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Credit Card Statement: What is it, how to download it and more?

A credit card statement can be an essential tool that can help you manage your transactions wisely and without much hassle. The card provider generates this document at the end of every billing cycle or at the cardholder’s request.

While you can check your billing amount and other important details with the credit card statement, it also helps you monitor unauthorised transactions. In addition, keeping track of your credit card history enables you to use the card wisely.

Moreover, checking the upcoming due date on the statement can help you dodge late payment penalties. Read on to learn the steps of how to download credit card statements, details you can find, and more.

What details appear on your Credit Card statement?

Here are a few important details you can get using the statement.

Your Personal Information: This includes your full name, address, contact information, email ID, etc.
Payment Due Date: The last date to pay bills, after which the issuer will charge late payment fees.
Total Billing Amount: The entire amount you need to pay, including withdrawal amount, balance carried forward from the last billing cycle, late fees, service charge, etc.
Minimum Amount Due: The minimum amount you must pay to continue using the credit card, which is usually 5% of the total amount due.
Grace Period: The timeline between the closing date of the billing cycle and the due date, which is the duration when the card issuer does not charge any late payment fee.
Credit Limit: It refers to the maximum amount you can withdraw or use.
Outstanding Balance: This means the total amount you owe to the credit card issuer.
Transaction History: The record of all card transactions initiated within the billing cycle.
Banking Fees: All the fees and charges added to your bill, including interest, cash advance charges, late payment fees, service charges, etc.
Rewards and offers: This means the total accumulated reward points with their expiry dates.

Also Read: How To Check Credit Card Balance

How to get your Credit Card statement?

If you are wondering, “How to know credit card statement details?” keep in mind that issuers allow you to generate your statement online or by contacting your bank. Here’s how you can easily get your credit card statement.

Generate Your Statement Online

If you want to generate your statement quickly, you can opt for the net banking option. Visiting the issuer’s website and logging in to your account allows you to access your statement. Here, you can review your statement under the card section and save the same in PDF format.

Another method to get your statement online is through email. You can register your email ID with the issuer to receive a monthly statement. You will receive your statement on a fixed date, depending on your billing cycle. This file will be password protected, so your details remain safe.

Get Your Statement Offline

To get your credit card account statement offline, you can request your issuer for a physical copy. The issuer will send the document to your registered residential address. However, credit card issuers request their customers to opt for online methods. Since this document contains sensitive information, sending a physical statement is risky.

Also Check: Instant Personal Loan

Why is a Credit Card statement important?

Your statement helps you easily keep track of your finances. Here are some of its benefits:

It helps you track the credit card due date and the minimum due amount
It maintains transparency and helps avoid errors or fraud
It gives you information on your outstanding amount and credit limit
It helps you plan your finances better
It helps you review the fees and charges levied by your credit card issuer

Considering these benefits, you can plan your finances with ease using a card statement. While all the information it has is crucial, pay special attention to the due date mentioned. This is because paying your bill after this date may incur penalties and late payment changes.

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FAQs on Credit Card Statements

Can I see my bank credit card statement online?

Card issuers will send your card statement online via email upon request. Another option to check your credit card statement and credit history online is via net banking.

How to log in to my credit card account?

To log into your credit card net banking account, you can use your customer ID and password provided by the card issuer.

An Important Guide to Credit Card Late Payment Charges

Credit card late payment charges are one of the many pieces of information about a card that you need to be aware of. Issuers levy this when you don’t clear your bills on time. While credit cards offer many benefits, these charges can increase your financial burden. Therefore, you must be careful of them.

Knowing the charges for late payment is also crucial when you have to deal with unexpected financial obligations. It helps you prioritise your finances and makes managing a cash crunch easier.

Read on to learn about late credit card payment penalties and more.

Introduction to Credit Card Late Payment Charges

All transactions you make using your credit card are recording in a billing cycle. All of these are added up, and this results in your total outstanding balance. Credit card late payment fees apply when you do not pay either the total balance or the minimum amount due by the due date.

The minimum due is usually 5% of your total dues. Paying it helps you avoid credit card late payment fees. That being said, your balance still attracts interest. Paying the full amount due is the only way you can avoid paying interest.

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Reasons to Pay Your Credit Card Bill on Time

Here are a few reasons why you should pay your credit card bill on or before the due date:

Late payment fees will increase your debt obligation in the next cycle
Not paying dues or paying only the minimum amount will carry your outstanding amount to the next billing cycle, which will attract interest, which will add to your existing debt
If you pay your bill 60 days after the due date, your issuers can charge higher interest on future purchases
It affects your credit score negatively, which makes getting loans or credit cards in the future difficult
As you delay your payments, the interest continues to accumulate until you clear your bill
If a credit card company marks you as a defaulter, this remark will show on your credit report and further decrease your credit score

Also Read: Top Credit Card Bill Payment App

Tips to Avoid These Charges

Now that you know why you should pay your bills on time, here are a few tips on how to implement it:

Opt for the Auto-Debit Facility

This is an opt-in facility where you give the issuer permission to deduct the billing amount from your bank account. Opting for it can help you pay bills on time as per the due date. However, it’s important to maintain the required balance in your account for the transaction to go through.

Pay the Minimum Due Amount

As life is full of surprises, it’s possible that you may fall short of cash once in a while. In such cases, issues allow you to pay only a portion of on your total bill and avoid credit card overdue charges. The minimum due amount is generally 5% of the total outstanding balance. Paying this amount keeps your card active, so you can continue using its services.

Set a Reminder

Note your bill payment date and set a reminder on your calendar, via email or on your phone. You can also set the reminder a few days before the due date. This will give you the time to arrange the required cash if needed.

Communicate with your Credit Card Company

If you’re unable to pay on the due date, it is best to talk with your card issuer for an extension. Note that issuers only levy late payment charges three days after the due date, as per RBI guidelines. But if you need more time, informing your card issuer and getting their confirmation is important.

Knowing this, it’s easy to avoid credit card late payment fees. If you plan to get a credit card with attractive benefits, look no further. Opt for a Fibe Axis Bank Credit Card to enjoy attractive and lucrative benefits.

With features such as up to 3% cashback on all spends, complimentary access to domestic airport lounges and fuel surcharge waivers, you can enjoy numerous perks. Download Fibe’s Instant Loan App or register through our website to apply for it today.

FAQs on Credit Card Late Payment Charges

What is the penalty for a credit card late payment?

The credit card charges for late payment depend on your card issuer’s policies. They are calculated based on your total due amount. So, if you have a high outstanding balance, your late payment penalties may be higher and vice versa.

What happens if I am 3 days late on my credit card payment?

In this case, you will have to pay the penalty levied by your issuer. You can also talk to the issuer’s representative via customer care to see if you can get an extension.

What happens if I pay my credit card bill 1 day late?

As per the mandate by the Reserve Bank of India, credit card issuers can charge a penalty only after three days past the due date. So, if you are 1 day late on paying your credit card bill, the card issuer will mark your bill as ‘past due.’ However, they will not add late charges.

How can I find out the due date for my credit card bill payment?

You can easily find the due date for the bill, along with other details, on your monthly credit card statement. You can also access this information by logging into your card account online or via a mobile app.

What is the best way to make the payment of Credit Card bills

Due to your busy schedule and on-the-go lifestyle, you may struggle to pay credit card bills on time. Failing to make timely payment of your outstanding balance will lead to piling up of interest with late payment charges. To avoid this additional cost, you can also pay the minimum balance if that fits your budget better. Either way, pay on time to avoid additional charges and keep your creditworthiness intact. To make the process simpler, card issuers allow you to make these payments through several convenient online and offline options.

To learn about the various payment channels that are ideal for your unique financial needs, read on.

How Do You Pay a Credit Card Bill Online?

In this digital age, there’s no longer a need to juggle a pile of paperwork to clear your outstanding balance. Online bill payment has revolutionised the process by making it quick, easier and hassle-free.

Here are the different online modes you can follow:

Net Banking

With these simple steps, you can simply pay your credit card bills at any time:

Step 1: Visit the credit card portal of the issuing bank and log in using your credentials
Step 2: Select your credit card and choose the mode of payment and account
Step 3: Complete the transaction
Step 4: Note that the transaction can take 3 to 5 working days to reflect, so plan your payment accordingly

Auto-debit Facility

This facility permits your card issuer to automatically debit the billing amount from your savings account. Here is how you can opt for this feature on your credit card:

Step 1: Log in to your credit card account using your credentials
Step 2: Select the auto-debit facility and choose the bank from which you make the payment
Step 3: Choose the payment amount (total outstanding balance or minimum payment due)
Step 4: Set up recurring payments by establishing an e-mandate
Step 5: Confirm to activate the auto payment service, which will take a few business days

However, ensure that you maintain the ideal balance so that you can honour the e-mandate and the transaction doesn’t fail.

Mobile Wallet

Third-party payments, such as Google Pay and PhonePe, provide a compelling solution to make quick credit card bill payments. Follow these steps to make payments through a mobile wallet:

Step 1: Go to a third-payment app and click on ‘Pay Bills’ tab
Step 2: Select the ‘Credit Card Bill Payment’ option, enter your card details and amount
Step 3: Select wallet as a payment option and confirm the payment

Note that you must maintain the required funds in your mobile wallet to complete your payment.

How Do You Pay a Credit Card Bill Offline?

If you want to go by the tried and tested offline method of payments, card issuers provide a space for that as well. The following are some of the channels you can utilise:

At ATMs

If you have a credit card from the same bank where you have a savings account, you can also pay the bill via an ATM. Follow these steps to make your payment:

Step 1: Place your debit card into the machine slot of your bank’s ATM
Step 2: Select the ‘Credit Card Bill Payment’ option
Step 3: Follow the instructions on the screen to complete the bill payment

Through Customer Care

Customer care can also help pay your bill in special cases. However, you must have the same credit and debit card provider to enjoy this facility. You can call your credit card customer care and request them for the bill payment facility. The bank will transfer funds toward bill payment after confirming and verifying your details.

Visiting Branch

If you want to clear your billing amount in cash, you can visit the nearest branch of your credit card issuer. Here, you can submit the cash amount and make the payment. However, make sure to collect the payment receipt as proof of payment. The issuer may levy a nominal charge if you opt for this facility.

How to Pay Credit Card Bills from Another Credit Card?

While it is not generally advisable, you can use another credit card to pay off your existing balance. Here are some of the methods you can use:

Balance Transfer Facility

If a card allows you to transfer your credit balance from another card at a reduced rate and a nominal fee, it can be a great idea to avail of this facility. Here are a few things to consider before applying for this feature:

Choose a balance transfer facility that offers attractive interest rates
Be cautious of the temporary impact of balance transfer on your credit score
Compare the transaction fee charged for balance transfer by different lenders if you are getting a new card

Pay Through e-Wallets

Third-party applications also allow you to use another card to pay credit card bills. Follow these simple steps to pay through a mobile wallet:

Open the payment application on your mobile phone
Transfer the required funds from your credit card to your wallet
Select the ‘Credit Card Bill Payment’ option and pay through your mobile wallet

Using the aforementioned options, payment of credit card bills is as easy as it can be. Be wary of the due date and try clearing your dues without any delay. If you plan to get a credit card, you may opt for the latest offering from Fibe.

With the Fibe Axis Bank Credit Card, you can enjoy quick and seamless payment payments through diverse channels. Being India’s first numberless, it comes with enhanced security features, making your every transaction safer. Simply download the Fibe App or register on our website to apply and enjoy a wide array of exciting features!

FAQs on How to Pay Credit Card Bills

How can I pay a credit card bill online?

To pay your credit card bill online, follow these channels:

Log in to your credit card net banking account or mobile app and make payments through the different modes available
Pay the due amount through NEFT and IMPS from your savings or current account
If your card is linked to any payment apps, you can also use that for bill payment of credit cards

Is it good to pay a credit card bill early?

Paying credit card bills before the stipulated timeline has many advantages, which include the following:

Avoid any late charges on your credit card
It lowers your credit card utilisation ratio and improves your credit score
Paying more than the minimum amount also restores a significant part of your limit, allowing you to make the most of your card

What is the best time to pay a credit card bill?

You can complete bill payments of credit cards before the due date to enjoy continued access to their benefits and avoid additional charges.

Can I pay my credit card bill in cash?

Yes, if your savings account and credit card issuing bank are the same, you can visit its nearest branch to pay credit card bill in cash.

Control number in a CIBIL Report and its significance

For lenders, credit repayment history and creditworthiness are two of the most crucial factors when deciding on your loan approval. A borrower’s credit report reflects these factors, which lenders can access through the control number in CIBIL. Also called the ECN number, it is used by lenders to catalogue your credit details. To know what is a control number in the CIBIL report and its significance, read on.

What is the Control Number in a CIBIL Report?

When you make a loan or credit card request, banks and NBFCs assess your creditworthiness and repayment history. On the basis of these two factors, lenders decide whether to approve or reject your credit application.

A credit report contains these details and helps financial institutions to make the right call. Thus, lenders request credit bureaus like TransUnion CIBIL to provide your credit report. When providing the credit report, credit bureaus generate a control number.

A control number in a CIBIL report is a unique 9-digit number linked with an individual borrower that helps lenders track this report.

Also check Your Credit Score Online

What is the Purpose and Significance of a CIBIL Report’s Control Number?

Here are a few reasons why the control no. in a CIBIL report is significant for lenders and borrowers alike:

A control number is a unique number linked with a borrower and helps track their credit report
It allows lenders to access the credit information of a borrower, which includes their creditworthiness, repayment history, etc.
Borrowers can use this number to access their credit report and work on it to improve their credit score
Borrowers can also check for any errors in their CIBIL report with the control number and get them rectified

How Can I Get the Control Number For a CIBIL Report?

As per the Credit Information Companies (Regulation) Act, 2005, a borrower has the right to access their credit report. For this, you can request the lender or credit rating agency for your control number in CIBIL and download the report. You can contact TransUnion CIBIL on their customer helpline number at 022 6140 4300 between Monday to Friday (10 AM to 6 PM). You can also log in to the TransUnion CIBIL website to access your CIBIL report for free.

To retrieve this report, follow the steps mentioned below:

Step 1: Visit the official website of TransUnion CIBIL at https://www.cibil.com/
Step 2: Navigate to the ‘Get Your Credit Score’ tab and click on it
Step 3: Enter personal details, such as your name, date of birth, contact details and address
Step 4: Upload and attach copies of your identity and address proof
Step 5: Click on the ‘Accept and Continue’ tab

Once you complete these steps, the website will generate a one-time credit report for you. You can find the control number at the top right corner of this report.

In conclusion, this nine-digit control number in CIBIL is essential for lenders to assess your creditworthiness and repayment history when you apply for a loan. While traditional lenders take a few days to access your CIBIL report and approve your application, you can get a hassle-free Instant Personal Loan on Fibe within a few minutes.

This is because we grant you approval based on an alternate credit scoring mechanism. Download our Personal Loan App or log in to our website to secure a loan at affordable interest rates.

FAQs on What is Control Number in a CIBIL Report

What is the ECN number in CIBIL?

The ECN stands for Enquiry Control Number in CIBIL report. It is a unique 9-digit number that lets lenders track the credit record of a borrower.

What’s a control number?

The ECN is better known as control no. in CIBIL reports. As mentioned, it helps banks and NBFCs track your credit report when you apply for a loan.

What is the 3- or 4-digit control number?

The control no. in CIBIL report doesn’t have 3 or 4 digits. It is a 9-digit number unique to every borrower.

Where do I get my control number?

To get your control number, visit the official TransUnion CIBIL website and download your CIBIL report. It will contain your control number. Alternatively, you can ask a lender for your credit report, which also mentions the control number on the top right corner.

Is the control number important?

Yes, a control number is essential when you apply for a loan or credit card. This is because it helps lenders track your CIBIL report which showcases your creditworthiness and repayment history. Based on this data, lenders decide on whether to approve your loan or credit card request.

All you need to know about different types of loans you can get

Different types of loans help you cover varied expenses by bridging financial gaps. Lenders, such as banks and NBFCs, offer loans based on your usage, eligibility and their internal policies.

You pay interest to enjoy the facility to borrow, so shopping for affordable rates should be your priority when you are looking to borrow. Planning repayment is also key, as not repaying on time can affect your creditworthiness adversely.

What is a loan and what types of loan options are available in the market?

A loan is a financial product that provides you with funds. It comes with certain terms, where you, as the borrower, promise to repay it with interest over a specified duration of time.

There are many types of loans that you can get today and they can be classified into two main categories:

Secured loans require you to pledge an asset as collateral to get access to credit
Unsecured loans do not require any security but may have stricter eligibility terms and high-interest charges

Apart from these, you may come across other loans such as:

Lines of credit
Flexi loans
Loans with fixed or variable interest

These classifications are based on how the amount is disbursed to you as well as the way in which you repay.

In addition, loans are named based on usage, such as wedding loans or home renovation loans. They may also be named based on the borrower’s profile, such as salary advance loans for salaried professionals.

Examples of Secured Loans

Now that you have understood how many types of loans there are, here are some examples of popular types of loans that require collateral.

Home Loans

Home loans are a type of secured loan that provides funds to buy a property or build a house and lenders consider the home you buy or construct as collateral. When you take a home loan, you can get up to 90% of the property’s value as the loan amount.

Loan Against Property

As its name suggests, you can access funds by pledging your property as collateral. With this loan, you can get a loan amount up to 65% to 85% of the property’s market value.

Loan Against Mutual Funds/Fixed Deposits

Such loans allow you to pledge your mutual funds or FD as collateral and get funds for your requirements. Typically, you can get around 50%-60% of the value of MF units as a loan amount or up to 90% of your FD.

Gold Loans

You can also leverage your gold jewellery, coins, or digital gold to get a loan. The LTV ratio of this loan generally ranges between 75% and 90%, which means you can get up to 90% of the metal’s market value as the loan amount.

Car loans, bike loans and loans against insurance policies are other examples of secured loans you can get.

Also Check: Instant Cash Loan

Examples of Unsecured Loans

Here is a look at various types of unsecured loans you can get. They do not require you to risk your assets and may be faster to get as well.

Personal Loans

These are the most popular lending options that allow you to enjoy instant liquidity. They come with no use-case restrictions, which means you can use the funds freely. Most applicants use these loans to address emergencies and big-ticket expenses.

Based on the use case, there are several types of personal loans, including:

Vehicle loans
Education loans
Travel loans
Medical loans
Debt consolidation loans
Home renovation loans
Consumer durable loans

Short-Term Business Loans

Entrepreneurs can make the best use of these unsecured loans to set up their business or expand it. Some types of short-term business loans include the following:

Equipment and machinery loan
Working capital loan
MSME loan
Loan for women entrepreneurs

With this guide, you can take the next step towards bridging financial gaps with ease. Remember to choose a lender who is 100% transparent, has no hidden charges and offers repayment flexibility and easy access via online processes. Get all these advantages and more on Fibe, where you can access a variety of Instant Personal Loans of up to ₹5 lakhs.

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FAQs on Different Types of Loans

What are the four classifications of loans?

The four different types of loans that most lenders offer in India include secured, unsecured, fixed-interest and variable-interest loans.

What is the most common type of loan?

The most common type of loan you can get access to is a personal loan.

Which loan is popular in India?

Some of the popular lending options in India include personal, home and gold loans.

Which loan has a high-interest rate?

An unsecured or collateral-free loan generally comes with a higher interest rate as compared to a secured loan.

What is DPD in CIBIL reports and why it is important?

The remark of DPD in a CIBIL report is an important detail that requires instant action on your part. It can affect your CIBIL score negatively and is one of many data points captured in your report apart from your credit score, recent credit inquiries and more.

DPD meaning Days Past Due is thus an important factor that determines the probability of loan approval from banks or NBFCs. Read on to get further insight.

What is DPD meaning and what is its format?

The presence of Days Past Due (DPD) in a CIBIL report is an important indicator of your creditworthiness. It reflects missed repayments of your loan EMIs or credit card bills in the past.

The CIBIL report comprises a separate DPD table for each of the credit facilities you have opted for. This table provides a month-wise repayment history of a loan. The value mentioned against a particular month indicates the delay in repayment. Missed repayment deadlines or defaults can stay on a CIBIL report for up to seven years.

What is the significance of DPD?

Now that you have understood the meaning of DPD, know why it is significant. Creditworthiness is a crucial factor for financial institutions to decide whether or not to approve a credit application. Timely repayment of EMIs and credit card bills reflects higher creditworthiness.

This is where DPD comes into play, as it affects your loan eligibility. Too many DPD remarks can negatively affect your CIBIL score and make you seem like an irresponsible borrower. In fact, loan applicants can get a loan with a low credit score if they have no remarks concerning DPD in CIBIL reports.

DPD values and what they signify

A DPD table in the CIBIL report contains varied values, which signify different details. Here is a look at what each of these refers to:

000

This value indicates that the borrower has repaid all credit dues on the due date and doesn’t have any remaining balance. It is the safest value to have on your CIBIL report.

If this value appears against every month of your repayment schedule, it indicates that you have never missed an EMI. Thus, lenders may sanction your loan even if you have a lower credit score but a DPD value of 000.

XXX

This value appears on your CIBIL report when the lender has not provided any data regarding your loan repayment. If your CIBIL report mentions this value, lenders consider this as a safe option. In other words, this value also doesn’t have any negative impact on your credit report or score.

30, 60, 90

These values on the DPD table in your CIBIL report indicate the number of days passed from the due date. So, the value ‘30’ refers to the repayment made 30 days after the due date. A higher value has a directly proportionate negative impact on your credit score.

STD

STD refers to ‘Standard Payment,’ which means that the borrower has repaid within 90 days from the due date.

SUB

This value means ‘Sub-Standard Payment,’ denoting that the borrower made repayment 90 days after the due date.

DBT

DPT refers to ‘Doubtful,’ which indicates that the repayment has remained sub-standard for over a year.

LSS

LSS stands for ‘Loss,’ which denotes a bleak chance for the lender to recover the loan amount.

Also Check: Instant Cash Loan

How to resolve DPD errors in a CIBIL Report?

Now that you know what is DPD, understand how to resolve errors related to it in your CIBIL report. There may be inaccuracies or errors in your CIBIL report, including the DPD section. When you spot such an error, report it to the credit bureau.

After you report it, TransUnion CIBIL adds an ‘Under Dispute’ tag to your CIBIL report. Once the lender presents the correct data to the bureau, they update your credit report accordingly and remove the ‘Under Dispute’ tag.

A CIBIL score depends on various factors, including the Days Past Due remark and can hamper your chances of accessing funds when you need them. However, at Fibe you do not need to have a good score to get instant funds.

Meet our simple eligibility terms, submit basic documents and get an Instant Personal Loan of up to ₹5 lakhs at affordable rates. Download the Fibe Personal Loan App or log in to our website to secure a loan with an easy repayment schedule of up to 36 months.

FAQs on Days Past Due (DPD) in a CIBIL Report

Which DPD value has a negative impact on your CIBIL report?

All DPD values except ‘000’ and ‘XXX’ hurt your CIBIL score and have a negative impact on your CIBIL report.

When does the DPD in the CIBIL report get updated?

The values related to DPD in CIBIL reports are updated every time the lender sends the loan or credit card bill payment data to the credit rating agency. This usually happens every 30 to 45 days.

Where can I find the DPD value in the CIBIL report?

You can find the Days Past Due values below the Credit Account Information Details under the ‘Payment History’ section in the CIBIL report.

Flat Vs Reducing Interest Rate: Which is Better?

A flat rate of interest differs from a reduced rate, so before you choose a loan, knowing which is better for you is important. Lenders offer various types of interest rates and a suitable option can lower your borrowing costs.

Read on to understand flat vs reducing interest rates.

What is a Flat Interest Rate?

A flat interest rate is the rate of interest that remains unchanged through the tenure of the loan. The interest is calculated for the total loan amount at the start of the loan tenure. The financial institution determines the EMI amount and the schedule of repayment.

In this type of interest rate, the liability remains fixed, helping you manage your finances better. However, keep in mind that the total interest liability is higher for flat rates when compared to reducing rates.

Check out the flat interest rate formula:

Flat interest rate = (P × R × T)/100

Where,

P is the principal loan amount
R is the interest rate in percentage
T is the repayment period

What is Reducing Interest Rate?

A reducing rate is a type of interest in which your interest liability reduces with every EMI payment. This is because the interest is computed on the outstanding loan amount each time you repay a portion of the loan.

Since your interest dues decrease with every instalment, this can be a more cost-effective option.

Here is the formula for reducing interest rates:

Reducing interest rate = [P x R x (1+I) ^ T] ÷ [((1+I) ^ T) -1)]

Where,

P = principal loan amount
R = rate of interest / (100 x 12)
T is the repayment period in years x 12

Also Read: Why Personal Loan Interest Rate is High?

Difference Between Flat and Reducing Interest Rates

Check out how flat and reducing interest rates differ, which can help you plan your loan terms better.

Type of Calculation

With a loan that has a reducing interest rate, the interest you pay is based on the outstanding loan amount. Here, the payable interest is calculated on the new principal after each EMI is paid.

On the other hand, the lenders calculate the flat interest rate on the original loan amount at the beginning of the loan tenure. After that, the total interest is added to the principal amount and divided by tenure.

Ease of Calculation

Lenders calculate flat ROI vs reducing ROI very differently. It is comparatively easier to calculate the payable interest for flat interest rates. This is because they remain fixed throughout the duration of the loan.

The calculation of interest payable for reducing interest rates is complicated since the interest amount changes with each EMI you pay. In this case, the payable interest is calculated on the outstanding loan amount.

Suitability and Affordability

Reducing interest rate loans are comparatively more affordable, as with each EMI your interest liability for the loan reduces. However, this is not so in the case of flat-interest rate loans.

Benefits of Flat Vs. Reducing Interest Rates Calculator

To make the calculation of your loan interest easier, you can use a flat vs. reducing interest rates calculator. Here are some benefits of this tool:

You can use the tool online anytime and anywhere with a device and internet connection
You can get the results easily by inputting the basic details of the loan
You can save time and energy by eliminating the need for manual calculations
You can evaluate the total cost of your loan easily and plan the repayment better
You can compare flat and reducing rates to understand which option is more cost-effective for you

The more time you save by calculating the EMIs digitally, the more time you can spend to compare rates in the financial marketplace and choose the best offer. Now that you know about flat vs reducing interest rates, make a smart borrowing decision. A flat rate of interest is easier to understand but can be expensive in the long run. So, research your options and choose one that suits your repayment plan while keeping the borrowing cost lower.

To meet your financial needs easily and quickly, you can get a Fibe Instant Personal Loan. You can benefit from low interest rates, minimal documentation and quick approvals. Download the Fibe Personal Loan App or register on the website to get a loan of up to ₹5 lakh hassle-free.

FAQs on Reducing vs Flat Interest Rates

What is an example of a flat and reducing rate of interest?

Say you get a loan of ₹1 lakh for 12 months at a 10% interest rate. In a reducing balance interest rate calculation, your EMI will be ₹8,792 and the total payable amount comes to ₹1,05,499.

When you choose a flat interest rate, your EMI comes to ₹9,167 and the total payable amount will be ₹1,10,000. So, you stand to save ₹4,501 with a reduced interest rate calculation.

Which is better: a flat or a reduced interest rate?

A reduced interest rate can be better than a flat rate since it frees up your income as the tenure of the loan progresses. However, flat interest rates are more commonly available and easier to calculate.

Are reducing interest rates good?

With this method, you pay the loan principal amount sooner. This way, the interest on the outstanding amount decreases periodically. Thus, it may be a more affordable option.

What financial products use flat interest rates?

Typically, personal loans and hire purchase agreements come with flat interest rates.

Important differences between a loan write-off and waive-off

You may have heard of lenders who waive loans or write them off. When a borrower fails to repay the loan instalments for 90 days, banks and other lending institutions consider it a bad debt or a non-performing asset (NPA). That is when they take action by either waiving off loans or writing them off. Both these terms may seem interchangeable but they are not.

To know the loan waiver meaning and how it differs from a loan write-off, read on.

Difference between loan write-off and loan waive-off

Check the following table to understand what happens when lenders waive loans or write them off.

Particulars	Loan Waive-Offs	Loan Write-Offs
Meaning	Lenders waive loans when they give up all claims to recover the loan amount.	A loan write-off means the lender declares a part of the loan amount as uncollectible. It is then recorded as a bad debt or a non-performing asset (NPA) in their ledger.
Loan Recovery	It relieves the borrower from the burden of repaying the loan.	A loan write-off doesn’t mean that the borrower need not pay back the repayment amount.
Collateral	When lenders waive loans, they release the collateral and return it to the borrower.	When the lender writes off the loan, they can legally retain the collateral and auction it to recover the loan amount.
Eligibility	Banks generally provide a waive-off to farmers when they find it challenging to repay the loan due to natural calamities.	The lender can write off the loan of any borrower when they want to clear their balance sheet.
Legal Consequences	There are no legal consequences against the borrower.	The lender can initiate legal proceedings in this context.

Example of a written-off loan

To understand this better, consider this example: Say Y took a loan of ₹5 lakhs for a duration of 36 months. Y repaid the loan regularly for a year but failed to pay further instalments as his finances dwindled.

The lender tried contacting Y several times but did not hear from him. This led the lender to write off the loan, which means taking it off its balance sheet to optimise tax liabilities. However, the lender keeps the loan in its books of account and tries to recover it when possible. The lender also has the option to recover the loan by auctioning the collateral provided by Y at the time of application.

Example of waived-off loan

Here is another example. Say farmer X took a loan of ₹1 lakh to be repaid over a tenure of 18 months to purchase seeds and equipment for cultivation. For five months, he made regular repayments but subsequently floods destroyed his crop.

This lowered his odds of repaying the loan. However, the state government decided to waive off loans of up to ₹1 lakh for farmers facing problems due to floods. In other words, X will not have to repay the loan. In case X has provided collateral for the loan, the lender will return it.

Benefits of writing off and waiving off loans

Here are the pros of loan write-offs for lenders:

By writing off a loan, lenders can enjoy tax rebates and clean up their balance sheet
Writing off loans allows lenders to provide the remaining amount of the loan to another borrower
Even after writing the loan off, lenders have the right to recover the loan from the borrower

On the other hand, lenders provide loan waivers to marginalised borrowers, like farmers. This allows farmers to manage their finances better in trying times, such as when natural calamities lead to destruction of their crop.

As mentioned above, a loan becomes an NPA when the borrower fails to repay it for 90 days. A major reason why borrowers face challenges in repaying loans is the high interest rate and rigid repayment tenure.

With Fibe’s hassle-free Instant Personal Loan or Instant Cash loan, you can rest assured of competitive interest rates and flexible repayment schedules. Download our Personal Loan App here, or log in to our website to enjoy instant disbursal on loans of up to ₹5 lakhs.

FAQs on Difference Between Loan Write-Off and Loan Waive-Off

What is an example of a loan write-off?

Here is an example: Say X took a personal loan of ₹2 lakhs for a tenure of 24 months. After six months, X could not pay EMIs as he was unable to manage his finances properly. He did not inform the lender.

The lender followed up several times but X could not repay any more. The bank then decides to write off the loan. This means that the bank will keep the loan in their books of account so that they can recover the loan amount in the future when X finds himself on stable financial ground.

What is a waived-off loan?

A loan waiver-off happens when the lender exempts the borrower from repaying the loan.

What is a waiver of a loan?

A loan waiver is the process of releasing the borrower from the burden of repayment of a loan. It means that the lender will not make any more efforts to recover the remaining amount.

Loan Overdue Payments: Its Importance & Tips to Clear It

Did you miss a few of your EMI payments? An overdue on a credit facility or loan refers to any situation when your loan instalment is not paid by the deadline. You may have missed the due date for many reasons, some of which may not be in your control.

Knowing the loan overdue meaning and understanding that it has short-term and long-term effects is crucial. This way, you can take care of your financial wellness in a more informed manner.

What is Overdue Amount in Loan?

Overdue loans not only increase your financial burden but can also affect your financial health and creditworthiness. Keep these details in mind:

Loan overdue, meaning an outstanding balance due to unpaid EMIs, also includes the interest levied on the unpaid EMIs
When you miss multiple EMIs, the amount accumulates and attracts interest and penalties
Lenders are lenient if you miss one or two EMIs and may send numerous reminders to pay
After 90 days of missing the due date or 3 unpaid EMIs later, lenders may declare the loan account as a non-performing asset (NPA)

Outstanding Payments Vs Overdue Payments

To better understand overdue loan payments, know how they differ from an outstanding payment.

Parameters	Outstanding Payments	Overdue Payments
Definition	The remaining principal amount and interest left to be repaid	Unpaid EMIs that are past the due date
Payment is due in terms of	Upcoming EMIs	Past EMIs
Status	Not due	Exceeded the deadline for repayment
Effect on credit score	Will improve the score if paid on time	Hurts the credit score
Penalties	No penalties if paid on time	Attracts penalties or interest
Repayment option	Can opt for advance payment or prepayment	Must be paid immediately to avoid consequences

Consequences of Not Repaying on Time

To better comprehend its impact, here are some disadvantages you should note.

Results in a Notice from the Lender

At first, the lender will send routine reminders to pay the overdue amount. After this, you will get a written notice with the final payment date. The lender will take further action after this due date lapses.

Leads to Heavy Penalties

If you have multiple unpaid loan EMIs, you must pay a hefty penalty for all the defaults. The penalty amount is usually 1-2% of the unpaid EMI amount.

Causes Loss of Collateral

If you can’t pay the overdue amount before the final date, lenders can legally auction the collateral to recover the loan amount in the case of a secured loan.

Leads Lenders to Take Legal Action

Banks and NBFCs can take the matter to court in case of an unsecured loan. After that, the court will announce its verdict on the matter, and you must abide by it.

Affects Your Credit Score

Your credit score will take a hit with multiple unpaid EMIs. Eventually, the credit score may drop 50-70 points with every missed instalment.

Causes Damage to Your Credit Report

Having a history of late payments can reduce your chances of getting credit on favourable terms in the future. Removing the loan overdue remark from your credit report may be difficult and take time, so it is best to avoid it.

Increases Your Interest Rates

With a dip in the credit score, getting a nominal interest rate on your future loans will be difficult.

How to Clear an Overdue Loan

If you have unpaid dues, here are a few smart ways to pay them effectively.

Opt for a debt consolidation personal loan to reduce your EMIs and get a longer repayment tenure to release the financial burden
Ask your lender to refinance your loan to get a lower interest rate
Communicate your problem with the lender to find a solution, especially if you’re facing financial hardship
Adjust your budget to prioritise clearing your past dues
Seek financial advice from experts

Tips for Managing Overdue Loan Payments

Since precaution is always better than cure, you can take strategic steps to manage and avoid loan overdues.

Choose the Repayment Plan Wisely

The key is to choose your tenure wisely. Do not burden your monthly budget with a hefty amount you may not be able to pay. This is the first precaution that can help you to avoid any repayment delinquency.

Prioritise Your Repayment

Next you will have to ensure you are putting your repayment over any luxury purchases. First, repay your loan on time, and then you can upgrade your lifestyle and live as lavishly as you desire. In this way, you can safeguard overdue loans.

Communicate with Your Lender

If there is an emergency and you have a strong credit history, then you can communicate with your lender. This way, you can figure out a middle ground where your lender appreciates your situation, and you can repay accordingly.

To avoid any hassle, it is best to plan your finances wisely so you don’t miss out on your loan EMIs. Choosing a lender with flexible terms is the first step in this direction. With the Fibe’s Urgent Personal Loan, you can get up to ₹5 lakhs at an affordable interest rate.

With no end-use restrictions, quick disbursal and flexible tenure options, getting a cash loan at Fibe is easy and quick. What’s more, you can easily monitor and pay the EMIs hassle-free with the Fibe Personal Loan App. Download the app now or register on our website to get started.

FAQs on Loan Overdue Payment

What leads to loans becoming overdue?

There are many reasons why a loan may become overdue, such as:

Failing to make payment on the scheduled date
Insufficient account balance if you have chosen autopay
Financial emergency
Loss of job
Poor financial planning
Missing the due date

What are the negative effects of loan overdue?

If you miss multiple loan EMIs, you may face many financial disadvantages. Having an overdue loan can lower your credit score over time. Furthermore, you will have to pay penalties on every unpaid EMI. If you opt for a secured loan, you may lose your collateral.

Does an overdue loan impact my CIBIL score?

Yes, it can negatively impact your credit score. This is because your repayment history is a major factor in deciding the score. Any delays or defaults show an inability to manage the loans, directly impacting your score.

What happens if a borrower does not repay a loan?

If a borrower cannot repay the loan, the lender can legally take possession of the assets pledged as collateral to recover the loan amount. This is the scenario when you opt for a secured loan.

However, the lender will send a notice with a deadline before seizing any collateral. In the case of an unsecured loan, the lender can take legal action if you don’t pay your dues on time.

How can I remove the overdue remark from CIBIL?

Here are some ways you can remove the loan overdue remark from your CIBIL report:

Don’t miss any EMIs going forward
Set up an auto-debit facility for future repayments
Lower your debt obligations
Part-prepay or foreclose your loan when you have surplus funds

Redeem Credit Card Reward Points

Credit card reward points are something that most issuers offer to their cardholders for using the card. With every use, you get a certain number of points depending on several factors. You can exchange or ‘redeem’ these points for products, discounts or a cash equivalent and more.

Read on to learn more about what credit points are and how to redeem points on credit cards.

What are Credit Card Points?

When you use your credit card to purchase an item or service, issuers give you points based on your spending, which gets added to your account. However, every credit card issuer has a different program and the points you earn depend on their terms and conditions.

Additionally, customised credit cards, such as fuel cards, travel cards and shopping cards, have customised rewards programs that cater to your spending habits. So, ensure you understand these conditions before you get one to make the most of the card.

After accumulating sufficient points, you can use or redeem them to buy vouchers or air miles. You can also get discounts on merchandise when you use your reward points to make payments. The credit card reward points ‘convert to cash’ option in some cards allows you to use the points for payments instead of your card balance.

How to Use Credit Card Reward Points?

You can use or redeem credit card points depending on the terms and conditions of your issuer and the card you choose. However, here are some common ways to use the reward points you earn:

Catalogues and Partner Stores

Banks and financial institutions offer customers a catalogue of products they can buy using their reward points. These contain products from various categories, including stationery, clothing items, household products, electronics, etc.

E-Vouchers

You can buy e-vouchers with reward points and use these to shop at select retailers as per the issuer’s policies. The valuation of the e-vouchers also vary based on the points and terms of the issuer.

Air Miles

If you travel frequently, you can convert your reward points into air miles. Some credit cards have fixed air miles that you can get with reward points. Using these air miles, you can buy airline tickets or get a discount on your flight booking.

Get Cashback

If you do not wish to redeem your reward points by buying products, you can opt for the credit card reward points ‘convert to cash’ option and use the points as cash. However, check your card provider’s policy to ensure this facility is available.

Donations

You can also donate your reward points to a charity of your choice. For this, simply select your preferred organisation and the number of reward points you want to donate. Your provider will convert them into cash and donate them.

Remember, the reward points depend on your credit card issuer and the type of card you choose. To redeem your reward points or understand their terms and conditions, you can login to your credit card account. You can also call customer care for assistance or request redemption of your credit card points.

Apart from reward points, a credit card also offers numerous benefits like discounts, cashback and more. One such card is the newly launched Fibe Axis Bank Credit Card. You enjoy benefits like a 15% discount on dining with partner restaurants, up to 3% discount on every transaction, complimentary domestic airport lounge access and much more. Download the Fibe App to apply now and link this numberless credit card with your UPI ID today!

FAQs on Credit Card Reward Points

How much are 1,000 credit points?

The rate of one reward point varies from bank to bank. For example, one reward point in SBI is ₹0.25, Axis Bank is ₹0.35 or ₹0.20 and so on. So, the value of 1,000 credit card points depends on your issuer. You can check these in your statement or by logging in to your account.

Is it good to redeem credit card points?

Yes, because when you redeem credit card points, you get to enjoy exclusive access to products, discounts, cashback and other benefits.

Do credit card points expire?

Yes. Reward points often come with limited validity, generally 2 to 3 years, after which they expire and hold no value. You can check the validity on your credit card statement or by logging in to your account.

Do I lose my points if I cancel my credit card?

Yes, by closing your account, you will lose all your reward points.

Can credit card points go negative?

Yes, your credit card reward points may have a negative value depending on your issuer. In this case, the issuer can deduct the equivalent amount from your card balance to make your rewards balance zero. The issuer can also redirect any points you earn towards your rewards account until the balance is zero or above.