Understanding Flexi Personal Loan & Its Benefits

When looking for quick credit, many borrowers ask: what is a flexi loan and how does it work? A flexi loan is a unique credit facility that gives you more control over how you borrow and repay compared to a traditional personal loan. Instead of receiving the entire amount in one go, you get access to a sanctioned credit limit and can withdraw funds whenever required.  

The best part is you only pay interest on the amount you actually use. This makes it a cost-effective and flexible personal loan option for managing planned or recurring expenses. 

What is a Flexi Loan? 

To understand the flexi personal loan meaning, think of it as a revolving credit line. The lender approves a certain loan limit, and you can withdraw money from it multiple times as per your need. Unlike a lump-sum personal loan, you repay flexibly—either through part-prepayments, regular EMIs, or whenever you have surplus funds. 

There are also industry variants such as: 

  • Flexi Term Loan – You repay through fixed EMIs, but the interest is charged only on the utilised amount. 
  • Flexi Hybrid Loan – You pay only the interest component initially (Interest-only EMI) and later start paying both interest and principal. 

How Does a Flexi Loan Work? 

A flexi loan works much like an overdraft facility offered by banks. Once your loan application is approved, you get a pre-sanctioned credit limit based on your: 

  • Age and residence 
  • Income and employment stability 
  • Credit score and repayment history 
  • Credit utilisation ratio 

You can withdraw money anytime within this approved limit through online banking or the lender’s app. Interest is charged only on the withdrawn amount, not the entire sanctioned limit. 

Example of Interest-only EMI: 

 If you have a flexi loan limit of ₹5,00,000 and you withdraw ₹1,00,000, interest will be charged only on ₹1,00,000. If your interest rate is 12% p.a., your monthly EMI (for the first few months) may consist of only the interest component i.e., ₹1,000. This helps reduce your initial repayment burden. 

Features & Advantages of a Flexible Personal Loan 

Here’s why a flexible personal loan is preferred by many borrowers: 

  • Multiple Withdrawals: Withdraw funds anytime within the limit without reapplying. 
  • Reduced Borrowing Costs: Pay interest only on the amount you use. 
  • Interest-only EMI Option: Start with low EMIs by paying just the interest and repay principal later. 
  • No Collateral Needed: Usually offered as an unsecured credit facility. 
  • Quick Approval: Fast online process with minimal paperwork. 
  • Repayment Flexibility: Repay in part, full, or through EMIs as per convenience. 
  • Variants Available: Flexi Term Loan and Flexi Hybrid Loan options as per repayment preference. 

Documents Required to Apply for a Flexi Loan 

The documents needed may vary by lender, but usually include: 

  • Identity Proof: Aadhaar, PAN Card, Passport, or Driving Licence 
  • Address Proof: Utility bills, Voter ID, or Passport 
  • Income Proof: Latest salary slips, Form 16, or bank statements 
  • Employment Proof: Offer letter or company ID for salaried; business proof for self-employed 
  • Photographs: Passport-sized photographs as per lender’s requirement 

Eligibility Criteria to Apply for a Flexi Loan 

Most lenders set basic eligibility conditions for approving a flexi loan, such as: 

  • Applicant must be an Indian resident aged 21 to 60 years 
  • Minimum monthly income of ₹15,000 to ₹25,000 (may vary) 
  • Stable job or business continuity of at least 6–12 months 
  • Good credit score (usually 685+) with strong repayment history 
  • Lower credit utilisation ratio to reflect financial discipline 

How to Apply for a Flexi Loan? 

Applying is easy and can be done in a few simple steps: 

Step 1: Choose a lender by comparing interest rates and terms 

Step 2: Check eligibility criteria for income, age, and credit score 

Step 3: Fill out the application form with personal and financial details 

Step 4: Submit documents and await approval. 

You can also apply offline by visiting the lender’s branch. 

Need funds instantly? Instead of waiting, apply for an Instant Personal Loan with Fibe. Get up to ₹5 lakhs credited within 10 minutes at affordable interest rates.  

Download the Fibe App today and experience hassle-free borrowing. 

FAQs on Flexi Personal Loan 

What is the difference between a flexi loan and a personal loan?  

Here’s how these loans differ: 

  • With a personal loan, you receive a lump sum loan amount that you repay in fixed monthly instalments over a set loan term.  
  • On the other hand, flexi financing gives you a pre-approved credit limit that you can withdraw from as needed and repay when you can.  

What is the benefit of a flexi personal loan? 

  • You get a pre-approved credit limit.  
  • You only pay interest on the funds that you actually use.  
  • You enjoy competitive interest rates.  
  • You can get quick approval.  
  • You don’t need to pay any prepayment charges.  
  • You can make multiple withdrawals as and when required from the sanctioned limit.  

Does this type of loan affect credit scores?  

Yes, it can affect in the following ways: 

  • If you make timely payments, your credit score can increase.  
  • On the other hand, if you miss payments or default on the loan, it can negatively affect your credit score. 

How do I repay this loan?  

You can repay this loan by: 

  • Making timely interest payments every month 
  • Paying off the loan amount by the due date 

How is a flexi loan different from a term loan?  

Here are some essential pointers to note:  

ParameterFlexi LoanTerm Loan
Loan AmountThe lender provides a pre-approved credit limitThe lender disburses the entire approved amount to your bank account
InterestThe interest is applicable only on the amount you utilise, not on the whole credit limitThe interest is applicable on the total loan amount
PrepaymentYou can prepay the loan without any additional chargesYou need to pay prepayment charges for partial or full prepayment, depending on the lender
EMIThe EMI amount depends on the amount that you useYou need to pay a fixed EMI that is pre-decided based on applicable loan terms

How much amount can I get as a flexi loan?  

The lender approves the limit based on: 

  • Your age and residence 
  • Your income and employment 
  • Your credit report and score 
  • Your repayment capacity 
  • Your credit utilisation ratio 

Principles of Personal Finance: 7 Things to Remember

Personal finance is all about managing your money and making wise financial decisions. The principles of personal finance help you figure out how to achieve your goals by making your money work for you. They apply to understanding your current and future:

  • Income
  • Expenses
  • Investments
  • Debts 

Personal finance includes budgeting, saving for retirement, investing as per your risk-taking ability, paying off debt and improving your credit score. By leveraging the principles of personal finance, you can make informed decisions and boost your financial wellness.

Top 7 principles of personal finance

If you are beginning your personal finance journey, many resources are available to help you learn like books, online courses, or talking to a financial advisor.
To start, here are 7 principles of personal finance that can help you manage your money more effectively. 

  1. Set financial goals: Whether saving up for a down payment on a home, becoming debt-free, or saving for medical emergencies, creating a list of financial goals can help you stay motivated and focused. While setting these goals, you must consider your income and daily average expenses. Ensure your goals are clear, achievable and specific.
  2. Create a budget: By tracking your earnings and spending habits, you can prioritise your spending and know where to cut back. There are several budgeting rules you can follow to maintain good financial health. Here is one: 50-30-20 rule – This popular budgeting rule suggests dividing your income into three sections: 50% for essential requirements, 30% for discretionary spending and 20% for savings. The idea behind the 50-30-20 rule is to help you create a balanced budget that allows you to meet your basic needs, enjoy some discretionary spending and save for the future.
  3. Live within your means: With credit being available in no time today, it is easy to spend recklessly. Rather than taking action later, spending less than you earn and avoiding unnecessary liabilities is essential from the start. This way, you can find a balance between enjoying your life now and planning for your future.
  4. Build an emergency fund: Any money you have set aside helps to cover unexpected expenses such as car repairs, medical bills, or a job loss. It is best to save up to 3 – 6 months’ expenses as your emergency corpus.
  5. Manage debt smartly: Knowing when to take a personal loan and how to pay it off helps you avoid a debt trap and finance your goals seamlessly. Make sure you have a repayment plan and work to improve your credit score so you can access funds when needed. Knowing the terms and conditions, such as prepayment penalties, processing fees, penal interest and more, is vital to borrow responsibly.
  6. Save for retirement: Even if retirement is far off, saving now can help you finance your golden years comfortably. You can build a healthy nest egg by starting early and regularly contributing to your chosen retirement schemes.
  7. Invest wisely: Wealth doesn’t grow overnight; investing wisely can help you accumulate the funds you need. Do your due diligence before investing to avoid unnecessary risks. To develop a healthy investment portfolio, consider diversification in various investment classes. You can follow this strategy for your investments:

100 minus your current age rule
This guideline suggests investing a percentage of your income equal to 100 minus your current age in stocks, with the remainder in bonds or other fixed-income investments. For example, as a 30-year-old, you invest 70% of your portfolio in stocks and 30% in bonds or other fixed-income investments.

The rationale behind this is that you have less time to recover from market downturns as you get older. So, it’s essential to shift your portfolio towards less risky investments. This rule helps you build a balanced and diversified portfolio.

With these principles of personal finance by your side, you can make strategic moves toward improving your financial health. For any finances you need to upgrade your life, rely on Fibe. Get up to ₹5 lac in 10 minutes by downloading our online Personal Loan App and enjoy zero prepayment charges and easy repayment schedules.

FAQs on principles of personal finance

What is the most important principle of personal finance?

The most important principle of personal finance is to spend less than you earn. This simple principle underlies all other financial decisions and is essential for long-term financial stability and success.

What is the meaning of personal finance?

Personal finance refers to managing your money, including income, expenses, savings, investments and debt. It is all about making informed decisions about your money to achieve your financial goals.

What is the benefit of personal finance?

By applying the principles of personal finance, you can experience increased financial security, reduced stress and anxiety and the ability to achieve goals such as saving for retirement, buying a house, or paying off debt.

What are the basics of personal finance?

The basic principles of personal finance include:

  • Creating a budget
  • Saving for emergencies and long-term goals
  • Managing credit
  • Investing in the future

You can build a solid foundation for your financial well-being by mastering these basics.

Auto Debit Meaning: Complete Guide for Bills, EMIs and Subscriptions

In auto debit, your bank simply deducts the bill or EMI amount from your account on the due date without you making the payment yourself. The money is taken automatically, which helps you avoid late fees, missed payments and the stress of remembering monthly due dates.

The automatic debit meaning is simple. It is a system in which your bank pays your bills, EMIs or subscriptions on its own every month. You basically do not have to track due dates or make manual payments. It has become a regular part of digital banking, especially during KYC or while setting up repayment plans for loans and credit cards.

Auto debit is also very secure when initiated through verified lenders, as it follows RBI and NPCI e-mandate rules.
Read on to learn more about how auto debit works, where it can be used and the rights you have as a customer while using this facility.

What is an Auto Debit?

Auto debit is a simple setup that allows your bank to deduct a payment automatically on a fixed date. Once you allow it, the amount is taken from your account each month without you needing to make the transaction yourself.

It is mostly used for recurring payments like

The idea is convenience. Auto debit takes away the stress of remembering due dates and helps you avoid late fees or payment breaks. It keeps your monthly finances running smoothly with minimal effort from your side.

Example of Auto Debit in Action

Suppose you take a personal loan of ₹1,00,000 and your EMI comes to around ₹3,200 per month. During KYC, you can give permission for the EMI to be auto-debited on a specific date of every month.

On that date, the EMI, that is ₹3,200 in this case, is deducted automatically from your bank account. You won’t need to open the app, set reminders or make the payment yourself. It runs on its own, keeping your repayments on time effortlessly.

How Does Auto Debit Work?

Auto debit works smoothly in the background. Here is how it happens:

  • You give permission: You allow your bank or lender to auto-deduct a fixed amount every month. This is done during KYC or while setting up a repayment plan.
  • Your bank sets an e-mandate: This mandate authorises automatic deduction on a selected date.
  • Amount gets deducted automatically: On the due date, your bank debits the amount and sends a confirmation.
  • You stay worry-free: Your repayments are always on time, reducing late fees and keeping your credit history clean.

Your Rights While Using Auto Debit

As a customer, you should know that you have these rights:

  • You can cancel or pause auto debit anytime
  • You can dispute a wrong debit with your bank
  • You must receive regular alerts and SMS updates
  • No lender can debit your account without your consent.

These rights keep the process transparent and secure.

Types of Auto Debit Payments

Auto debit can be used for many payments. Some common types:

  • Loan EMIs: Personal loan, home loan, education loan
  • Credit card bills: Monthly credit card payments
  • Utility bills: Electricity, water, broadband
  • Insurance premiums: Monthly or yearly payments
  • Subscription services: OTT platforms, apps and memberships

Understanding RBI and NPCI e-Mandate Guidelines

Auto debit works through a secure setup called an e-mandate. It is created by the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to keep automatic payments safe. Since it follows strict RBI and NPCI rules, your money and data stay protected and fully under your control.

How Does the Auto Debit Facility Benefit Businesses? 

Below mentioned are some of the metrics where auto debit plays a vital role: 

Benefit How It Helps Businesses 
Improves customer retention Auto debit makes payments smooth and hassle-free, encouraging customers to stay longer and reducing drop-offs. 
Reduces administrative effort Payments are collected automatically, so businesses spend less time following up on unpaid bills. 
Minimises late payments Payments happen on a set date every month, so businesses get paid on time without chasing customers. 
Enhances flexibility Customers can choose to enable or disable auto debit anytime and set transaction limits for safety. 
Saves time Recurring payments run on auto mode, saving businesses and customers the time and effort of manual payments. 


In short, setting up an auto debit facility helps both individuals and businesses stay stress-free about payments. It saves time, avoids late fees and builds trust with customers through smooth, on-time collections. Start using auto debit to make your financial management simpler, smarter and more reliable every month. 

You can easily set up this automatic payment plan when you avail of a personal loan from Fibe. With a hassle-free documentation process and quick loan approval, Fibe allows you to address all your life’s upgrades with ease. So, whether you require funds for planned goals or unplanned emergencies, all you need to do is apply online at Fibe! 

FAQs on Auto Debit Facility 

How do I stop auto debit transactions?

You can disable it through your bank’s app, visit the branch or ask your lender to cancel the e-mandate.

Which bills or payments can I set up for auto debit?

You can use auto debit for EMIs, credit card bills, utility bills, insurance premiums, subscriptions and more.

Are there any fees or charges for setting up or using auto-debit?

Banks usually do not charge for auto debit. Some platforms may charge for failed debits if your balance is low.

What are the benefits of a personal loan

The advantages of a personal loan are numerous. Customers today are embracing this credit solution to meet their planned and unexpected financial needs. In fact, there has been a 20% growth in the utilisation of personal loans, amounting to a total of ₹40 lakh crores as of February 2023.

With the advent of digital lending, there has been a paradigm shift in how India borrows. With lenders offering easy access to personal loans, many opt for these instant loans to meet diverse objectives. Read on to learn more about why these loans stand out.

Benefits of a Personal Loan

Simple Eligibility Criteria

Qualifying for an instant personal loan is easy due to its simple qualification benchmarks. This allows you to get the required funding without any delays. At Fibe, you only need to meet these simple terms to get instant funds: 

  • You must be a salaried individual with a minimum salary of ₹15,000 in non-metro cities and ₹18,000 in metro cities
  • You must be between 21 and 55 years
  • You must be a resident of India

Once you meet these basic requirements, you can easily qualify for a low-interest personal loan. Do note that most lenders have city-specific income requirements.

Minimal Paperwork

Basic KYC documents help to verify your details when you opt for a cash loan. If you are an existing customer with a given lender, you may even enjoy a paperless application process. Here are some common documents to submit when availing a personal loan:

  • PAN card/Aadhaar card/Passport as ID Proof
  • Valid proof of income, such as bank statements and salary slips for the last 6 months
  • Passport/Aadhaar card/Utility bills/Rental agreement as proof of address

Also Check: 10,000 Loan on Aadhar Card

Quick Processing

Usually, top lenders process loan applications within 24 hours. Some new-age lenders like Fibe can process and approve your application in just 2 minutes. Among the various benefits of a personal loan, this one ensures that you get instant cash in situations like medical emergencies or urgent home repairs. 

What’s more, disbursal is quick and you get the cash directly in your account without any delays. Such personal loan advantages are only possible as these loans do not require you to pledge any asset as collateral.

Flexible Repayment Terms

Lenders often allow you to enjoy some amount of flexibility when it comes to tenure. You can select the repayment term of your choice to ensure that EMIs don’t make a dent in your pocket. 

For instance, Fibe allows you to choose a tenure between 3 to 36 months. This allows you to choose convenient and affordable repayment options.

No End-use Restrictions

A restriction-free sanction is one of the major advantages of a personal loan. Unlike other options, you can use it to fund any obligations hassle-free.

Here are a few different financial requirements you can meet:

  • Consolidate existing debts
  • Fund a wedding
  • Pay for educational expenses
  • Cover the cost of any big or small trip
  • Relocate to a new place
  • Renovate your home
  • Buy electronic gadgets
  • Fund small business expenses
  • Manage miscellaneous unforeseen expenses

Being aware of these personal loan benefits allows you to make confident borrowing decisions. However, to enjoy all these advantages of a personal loan, know that lenders usually approve your loan based on your creditworthiness. If your credit score is low and you have made several credit enquiries in the previous months, you may need to wait before opting for a loan. 

Take some time to work on your credit score and then apply to get affordable financing. It is also advisable to apply for a personal loan with a trusted lender. One such smart lending option is a Fibe Personal Loan, through which you can get up to ₹5 lakhs within minutes. 

At Fibe, we don’t rely on the traditional credit score to assess your repayment ability. Instead, we use an alternate scoring mechanism to check your creditworthiness before approving your personal loan application. So, a low or no credit score is no barrier to your ability to get credit!  Download our Personal Loan App or register on our website to get started.

FAQs on the Advantages of a Personal Loan

Is it a good idea to take a personal loan?

A personal loan has many advantages, as it can help you finance unexpected needs or even fulfil your planned goals. You can use your loan for consolidating debts, renovating your home, paying your hospital bills and much more. 

What is the maximum limit of a personal loan I can get?

The maximum personal loan limit can vary from one financial institution to another. At Fibe, you can get a personal loan of up to ₹5 lakhs within 2 minutes directly in your bank account. 

Which loan is the best for personal use?

Opting for a personal loan is ideal as it has no end-use restrictions and doesn’t require collateral.

Is there any security required for a personal loan?

Personal loans are unsecured forms of credit, meaning you do not have to pledge assets as collateral or security to get the required funds.

A Well-designed Financial Wellness Program can Help You Succeed. Here’s How!

The days of organisations benefiting from a straightforward retirement plan or all-inclusive health insurance have long passed. Millennials, particularly Gen Z, are demanding more extensive, inventive, and distinctive fringe benefits. Besides benefits like work-from-home alternatives and flexible paid time off policies, financial wellness programs are quickly gaining popularity. Here is a brief explanation of financial wellness programs.

Most employees state that they need assistance conserving money for a secure future. Employers now have started offering various financial wellness programs to cater to employees’ specific needs. Human resource is the most valuable resource. By lending access to financial awareness and wellness via such programs, an organisation not only amps up employee productivity and retention but also enhances the bottom line.

A financial wellness program must first educate the staff so that the employees can choose which financial wellness benefits are essential for them. They will be better able to manage their finances strategically as a result. Employees are just as concerned about their physical and mental well-being as their finances. And they believe that maintaining a balance between both aspects is crucial for a prosperous future.

But what exactly are the benefits of a financial wellness program? Let’s find out how a well-designed financial wellness program can help any organisation succeed in the procurement of its objectives: 

Not only will the employees benefit from having a thorough and customised financial wellness program, but you as the company will also reap some benefits.

Advantages of a Financial Wellness Program

1. Enhanced staff productivity: A financial program must provide budget coaching, debt management plans and student loan assistance. A direct benefit of this would be improved employee output. Additionally, this will lessen people’s financial troubles. Employees who participate in financial wellness programs spend less time worrying about debt and other issues.

2. Enhanced Employee Satisfaction: When employees have access to financial programs, they report higher levels of professional satisfaction. Programs that enable employees to meet their personal and familial financial objectives, building an emergency fund, investing in an investment plan and other things are all part of it.

Employee engagement is higher when they are prepared for unforeseen financial problems. They don’t have to worry about their finances in the long run, which is why.

3. Increased employee retention: By implementing a financial wellness program, an organisation is more likely to provide benefits to its staff that will help them feel secure in their job and prospects. Inclusion of group insurance, vacation perks, low-interest home loans, retirement benefits, etc., helps organisations foster a long-term relationship, amiable work culture and employee loyalty, ultimately leading to greater retention and lesser attrition rates. 

4. Strong Employee Recruitment: Job-hopping is a typical trend among workers today due to the high level of competition. To reduce this, employers must offer all the incentives and perks necessary to retain top talent.

Employees have a strong sense of stability because of benefits like health insurance and wellness programs included in the job application. HR managers must make aware prospective employees of the same for a successful recruitment plan and create a good brand image. The millennials feel appreciated in a company that gives preference to their needs and makes efforts for the same. Increasing the likelihood that someone will join your organisation.

5. Reduced absenteeism: The cost of living has significantly increased due to inflation rates. Employees struggle to make ends meet despite having well-paying jobs. Employees rarely have a carefully thought-out financial strategy for their expenditures, which is why they face month-end crunch or inability to face bigger expenses. Financial stress and worry lead to many physical and mental issues that may deprive the employees of their usual vigour, leading to increased absenteeism. 

At other times, employees may choose to take on side occupations to have some extra cash. This may impact their ability to perform their primary duties, increasing the number of absentees in the company. This could be a serious issue for the business.

However, HR managers may help employees out of this scenario by teaching them about financial wellness. These lessons will enable employees to create an effective budget for themselves that will, in the long term, enable them to stay out of debt. Consequently, the likelihood of seeking another employment is reduced, leading to reduced absenteeism.

A well-designed financial wellness program can work wonders for organisational success. So make sure to invest time in one. 

The Bottom Line

HR managers must implement a program that promotes financial wellness within the company. We’ve already discussed some potential advantages and benefits that could result from it. Such a program’s structure can take time and work to develop. Additionally, this can serve as a superb example for others of the company’s exceptional corporate culture and a positive attitude among the staff.

Having assisted over 4 million employees in sailing through their financial woes and other related management issues, Fibe is your one-stop solution and trusted financial wellness partner. If your organisation wants to set up a financial wellness initiative catering to employee well-being and finances, head to Fibe for a hassle-free experience. 

How to Get an Instant Loan without Credit Score?

A credit score is one of the first measures a lender considers when you’re applying for a loan in India. It’s this information helps the banks and lending institutions evaluate any individual’s creditworthiness and repayment ability while applying for a loan. So, does it mean that people without credit scores aren’t eligible for a loan? Not at all. A borrower can get an instant loan without credit score or a low credit score. Let’s have a look at how to get loan without credit score.

What is a Credit Score?

The Credit Information Bureau (India) Limited is the credit bureau that maintains records of companies and individuals’ credit-related activities, including credit cards and loans in India, specifying their credit score.

A credit score is a three-digit numeric summary of an individual’s credit history that reflects his credit profile. It is solely based on past credit behaviour such as borrowing and repayment habits, as shared by banks and lenders with credit regularly.

A person’s past behaviour is taken as an indicator of their future actions, and hence the credit Score showcases a consumer’s creditworthiness. A high credit score enables cheaper and instant loan approval, while a low indicates vice versa. The credit score ranges from 300 – 900 depending upon various factors like the repayment history, credit card utilisation, the number of times applied for a loan and loans for different purposes of the individual. 

Generally, a score between 300 and 699 is considered a bad or low credit score. Banks are unlikely to lend loans to such people, and even if they do, the interest is 0.5%-2% higher. And if the score falls below 700 (mainly due to defaults made in paying off the previous loans), the banks might refuse to offer any loan. For example, when a person applies for a credit card or loan, one of the critical factors lenders check is the person’s credit profile, as depicted by the credit score. Banks usually offer loans to individuals falling within the 750-900. But Fibe can lend you an Instant Personal Loan with a low credit score.

You can either improve your credit score by clicking here or apply for an instant loan without credit score with Fibe.

How to Get a Personal Loan without credit/ Credit Score?

Applying for a loan without credit score is quite tricky, but Fibe makes your work easy by providing loans to individuals even without a credit or credit score.

1. Opt for Collateral Based Loans

Primarily, personal loans are collateral-free and do not require security. But this is only significant if you have a good or high credit score. Moreover, if you don’t have a credit score, you will have to offer security on a personal loan. Despite that, you can pledge any of your valuable assets as collateral on a loan to Fibe. This will make it easier for you to avail of a loan from the lender of your choice.

2. Prove your Creditworthiness

A lender always looks for a creditworthy borrower to approve a loan application. Therefore, if you have a stable source of income, you can easily apply for a personal loan from Fibe. You can even apply if you have a low credit score or no credit score displaying your salary slip or bank statements as proof of your income. In addition, this will prove your ability to repay the loan amount on time.

3. Get a Guarantor/ co-applicant for the Loan

Likewise, you can apply for a personal loan with a co-applicant or a guarantor but make sure that the guarantor has a steady income. If your co-applicant is a family member, you should inform them beforehand regarding your intentions to avail yourself of a personal loan to avoid confusion. 

Then the co-applicant needs to fulfil the KYC process with Fibe’s easy-to-use app. They will then check the bank statements and credit history. Then you’re most likely to get your loan application approved if the co-applicant meets the criteria.

4. Apply for a Lower Loan Amount

It’s best to avoid applying for a higher loan amount if you have a low credit score or don’t have one. This is because the lender may either doubt your creditworthiness or charge high interest. But Fibe charges low-interest rates on such loans. This ultimately increases your chances of getting the loan approved.

5. Ask for a NA or NH on your Credit Report from your lender

No History (NH) or History not Available (NA) or on your credit report marks the absence of any previous credit activity and credit in the last 36 months. In such cases, you can avail help from Fibe consultants. They may consider your situation and offer a personal loan at a reasonable interest rate.

6. Bonus Tip: Do it The Fibe way

Fibe makes things easier for you. You will no longer have to wander from bank to bank since it’s challenging to get an instant loan approval without a credit score online in India. We aim to be one of the most user-friendly instant loan apps in India. These are the five documents you need to avail an instant loan online with Fibe: 

  • Selfie
  • PAN card
  • Address ID proof
  • Aadhar card
  • Bank statement

Individuals can apply for an Instant Loan without credit score at Fibe. You can also explore more Money Management, Investment, Instant Personal Loans, And Financial Wellness Ideas on Fibe for all your needs.

Download the Fibe app or log in to our website to become a part of the #OneSmallStep experience. 

Fibe Raises Series D Funding of $110 Million led by TPG’s The Rise Fund & Norwest Venture Partners

Highlights:

  • Expands cash loans business to over 150 cities
  • Adds multiple senior leadership positions over the last 6 months
  • Aims to deepen the financial ecosystem for young and aspirational Indians through its platform

Pune, India, 29th August 2022: India’s largest consumer lending fintech, EarlySalary, has closed its series D funding round of $110 million led by TPG’s The Rise Fund and Norwest Venture Partners. Existing investor Piramal Capital & Housing Finance Limited also participated in the round. This is EarlySalary’s largest fundraise to date, following the company’s last financing round in 2019. The company had raised $34 million in previous rounds from Eight Roads, Chiratae Ventures, Piramal Capital & Housing Finance Limited and angel investors. The latest investment will enable Fibe to grow its business significantly in the next 24 months. The series D round of $110 million includes a secondary sale. Unitus Capital acted as the exclusive advisor for the transaction.

Founded in Pune in 2015, Fibe provides accessible financial lending solutions of up to Rs. 5 lakhs to working professionals. The company expanded into the affordability segment and introduced Buy Now Pay Later (BNPL) services to its customer segment with a clear focus on education, health and consumer product financing. Over the course of its journey, Fibe expanded its services to over 150 cities and aims to continue growing its customer base.

Fibe’s core purpose is to provide a financial ecosystem for young and aspirational individuals. 80% of Indians use banking services, however, almost 50% of the Indian population doesn’t have access to credit due to various reasons. The focus of Fibe is to provide a safe and reliable credit platform to the underserved population, primarily in Tier 3 and 4 cities, at affordable rates.

Fibe’s comprehensive suite of products includes personal loans payable in EMIs over multiple tenures. The company will continue to expand its BNPL segment and build out an extensive network of partners across the healthcare and edtech segments.

To create a superior customer and product experience, the company will continue to focus on enhancing its tech and analytics frameworks while delivering a high degree of transparency, risk management and customer centricity to achieve its growth plan. In the last six months, Fibe has added key executives across risk, sales, treasury and other functions to strengthen its management team.

The company has rapidly expanded its presence from 18 cities to over 150 cities and increased its customer base to 12 million app downloads with approximately 1 million customers. It has grown 7x over the last two years and emerged as a market leader in providing financial assistance to young middle-income individuals across the country. The business continues to be profitable over the pandemic and expects to grow manifold in the future.

Commenting on this funding, Akshay Mehrotra, Co-founder and CEO said, “We believe in a customer-first approach to providing credit to young middle-income Indians and we are thankful for the trust millions of Indians have put in us. As our customers’ aspirations and credit needs grow, we will focus to continue to retain their trust and grow with them. The funding will not only help us in expanding our cash business but also build an array of capabilities to efficiently serve a larger segment of customers. We are confident in our ability to keep innovating and achieving 10x large growth in our customer base.”

Ashish Goyal, Co-Founder and CFO said, “Fibe’s core purpose is to enable financial services access to its core segments. This capital raise enables us to grow and meet our customer aspirations. We believe that we will be able to add significant value to the fintech ecosystem. This capital raise from two of the most marquee investors is also a validation of our core principles of building a business that is customer-focused, profitable and driving meaningful gains in financial inclusion.”

Akshay Tanna, Partner at TPG said, “Through its innovative platform, Fibe delivers a critical financial service to the growing, yet underserved, middle-income segment in India. By providing modest, short-duration loans at competitive rates, Fibe is improving the financial health of its customer base and empowering them to finance things like upskilling courses, healthcare needs, personal emergencies, and short-term cash flow mismatches. Akshay and Ashish have built a world-class team and a market-leading product that is poised to continue to meet the needs of India’s rising middle class and we are delighted to be a part of its next chapter of growth.”

Financial inclusion is a core focus of The Rise Funds’ multi-sector global impact investing strategy. The Rise Funds have invested in several financial technology companies that are building a more inclusive financial system around the world including Varo in the US, Duxiaoman in China, and Airtel Money in Africa.

Niren Shah, MD at Norwest Venture Partners said “We are delighted to partner with Akshay and Ashish at Fibe, who have built one of India’s leading, profitable and scalable consumer fintech platforms. Digital lending is emerging as one of the fastest-growing fintech segments in India and we believe that Fibe is well-positioned to serve the credit needs of millions of underserved but aspirational Indians. Fibe’s strong growth has been driven by a world-class technology, analytics and governance platform, which has resulted in exceptional credit underwriting and asset quality.”

With the recent digital guidelines by RBI, Fibe believes that the ecosystem is also enabling an innovative and constructive environment to grow its digital footprint and digital way of banking. Fibe aims to expand operations across verticals and targets to reach millions of customers. It aims to build a significant presence in the impact categories of providing cash loans to young Indians, salary advances to corporate employees and an ecosystem to provide avenues like BNPL to its customers.

About The Rise Funds
The Rise Funds are a core pillar of TPG Rise, TPG’s global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high potential, mission-driven companies that are focused on achieving the United Nations’ Sustainable Development Goals. The Rise Funds deliver capabilities and expertise across a wide variety of sectors and countries at scale, focusing on opportunities in climate and conservation, education, food and agriculture, financial inclusion, healthcare, and impact services. With approximately $15 billion in assets across The Rise Funds, TPG Rise Climate, and the Evercare Health Fund, the TPG Rise platform is the world’s largest private markets impact investing platform committed to achieving measurable, positive social and environmental outcomes alongside competitive financial returns. For more information, visit therisefund.com or @therisefund on Instagram.

About Norwest Venture Partners
Norwest Venture Partners is a global, multi-stage investment firm that manages approximately $ 12.5 billion in assets and has funded more than 650 companies in the last six decades. Norwest Venture Partners is focused on early to mid-stage venture capital and growth equity investments across a wide range of sectors including Fintech, Insurance, Consumer-tech, B2B, SaaS, Healthcare, Logistics, etc. Some of the prominent investments in India include Swiggy, OfBusiness, Kotak Mahindra Bank, Five Star, NSE, Vastu Housing, IndusInd Bank, SK Finance, Mintifi, Xpressbees, Amagi, Thyrocare, Duroflex, MENSA, etc. Norwest has offices in Palo Alto, San Francisco, India, and Israel. For more information, visit www.nvp.com.

About Fibe (Formerly EarlySalary)
Fibe is India’s leading consumer lending app focused on young, aspirational and tech-savvy Indian consumers. It is building a financial ecosystem that enables the mid-income group to fulfil their aspirations. It has launched a host of financial products like Cash Loans, long-term Personal Loans and Buy Now Pay Later plans. It offers a 100% digital loan application process that takes just seconds to complete. Fibe has grown multifold over the last 2 years and emerged as a market leader in providing financial assistance to young middle-income group in India. The company has already disbursed nearly 2.8 million loans worth Rs. 7,500 crores.

Loan Terms You Ought To Know Before Borrowing Funds

With fintech advancements, the lending sector in India has progressed by leaps and bounds. Today, consumers no longer have to stand in queues to get loans, as almost all financial undertakings can be completed online. While this ease of access is admirable, loans are still the same financial responsibility they always were. As such, it is well worth it to understand the instrument fully, and this means knowing the loan terms associated with it. While a majority of the exposure to these loan terms will be through promotional content, you are likely to encounter the entire glossary when reading through the loan documents.

What’s more, the latest RBI regulatory framework mandates lenders to issue borrowers a Key Fact Statement, which is a document containing vital loan information. Naturally, this statement will contain pertinent loan terms, and understanding what they denote is key to borrowing smartly. Here is a brief overview of the important loan terms to look out for when availing funds.

Credit score

Of the many finance terminology definitions to know, credit score is likely among the more important ones. Simply put, your credit score is a 3-digit score assigned to you by a credit agency. The CIBIL score is a popular credit score that lenders consult when assessing your creditworthiness. Generally, there is a minimum credit score for loan approval when borrowing funds, with most lenders requiring a score of at least 650.

APR

This loan terminology is an acronym for annual percentage rate, and the APR dictates the true cost of borrowing for a year. The APR is almost always higher than the interest rate offer advertised for a term loan. This is because it accounts for the interest payable, as well the other costs listed in the loan agreement.

Collateral

The collateral simply denotes the asset pledged in order to avail the loan. In many cases, the lender will not approve a sanction or go through with loan disbursement unless you pledge an asset that you own. These instruments are called secured loans and the value of the asset often impacts the principal amount of the loan.

Credit appraisal

This finance terminology refers to the assessment process conducted by a lender before approving a sanction. This involves checking the applicant’s credit score, fixed obligation to income ratio, income stability, and if the applicant has a history of being a loan defaulter. Credit appraisal is a key part of the process and lenders won’t approve applications without doing their due diligence.

Deferment

In the context of borrowing and lending funds, deferment refers to the provision where lenders allow you to pause payments for a set period. This is based on the agreement between borrower and lender, and mostly comes into play only in instances of financial hardship. Deferment terms will be listed in the loan agreement.

e-NACH

This is simply the digital upgrade of the NACH, which is a provision offered to you by lenders to automate EMI payments. The e-NACH provision is a framework that exists completely online. With an e-NACH mandate, you can authorise recurring payments from your account for a wide range of services.

EMI

This term is an acronym that stands for equated monthly instalment. In a loan agreement, it denotes the monthly amount due during the entire loan repayment process. When planning your loans, always check the EMI amount and ensure that it fits in your budget. Any discrepancies in the EMI details must be addressed immediately.

Lender

This term refers to the financial institution or credit lender in question. As per the latest RBI regulations, authorised lenders may be referred to as Regulated Entities (REs) or Lending Service Providers (LSPs), based on their categorisation.

Guarantor

A guarantor is an individual who agrees to share the financial responsibility of repaying the loan if the primary borrower fails to hold up their end. Guarantors are often required when the primary borrower requires a large sum of money but doesn’t have a strong enough profile to back the requirement.

Lien

This is a common loan terminology that you will come across when availing secured loans. Simply put, lien means the lender’s legal claim on your assets until you have completely repaid your debt. When availing a Instant loan of any kind, take note of this term and any clauses associated with it.

Default

Default in any credit agreement means the act of non-payment. It is on one of the important credit terms to know as lenders have varying default penalties applicable. As such, knowing the meaning helps ensure that you have a better idea of the terms and conditions applicable.

Term

The term simply refers to the loan period or the tenure of the loan. It is the loan repayment window applicable and will be clearly listed on the loan agreement. You should note the term of the loan before approving or authorising disbursal as it does impact the cost of borrowing.

Loan agreement

This is a document shared to applicants by the lenders once the credit appraisal process is complete. This document formalises the loan and has all the vital information of the loan. You will have to approve the loan agreement, and will now also receive a Key Fact Statement that contains loan information.

Origination

This is sometimes listed as the origination fee or processing fees, and it means the cost applicable on your loan. These fees are charged by lenders for providing credit services and are sometimes expressed as a percentage rather than a flat amount. Keep an eye on these charges as they can be quite high.

Prepayment

Prepayment is the act of paying a portion of the outstanding loan or the entire outstanding amount ahead of the tenure. In all loan agreements, you should look for the prepayment terms and fees applicable as foreclosure of loans can save you a lot of money.

Fixed/Floating interest rate

Floating or fixed interest rate primarily refers to the interest rate applicable on the loan. The floating variant means that the interest rate may change based on market movements, whereas the fixed interest rate is locked in from day one. It is important to know the meaning of both to borrow efficiently.

Principal

The principal is the loan amount. This amount is also referred to as the sanction and will denote the full amount approved by the lender. There may be certain charges and fees applicable on the loan, which get deducted from the principal amount. Also, during loan repayment, the principal amount reduces with each payment you make.

While this isn’t an exhaustive list of the terms you may encounter when availing loans, understanding these important loan terms is vital. It can give you a leg up in negotiations with your lender, and help you make better borrowing decisions. However, if you come across other terms and have doubts about your loan or the offer made to you, get them cleared right away.

Most lenders will have dedicated support teams and relationship managers who can offer you needed insight. To ensure that you have a hassle-free experience, pick your lender wisely. One smart option is Fibe with whom you enjoy a completely digital, transparent and simplified experience.

Return to Work Perks Offered by Employers

Highlight: Apart from financial safety, the thing that job seekers nowadays consider is employee benefits. Providing these benefits plans might help the organisation attract great talents. Read to find some awesome perks a company can offer its employees to bring them back to offices after lockdown, and how Fibe can help.

Employees are, no doubt, an organisation’s most valuable asset. But organisations often fail to recognise that salaries are more a threshold than an effective measure to keep the employees happy and engaged. Back to work perks and incentives remain a great opportunity for companies to utilize the untapped potential and take advantage of the talent pool.

The post-covid times, especially, have reinvigorated the appeal of these non-monetary benefits as a great way to bring employees back to office after lockdown and push them to work full-time from there. Many companies, including Google, Deliveroo, DailyPay etc., are opting for the carrot over the stick and offering special return-to-work perks.

5 Perks to Include in the Updated Compensation Plan

Figuring out how to welcome employees back to the office after lockdown? Here are some of the most popular work back to work perks to consider:

  1. Paid time-off: Proactive companies provide open vacation or Paid time-offs for their employees. The employees can take as much vacation time as they need. In return, they have to meet the deadlines and produce high-quality work. These kind of back to work benefits will actually motivate employees to not only return, but give their best shot in the work they do.

    A study shows that long-term happiness is achieved from good experiences, not material things. An open vacation policy boosts employees’ productivity and efficiency. The only catch is that employees should meet deadlines and produce results. Companies adopting these policies notice a win-win ownership mindset in the employees. These employees think for themselves and the growth of the company.
  2. Offer a Flexible Schedule: Logging more hours into the employee’s work schedule does not guarantee higher productivity. Organisations should act proactively and give them a chance to explore their most productive times of the day. A traditional workweek is outdated in 2022 and it’s high time employers realize this, especially if they’re looking to introduce return to office perks.

    Having a hybrid work model and giving employees the flexibility to work for some days in a week from wherever they feel comfortable – whether office or home – can help organisations bring more workers to their desks post-pandemic.

    Allowing employees to have time outside of the office improves their mental health. A study showed an increment of 12% in employees’ productivity levels who possess mental well-being. A better option is reducing the working days to 4 per week. Clearly, return to work benefits like these improve outcomes not just for the employee, but also for the organization as a whole.
  3. App-based Wellness Programs: Proactive companies are adopting app-based wellness programs for their employees. These apps give employees a space to choose numerous wellness packages related to mental health, financial wellness, life coaching, exercises etc. 88% of workers consider that health and wellness programs give employers a competitive edge when it comes to company culture – for both current and prospective employees.

    Online wellness programs are a great idea for back to work benefits allowing employees to take these classes at home or from their desks without fearing health risks. Plus, there is something for everyone to choose and benefit from and this will significantly attract more employees back to office after lockdown.
  4. Rest and Relaxation Perks: Adding return to office perks beyond work desks and PCs, such as cafeterias, gyms, shopping complexes, creches etc., can help employees maintain work-life balance and encourage them to return to offices. Employees can be given free memberships or coupons for these utilities. These changes would help improve the mental well-being of employees and encourage a healthy lifestyle. Happy employees are the most productive ones. What could be a better perk than this?
  5. Celebration Perks: Have you heard about Google organising the return-to-work celebration? The concept is interesting. This could be a great opportunity for the employees to build relationships with the new and existing employees.

    These kinds of return to office perks come with many benefits. First, it might boost the level of excitement in an employee to return to work. Second, it might leave them curious about the purpose of the celebration. The celebration could be related to the company’s success or some new offers. The more employees are aware of the benefits of returning to office, the more motivated they will be.

    Celebrating birthdays and individual successes, meetups, organising weekend parties, fun activities or interaction sessions could be a ritual to keep the workplace brimming with life and a second home for employees.
  6. Provision of Food: Free meals may work as an employee-retention magnet and give a big boost to their productivity. A Harvard Business Review study stated, “employees typically consume one or several meals plus snacks during work hours,” emphasising the importance of their food.

    The company can pay for some of the employees’ meals, offer them food discounts or provide longer meal breaks. Organising occasional lunch and dinner meets can also yield better results.

Bringing people back to office after lockdown won’t be easy in a situation where Covid-19 has not fully vanished. Companies need to build their work engagement policies, work compensation plans, and return to work benefits from scratch to meet employees’ needs in the new normal. As organisations look forward to their employees returning to offices or working on a balanced hybrid work model, new negotiations between the employees and employers on the benefits of returning to the office are bound to change the dynamics and hierarchy of back-to-work benefits.

Fibe offers employee financial wellness programs in tandem with organisations and a catalogue of financial services such as instant loans, salary advances and much more. It helps employees set their finances on track while they work their way to success.

How To Engage Employees At Workplace?

Highlight: An engaged workforce can work 10x better than a skilled but demotivated workforce. The managers need to organise certain activities to engage employees and make them feel responsible for their work.

The key to running a successful organisation is knowing how to improve employee engagement. As an HR, you should understand the level of passion and dedication an employee has towards their work. This would make it easier to bring out the best in them which ultimately would benefit the organisation.

What Is Employee Engagement?

It is a human resource concept that measures employees’ enthusiasm and dedication towards their work and the organisation. In simple terms, when talking about employee engagement, it analyses the team members who are actually participating and the ones just putting up with tasks. 

But how to measure employee engagement? For this, the following metrics can be helpful:

  • Take surveys and feedback on employee satisfaction 
  • Employee Net Promoter Score (eNPS) can provide insights into employee loyalty
  • Compute the retention rate data based on past and present employee records 
  • Review the attendance records 
  • Calculate the promotion rate by dividing the number of promoted employees by the total number of employees
  • You can also have 1 on 1 meeting in complete confidentiality to get accurate data
  • Conduct peer review, exit polls or install suggestion boxes

Why Is Employee Engagement Important?

Some employers think satisfying employees with perks and salaries would be enough to run a successful business. But the truth is far away from this notion – engaging employees in the workplace is just as important. 

As a matter of fact, 80% of the employees feel disengaged or less engaged at work, as per a Gallup report. Here are some of the reasons why companies should focus on employee engagement:

  • It plays a major role in productivity with the organisation’s infrastructure
  • It acts as a management strategy to yield improved business outcomes for customers or clients
  • It builds better communications as every member takes the initiative to deliver the best results
  • It reduces conflicts and builds trust in the company’s leadership and among the employees
  • It creates a positive environment in the business and reduces the number of leaves an employee takes throughout the year
  • It reduces burnout among employees, which can negatively impact their mental health  
  • It also decreases the number of absentees in the company, which is a leading cause of delayed deliveries and pushing deadlines 
  • It also increases customer or client retention as better engaged employees are highly involved, increasing their profit for the business 

All these factors highlight the significance of developing effective strategies for engaging employees.

How To Engage Employees in The Workplace

Given the importance of having an engaged workforce, you must implement some good strategies that can help you achieve that. Here are some of these:

  • Know Your Employees Better

Communication is an essential step to engage employees as it would make them feel recognised and appreciated. Here is what you can do: 

  • Talk to them and understand them as individuals 
  • Learn about their background, goals and achievements 
  • Say hello to the employees and inquire about their families or hobbies 
  • Provide Employees with Tools to Achieve their Goals

Another effective way to engage employees is to train them according to their assigned roles. This can help them gain confidence and understand what they’re doing at work and why it is important. If they aren’t trained well, there is a chance they’ll find their work overwhelming which can lead to reduced productivity.

  • Tell the Employees About the Company’s Progress

As much as HR needs to know about the employees’ progress, employees also need to know about their organisation’s progress. Knowing about the company’s profits and struggles could be a natural motivator to engage employees, as well as a catalyst to work harder. Discussing what works and what doesn’t with your employees can help them come up with ideas that help them, and the organisation, outshine.

  • Give Them Opportunities to Prove Themselves

HR personnel should remember that the team working in an organisation has cleared a series of interviews and checks based on their credibility. Assign them tasks through which they can show off their skills and talent. This would substantially engage employees, encourage them and make them feel responsible for the specific project.

  • Recognise Them for Their Hard Work

The key to solid employee engagement and boosting employees’ confidence is giving them the recognition they deserve. Giving them a few compliments in front of the team would motivate them to give positive results in the next project. If HR praised one employee in front of a team, others may try to work hard to receive the same encouragement.

  • Let Them Lead

Every manager must let go and let their team lead at a point in their life. This is important for them to feel passionate about their work and know that the company has faith in them. Allow them to show their skills and drive the presentation without interference from the higher authority. This goes a long way in boosting employee engagement and morale.

The above-mentioned strategies for engaging employees will impact your organisation positively, provided they’re done correctly. No doubt, employee engagement is crucial to the success of any business. This engagement may take the form of non-monetary factors, work culture and environment or financial wellness programs. 

Through effective employee engagement activities, managers can make employees feel that they are a crucial part of the team. In addition to recognising their talent and giving them opportunities to shine. Listen to their feedback and questions, engage in their conversations, be a mentor for them and create a work environment free of fear.

However, if an employee faces financial trouble, there is so much an employer can do to help them. This is where the Fibe Instant Personal Loan can help you help them. They can get up to ₹5 lakhs at an affordable interest rate and for a tenure of up to 36 months. Download our Personal Loan App to enjoy a streamlined application and void lengthy paperwork. 

FAQs on Employee Engagement

What are the 5 C’s of employee engagement?

The 5 Cs of employee engagement are as follows:

  • Care
  • Connect
  • Coach
  • Contribute
  • Congratulate

How to engage your employees? 

Here are some effective strategies HR can apply to increase employee engagement:

  • Provide positive reinforcement with feedback 
  • Provide recognition with an incentive or positive encouragement 
  • Open the floor for discussions and communication
  • Encourage ownership over tasks by designating project heads 
  • Provide fair opportunities for growth and promotion
  • Build a respectful and positive work environment
  • Create opportunities for learning and growth 

What are the best employee engagement activities?

Training programs, group discussions, casual luncheons and timely reviews are some of the best strategies to increase employee engagement.