What is a Non-Performing Asset (NPA)? 

A Non-Performing Asset (NPA) is a loan or advance that stops generating the expected income for a lender because the borrower has not made the required repayment for the prescribed period. In the case of a term loan, an account is generally classified as an NPA when the interest and/or principal remains overdue for more than 90 days, as per applicable RBI norms.  

For borrowers, prolonged missed repayments can negatively affect their credit history and make it harder to access credit in the future. For banks and financial institutions, rising NPAs can reduce interest income, require higher provisioning and affect the ability to lend. 

Read on to understand the NPA meaning, NPA full form, types of NPAs, GNPA and NNPA, examples and their impact on borrowers and lenders. 

What is NPA in Banking? 

The full form of NPA is Non-Performing Asset. 

In banking, an NPA is a loan or advance that is no longer generating income for the lender because the borrower has failed to make the required repayments within the prescribed period. For a term loan, interest and/or principal remaining overdue for more than 90 days can result in the account being classified as an NPA. 

A loan that continues to perform normally and meets the applicable repayment requirements is generally treated as a standard asset. 

NPAs are further classified based on factors such as how long the account has remained non-performing. 

1. Sub-Standard Assets 

A sub-standard asset is an asset that has remained classified as an NPA for a period of up to 12 months. 

Such an account carries greater credit risk than a standard asset but may still have reasonable recovery prospects.  

2. Doubtful Assets 

An asset becomes a doubtful asset after it has remained in the sub-standard category for more than the prescribed period, generally more than 12 months. 

The longer a loan remains unpaid, the greater the uncertainty around its recovery.  

3. Loss Assets 

A loss asset is one that has been identified by the lender, its auditors or the regulator as being uncollectible or having such little recoverable value that continuing to treat it as a bankable asset is not appropriate. 

However, some recovery value may still exist even if the asset has not yet been fully written off.  

How do NPAs Work? 

A loan does not become an NPA immediately after one missed EMI. 

For a term loan, if the required interest and/or principal remains overdue for more than 90 days, the lender may classify the account as a Non-Performing Asset according to applicable RBI norms. The 90-day period should not be understood as a general repayment “grace period”; it is primarily a regulatory criterion used for asset classification. (idfcfirstbank) 

Once an account becomes an NPA, the lender may: 

  • Follow up with the borrower for repayment 
  • Consider restructuring or resolution options, where permitted 
  • Increase provisions against the stressed loan 
  • Initiate recovery proceedings 
  • Enforce security in the case of eligible secured loans, subject to applicable laws and procedures 
  • Use other legal or regulatory recovery mechanisms 

The recovery method depends on factors such as the type of loan, outstanding amount, security available and applicable regulations. 

What Causes an NPA? 

A loan can become an NPA for several reasons. In many cases, the underlying problem is that the borrower experiences financial stress and is unable to continue making repayments. 

Common causes of NPAs include: 

  • Loss of income: Job loss, salary reduction or interruption of regular income can make it difficult for an individual borrower to repay EMIs. 
  • Business losses: Businesses may face weak sales, lower profits or prolonged cash-flow problems that affect their ability to service debt. 
  • Economic slowdown: A downturn can reduce income and demand across industries, increasing repayment stress. 
  • High debt burden: Borrowers with several existing loans and EMIs may find it difficult to manage repayments if their financial position changes. 
  • Poor financial planning: Borrowing more than the repayment capacity can increase the chances of default. 
  • Project delays: Businesses may struggle to repay loans when projects face delays, cost overruns or regulatory issues. 
  • Unexpected events: Natural disasters, major disruptions or other unforeseen events may affect the borrower’s ability to generate income. 
  • Weak credit assessment: In some cases, inadequate assessment of a borrower’s repayment capacity can contribute to future defaults. 

NPAs can therefore arise from both borrower-specific problems and wider economic or business conditions.  

What are GNPA and NNPA? 

Banks and financial institutions make provisions to account for potential losses arising from stressed loans. Two commonly used measures for understanding the level of NPAs are Gross NPA (GNPA) and Net NPA (NNPA). 

1. Gross Non-Performing Assets (GNPA) 

Gross NPA represents the total value of loans and advances that have been classified as non-performing before adjusting for provisions. 

A commonly used ratio is: 

GNPA Ratio = (Gross NPAs ÷ Gross Advances) × 100 

For example, if a bank has ₹500 crore in Gross NPAs against ₹10,000 crore of total advances, its GNPA ratio would be 5%. 

A higher GNPA ratio generally indicates that a larger share of the lender’s loan portfolio is under stress. 

2. Net Non-Performing Assets (NNPA) 

Net NPA shows the remaining NPA exposure after adjusting Gross NPAs for applicable provisions and other prescribed adjustments. 

In simple terms: 

Net NPA = Gross NPA − Applicable Provisions and Adjustments 

The ratio can be represented as: 

NNPA Ratio = (Net NPAs ÷ Net Advances) × 100 

A lower NNPA ratio generally indicates that the lender has provided for a larger portion of its stressed assets. 

Non-Performing Asset Examples 

Here are a few simple examples to understand the non-performing asset meaning. 

Example 1: Personal Loan 

Suppose a borrower takes a personal loan and initially pays the EMIs regularly. Later, due to a loss of income, the borrower stops making repayments. 

If the required principal or interest remains overdue for more than 90 days, the lender may classify the loan as an NPA under applicable norms. 

Example 2: Business Loan 

Consider a business owner who has taken a ₹5 lakh business loan. Due to falling sales and prolonged cash-flow problems, the business becomes unable to service the loan. 

If the repayment remains overdue beyond the prescribed period, the lender may classify the account as an NPA and initiate suitable recovery or resolution measures. 

These examples show that an NPA is not a separate type of loan. It is a classification given to an existing loan or advance when it stops performing according to the applicable repayment norms. 

Performing and Non-Performing Assets 

The following table explains the difference between performing and non-performing assets: 

Non-Performing Asset Performing Asset 
A loan or advance that is no longer generating the expected income for the lender A loan or advance that continues to generate expected income 
In the case of a term loan, principal and/or interest has remained overdue for more than 90 days Repayments are being made according to applicable terms 
Carries higher credit and recovery risk for the lender Generally carries lower credit risk than an NPA 
May require additional provisioning by the lender Normally attracts standard provisioning as applicable 
Can reduce lender profitability and restrict capital available for further lending Generates regular interest income for the lender 
Prolonged missed payments can negatively affect the borrower’s credit profile Timely repayments can support a healthy credit history 

This corrects the earlier risk classification: NPAs carry higher risk, whereas performing assets generally represent relatively lower credit risk. 

Impact of Non-Performing Assets on the Banking Sector 

A high level of NPAs can affect banks and financial institutions in several ways. 

Reduced Interest Income 

Banks primarily earn money by charging interest on loans. If borrowers stop making repayments, the expected interest income may no longer be recognised normally. 

Higher Provisioning Requirements 

Banks are required to set aside provisions against stressed loans. Higher provisioning can reduce reported profitability. 

Reduced Lending Capacity 

Money locked in stressed or unpaid loans cannot be recycled as efficiently into new lending. 

Pressure on Profitability 

A combination of lower interest income, additional provisioning and recovery expenses can reduce profitability. 

Higher Credit Risk 

A sustained increase in NPAs can indicate deterioration in the quality of a lender’s loan portfolio. 

Therefore, GNPA and NNPA ratios are commonly used to assess a bank’s asset quality and overall financial health. (https://www.bajajfinserv.in) 

How do Banks Recover NPAs? 

Banks and financial institutions may use different recovery and resolution methods depending on the type and size of the loan, security available and applicable laws. 

Before starting formal recovery proceedings, a lender may communicate with the borrower and explore permissible repayment or restructuring options. 

Common NPA recovery mechanisms can include: 

  1. Asset Reconstruction Companies (ARCs): Banks may transfer eligible stressed assets to ARCs, which specialise in resolving and recovering such assets. 
  1. SARFAESI Act: For eligible secured loans, lenders may enforce security interests under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, subject to the conditions prescribed under the law. 
  1. Lok Adalats: Certain eligible disputes may be taken before Lok Adalats for settlement. 
  1. Debt Recovery Tribunals (DRTs): Banks and financial institutions can approach DRTs for recovery of eligible debts. 
  1. Debt Recovery Appellate Tribunals (DRATs): DRATs hear appeals against certain orders passed by DRTs. 
  1. Insolvency and Bankruptcy Code (IBC): Eligible corporate defaults may be addressed through insolvency resolution proceedings under the applicable provisions of the IBC. 

Banks may also use settlement, restructuring and other permitted recovery mechanisms depending on the circumstances.  

A Prompt Corrective Action (PCA) framework should not be presented as a direct loan-recovery method. It is primarily a supervisory framework used by the RBI for regulated entities facing financial stress. 

NPAs can significantly affect both lenders and borrowers. For borrowers, prolonged missed repayments can damage their credit profile and make future borrowing more difficult. It is therefore important to borrow within your repayment capacity and make EMIs on time. 

If you are looking to bridge monetary gaps, you can consider a Fibe Personal Loan. Eligible borrowers can access up to ₹10 lakh with flexible repayment tenures of up to 36 months and zero foreclosure charges, subject to applicable terms and conditions. Download the Fibe app or visit the Fibe website to get started. 

FAQs on Non-Performing Assets 

1.Why should customers be concerned about NPAs in banks? 

High NPAs can affect a bank’s financial performance because they reduce interest income and may require higher provisions. 

If NPAs rise significantly, a lender may become more cautious about extending new loans. However, the effect on customers depends on the overall financial strength, capital position, asset quality and regulatory position of the bank. 

2.What are common methods banks use to recover NPAs? 

Banks can use several methods to recover or resolve NPAs, including: 

  • Asset Reconstruction Companies 
  • SARFAESI proceedings for eligible secured loans 
  • Debt Recovery Tribunals 
  • Lok Adalats 
  • Settlements or restructuring, where permitted 
  • Insolvency proceedings under the IBC in applicable cases 

The recovery route depends on the nature of the loan and applicable regulations. 

3.How are NPAs classified and reported by banks? 

NPAs are broadly classified into: 

  1. Sub-standard assets: Assets that have remained NPAs for up to 12 months 
  1. Doubtful assets: Assets that have remained in the sub-standard category beyond the prescribed period 
  1. Loss assets: Assets identified as uncollectible or of little recoverable value 

Banks also report indicators such as Gross NPA and Net NPA to show the extent of stressed assets in their loan portfolios.  

4.How does NPA resolution impact banking sector stability? 

Effective NPA resolution can help banks recover funds, reduce stressed assets and release resources for productive lending. 

Lower NPAs and adequate provisioning can support a lender’s profitability, asset quality and ability to extend new credit. Persistent high NPAs, on the other hand, can place pressure on profits and capital. 

5.What is the full form of NPA? 

The full form of NPA is Non-Performing Asset. 

An NPA is a loan or advance that stops generating the expected income for a lender because the borrower has not met the applicable repayment obligations for the prescribed period. 

For a term loan, principal and/or interest remaining overdue for more than 90 days can result in NPA classification under applicable RBI norms. 

6.Does an NPA affect my CIBIL score? 

Yes, the repayment behaviour that leads to a loan becoming an NPA can significantly affect your credit profile. 

Lenders regularly report loan repayment information to credit bureaus. Missed or overdue EMIs can appear in your credit history and may reduce your CIBIL score. A poor repayment record can make it more difficult to qualify for new loans or credit cards and may result in less favourable borrowing terms. 

Even after resolving the overdue amount, information relating to past repayment behaviour may continue to appear in your credit history for the applicable reporting period. 

7.What are the main causes of an NPA? 

Common causes of NPAs include: 

  • Loss of employment or regular income 
  • Business losses and cash-flow problems 
  • Economic downturns 
  • High existing debt 
  • Poor financial planning 
  • Project delays or cost overruns 
  • Unexpected financial emergencies 
  • Weak credit assessment 
  • Prolonged inability to repay principal or interest 

For individual borrowers, the most important way to reduce the risk of default is to borrow according to repayment capacity and make all EMIs on time. 

Credit Review Meaning: What Is Credit Review in a Personal Loan? 

A credit review, also called a credit appraisal in some lending contexts, is an important part of the loan approval process. It helps a lender assess how likely a borrower is to repay on time before approving a personal loan or deciding its terms. 

During the review, the lender may examine your credit history, income, employment, existing debts and other financial details. The objective is to understand lending risk and determine whether the loan amount, interest rate and repayment tenure are suitable for your financial profile. 

Read on to understand the credit review meaning, its purpose, types, key factors and how it works in a personal loan. 

Credit Review Meaning: What Is a Credit Review? 

A credit review is the process of evaluating a borrower’s creditworthiness and repayment capacity. Lenders use it to decide whether to approve a loan and, if approved, what loan amount, interest rate and repayment terms may be appropriate. 

The review can include your credit report, repayment history, existing loans and credit-card balances, income, employment stability and debt-to-income ratio. For secured loans, the lender may also assess the collateral offered. 

In simple terms, the lender checks the risk involved before approving a personal, home or business loan. A stronger financial and repayment profile generally indicates lower lending risk, while missed payments, high debt or unstable income may require closer assessment. 

Credit reviews are commonly conducted by lenders and other financial institutions. Credit bureaus also play an important role by maintaining credit information and providing credit reports and scores that may be used during the review process. 

Purpose of a Credit Review 

A credit review helps lenders make responsible lending decisions while helping borrowers understand the factors that may influence loan approval and terms. Its main purposes include: 

  • Assessing the borrower’s present financial position, income and repayment capacity. 
  • Reviewing past repayment behaviour, existing credit accounts and overall credit history. 
  • Identifying warning signs such as defaults, settlements, excessive debt or frequent recent credit applications. 
  • Estimating the level of credit risk associated with the borrower. 
  • Deciding whether to approve or reject the application and, where applicable, setting the loan amount, rate and tenure. 
  • Monitoring continued repayment ability in cases where lenders conduct periodic reviews during an active credit relationship. 

Types of Credit Review 

Credit reviews can take place at different stages of a borrowing relationship. The common types include: 

During Application 

When you apply for a loan, the lender carries out an initial credit review to assess your eligibility and repayment capacity. The lender may consider your income, employment, credit report, existing obligations and debt-to-income ratio before deciding the loan amount and terms. 

Periodic Review 

Some lenders may review an existing borrower’s credit profile periodically during the repayment period or while managing an ongoing credit facility. This can help them monitor repayment behaviour and identify any significant change in the borrower’s financial position. 

Self-Review 

You can also review your own credit report before applying for a loan. Checking your report is generally considered a soft inquiry and does not affect your credit score. A self-review can help you spot incorrect information, unknown accounts or repayment issues that should be addressed before making a new application. 

Type of Credit (Secured vs Unsecured) 

The nature of the loan can change what the lender focuses on during the review. For a secured loan, such as certain property or asset-backed loans, the lender assesses both the borrower and the value or condition of the collateral. For an unsecured loan such as a personal loan, there is no asset backing the loan, so greater emphasis is generally placed on the borrower’s credit history, income, employment stability and existing debt obligations. 

Factors Considered During a Credit Review 

Lenders may consider several financial and personal factors during a credit review. The exact criteria vary by lender and loan type. 

Credit Report 

A credit report provides a detailed view of your borrowing history. It may include information such as: 

  • Types of loans and credit accounts you have used 
  • Outstanding balances and existing EMIs 
  • Repayment history and delayed payments 
  • Loan settlements or defaults, if any 
  • Foreclosures and closed credit accounts 
  • Recent credit inquiries and applications 

Lenders use this information, together with your credit score and other details, to assess your creditworthiness and past repayment behaviour. 

Income and Employment 

Your income and employment profile help a lender assess whether you have a stable source of funds to repay the loan. Salaried borrowers may be assessed on salary, employer details and employment continuity, while self-employed applicants may be assessed using business income, bank statements, tax records and the stability of their earnings. 

Debt-to-Income Ratio 

The debt-to-income ratio indicates how much of your monthly income is already committed towards debt repayments. A lower ratio generally suggests that you have more income available for a new EMI. There is no single universal cut-off for every lender, but keeping debt obligations manageable can support a stronger loan application. 

Collateral Offered 

Collateral is relevant for secured loans. Depending on the product, the lender may examine the ownership, authenticity, market value and condition of the pledged asset. For example, a property may be reviewed for title and valuation, while gold may be assessed for purity and prevailing value. Personal loans are typically unsecured, so collateral is generally not required. 

Other Existing Obligations 

Lenders may also review other financial commitments such as credit-card dues, active loans, recurring EMIs and recent borrowing activity. High outstanding obligations can reduce the amount of additional debt a borrower can reasonably manage. 

Information Collected During a Credit Review 

A credit review may draw on several pieces of information to build an overall picture of a borrower’s financial reliability. Common information includes: 

  • Personal and identification details such as name, date of birth, address and contact information. 
  • Credit accounts including personal loans, home loans, vehicle loans and credit cards. 
  • Repayment history showing whether EMIs and card dues have generally been paid on time. 
  • Outstanding debt and current loan or credit-card balances. 
  • Credit utilisation on revolving credit such as credit cards. 
  • Recent hard inquiries generated when you apply for new credit. 
  • Income, employment or business information where required for the loan assessment. 
  • Collateral details for secured credit products, where applicable. 

Credit Review in a Personal Loan: How It Works 

Because a personal loan is usually unsecured, lenders cannot rely on collateral to reduce their lending risk. The credit review therefore focuses largely on the borrower’s ability and willingness to repay. 

  1. You submit a personal loan application with your personal, employment, income and bank details. 
  1. The lender verifies your identity and the information or documents required for the application. 
  1. Your credit history, existing obligations and repayment behaviour may be reviewed through credit-bureau information and internal records. 
  1. The lender assesses income stability, affordability and existing EMIs to estimate repayment capacity. 
  1. An internal credit or risk assessment is completed based on the lender’s policy and underwriting criteria. 
  1. Based on the outcome, the application may be approved, declined or approved with a particular loan amount, rate and tenure. 

The exact process can differ across lenders, and approval is always subject to the lender’s internal credit policy and verification checks. 

Credit Review vs Credit Score: What Is the Difference? 

A credit score and a credit review are related but not the same. A credit score is a numerical indicator generated from information in your credit history. A credit review is the broader assessment a lender performs using the credit report or score along with other information such as income, employment, existing debt and, where relevant, collateral. 

This means a credit score can be one input in a credit review, but it does not by itself represent the entire lending decision. 

How a Credit Review Can Affect Your Loan Application 

A credit review can influence whether a lender approves your application and the terms offered. A strong repayment history, stable income and manageable debt may support approval, while missed payments, high existing obligations, inconsistencies in information or other risk indicators can affect the lender’s decision. 

Checking your own credit report before applying can help you identify inaccuracies or repayment issues early. A self-check is a soft inquiry, while a lender’s credit check associated with a new application may be recorded as a hard inquiry and can have a small, temporary impact on your credit score. 

If you are considering a personal loan, Fibe offers personal loans of up to ₹10 lakh, subject to eligibility and internal credit assessment. Fibe also uses alternate data and internal risk models as part of its eligibility assessment rather than relying only on a conventional credit score. You can apply through the Fibe app or website and complete the process digitally. 

FAQs On Credit Review 

1.What is a credit review in the loan process? 

A credit review is the assessment a lender performs to understand a borrower’s creditworthiness and repayment capacity. It can influence loan approval as well as the amount, interest rate and repayment terms offered. 

2.Who is a credit reviewer? 

A credit reviewer or credit analyst is a professional who evaluates a borrower’s financial and credit profile. Depending on the lender’s process, the assessment may also be supported by automated underwriting or risk systems. 

3.How long does a credit review take? 

The time required varies by lender, loan type, document requirements and the complexity of the borrower’s profile. For digital personal loans, the assessment may be completed within minutes or a few days, while more complex secured or business loans can take longer. 

4.What happens after a credit review? 

After the assessment, the lender decides whether the application meets its credit policy. The loan may be approved, declined or offered with terms based on the borrower’s assessed eligibility and risk profile. 

5.What is credit review in a personal loan? 

In a personal loan, a credit review is the lender’s assessment of your ability and likelihood to repay an unsecured loan. It can include your credit report, income, employment, existing EMIs, repayment history and other risk indicators. 

6.Does a credit review affect my credit score? 

It depends on the type of review. Checking your own credit report is generally a soft inquiry and does not reduce your score. When a lender checks your credit as part of a new loan or credit-card application, it may create a hard inquiry, which can cause a small and usually temporary impact on the score. 

7.What is the difference between a credit review and a credit score? 

A credit score is a numerical summary of your creditworthiness based on your credit history. A credit review is a broader evaluation that can consider the score or credit report along with income, employment, existing debts, repayment capacity and other relevant factors. 

8.How often should a credit review be conducted? 

Borrowers can review their own credit report periodically, such as a few times a year and before applying for major credit, to check for errors or unfamiliar activity. Lenders may conduct reviews when you apply for credit and, depending on the product and their policy, may also review an active credit relationship periodically.

NOC After Loan Payment: Meaning, Importance & How to Get It 

This article explains what an NOC after loan payment means, its full form, what it contains and how to get one after closing a loan. It also covers why securing this loan closure certificate matters for your credit score and legal safety. Reading time: about 5 minutes. 

A No Objection Certificate, or NOC, after loan payment is the document that legally confirms you owe your lender nothing more. Without it, your loan can keep showing as active on your credit report even after the last EMI clears and that single error can quietly drag your credit score down.  
 
Here’s what the NOC actually contains, how to get one and why skipping this step almost never works out well. 
 

DID YOU KNOW? 

Quick answer: an NOC after loan payment is proof of full repayment, issued by the lender and it releases any claim on you or your pledged collateral. 

NOC After Loan Payment: Meaning and Full Form 

NOC stands for No Objection Certificate. In lending, it is a formal letter your bank or NBFC issues once you have repaid every EMI, interest charge and fee tied to a loan. The lender issues it, never a third party and it is generated only after the final payment is realised and reconciled in their system, which is usually a matter of days, not weeks. 

Legally, the NOC means the lender has no further claim on you or on any asset you pledged. It is not the same as a payment receipt, which only proves one instalment was paid. The NOC closes the entire loan account and states there is nothing left to recover. 

QUICK STAT 

Ujjivan Small Finance Bank describes the NOC as the document that formally certifies a borrower has no outstanding dues on a closed loan account.  (Source: Ujjivan SFB, Banking Blogs) 

What Does an NOC After Loan Payment Contain? 

A valid NOC is short but specific. Every version, regardless of lender, typically covers the same ground: 

  1. Loan account number and type of loan 
  1. Borrower’s full name and registered address 
  1. Loan sanction amount and disbursement date 
  1. Date on which the loan was fully repaid 
  1. A clear statement that no dues remain 
  1. Authorised signatory’s name, designation and bank seal 
  1. Contact details for verification queries 

WATCH OUT 

If a signatory name, seal or account number is missing, treat the NOC as incomplete. CIBIL, RTOs and housing societies often reject NOCs missing these fields. 

Loan Closure Certificate / NOC Letter Format 

The format barely changes from one lender to another. It reads like a short business letter: lender’s letterhead and address, your name and address, the date, a subject line naming the loan account, a brief body confirming closure and a signature block. Here is a simplified template so you know what to expect: 

DID YOU KNOW? 

[Lender Name and Address] Date: [DD/MM/YYYY]  To, [Your Name], [Your Address]  Subject: No Objection Certificate for Loan Account No. [XXXXXXXX]  Dear [Your Name], this is to confirm that the loan bearing account number [XXXXXXXX], sanctioned on [date] for ₹[amount], has been fully repaid as of [closure date]. We confirm no dues, charges or interest remain outstanding and the bank has no further claim on you or any pledged asset.  For queries, contact [contact details].  Yours sincerely, [Authorised Signatory], [Designation], [Bank Seal] 

Keep both a physical and scanned copy. Many borrowers only discover they need it years later, when the original has long been misplaced. 

How to Get NOC After Loan Payment? 

  • Clear the final EMI and confirm it has been debited successfully, not just scheduled 
  • Wait 7 to 9 working days for the lender to reconcile the closure internally 
  • Raise a request through the lender’s app, net banking portal, customer care line or nearest branch 
  • Quote your loan account number and registered mobile number for faster processing 
  • Collect the NOC by e-mail, courier or in person, depending on what the lender offers 
  • Check every field the moment you receive it, before you file it away 

Most digital lenders now e-mail the NOC automatically, so if you have not received one within 10 days of closure, that is your cue to follow up rather than wait indefinitely. 

Importance of Securing an NOC After Repayment 

A loan does not end the day you pay for your last instalment. It ends the day you hold documented proof that it is over. Here is why that distinction matters. 

Serves as Proof of Loan Repayment 

The NOC is your only formal evidence that every rupee owed has been paid. Without it, a lender could, in theory, claim dues later and you would have nothing beyond bank statements to counter it. It removes that ambiguity entirely. 

Helps Correct Mistakes to Boost Credit Score 

Credit bureau updates are not instant and errors happen more often than borrowers expect. If your closed loan still shows as active on your CIBIL report, your credit utilisation looks worse than it actually is. The NOC gives you documented grounds to raise a dispute with the bureau and get the record corrected, which can lift your score once the fix is processed. 

Safeguards from Legal Troubles 

Unresolved loan records have triggered recovery notices for borrowers who had, in fact, paid in full years earlier. Holding the NOC shuts that possibility down before it starts. It is the single document that ends any argument about whether you still owe money. 

Releases Lender’s Claim on Collateral 

When a loan is secured against gold, a vehicle or property, the lender holds a legal right over that asset until the debt clears. The NOC is what formally releases that right. Without it, transferring ownership, selling the asset or removing a lien recorded with the RTO or registrar can get complicated, sometimes for months. 

QUICK STAT 

RBI guidelines require lenders to release all original documents and security interests within a set number of days of full repayment, making the NOC a key part of that compliance trail.  
Source: RBI guidelines — flag for review

Skipping this step does not just cost paperwork. It can mean a lower credit score, a stuck asset transfer or an unnecessary dispute year down the line, all for a document that usually takes one phone call to request. 

What to Do After Receiving the NOC? 

  1. Verify every detail against your loan agreement, especially the account number and closure date 
  1. Download your CIBIL report after 30 to 45 days to confirm the account now shows as ‘closed’, not ‘active’ or ‘written off’ 
  1. If you pledged collateral, follow up separately to have the lien removed with the RTO, registrar or depository 
  1. Store a digital and physical copy somewhere you can find them; NOCs are frequently needed years later for loan applications, visa processing or property sales 
  1. If discrepancies show up on your credit report despite the NOC, file a dispute with the bureau and attach the certificate as supporting proof 

PRO TIP 

A borrower who closed a personal loan of ₹3,00,000 with a private bank in Pune found her account still listed as active on her CIBIL report four months after closure. She used her NOC to raise a dispute directly with the bureau and the record was corrected within 30 days, ahead of a home loan application where the error would otherwise have hurt her eligibility. 

For day-to-day borrowing, from a wedding expense to a gadget upgrade, using a lender that offers a fully digital process end to end can make this entire closure and documentation cycle far smoother. 

The Fibe Instant Personal Loan offers up to ₹10,00,000 with digital disbursal and closure tracking through the Fibe app, so there’s no chasing branches for paperwork. Download the Fibe app or visit the website to check your eligibility. 

FAQs On NOC After Loan Payment 

1. What is the purpose of NOC for a loan? 

It confirms you have repaid the loan in full, with documented proof the lender has no further claim on you. 

2. Is NOC required after loan closure? 

Yes — it is the only formal proof of repayment and protects against future disputes or record errors. 

3. What is the validity of NOC for a loan? 

Most remain valid indefinitely as proof of closure, though RTO lien removal may specify a window of 6 months to 5 years. 

4. How long will it take to get NOC after loan closure? 

Typically 7 to 9 working days after your final EMI reconciles; some digital lenders issue it within 48 hours. 

5. What is the validity of a loan closure certificate? 

It does not expire, though third parties like an RTO may specify a validity window, usually up to 5 years. 

6. What is NOC full form in banking after loan payment? 

No Objection Certificate — confirming the borrower has cleared all dues on a specific loan account. 

7. What should I do if I lose my NOC after loan closure? 

Contact your lender’s customer care with your loan account number; most reissue a duplicate, sometimes for a small fee. 

8. Does getting an NOC improve my CIBIL score? 

Not directly, but it lets you correct a wrongly reported active status, which can improve your score once the bureau updates it. 

Balance transfer in personal loans: Everything you need to know

A balance transfer in a personal loan is an excellent option to manage your repayment and even save on interest. This facility allows you to transfer your loan balance from one lender to another, which is a feasible solution when a new lender offers a better interest rate than your current one.

However, to make a well-informed decision, you need to know the features and other nuances of a personal loan transfer facility. So, read on to know what balance transfer in a personal loan is, its benefits, process and more. 

What is a personal loan balance transfer?

A personal loan balance transfer is a facility offered by most financial institutions in India. Simply put, this facility allows you to transfer your outstanding loan amount to another lender, who may be offering a better repayment structure. 

When you opt for a balance transfer in a personal loan, your new lender settles your loan with the existing lender. Based on your outstanding loan amount, foreclosure, charges, etc., you can opt for a new loan at a better interest rate and a suitable repayment plan.

Here are some instances when carrying out a transfer of loans is ideal:

  • If your lender is charging very high-interest rates
  • If you want to take a top-up loan to fulfil your cash requirements
  • If you want to extend the tenure and restructure repayment 
  • If you want to consolidate multiple debts into one 

Balance transfer interest rates of top institutions

When comparing various financial institutions, you must check the interest rates and the processing fees to choose the best option. Here are the interest rates and charges of some of the top financial institutions offering a personal loan transfer: 

Financial InstitutionsInterest RatesProcessing Fee
Axis Bank10.49% p.a. onwardsUp to 2% + GST
Aditya Birla Finance13% p.a. onwardsUp to 3% + GST
Bajaj Finserv11% p.a. onwardsUp to 3.93%
HDFC Bank10.5% p.a. onwardsAs per the bank’s policy
ICICI Bank10.50% p.a. onwardsUp to 2.50% + taxes
IDFC First Bank10.49% p.a. onwardsUp to 3.5%
IndusInd Bank10.5% p.a. onwardsUp to 3%
Kotak Mahindra Bank10.99% p.a. onwardsUp to 3% + taxes
Tata Capital10.99% p.a. onwardsAs per the bank’s policy
SMFG India Credit Co. Ltd.11.99% p.a. onwardsUp to 6% of the loan amount

Note that the above interest rates are current as of October 2023 and are subject to change at the financial institution’s discretion.

Eligibility and documents required for a balance transfer 

When you apply for any loan, verifying if you are eligible and keeping the required documents can help save time and effort. While these terms may vary across lenders, here are some general criteria for a balance transfer in a personal loan. 

  • You must be between 21 and 60 years of age
  • Minimum monthly income as per the lender’s policy
  • Minimum of 1-year employment with the current employer 
  • A CIBIL score of 750 or above 

If you meet the above requirement, you can apply for a personal loan balance transfer with the following general documents:

  • Proof of identity such as PAN Card, Aadhaar card, driver’s licence, passport, etc.
  • Proof of address such as an Aadhaar card, utility bills, passport, etc.
  • Proof of income such as last 3 months’ salary slips and 6 months’ bank statement (if salaried individual)
  • Self-employed professionals must provide 3 years’ balance sheet, 6 months’ bank statement

With these points in mind, you can decide when is the right time to opt for transfer of loans. However, ensure that your new overall cost is lower than the existing one. So, do a thorough comparison of the terms. 

If you are looking to get an Instant Cash Loan at pocket-friendly rates, look no further than Fibe. You can get funding of up to ₹5 lakhs at interest rates starting at just 2% per month. Submit minimal documents and enjoy quick approval. Download the Personal Loan App or register on our website to get started. 

FAQs on Personal Loan Balance Transfer

Is balance transfer a good idea for a personal loan?

Transferring your personal loan is a good idea if a new lender offers better interest rates. You can also opt for a balance transfer to restructure your loan by getting a longer tenure to repay, or even apply for additional funds through a top-up. 

How much does a loan transfer cost?

When you opt for a balance transfer, your existing lender will charge a foreclosure fee, which varies from bank to bank. You will also have to pay a processing fee to your new lender. 

Are balance transfers interest free?

No, you must pay the interest and other charges when you transfer your loan. However, the new interest rate may be lower than your existing one.  

Can I transfer my personal loan from one bank to another?

Yes, by applying for a personal loan balance transfer, you can easily switch from one bank to another.

EPF India Balance: Check your Corpus in 4 Ways Online

Unified Mobile Application for New-age Governance (UMANG) allows you to complete an EPF balance check easily. On this platform, you can access details about various central and state government services in 13 different languages.

In addition to this, you can conduct an EPF enquiry through the official Employees’ Provident Fund Organisation website. Other options include an SMS or missed call service. Read on to know more about how to perform a PF account balance check.  

Online Methods to Check Your Balance 

Performing a balance enquiry has become quite easy with various online modes available to you on the go. You can check your PF balance online from the comfort of your house with a web-enabled device or through SMS and missed call services. To find out your current balance, check these methods:

Through the Official Portal

You can conduct PF fund balance enquiry through the EPFO portal. Follow these steps:

  • Step 1: Visit the official EPFO portal 
  • Step 2: Click on the ‘For Employees’ option under the ‘Services’ tab
  • Step 3: Click on the ‘Member Passbook’ option 
  • Step 4: Wait for the new page to load
  • Step 5: Enter the Universal Account Number (UAN), password and captcha code
  • Step 6: Click on the ‘Sign in’ button

With this step, your EPF account passbook will be displayed on the screen. Now, you can check the current balance and other details easily. 

Also Read: EPF Interest Rate 2024

Using UMANG

Another convenient method to check your PF balance online on your mobile phone is through UMANG. Here are the steps you can follow:

  • Step 1: Download UMANG from Google Play or the App Store
  • Step 2: Launch the app on your mobile device 
  • Step 3: Click on the ‘All Services’ option
  • Step 4: Select the ‘EPFO’ option
  • Step 5: Top on ‘View Passbook‘ 
  • Step 6: Enter your UAN and the OTP you receive on your registered mobile number 
  • Step 7: Click on the ‘Log in’ button

Once you are logged in, you will see all the details for review on the dashboard. This includes your EPF balance, previous contributions and withdrawals.

Through SMS-Based Services

If you prefer offline modes, you can conduct an EPF enquiry for balance using SMS services. Type ‘EPFOHO UAN’ on your phone’s messaging window and send it to 7738299899. You will receive a message detailing your current EPF balance. 

Also Read: How To Invest Your EPF Savings?

If this is your preferred option, here are a few points you should note: 

  • Make sure your UAN is linked to your Aadhaar card and mobile number 
  • If it’s not linked to your Aadhaar card, PAN card and bank account, request your employer to do so

By Giving a Missed Call

If you are opting for this method, give a missed call to 9966044425 from your registered mobile number. This service is free of cos and reveals the account balance with an SMS. Before dialling the number, here are a few things to keep in mind:

  • Your registered mobile number needs to be active 
  • Your UAC must be linked to your bank account, Aadhaar card and PAN card 

Also Read: How to Check EPFO Pension Status?

The EPF is a great instrument for salaried individuals as it provides a financial safety net without requiring much effort. However, you can’t withdraw funds if you fall short on cash to fulfil your needs. This is where a Fibe Instant Personal Loan comes in handy.

We have easy-to-meet eligibility criteria and minimum paperwork, which makes it more convenient to finance urgent requirements. There are no restrictions on how you can use the loan, plus you can close your loan early when you have funds available. 

Download our Personal Loan App or log in to our website to get up to ₹5 lacs with an easy repayment schedule and affordable interest rates.

FAQs on EPF Balance Enquiry Online

What is the current EPF balance?

This is the total amount in your EPF account at a given time that contains a part of your salary and the employer’s contribution. For an EPF balance check, use the UMANG mobile application or visit the EPFO website.

How can I check the EPF balance by SMS?

You can run an EPF balance check through SMS by sending ‘EPFOHO UAN’ to 7738299899. However, must have your UAN linked to your Aadhaar. Additionally, you should have your mobile number registered with the EPFO.

What is an EPF passbook balance?

The EPF passbook balance lists the current balance in your EPF account. Along with the monthly contributions, it includes details of the accrued interest and the current interest rate applicable to your savings.  

What is the benefit of knowing my EPF balance?

By performing an EPF enquiry, you can get an idea about the total savings you have accumulated in your EPF account. This helps you plan your retirement, post-retirement life and your investments. 

Is it possible to check the EPF balance by giving a missed call without registering the mobile number?

No, you must give a missed call from a registered number to verify your account and get the details. 

Is it possible to check the EPF balance using an Aadhaar number?

You can only check your 12-digit Universal Account Number using your Aadhaar. 

Can I withdraw my entire PF amount at once?

You are only allowed to make a complete withdrawal after retirement.

Apply for Pre Approved Credit Cards Online – Detailed Guide

Pre-approved credit cards offer instant credit, which helps the cardholder efficiently manage unplanned expenses. You can get these cards from the issuer when you meet certain eligibility terms. This way, you can get the required credit without waiting for approval.

While getting such an offer may sound exciting, assessing the pros and cons before opting for the card is important. To have clarity over what is a pre-approved credit card and what to consider when accepting an offer, read on.

Pre-Approved Credit Cards: All You Need to Know

Most card issuers provide pre-approved credit card offers to existing customers based on their profile and eligibility. With a pre-approved offer, you can easily access a credit card.

  • Easy Application

In most cases, you don’t need to attach identity and address proofs or fill out a lengthy application form. This is because your issuer has this paperwork on hand and also has your credit score, so the approval process is quicker.

  • Issuer’s Assessment

Card issuers make these offers available after assessing your income, credit score and other factors determining your eligibility. Based on this, they prepare an offer with your credit card limit.

Remember that getting such an offer doesn’t necessarily mean a 100% chance of approval. The issuer may re-run a credit check when you apply for pre-approved credit cards. If you do not suit the terms to qualify at this point in time, you will not be able to get approval. However, this is rare as pre-approved offers are based on the recent past and come with a limited time period.

Essential Points to Know About Pre-Approved Credit Card Offers

Here are a few crucial factors to consider before you apply for a pre-approved credit card:

  • Maintain a good credit score and a strong credit history to receive pre-approved offers
  • Review the credit card’s terms and conditions to avoid any unexpected charges
  • Check the conditions and validity of such offers to ensure you choose a feasible option
  • Assess if you need the card based on your existing debt and income
  • Compare different offers to ensure that you choose the best credit card
  • Evaluate your lifestyle and financial requirements to decide on the type of card, the credit limit you want and more before signing on

Steps for Pre-Approved Credit Card

Getting a pre-approved credit card includes the following steps:

  • Step 1: Check your CIBIL score to ensure it aligns with the bank’s eligibility criteria, as a higher score boosts approval chances.
  • Step 2: Pay off all the amounts on existing cards or loans to enhance your credit score and history.
  • Step 3: Research pre-approved cards by comparing features, interest rates, fees, rewards and benefits.
  • Step 4: Complete the application form accurately and submit the required documents online or at a branch.
  • Step 5: Wait for the lender to conduct background checks and verify your credit history. If you meet the criteria, your application will be approved.
  • Step 6: Get your pre-approved card with a specified credit limit once you qualify.

Issuers always run an inquiry before issuing your card. For a pre-approved card, they do the same but this is a quicker process. 

Eligibility Criteria for Pre-Approved Cards

When you apply for a pre-approved credit card, the issuer looks into these parameters. Which are:

  • you have maintained a high CIBIL score for a long time, it is easier to get a pre-approved credit card.
  • The issuer will check your repayment history and how consistent your previous payments have been. Your repayment history will include your EMI payments, credit card bill payments, etc.
  • If you have a stable income and employment and the issuer is sure you can manage your credit card bills, they will send you a pre-approved credit card offer.

When to Apply for Such Cards?

There is no right time to get pre-approved credit cards. Issuers roll out these offers periodically and during festive seasons. So, when you get such an offer, consider whether it suits your finances. Only apply for a pre-approved credit card when you want to:

  • Increase your spending power
  • Have the finances to repay a new credit card on time
  • Get a card that offers perks you don’t already have access to

Consider these vital points before you zero in on a card and enjoy pre-approved credit card offers. One credit card you can add to your wallet is the Fibe Axis Bank Credit Card. It is India’s first numberless credit card and allows you to link it with your UPI ID. This helps you pay safely and more conveniently than ever before! 

With it, you can also get a 1% waiver of fuel surcharge and free access to domestic airport lounges. What’s more, it has zero annual and joining fees. Download the Fibe App or register on our website to apply for this credit card. 

FAQs on Pre-Approved Credit Cards

Is it reasonable to accept pre-approved credit card offers?

Depending on your needs and repayment capacity, a pre-approved credit card offer can be an ideal solution to boost your purchasing power. However, do not blindly accept the deal because the card is pre-approved. Read the terms and conditions and decide based on your requirements.

Can pre-approved credit cards be rejected?

Yes. There is a possibility for rejection if your current eligibility parameters don’t match those of your card issuer.

What do you mean by a pre-approved credit limit?

A pre-approved limit for a credit card is the maximum limit sanctioned by your issuer. The issuer fixes this limit after assessing your income and other parameters.

What happens after pre-approval of a credit card?

Once your issuer sends you a pre-approved credit card offer, you can opt for it and apply on the issuer’s website or app. The issuer reviews it and checks various parameters before approving the offer.

What benefits come with a pre-approved credit card?

There are many benefits you can get from a pre-approved credit card. Some of them are:

  • Payment convenience and flexibility
  • Exclusive offers, rewards and cashback
  • Sign-in bonuses
  • Emergency assistance
  • Zero liability
  • Opportunity to improve your credit score

How can I manage my pre-approved credit card online?

You can easily manage your credit card through the portal on the issuer’s official website. Also, downloading the app can be a more efficient way to manage your credit card.

What are Credit Card Over Limit Charges and How to Avoid Them

Financial institutions levy credit card over limit charges when you spend more than your sanctioned credit card limit. While this increases your credit card bill amount, it has other negative effects, too.

Understanding these charges helps you manage your use of credit and your finances. Read on to learn what is over limit in credit cards, tips to avoid it and more.

What is a Credit Card Over Limit Fee?

Remember, all card issuers approve a specific credit limit to you based on numerous parameters. When you use your credit card over the limit sanctioned by issuers, they will levy a charge for the same. 

The over limit fee for a credit card can differ based on the amount you have crossed over and your issuer. Knowing these charges beforehand is crucial to help you plan your expenses better.

Also Read: Benefits of Credit Cards

What Happens When You Exceed the Credit Card Limit?

Here are the negative effects associated with exceeding your credit card limit.

Over Limit Fees

First and foremost, exceeding your card limit means that you will have to pay the credit card over limit charges levied by the card issuer. These charges increase your total credit card bill amount and are calculated on the total balance that is outstanding above your credit card limit. Most issuers charge 2.50% of the outstanding amount as the over limit fee.

Interest Charges

Apart from the over limit fee for a credit card, many financial institutions also increase your credit card interest charges when you exceed the limit. They charge a higher interest on the total outstanding amount. This ultimately increases your bill amount and can cause financial strain. 

Reduced Credit Score

Going above the predetermined credit card limit also leaves a negative impact on your credit report and hence reduces your credit score. This is because a higher utilisation of credit reflects that you have an unstable financial standing, implying a higher risk of non-payment of bills. It is ideal to maintain a credit utilisation ratio (the percentage of credit limit used) of less than 30%.

Also Check: Personal Loan Online

Tips to Avoid Credit Card Over Limit Fee

Here are some tips that can help you avoid the over limit fee for a credit card.

  • Check your credit limit before you carry out any transactions
  • Pay the entire or a portion of the outstanding balance to restore your limit
  • Request the issuer to increase your credit limit to meet your requirements
  • Keep tabs on your limit through the alert facility and mobile app provided by the issuer
  • Apply for more than one credit card so you have a higher limit for your needs

Being aware of your credit card limit and using your card accordingly is one of the simplest ways to avoid credit card over limit charges and other penalties. Staying vigilant and making responsible use of the card can help ensure that you enjoy continued access to its benefits.

To enjoy seamless transactions and exclusive rewards, get the recently launched Fibe Axis Bank Credit Card. You can link this card with your UPI and initiate transactions without any hassles. You also get exclusive discounts on dining with partner restaurants, cashback of up to 3% on transactions, and more! Download the Fibe Instant Loan App or register on our website to apply.

FAQs on Credit Card Over Limit Fee

How do I remove the over limit fee from my credit card?

Credit card issuers eliminate the over limit fee for a credit card when you repay the full or a part of the due amount. You can also reach out to the customer service of the issuer and request a waiver.

What happens if you use a credit card above the limit?

When you cross the approved credit limit, the issuer levies credit card over limit charges. There may be a possibility of your card getting declined until you clear your dues. In addition, your issuer can increase the interest rates.

What happens if you use over 90% of the credit card limit on a credit card?

When you utilise more than 90% of your card limit, it can have a negative impact on your credit score. This is because a higher utilisation of your credit limit shows higher reliance on credit. 

Can I use the 100% limit of a credit card?

Yes. While you can utilise the card limit to the maximum, know that doing so can have a negative impact on your score. So, it is better to keep your credit card utilisation ratio below 30%.

Is it okay to use 50% of your credit limit?

A credit utilisation of 50% or above can harm your financial profile since it reflects a higher reliance on credit. This implies that you rely more on credit to cover your financial obligations. Therefore, keeping your credit utilisation ratio below 35% is ideal.

Multiple Credit Cards: Know all the important pros and cons!

Access to multiple credit cards has made it easier than ever for you to shop, address daily expenses and cater to emergencies. After all, credit cards offer easy access to credit whenever you need it. What’s more, you get to enjoy exciting benefits like:

  • Cashback on certain transactions 
  • Discounts and deals 
  • Reward points
  • Fuel surcharge waivers 
  • Other perks 

If you plan to get more than one credit card, it is natural for you to think, “How many credit cards a person can have?” Well, in an emergency, having a range of cards in your wallet can come to your aid. However, if not used diligently, multiple cards can harm your financial health and well-being. 

Also Check: Instant Cash Loan Online

Benefits of having multiple Credit Cards

Check out why having several credit cards can be an advantage for you. 

Higher Spending Capacity

When you get a card, the issuer gives you a certain credit limit. This is based on your financial standing, past repayment history and other factors. If meeting your needs with a single credit card is difficult, you can apply for another credit card. 

This helps you get an additional credit limit and you enjoy an enhanced spending capacity. This can help you cover your big-ticket and daily expenses conveniently. 

Chance to Improve Your Credit Score

A high credit score is an indicator of good creditworthiness, which makes it easier for you to get approval on your loan applications. Your credit score is influenced by a number of factors and one of them is timely repayment of credit. 

When you have more than one credit card, you can distribute your expenses across various cards and due dates. This can help you pay your dues on time and boost your credit score.

Way to Maintain Your Credit Utilisation Ratio

The credit utilisation ratio is another important factor that affects your creditworthiness. Experts recommend keeping it at around 30%, which means you can only use your credit card limit up to a certain point. For instance, if your credit limit is ₹1 lakh, you can use just ₹30,000. 

With a single credit card, spending as per your needs can prove difficult due to this reason. However, if you have more than one credit card, you will be able to utilise 30% of the available limit on each card. This will help you address your needs while maintaining the ideal credit utilisation ratio. 

Also Read: Benefits of credit card

Drawbacks of having multiple Credit Cards

Here are some limitations associated with having several credit cards on hand.

Higher Associated Charges

Credit cards are associated with various types of fees and charges like:

  • Annual maintenance fees
  • Joining fees
  • Transaction charges

When you have multiple credit cards, be careful about accumulating all these costs. If not, 

these costs may outweigh the benefits you get. 

Enhanced Risk of Falling Into a Debt Trap

Having a number of credit cards means that you get an increased spending limit. You must be cautious while swiping your cards since you need to pay your dues in full at the end of the billing cycle. 

If you have several credit cards, you may lose sight of your budget and spend more than you can afford to repay. Non-repayment of the dues comes with high-interest charges and late repayment fees. If you are not cautious, you may get stuck in a debt trap.

Difficulty in Management 

Another limitation of getting many credit cards is the difficulty in tracking them. This is because each card follows a different billing cycle and due date. When you have multiple liabilities, you may miss out on some payments. This can lead to accumulated interest on outstanding amounts and bring your credit score down. 

All in all, having several credit cards comes with a number of pros and cons, but it all comes down to making the right decision. It is important to understand your requirements and ensure you make the most of the benefits that these cards offer. 

One card that offers a range of advantages is the Fibe Axis Bank Credit Card. Get it now on the 

Fibe App or on our website to enjoy discounts on dining, up to 3% cashback on every transaction and more. You can link it with your UPI ID and execute various transactions conveniently and safely, too. 

FAQs on How Many Credit Cards You Should Have

Is 4 credit cards too many?

The suitable number of credit cards depends on your requirements and preferences. Four credit cards can give you a higher credit limit. This can help you cover your expenses effectively while also enabling you to maintain a lower credit utilisation ratio. If you can manage four cards effectively without overburdening your finances, there is no problem. 

How many credit cards are considered a lot?

You can get any number of credit cards since there is no restriction on how many credit cards you can get. However, you must remember that several credit cards have different billing cycles and tracking the due dates can be difficult. Having up to three cards is ideal if you can manage repayment seamlessly.

How many credit cards can I have?

The right number of credit cards to have depends on your personal expenses, usage and preferences. If you need a higher amount for your expenses, getting several credit cards can help as they help you keep the credit utilisation ratio in control. That said, you must consider your existing financial obligations before opting for multiple cards.

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. 

To enjoy the benefits of a credit card and power up your wallet, choose the Fibe Axis Bank Credit Card. Use it to access a plethora of exciting offers, such as up to 3% cashback, dining offers, fuel surcharge waives and more. What’s more, there are zero annual maintenance charges on this card! 

Download the Fibe Personal Loan App on your mobile or go to our website to register now and apply for the card in seconds online. 

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.

Credit Card Late Payment Charges: Fees, RBI Rules & How to Avoid Them

If you miss your credit card due date, most Indian banks charge a late fee based on your outstanding balance, typically ₹100 to ₹1,300 or more. Under RBI rules, this fee can only apply if your bill stays unpaid for more than three days past the due date and only on the outstanding amount, not your total bill.

This space will help you understand how late payment charges work, what RBI has ruled, how the fee is calculated and simple ways to avoid it.

What is Credit Card Late Payment Charges?

A credit card late payment charge is a penalty your bank levies when you fail to pay at least the minimum amount due by your billing due date. Every purchase, EMI conversion, or cash withdrawal in a cycle adds up to your outstanding balance, which you’re expected to clear (fully or partially) before the deadline.

A few things worth knowing:

  • Charges vary by issuer — each bank sets its own fee slabs.
  • A grace period applies — no bank can charge a fee the instant you miss your due date.
  • Interest applies separately — even without a late fee; unpaid balances keep attracting interest.

Paying at least the minimum amount due, typically 5% of your outstanding, avoids the late fee and keeps your card active, but interest still applies on the rest until fully paid.

RBI Guidelines on Credit Card Late Payment Charges

The RBI regulates how and when issuers can charge penalties, to prevent arbitrary fees:

RBI GuidelineWhat It Means for You
Grace periodBanks must wait 3 days after the due date before levying a fee or marking the account ‘past due’
Fee on outstanding onlyCharges apply only to the unpaid amount, not the full bill
No excessive chargesPenalties must be reasonable and proportionate
Advance noticeFee changes need one month’s prior notice
Transparent disclosureFee calculation and overdue days must be clear on your statement

A note on timing: In April 2026, the RBI announced an amendment that standardises this 3-day buffer across all banks, with enforcement from April 1, 2027. Until then, many issuers already follow similar grace-period practices. Your due date itself doesn’t change, only the point at which penalties and bureau reporting begin.

How are Credit Card Late Payment Charges Calculated?

Late fees are tiered, not flat:

  1. Check the outstanding balance on your statement date.
  2. Match it against the issuer’s slab — dues under ₹500 may attract no fee, ₹500–₹5,000 a fixed charge, higher balances a steeper fee.
  3. Apply the fee only after the 3-day grace period, on the unpaid amount only.
  4. Add 18% GST on the late fee.
  5. Interest accrues separately, daily, compounding until dues clear.

Example: If your bill is ₹20,000 and you pay ₹15,000 before the due date, the late fee (if any) applies only to the remaining ₹5,000.

Effects of Late Credit Card Payment

Missing a payment doesn’t just cost you a fee. It can snowball into a bigger financial problem:

  • Compounding interest: Unpaid balances attract interest, often 30–45% annually, growing until cleared.
  • Credit score damage: A default reported to bureaus like CIBIL can pull your score down.
  • Loss of interest-free period: You typically lose the interest-free window on new purchases until dues clear.
  • Higher future interest rates: Some issuers revise your rate upward after repeated delays.
  • Default flag: Persistent non-payment can mark your account as a defaulter, a flag that stays for years.

Why You Should Always Pay Your Credit Card Bill on Time?

  • Late fees add directly to next cycle’s debt
  • Carrying forward dues means interest keeps accumulating
  • Under RBI norms, your account is reported ‘past due’ only after the 3-day grace period, so timely payment protects your credit history
  • Late payments hurt your credit score, making future loans or cards harder to get
  • A ‘defaulter’ remark can stay on your credit report for years

How to Avoid Credit Card Late Payment Charges?

1. Opt for the Auto-Debit Facility

Set up auto-debit (NACH/e-mandate) so your bank deducts the bill directly on the due date. Just maintain sufficient balance, a failed auto-debit attracts its own penalty.

2. Pay at Least the Minimum Due Amount

If you’re short on funds, paying the minimum due, generally 5% of your outstanding, prevents a late fee and keeps your card active, though interest still applies on the rest.

3. Set a Reminder

Mark your due date on your phone or email a few days in advance, giving yourself time to arrange funds if cash is tight.

4. Communicate with Your Card Issuer

If you’ll miss the deadline, call your bank beforehand. While penalties only kick in after the 3-day grace period, informing your issuer early can help you negotiate flexibility during a genuine emergency.

5. Review Changes in Terms Regularly

Banks must notify you at least a month before revising fee structures or interest rates. Read these notices; a small print change today could mean a bigger charge next cycle.

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FAQs on Credit Card Late Payment Charges

1. What is the penalty for a credit card late payment?

It depends on your issuer’s fee slab, calculated on your outstanding due amount. Higher balances attract higher penalties and vice versa.

2. What happens if I am 3 days late for my credit card payment?

Once the grace period lapses, your bank can levy the late fee and report your account as ‘past due.’ You can still contact customer care to check for an extension or waiver.

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

Under RBI’s grace-period rule, your bank cannot charge a late fee or report you overdue if you pay within 3 days of the due date.

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

It’s listed on your monthly statement, along with the minimum due and total outstanding. You can also check it by logging into your card account online or via your bank’s app.

5. What are the RBI guidelines on credit card late payment charges?

A minimum 3-day grace period before any late fee, fees calculated only on the outstanding (not total) amount, a ban on excessive or arbitrary charges and at least one month’s notice before any fee revision.

6. Can banks raise late payment fee charges without prior notice?

No. RBI requires issuers to inform customers at least a month in advance of any change to late payment charges.

7. Do all banks have the same credit card late fee charges?

No. All issuers must follow RBI’s grace-period and calculation rules, but the actual fee slabs are set independently by each bank and can vary.