	Cess	Regular Tax
Purpose	Collected for a specific project or scheme	Goes into the general government fund
Duration	Temporary; ends once the target is achieved	Permanent and recurring
Fund Usage	Used only for the stated purpose	Used for any government expenditure
Collection	Added on top of existing taxes	Charged independently as a primary levy
Example	Health and Education Cess, Road Cess	Income tax, GST

Difference Between Cess and Surcharge

People often confuse cess with surcharge because both sit on top of your tax bill, but they work differently.

Cess applies to every taxpayer at a flat 4%, regardless of income level, and the money is earmarked for a specific welfare purpose. Surcharge, on the other hand, kicks in only above certain income thresholds — typically starting from ₹50 lakhs — and the rate climbs as income rises. Surcharge revenue goes into the general fund with no fixed purpose attached.

PRO TIP

Quick way to remember it: cess is purpose-bound and universal; surcharge is income-bound and unrestricted in use.

Types of Cess on Income Tax in India

The government introduces different types of cess to meet targeted funding goals.

Type of Cess	Purpose	Rate / Details
Health and Education Cess	Improves education and healthcare access for the Below Poverty Line population	4% of income tax including surcharge
Cess on Crude Oil	Funds development of domestic oil and gas blocks	Variable, ad valorem rate
Road and Infrastructure Cess	Develops roads and highways	₹1 per litre of petrol and diesel
Construction Workers Welfare Cess	Funds welfare schemes for construction workers	1% of construction cost
National Calamity Contingent Duty	Funds disaster relief programmes	16% on select tobacco products, per the 2023 Budget
GST Compensation Cess	Compensates states for GST revenue loss	Applied on luxury and demerit goods

2 cesses worth knowing about even though they no longer apply: the Swachh Bharat Cess, introduced in 2015 at 0.5% to fund cleanliness drives, and the Krishi Kalyan Cess, introduced in 2016 at 0.5% to support agricultural growth. Both were short-term measures and have since been folded into GST or scrapped entirely.

Who is Liable to Pay Cess on Income Tax?

Anyone liable to pay income tax must also pay cess. That includes:

Individuals

Companies

Firms

Association of persons and body of individuals

Taxpayers paying surcharge on higher income, who pay cess on the combined total of tax plus surcharge

Put simply, every income taxpayer contributes to cess at the applicable rate, with no exemptions based on income slab.

Rate of Cess on Income Tax

The Health and Education Cess rate has stayed steady at 4% since it replaced the earlier 3% Education Cess (2% primary plus 1% secondary and higher education) in Budget 2018. Before that, a 2% Education Cess ran alone from 2004 to 2007, when the additional 1% secondary and higher education cess was layered on.

Period	Applicable Cess	Rate
2004–2007	Education Cess	2%
2007–2018	Education Cess + Secondary and Higher Education Cess	3%
2018–Present	Health and Education Cess	4%

WATCH OUT

Cess rates are set in the Union Budget and can change. Always check the latest Finance Act for the year you are filing in.

Quick example recap: if your total income tax including surcharge is ₹5,00,000, your cess works out to 4% of ₹5,00,000, which is ₹20,000. Your total payable tax becomes ₹5,20,000.

Features of Cess on Income Tax

Charged as a percentage of tax liability, not income directly

Applies uniformly across all income slabs once tax is computed

Cannot be reduced through deductions or exemptions the way base tax can

Reflected separately in your income tax return and Form 16

Reviewed periodically by the Finance Ministry and can be revised in any Union Budget

Taxes and cess can sometimes strain your monthly budget around payment deadlines. A Fibe Instant Personal Loan can help bridge that short-term gap, with up to ₹10,00,000 available at competitive rates and minimal paperwork.

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FAQs On Cess on Income Tax

1.What is the cess at 4% in income tax?

It is the Health and Education Cess, charged at 4% on your total income tax including surcharge.

2.Who will pay a cess tax?

Every individual or entity liable to pay income tax must also pay cess, with no income-based exemption.

3.What is the cess on income tax above ₹50 lakhs?

The cess rate stays at 4% even past ₹50 lakhs; only the surcharge rate increases at higher income brackets.

4.What is cess full form?

Cess full form is Central Excise and Service Tax.

5.What is cess tax meaning in simple terms?

Cess is an extra tax charged on top of income tax to raise funds for a specific public welfare purpose.

6.What is the difference between cess and surcharge in income tax?

Cess applies to all taxpayers at a flat 4% for a designated purpose, while surcharge applies only above certain income thresholds and goes into the general fund.

7.Is cess applicable under both old and new tax regimes?

Yes. The 4% Health and Education Cess applies whether you file under the old tax regime or the new tax regime.

8.Can cess be claimed as a deduction while filing income tax returns?

No. Cess cannot be claimed as a deduction; it is computed after your tax liability and deductions are already finalised.

UPI Reference Number: What It Is, How to Find It & Track It Online

This article explains what a UPI reference number is, how its 12-digit format works and how to track it online using your UPI app passbook or history section. It also covers the difference between a UPI reference number and a UPI ID and what to do if a transaction gets stuck.

What is a UPI Reference Number?

A UPI reference number, sometimes called a UTR (Unique Transaction Reference) number, is a 12-digit numeric code generated automatically the moment you complete a UPI transaction. Think of it as a receipt number for a digital payment. Banks, UPI apps and the NPCI settlement network all use this number to identify and trace a single transaction from start to finish.

Here’s the thing: this number is not something you create or choose. It gets assigned instantly by the banking network and it stays attached to that one transaction forever. No two transactions share the same reference number, which is precisely what makes it useful for dispute resolution.

Say a payment shows as ‘pending’ or ‘failed’ even though money left your account. Instead of explaining the whole story to customer care, you simply quote the 12-digit reference number. The support team pulls up the exact transaction instantly, checks its status with the beneficiary bank and gives you a clear answer, often within a few working days.

How Many Digits is a UPI Reference Number?

A UPI reference number always has 12 digits. This length is standardised by the NPCI across every bank and UPI app in India, whether you use Google Pay, PhonePe, Paytm, BHIM or a bank’s own app. Because the format never changes, the number is easy to recognise. If you see a 12-digit code sitting next to a payment in your bank statement or passbook, that is almost certainly your reference number, not your account number or UPI ID.

DID YOU KNOW?

Whether you’re checking a ₹50 grocery payment or a ₹50,000 transfer, the reference number format stays the same — 12 digits, no exceptions.

How to Track Your UPI Reference Number Online: Step-by-Step

Open your UPI app on your phone.

Tap on ‘Passbook’ or ‘History’, depending on the app.

Select the bank account the transaction was made from.

Choose the specific transaction you want to check.

Note the 12-digit reference number shown against that transaction.

Most banks also let you check this through internet banking or by requesting a mini-statement, so you are not entirely dependent on the app if it is not working.

QUICK STAT

UPI’s transaction success rate consistently runs above 99%, which is why the small share of failed or pending payments each carry a traceable 12-digit reference number for quick resolution.
Source: NPCI UPI Product Statistics

How to Find Your UPI ID?

Unlike the reference number, your UPI ID is something you set up once and reuse. Here is how to find it:

Open the UPI app on your mobile.

Go to the profile or settings menu.

Look for the ID containing the ‘@’ symbol, for example, priya@hdfcbank.

Benefits of the UPI Reference Number

Tracking: Acts as a single reference point to resolve discrepancies without repeating transaction details each time.

Security: Replaces sensitive banking details with a 12-digit code, so you never need to share your account number with customer support just to raise a query.

Efficiency: Settles transactions within seconds, unlike older methods such as NEFT or IMPS, which can take hours to reflect.

PRO TIP

Save the reference number as soon as you make a high-value payment. It takes two seconds and saves a lot of back-and-forth if something goes wrong later.

UPI Reference Number vs UPI ID: Key Differences

It is easy to mix these two up since both appear inside the same app. They serve completely different purposes.

Aspect	UPI Reference Number	UPI ID
Format	12-digit numeric code	Alphanumeric address with ‘@’ (e.g. name@bank)
Purpose	Tracks and identifies a single transaction	Identifies a user’s account to send or receive money
Changes per transaction	Yes, a new number every time	No, stays the same across transactions
Where to find it	Passbook or transaction history	Profile or settings section of the UPI app
Who uses it	Banks and customer support for tracking and disputes	Payers, to send money to the correct person

A quick way to remember it: your UPI ID tells people who you are and your reference number tells the bank which transaction you are talking about.

What to Do If Your UPI Transaction is Stuck

A transaction can sit in ‘pending’ for a few common reasons: a temporary server issue at the bank, a network drops mid-payment, or the receiving bank taking longer to confirm. In most cases, the amount reverses to your account automatically within a few working days if the payment did not actually go through. If it does not reverse, use the reference number to raise a formal complaint with your bank or through the NPCI dispute redressal portal.

WATCH OUT

Never share your UPI PIN with anyone claiming to ‘verify’ a stuck transaction, including callers claiming to be from customer support. Banks never need your PIN to trace a payment — only the reference number.

A tip that saves time: screenshot the transaction details, including the reference number, the moment you notice an issue. It is far easier to have this on hand than to dig through the passbook later.

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FAQs On UPI Reference Number

1. How do I find my UPI reference number?

Open the ‘Passbook’ or ‘History’ section in your UPI app, select the transaction and note the 12-digit number listed against it.

2. What is a UPI number?

A UPI reference number is a unique 12-digit number generated for every UPI transaction, used to track and verify that specific payment with your bank.

3. How can I obtain the UTR number for a UPI transaction?

The UTR number is the same as your UPI reference number. You can find it in your transaction history or bank statement against the relevant payment.

4. How do I track a UPI reference number online?

Log in to your bank’s internet banking portal or UPI app, locate the transaction in your statement or passbook and use the 12-digit reference number to check its status or raise a query with customer support.

5. How many digits does a UPI reference number have?

A UPI reference number always has 12 digits, regardless of which UPI app or bank you use.

6. Is the UPI reference number the same as the UTR number?

Yes. UTR (Unique Transaction Reference) and UPI reference number refer to the same 12-digit code used to identify and track a transaction.

What is VPA: Virtual Payment Address Meaning and How to Create One

Virtual Payment Address (VPA) in UPI or Unified Payments Interface is a unique identifier of your account. It is a system that bypasses the need for bank account numbers and bank IFSC. You can use VPA to send or receive money, make bill payments and initiate merchant payments.

To learn more about VPA in payment, how it works, its benefits and more, read on.

What is a Virtual Payment Address?

If you are new to UPI, you may wonder, ‘What is VPA in UPI payments?’ Here’s what you need to know.

It is a unique ID attached to a user, which helps track a person’s UPI account. You need your virtual UPI ID along with the beneficiary details to whom you want to send money to execute an online transfer. Using VPA in payment, you don’t need to enter bank account details every time you transact.

A VPA typically looks like xyz@bankname, where the first part can be anything from your name’s initials or a registered mobile number. Here, the ‘bank name’ can be:

Name of the bank with whom you have an account
Bank with which the UPI app is associated
Just the word ‘UPI’
Handle used by the UPI app

How to Create VPA for UPI Payment

Now that you have understood the meaning of Virtual Payment Address, it is also necessary to understand how you can create this unique ID:

Step 1: Download and open third-party UPI app on your mobile device
Step 2: Enter the mobile number registered with your bank account
Step 3: Entering OTP received on your registered contact number for verification
Step 4: Tap on the ‘Add New UPI ID’ option
Step 5: Enter and choose a unique username before the ‘@’ symbol
Step 6: Click on ‘Submit’

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How VPA for UPI Payments Works

Once you have set the unique ID, you can use VPA in payments through a third-party application. This way, you can send money to merchants, contacts, or any other person with a UPI ID. Here are the steps you need to follow to send money using a VPA.

Step 1: Open the UPI application and tap on the ‘Pay Using UPI’ option
Step 2: Enter the receiver’s VPA and confirm if it is linked to the person to whom you wish to send the money
Step 3: Choose the VPA for making the payment if you have multiple UPI IDs
Step 4: Enter your MPIN and confirm the payment to send money to a receiver

Here is how you can use your VPA ID to receive money:

Step 1: Open the UPI application on your mobile device and choose the ‘Receive Via UPI’ option
Step 2: Enter the VPA of the person from whom you wish to receive funds
Step 3: Add the amount you wish to request
Step 4: Choose a VPA when you want the sender to send money if you have multiple UPI IDs
Step 5: Confirm sending the request and wait for the sender to approve the transaction

Also Read: How To Create Upi Id and Do Upi Registration?

Benefits of VPA in UPI Payments

The use of virtual UPI ID has several advantages, which have helped this digital system to grow gradually in India. These include:

Cost-effective Option

As UPI payments don’t charge any transaction fees, it is a cost-effective way to pay a person or merchant digitally.

Secure Payment Method

VPA eliminates the need to share sensitive bank details like bank account number and IFSC. Since you can share VPA linked with your bank account, it makes online transactions much safer.

Fast Processing

UPI transactions initiated via VPA provide a real-time processing facility. This means you can send or receive money in real time. You also don’t need to wait for the bank’s approval or provide many details for making transactions, which saves time.

Convenient to Use

Using VPA is quite easy and simple, as you only need the receiver’s UPI ID or send your UPI ID to receive payments. Moreover, you can carry out these transactions using a mobile device, making it more accessible.

Also Read: Top online UPI payment apps

UPI now also allows users to link their credit cards with VPA ID to facilitate online transactions. You can add the Fibe Axis Bank Credit Card to your third-party UPI app for quicker payment. It is India’s first numberless credit card to ensure higher security when you make transactions.

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FAQs on What is VPA in UPI Payments

How do I find my UPI VPA?

To find your Virtual Payment Address for UPI payment, follow these steps:

Open the third-party UPI application
Tap on the ‘Profile’ section
Tap the ‘Bank Account’ section
Choose the bank account whose VPA you want to check
See the UPI ID linked with that bank account

Is VPA and UPI ID the same?

Yes, they both are similar terms used interchangeably.

Will my VPA expire if I do not use it?

No, it is a personalised number linked to your account. Thus, it remains active until you have your account.

Is it possible to change an existing VPA?

Yes, you can change it by changing your details.

What is BSR Code? Full Form, Meaning, Uses & How to Find It

A BSR code is a 7-digit bank branch code used mainly for tax payment tracking in India. Its full form is Basic Statistical Return Code, and it helps the Income Tax Department identify the bank branch through which tax payments, TDS, TCS or challan-related transactions are made.

In simple terms, you can say BSR code is a unique identification number allotted by the Reserve Bank of India (RBI) to bank branches. It is commonly required while filing tax returns, verifying challans, tracking TDS/TCS payments and maintaining accurate banking records.

For example, when you pay self-assessment tax or advance tax through a bank, the challan generally carries the BSR code of that bank branch. This helps the tax department match your payment with the correct branch and taxpayer record.

What is a BSR Code?

The Basic Statistical Return Code is a 7-digit numerical code assigned to registered bank branches in India. It was introduced by the RBI to collect and classify banking data in a structured way.

A BSR code helps identify where a banking or tax-related transaction took place. This is especially useful in TDS, TCS and income tax challan reporting, where every payment must be linked to the correct bank branch.

For taxpayers, the code acts like a reference point. For banks and authorities, it helps keep tax payments, branch-level data and financial records organised.

BSR Code Full Form and Format

The BSR code full form is Basic Statistical Return Code.

Its format is simple:

Part of BSR Code	Meaning
First 3 digits	Identify the bank
Last 4 digits	Identify the specific branch

For example, in a 7-digit BSR code, the first three numbers may represent a particular bank, while the remaining four numbers point to the bank branch. This makes every branch easier to identify for tax and reporting purposes.

What is BSR Code Used For?

A bank BSR code is used in several important financial and tax-related processes, such as:

TDS and TCS returns: It helps link tax deducted or collected at source to the correct bank branch.

OLTAS challans: The code is usually mentioned in tax challans generated through the Online Tax Accounting System.

Challan Identification Number: BSR code forms an important part of the CIN, along with the challan serial number and deposit date.

Pension disbursements: Pension departments may use the BSR code and account details to identify the correct bank branch for pension credit.

Foreign remittances: It may help banks and tax authorities track outward remittances and related tax records.

In short, the BSR code supports smoother tracking of tax payments, pensions, bank data and compliance records.

Classifications of BSR Codes

The RBI classifies BSR returns into different categories based on the type and frequency of banking information collected.

BSR Type	Description
BSR 1	Advance returns submitted by bank branches on the last Friday of June and December. It includes accounts above and below ₹10,000 limits.
BSR 2	Half-yearly return of deposits from bank branches on the last Friday of June and December.
BSR 3	Monthly return of advances from head offices for selected sensitive commodities.
BSR 4	Return on ownership of bank deposits, generally collected once every two months.
BSR 5	Annual return on bank assets submitted by head offices at the end of March.
BSR 6	Quinquennial return collected once every five years, on debits to deposit accounts.
BSR 7	Quarterly survey on aggregate deposits and gross bank credit.

BSR Codes of Major Banks in India

Here are the commonly referenced first 3 digits of BSR codes of major banks:

Bank Name	BSR Code Prefix
State Bank of India	000, 002, 006, 010
HDFC Bank	051
ICICI Bank	639
Axis Bank	636
Punjab National Bank	030
Bank of Baroda	020
Canara Bank	024
Kotak Mahindra Bank	018

Note: The complete 7-digit BSR code depends on the specific branch. Always verify it from your challan, bank branch or official tax document before using it.

How to Find Your BSR Code?

Here’s how to find BSR code details easily:

Check your tax challan: The BSR code is usually printed on OLTAS challans or challan receipts.

Look at your TDS certificate: Form 16 or other TDS certificates may mention the BSR code.

Use online BSR code finder tools: Some tax and banking platforms allow you to search by bank name, state, district and branch.

Contact your bank branch: The branch can confirm the correct 7-digit code.

Check tax records: In some cases, the code may be available in challan details used while filing ITR.

For accuracy, use the code from your actual challan or bank confirmation instead of relying only on generic online lists.

Purpose and Benefits of BSR Code

The purpose of BSR code is to make banking and tax payment records accurate, traceable and easy to verify.

Key benefits include:

Accurate tax tracking: It helps the Income Tax Department match tax payments with the correct bank branch.

Better compliance records: Banks can submit structured data to the RBI and tax authorities.

Reduced errors in challans: A correct BSR code lowers the risk of mismatched tax payment records.

Useful for pension credits: Pension disbursement authorities can identify bank branches more easily.

Support for remittance tracking: It assists in maintaining records for certain foreign remittance-related transactions.

Think of it as a branch-level identifier that keeps tax and banking trails clean.

Difference Between BSR Code and IFSC Code

Both BSR and IFSC codes help identify banks, but they are used for different purposes.

Point of Difference	BSR Code	IFSC Code
Full form	Basic Statistical Return Code	Indian Financial System Code
Format	7-digit numeric code	11-character alphanumeric code
Issued by	RBI	RBI
Main use	Tax payment tracking, TDS/TCS, challans, banking data reporting	NEFT, RTGS and IMPS fund transfers
Structure	First 3 digits identify bank, last 4 identify branch	First 4 characters identify bank, 5th is 0, last 6 identify branch
Where found	Tax challans, TDS certificates, CIN records	Cheque book, passbook, bank website, payment apps

So, BSR code and IFSC code are not the same. IFSC is used for fund transfers, while BSR is mainly used for tax and banking reporting.

Conclusion

A BSR code is a small but important part of India’s banking and taxation system. It helps identify bank branches, track tax payments, verify challans, support pension disbursements and organise banking data.

Whether you are filing ITR, checking a TDS certificate or verifying a tax challan, knowing the correct BSR code can help avoid errors and payment mismatches.

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FAQs on BSR Code

1. How can I know the BSR code?

You can find your BSR code on your OLTAS challan, TDS certificate, Form 16 or challan receipt. You can also use an online BSR code finder by entering your bank name, state, district and branch details. For the most accurate information, contact your bank branch directly.

2. Is the BSR code the same as the IFSC code?

No. A BSR code is a 7-digit numeric code used mainly for tax payment tracking and challan records. An IFSC code is an 11-character code used for electronic fund transfers such as NEFT, RTGS and IMPS.

3. What is the difference between a BSR code and a branch code?

A branch code generally identifies a branch within systems like IFSC. A BSR code identifies a bank branch for tax reporting, TDS/TCS challans and statistical banking returns.

4. What is the BSR code of SBI?

The BSR code prefix of SBI commonly starts with 000, 002, 006 or 010. However, the complete 7-digit code varies by branch, so check your challan or ask your SBI branch.

5. What is the BSR code of HDFC Bank?

The BSR code prefix of HDFC Bank is commonly listed as 051. The complete 7-digit code depends on the specific HDFC Bank branch.

6. How many digits are in a BSR code?

A BSR code has 7 digits. The first 3 digits identify the bank, while the last 4 digits identify the branch.

7. Can two bank branches have the same BSR code?

No. Each registered bank branch is generally assigned a unique BSR code to help authorities identify transactions and records accurately.

Difference Between CGST, SGST and IGST: All You Need to Know

It is crucial to know the difference between CGST and SGST, and IGST to file accurate returns. To further the ‘One Nation, One Tax’ policy, the Government of India introduced a new indirect tax regime called the GST in 2017. These three categories of GST simplify interstate and intrastate transactions.

To learn what is IGST, CGST and SGST and the differences between them, read on.

What is IGST?

Integrated Goods and Services Tax, or IGST for short, applies to the supply of goods and services across two or more states and their import and export in and out of India. The Central Government collects and distributes these taxes among the centre and the states.

For instance, if a trader from Telangana sells a good worth ₹2 lakhs to a customer from West Bengal, Integrated GST will apply. Supposing the applicable IGST rate is 18%, the buyer must pay ₹36,000.

What is CGST and SGST?

CGST and SGST full forms are Central Goods and Services Tax and State Goods and Services Tax. The Central Government has the authority to levy and collect CGST on the intrastate supply of goods and services. So, what is SGST?

A similar rate of SGST applies to intrastate supplies, which the concerned state government governs. The Central Government introduced it to merge previous state-level taxes, like the value-added tax, entertainment tax, luxury tax, entry tax and so on.

In other words, Central and State Governments combine their levies and agree on equal revenue-sharing. So, if a trader from Gujarat sells a good within the same state, both CGST and SGST will apply. According to the GST Act, the CGST and SGST rates on intrastate supplies cannot exceed 14%, i.e., the combined rate cannot be more than 28%.

Difference between IGST, CGST and SGST

Now that you know what is CGST, SGST and IGST, you must understand the things that set each of them apart. Check the following table to know the difference between CGST and SGST, along with IGST.

Basis	IGST	CGST	SGST
Applicability	Inter-state supply of goods and services	Intrastate supply of goods and services	Intrastate supply of goods and services
Collecting Authority	Central Government	Central Government	State Governments
Revenue Distribution	Between Central and State Government	Central Government	State Governments
Input Tax Credit Adjustment	You can use Input Tax Credit (ITC) either on IGST, CGST, or SGST	You can use ITC either on IGST or CGST	You can use ITC either on IGST or SGST

Now that you know the key points of IGST vs CGST vs SGST, it is crucial to know that GST applies only to businesses with a turnover of more than ₹10 lakhs. To fund your small business requirements and reach up to that turnover, you can get a Fibe Personal Loan of up to ₹5 lakhs at pocket-friendly rates starting at just 2% per month.

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FAQs on the Difference Between CGST, SGST and IGST

Why is GST split into CGST, SGST and IGST?

India is a Union of States with a federal setup with the centre and the states having distinct functions to perform. The Constitution of India provides both the centre and the states the authority to levy taxes to raise revenues for them. The split of GST into CGST, SGST and IGST allows the Indian Government to collect indirect taxes under the ‘One Nation, One Tax’ policy with the dual taxation system.

Who will collect IGST in India?

The Central Government collects Integrated Goods and Services Tax (IGST) and distributes it among the centres and states under the GST Act of 2017.

How does IGST adjust with CGST and SGST?

To adjust IGST, CGST and STGST, you need to set off the IGST liability first. You can then set off CGST or SGST from the balance. You can set off either of these first, as there is no difference between CGST and SGST rates.

How GST is related to CGST, SGST, IGST and slab rates?

The GST Act of 2017 divides rates into four slab rates, i.e., 0% (nil-rated), 5%, 12%, 18% and 28%. CGST, SGST and IGST rates correspond to these rates only. For instance, if the GST rate applicable to the supply of a good or service is 12%, the CGST and SGST rates will be 6% each and the IGST rate will be 12%.

Term Loan: All you need to know

A term loan offers an excellent means of financing when a business experiences a shortage of funds. Businesses need capital to cover their day-to-day operations and capitalise on growth opportunities. These expenses include paying rent for the workspace, purchasing raw materials, paying suppliers and covering utility bills.

Read on to learn what is a term loan, its types and more.

What is a Term Loan?

For better clarity on the concept, here’s all you need to know about the term loan’s definition. A term loan is a financing option for businesses with specific borrowing terms. It helps organisations address their operational requirements and tap into potential growth opportunities.

The repayment amount includes a part of the principal and the interest. The interest rate for the loan can be fixed or floating. Lenders assess the business’ creditworthiness by checking their credit score and financial standing before approval.

Also Read: Long Term Or Short Term Loans

Various Types of Term Loans

A term loan is categorised into the following types:

Short-term Loans

Short-term loans have a tenure of less than a year and are ideal for businesses requiring urgent funds to meet various needs. These loans are offered to companies not eligible for a line of credit.

Intermediate-term Loans

Intermediate-term loans are ideal to address business requirements for a slightly more extended period, as these forms of credit have tenures varying between 2 and 5 years. Businesses can conveniently repay these loans in equated monthly instalments (EMIs) from their cash flow.

Long-term Loans

Long-term loans are ideal for businesses planning to expand their operations or make investments. After all, these loans have higher repayment options that can go up to 30 years. If you plan to start a new venture, this type of credit is the best option.

That said, lenders may require you to pledge your valuable asset as collateral to manage the risk of default. Simply choose monthly or quarterly EMIs to repay the loan amount conveniently from your business’s cash flow or profits.

Features and Benefits of a Term Loan

Here are some attractive features and benefits associated with a term loan:

The rate of interest for the loan is based on the associated risk, the loan amount that the business requires and the loan tenure
Businesses need to provide collateral as security for long-term goals to cover the risk of default
Some financial institutions allow businesses to repay the borrowed amount before the scheduled repayment period
The business needs to repay the borrowed amount within the specified period regardless of the profitability or the financial situation of the business
Loan repayment within the scheduled term in instalments can increase the credit score and hence, the creditworthiness of the business

An alternate way of getting finance for your business is by opting for credit at Fibe. A Fibe Personal Loan offers a quick way to tackle your business’ planned and unplanned financial emergencies.

At Fibe, you can avail of a loan of up to ₹5 lakhs with easy-to-meet eligibility criteria and minimal paperwork. You can get this loan at affordable interest rates and convenient repayment options for added convenience. Download the Personal Loan App or log in to our website and apply today to get the funding quickly!

FAQs on Term Loan

What is the meaning of a term loan?

A term loan is a credit facility offered to businesses to meet operational requirements. Remember, you need to repay the loan within a fixed timeline.

What are the three 3 types of term loans?

You can categorise term loans into 3 types:

Short-term loans
Intermediate-term loans
Long-term loans

What is the difference between a demand loan and a term loan?

The main differences between demand and term loans are flexibility and affordability. While the former does not have a fixed repayment schedule, you need to repay your term loan as per the set timeline. Also, lenders may insist that you repay the loan anytime, even within a short notice period. That’s not so in the case of term loans.

Who is eligible for a term loan?

To apply for a term loan, you must be an Indian citizen. The business must be engaged in the particular sector for at least 3 years. Lenders also check the credit score and finances to ensure the company is financially strong.

What is an example of a term loan?

A few term loan examples include personal loans, vehicle loans, home loans, loans against property and many others. You can choose an option that best suits your requirements.
Here’s a term loan example to help you understand the concept better. Suppose you require immediate funds to purchase equipment for your business. In this case, you can get a short-term equipment financing loan with a tenure of 12 months. You can repay the borrowed amount within the stipulated timeline without hassles.

How to Link Aadhaar Card with Ration Card: Online, Offline & Via SMS

Your Aadhaar card can be linked with your ration card either online by visiting your state PDS portal, offline by visiting your nearest ration shop/PDS centre or via SMS, wherever facility is provided. The process of linking ration card with Aadhaar card assists in verifying the real beneficiaries, removing duplicates of ration cards and ensures subsidised food grains are supplied to the right people.

The ration card is issued by state governments to eligible citizens so that they could avail themselves of subsidised food grains under the Public Distribution System (PDS). On the other hand, Aadhaar is a 12-digit Unique Identity Number issued to Indian citizens. By linking the two, it becomes easier to authenticate the beneficiaries and prevent misuse of welfare schemes.

Here, you will find how to link Aadhaar card with ration card online & offline, the documents you will require, how to check your status and things to consider before starting the process.

Why Should You Link Aadhaar with Ration Card?

Aadhaar card link with ration card is done basically to ensure transparent and accurate distribution of food subsidy.

Here’s how it is helpful:

Reduces duplicate cards

Prevents one person/family from using multiple ration cards

Supports genuine beneficiaries

Guarantees subsidised food reaches eligible citizens

Facilitates verification

Identity authentication through Aadhaar becomes easy

Enhances portability

Makes the process of availing ration benefits across locations easy, wherever applicable

Prevents leakages

Helps in preventing and tracking misuse of ration cards

Let us say that the family has shifted from one district to another. Aadhaar-ration card seeding makes it easier to verify their records in the new location. For instance, if there are 2 ration cards issued on the same details, then Aadhaar seeding will help detect the duplicate cards.

You can treat Aadhaar-ration card linking as a process of adding a verification layer. Your ration card is not replaced by the Aadhaar number.

Documents Required to Link Aadhaar with Ration Card

Before you begin the process of linking Aadhaar and ration card, make sure you have all these documents ready:

Original ration card for verification

Photocopy of the ration card

Aadhaar card copies of all family members listed on the ration card

Aadhaar card copy of the head of the family

Passport-size photograph of the head of the family

Bank passbook copy if your bank account is not linked with Aadhaar

Registered mobile number for OTP based verification, especially for linking online

Make sure the details in your Aadhaar and ration card match. If there is any error like spelling mistake in your name, address discrepancy or wrong family member detail, get it updated prior to submission.

How to Link Aadhaar Card with Ration Card Online?

The facility of online aadhar card to ration card seeding differs from state to state since the management of ration card is done through the state PDS portals. But in general, here is the process:

Visit the PDS/Food & Civil Supplies website of your state

Go to the sections like ‘Aadhaar Seeding’, ‘Link Aadhaar’, ‘Ration Card Services’, or ‘Citizen Services’

Enter the ration card number

Enter the Aadhaar number of the head of the family or all family members, as required

Add your registered mobile number

Verify the details shown on the screen

Enter the OTP sent to your registered mobile number

Submit the request and save the acknowledgement number

For example, if you reside in Maharashtra, you may have to visit the food and civil supplies portal of Maharashtra. Similarly, if you stay in Karnataka, you may have to visit the Karnataka PDS portal for the facility. Though the labels and steps may vary, the details are generally the same.

Important Note: There may not be any single common portal for every state’s Aadhaar-ration card linking process. Always use the official PDS website of your state government.

How to Link Aadhaar Card with Ration Card Offline?

In case you are not able to go through the online process or your mobile number is not registered with Aadhaar, you can complete the linking process offline.

Below are the steps:

Visit your nearest ration shop, Fair Price Shop, PDS center or local food supply office

Carry your original ration card along with photocopies

Carry Aadhaar card copies of all family members listed on the ration card

Provide a passport-size photograph of the head of the family

Provide a bank passbook copy if required

Fill the Aadhaar-ration card linking form, if provided

Submit your documents to the authorised official

Undergo biometric verification like fingerprint authentication, if asked

Get the acknowledgment slip or confirmation

As soon as your documents are verified, you may get an SMS update on your registered mobile number. The processing time can differ from state to state based on verification load and accuracy of submitted documents.

How to Link Aadhaar Card with Ration Card Via SMS?

At times, the linking of Aadhaar with ration card may also be done through SMS. Here is the general format of SMS:

UID SEED <Scheme/Program Short Code> <Scheme/Program ID>

This SMS needs to be sent to 51969.

Upon sending the message, you may receive the confirmation status SMS. However, this may not be a process followed by all states and ration card categories. Visit your state PDS portal or your local ration shop before using the SMS method.

How to Check Your Aadhaar-Ration Card Link Status?

Once you complete the linking request, you need to check if the Aadhaar-ration card seeding has been done successfully.

Here’s how:

Visit your state PDS portal or the National Food Security Portal

Select ‘Ration Card Details’, ‘RC Details’, ‘Aadhaar Seeding Status’ or similar section

Enter your ration card number or Aadhaar number, as required

Complete the captcha verification

Click on ‘Get RC Details’ or similar option

See if Aadhaar is mentioned as linked or seeded

If not, wait for a few days and check once again. If still not updated, then you have to visit your nearest ration shop or food supply office along with your acknowledgement slip.

Benefits of Aadhaar-Ration Card Linking

Linking of Aadhaar with ration card is beneficial both for citizens and government authorities.

Here are the main benefits:

Helps in making sure that eligible families do not miss out on their ration benefits and essential subsidies

Facilitates the process of distribution of food grains and subsidies

Verification of beneficiaries through Aadhaar helps prevent fraud

Prevents issuing of duplicate or fake ration cards through incorrect information

Transparency is increased in the Public Distribution System

Some benefits may be available to beneficiaries through their linked welfare schemes and services

For instance, if the family details in the ration card become outdated, Aadhaar-based verification may help in finding corrections in the records.

Things To Keep in Mind Before Linking

Always use official state PDS portals or authorized ration shops.

Don’t share OTP or Aadhaar details with unknown agents

Make sure your mobile number is registered with Aadhaar for online verification

Check for spellings, ages and family member details

Keep photocopies and acknowledgment receipt safely

If your ration card is inactive, cancelled or expired, first sort out that matter.

Aadhaar is primarily meant for identity verification. It is neither a replacement of your ration card nor guarantees eligibility for ration benefits. The eligibility criteria are decided by the government based on its rules and criteria for your state.

Managing Urgent Expenses Beyond Ration Benefits

Linking Aadhaar with your ration card enables you to access eligible government benefits easily. In case of urgent expenses like medical bills, home repair, education fees or travel costs, you need money immediately.

You can use Fibe to apply for Personal Loan of up to ₹10 lakhs at interest rates affordable in your pocket. The loans are flexible with regard to end-use. Download the Fibe Personal Loan App or visit the website to apply online.

FAQs on Aadhaar-Ration Card Linking

1. Is it mandatory to link aadhaar with ration card?

In most of the cases, Aadhaar linking is necessary to continue to get the ration related government benefits smoothly. It may differ from state to state and based on your category as a beneficiary. You can visit the state PDS portal or nearby ration shop to know about the requirement in your case.

2. How do I check my aadhaar-ration card linking status?

Visit the PDS portal or the National Food Security Portal of your state. Enter your ration card number or Aadhaar number, complete the captcha verification and click on ‘Get RC Details’ or similar button.

3. What documents are required to link aadhaar with ration card?

You will generally require your ration card, Aadhaar cards of all family members, Aadhaar of the head of the family, passport-size photograph of the head of the family and bank passbook copy if required.

4. Can I link aadhaar to ration card without visiting the PDS office?

Yes, if your state PDS portal provides you with online Aadhaar seeding facility, you can send your request online using your ration card number, Aadhaar number and OTP based verification. Otherwise, you may have to visit the PDS office or ration shop in case of failure of online linking or OTP verification.

5. How long does it take to complete the aadhaar-ration card linking process?

It may vary from state to state. In some cases, the request may be processed in a few days, while in others it may take time due to verification of documents or portal updates. Keep your acknowledgement number ready for further action.