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What is Annual Percentage Rate (APR) and How APR is Calculated

When you take a loan or use a credit card, you probably look at the interest rate first. But have you ever noticed the term APR and wondered what it actually means? APR or Annual Percentage Rate goes beyond just the interest rate — it shows the true cost of borrowing, including extra fees and charges you might not think about.

Here, we’ll break down APR in the simplest way possible like what it is, how it’s calculated, why it matters and what the RBI says about it. Read on to know more!

What is Annual Percentage Rate (APR)?

APR is not just the interest rate on your loan – it’s the full picture of what you’ll pay yearly to borrow money. It includes the interest plus all other loan-related fees like processing, verification, and maintenance charges.

As per RBI’s 2022 digital lending guidelines, APR is the effective annual rate that reflects the total cost of borrowing. It covers costs like interest, credit and operating expenses, but excludes penalty charges such as late fees or EMI bounce charges.

Key Points to Know About APR When Borrowing a Loan

Based on the annual percentage rate definition, take note of the following pointers about the APR for a loan you borrow:

It’s shown as a yearly percentage for easy understanding.

It reflects the total cost of your loan, not just the interest.

It includes all mandatory charges tied to your loan.

It doesn’t include penalties for late payments or defaults.

It helps you compare loan offers accurately.

RBI Mandates Two Key Facts About APR

Below are the 2 things RBI wants you to know about APR:

Annual Percentage Rate and Insurance

Insurance charges are considered when calculating a loan’s APR only when insurance is linked to the loan. Assuming you are taking a home loan where the insurance component integrates into the loan, only then are lenders adding it when computing the APR.

Annual Percentage Rate for Loans with a Floating Interest Rate

When it comes to loans with rates that fluctuate based on market conditions, the APR will change too. In such cases, the RBI mandates that lenders need to include the APR. It considers the current rate of interest in the Key Fact Statement at the time of loan origination. When a revised APR applies, lenders need to share this figure with borrowers via further communication at the applicable time.

Types of APR

Here is a brief collection of some common types of APR rates in India:

Fixed APR: In this type, the interest remains fixed throughout the tenure of the loan.

Variable APR: In this type of APR, the interest rate can vary depending on the repo rate or the market fluctuations.

Credit Card APR: In this type, the interest rate is charged over the outstanding amount or cash advance, specifically over credit cards.

Purchase APR: In this type, the interest rate is applicable over the purchases or expenses made through a credit card.

Cash Advance APR: If a cash withdrawal is made using a credit card, the cash advance APR will be applicable.

Balance Transfer APR: Balance transfer APR means the interest rate is applicable when the amount is transferred from one credit card to another.

Nominal APR: Nominal APR means interest without extra fees and compounding. It applies to all types of loans.

Effective APR: This means the interest applicable on all types of loans, including fees, additional costs, compounding, and cost of borrowing.

Difference Between APR vs. APY

The APY rate is the annual percentage yield rate. It is primarily applicable to investments. According to the new RBI regulations, you should get this information when you invest online. Also, you should double-check the Key Fact Statement to ensure there are no misunderstandings.

Parameters	APR (Annual Percentage Rate)	APY (Annual Percentage Yield Rate)
Definition	Amount of interest applicable on amount borrowing and credit	Amount of interest earned within a financial year as an investor
Compound Interest	It does not add compound interest to the calculation	It adds compound interest to the calculation
Interest rate	The interest rate must be lower when borrowing	The interest rate should be higher as you earn it
Calculation	Includes additional fees like lending fees, processing fees, and settlement charges	APY does not consider any additional fees
Influenced By	APR can fluctuate due to market conditions	APR can also fluctuate due to market conditions

Remember, both terms are important, and you will come across them when applying online. However, the APR gives you a holistic view of the undertaking. This is why you must compare the APR for various loan offers to know which one suits your capabilities best. The APR helps you arrive at the real cost of borrowing credit.

Also Read: APR Vs APY Differences: A Comprehensive Guide

How Annual Percentage Rate Calculator Works?

You can calculate it by using a free digital calculator or by doing it manually. All you will need is to have the key values of the loan, which are:

Principal amount

Loan tenure

Interest rate or total interest payable

Associated fees

To know the fees payable, check with your lender. Sometimes, these charges are a percentage of your loan amount, while some lenders may levy a flat charge. No matter the expression, you can simply input the values and get an accurate result.

The manual APR calculation formula is as follows:

APR = [{(Fees + total Interest)/ Principal}/ n] * 365 * 100

Where, ‘n’ is the number of days, as per the tenure.

Here is an example: Consider a loan of ₹1,60,000 with the total interest payable as ₹24,000, a tenure of 24 months and associated fees of ₹6,000.

Step 1: Add the fees and the total interest payable, which comes to ₹30,000.

Step 2: Divide these results by the loan amount, which is (₹30,000/₹1,60,000) and this comes to 0.1875.

Step 3: Divide this value by the tenure in days, which is 0.1875/730.50 and this comes to 0.0002566.

Step 4: Multiply this value by 365, and then multiply the result by 100, which is (0.00018822365)100, and this comes to an APR of 9.365%.

As you may have noticed, the APR equation requires you to convert values for accuracy, and this alone can be a tedious process. This is why using online calculators is often the easiest route to take.

Digital lending has made it easier and quicker for you to get funds. So, you should pick lenders that are completely transparent and forthcoming in all dealings. With Fibe’s Instant Personal Loans, you never have to worry about hidden fees.

You can get a quick Personal Loan of up to ₹5 lakhs and pay a nominal processing fee of up to 2%. Download our Instant Loan App or log in to our website to enjoy fast and easy access to funds.

FAQs on APR Calculation

Is APR better than interest rate?

APR overall represents the interest rate of your account as a borrower. It consists of all additional fees and charges, which include interest rates. Knowing more about APR will help you understand the final cost of borrowing other than just interest rates.

What per cent of APR is good for a personal loan?

A fair APR can be 6%-10%, but it can depend on your finances and the lending climate. Instead of focusing on a figure, analyse the APRs of various personal loans and choose the most affordable one based on your repayment ability.

Does APR matter on a personal loan?

Yes. APR matters on a personal loan as it includes all additional charges along with the interest rate of your loan.

What is the highest APR for a personal loan?

The APR of personal loans fluctuates based on the interest rate offered by the lender, along with other charges applicable to the loan. However, the APR value can go up to 44%.

How do you convert APR to the interest rate?

When you remove the other loan charges from the calculation of APR, you will arrive at the interest rate. However, it is best to simply check the interest rate by asking the lender.

How to estimate APR?

To get an estimate of the APR, use the following formula: APR = [{(Fees + total Interest)/ Principal}/ n] * 365 * 100. Here, n is the number of days. First, add the fees and interest rate payable and then divide this amount by the total loan amount. Then, divide this value by the tenure in days. You need to multiply this value by 365 and, finally, multiply the value by 100.

How to calculate APR from the interest rate?

You can simply calculate APR from the interest rate by multiplying the periodic interest rate by the days of total loan tenure.

How does APR measure the true cost of a loan?

Annual percentage rate (APR) measures the true cost of a loan since it takes into account the interest rate as well as other costs associated with borrowing the amount.

What is APR on a credit card?

APR on a credit card refers to the interest applicable on a credit account. In simple words, it is interest that you pay on credit cards when there is an overdue balance. You can calculate it using this formula: Credit card interest = [daily rate] x [total daily balance] x [number of days in billing cycle].

How APR is calculated monthly?

To calculate your monthly annual percentage rate (APR), find the current APR and divide it by 12. This will give you your monthly periodic rate. Then, multiply this amount by the current balance of credit to get the monthly APR.

Home Renovation Loan: All You Need to Know

Learning how to apply for a home renovation loan can help if you plan to give your home a new makeover. Homes need renovation from time to time to stay sturdy and comfortable. However, the undertaking is expensive. This is where a personal loan for home renovation helps by providing the required funds.

You can apply for a personal loan for home renovation from your smartphone. Whether you want to repaint your house, redesign your kid’s room, redo your bathroom or kitchen, or replace your windows, doors, or tiles, you may give a brand-new look to your home using your home renovation loan.

Here are some essential points that you need to know before opting for a home renovation loan.

Process of Applying for a Home Renovation Loan

What’s more, you can get an instant loan online through a website or an app. Just log in to your selected lender’s website or download their app and start the application process. These are the simple steps to follow:

Step 1: Visit the lender’s website or download and install the app
Step 2: Check the lender’s home renovation loan eligibility criteria
Step 3: Create an account or register via your existing account
Step 4: Fill up the online application form and enter your details, including your identity, address, employment and bank details
Step 5: Provide your loan requirement details
Step 6: Submit the application form

Once you submit the application form, you will get confirmation about whether or not you are eligible for a personal loan for home renovation. You also get an idea of the loan amount the lender will offer.

If you accept that loan offer, you must scan and upload a few documents to prove your identity, address and income. If everything goes smoothly, you will receive your loan amount disbursed directly into your bank account.

Also Read: Transform Your Home with Home Renovation Loan

Benefits of Applying for a Home Renovation Loan Online

Online loans have become extremely popular among prospective borrowers due to the multiple benefits they offer.

1. 24/7 Availability

You can log on to your lender’s website or app 24/7, irrespective of their working hours. When you require an instant loan online, you can access it anytime and get the needed funds when you need them the most.

2. Convenience

You can apply for a loan online for anything you want in minutes. Whether you are at home or office, travelling or in the hospital for a medical emergency, you can submit your application within minutes and get funds instantly.

3. No Paperwork

NBCs have minimal documentation requirements, including your address, identity and income proof. However, you don’t need to visit the lender’s office to submit these documents. Fibe’s loan application process is paperless and you can complete it online hassle-free. Simply scan and upload the required documents and get a loan in seconds.

4. Faster Approval and Disbursal

A personal loan for home renovation does not require any collateral, guarantor or security. You can quickly accept the loan offer, select your repayment tenure and complete the remaining formalities online. Fibe uses a proprietary Al/ML-based algorithm that disburses loans in just 10 minutes.

5. Online Loan Tools

While applying for a personal loan, NBFCs offer several loan-related tools to make loan applications easier for you. Some of the most helpful tools include:

Credit Score Checker: Most NBFCs have a minimum credit score requirement that you must meet to avail of their personal loan. An online credit score checker tool helps you check your credit score for free. Based on the results, you can decide to apply for the loan, choose another lender, or take steps to improve it.
Personal Loan Eligibility Calculator: A personal loan eligibility calculator helps you confirm your loan eligibility. After entering your loan requirement, it displays the loan amount you are eligible for.
Personal Loan EMI Calculator: Most personal loans come with flexible repayment terms. They allow you to choose your loan term according to the EMI amount you are comfortable paying each month. Enter your loan amount and interest rate and select a loan tenure to know what EMI amount you have to pay for that loan term.

Depending on your monthly budget and repayment capacity, you can adjust the loan term until you find an EMI amount you can conveniently manage.

These are the major benefits of applying for an instant loan online. Getting Instant Personal Loans from lenders like Fibe offers a paperless procedure and fast loan processing. This loan comes without any restriction on end use, allowing you to utilise the funds to renovate your home.

Download the Personal Loan App here, or log in to our website and enjoy a quick application process!

FAQs on the Home Renovation Loan

Which loan is the best for home renovation?

Various financial institutions provide home renovation loans. You can also opt for a personal loan and use the funds to renovate your home. Since these loans come with attractive interest rates and no restriction on end-use, they can be a great option to finance your home renovation.

Also, the documents required for home renovation loans and the eligibility criteria are minimal. You can get a personal loan from lenders like Fibe, which offers loans of up to ₹5 lakhs instantly.

What is the difference between a home loan and a home renovation loan?

A home loan refers to a form of credit that you get to finance the purchase/construction of a new home or property. This loan comes with an agreed-upon rate of interest and repayment period. On the other hand, you can opt for a home renovation loan to modify, expand or upgrade your existing home.

7 Tips to Help You Manage Long Term Personal Loans

Personal loans are the preferred choice when you want instant funds to cover your planned or urgent expenses. Most of these loans come with flexible repayment tenures that you can choose as per your convenience. Choosing an extended loan term reduces the EMI amount and makes repayment more manageable. However, managing it for such a long time becomes challenging for many. Therefore, here are a few top tips to help you manage a long-term personal loan efficiently.

1. Make a Budget

Making a budget is the best step to improve your financial situation and manage loans better. Managing a long-term loan without budgeting makes you confused and vulnerable. You don’t know where your money is going and how much you are spending unnecessarily. If you save less than you should, creating a budget would be the best answer.

To create a budget, categorise your expenses into groceries, bills, entertainment, etc. Broad and simple categories make calculations and monitoring easier. Once you identify your unnecessary expenses, try to keep tabs on them to make loan management easier.

2. Pay Your EMIs on Time

Paying your EMIs on time every month is an efficient way to avoid late payment penalties. Missing payments also reduce your credit score, which ultimately affects your creditworthiness. With better financial management, you can stay on top of your EMI payments and avoid these consequences. Once you create your budget, you will find EMI payments much easier to manage.

Make a financial plan and keep a portion of your income aside every month to pay your due EMIs. If you keep forgetting your EMI payments, consider activating the e-mandate to pay your EMIs from your bank account automatically. Another tip is to pay one early EMI as you receive your loan amount. Doing this will keep you ahead of your EMI payment plan and give you a buffer against a missed EMI.

3. Pay Extra Whenever Possible

Just like paying one early EMI, paying extra whenever you can also maintains a buffer for a missed payment. This critical strategy keeps you ahead of your repayment term and attracts additional perks from your lender. Paying extra will reduce the overall loan term of your repayment plan and help you clear your debt sooner. Paying your personal loan earlier will save you money by lowering your interest outgo. Besides that, paying debts faster than the loan term will increase your credit score. As a result, you improve your chances of instant loan approval in the future at reduced interest rates.

If you consider paying extra on your loan EMIs, ask about the pre-payment charges you need to pay to the lender. While many lenders allow borrowers to pay loans faster without pre-payment charges, others may charge hefty pre-payment charges. Since such charges negate the advantages of early loan repayment, enquire about them to build a lucrative strategy.

4. Consolidate Your Debt

If you are managing multiple loans, consolidating them would be an excellent way to simplify your debt management. When you do that, you take out a single, bigger loan to repay all your existing loans. Then, you make a single payment to one lender, rather than making multiple EMIs to several lenders each month with different loan terms, interest rates, and other requirements. Many people take long-term personal loans to consolidate their debt and pay their EMIs over several years.

Debt consolidation is particularly helpful if you pay high-interest rates on some loans. However, before taking a personal loan for debt consolidation, check your budget and ensure that you can pay its EMIs on time.

5. Maintain a High Credit Score

Closely monitor your credit score while managing your long-term personal loan. This 3-digit number plays a crucial role in your financial history, and lenders give it due importance while approving your loan application. Your credit also significantly impacts your loan amount, interest rate, and repayment term. It reflects your credit behavior and repayment history. Staying ahead of your loan EMIs helps you maintain a high credit score and improve your credibility for the future.

6. Use Automatic Payment System

If you keep forgetting your EMI payments, try setting up an automatic debit directly from your bank account. By doing that, you don’t need to remember to pay your EMIs each month. The EMI amount will be directly debited from your bank account and transferred to the lender. However, you need to ensure that you maintain a sufficient balance in your bank account before the due date. One helpful tip would be to set up the automatic debit a couple of days after your payday. There are high chances that you will have enough money in your bank account on that date.

7. Control Expenses and Save Money

When you create your budget, you will identify where you are spending your hard-earned money unnecessarily. Little expenses here and there quickly add up and disturb your budget. Reduce your movie dates and dine-outs, control those impulsive shopping urges, and switch off lights to save on utility bills. Money-saving tips like these help you save a little more, which you can put towards your EMI payments. Once you pay off your loan, you will have enough money at your disposal to fulfill the urges you controlled all these years.

Managing long-term personal loans becomes stress-free and pretty straightforward once you work out the tips provided above. Stay disciplined with your finances, set a budget, and pay your loan EMIs regularly to stay ahead of the curve. Once you become debt-free, you will breathe easier and enjoy the money you have on hand.

Are you looking for funds to cover your expenses? Apply for an instant loan for a loan term of up to 24 months and use the tips mentioned above to manage it like a pro.

How to Manage Your Unexpected Wedding Expenses

Getting a marriage loan can help you organise the wedding of your dreams. Preparing for your wedding requires months of careful thought and planning, like every grand celebration. During the planning period, you need to take care of umpteen tasks. Add to it the possibility of an unexpected expense that may affect your budget plan for wedding and it can become stressful, mentally and financially.

However, by getting a personal loan for a wedding, you get access to instant cash. This may help ease the financial stress and relieve your mental stress to a certain extent. These loans offer umpteen benefits such as an easy application process, instant approval and flexible repayments.

To know more about how a marriage loan can help you manage your wedding expenses, read on.

Unexpected wedding expenses you can manage with a Personal Loan

A loan for wedding expenses is an unsecured form of credit that helps you easily manage your unexpected marriage-related expenses. With easy online applications and quick approvals, they are an ideal and viable financing option to help you manage last-minute expenses.

Some of these unexpected expenses include errors in invitation cards, higher-than-expected guests, wardrobe issues or last-moment vendor cancellations.

Also Read: Wedding Loans Are Here To Help

Features of a wedding loan

A personal loan for a wedding offers the much-needed backup to handle such wedding expenses and ensure that your wedding is stress-free.
Here are some of the characteristics of this loan:

Collateral free

Since these loans are unsecured in nature, you don’t need to pledge a valuable asset to get the required funds for your wedding.

Simple application process

Many banks and NBFCs offer online personal loans with a pretty simple application process. In fact, in many cases, you can complete it in just a few simple steps.

100% paperless application

You need not visit the lender’s branch to apply for the loan since you can scan and upload the essential documents online through the lender’s website or app.

Basic eligibility requirements

Most online lenders have simple basic criteria that you need to meet to get this loan.

Minimal documentation

Most NBFCs have minimal documentation requirements, which generally only include income, identity and address proof.

Flexible repayment

Since lenders have flexible repayment options, you can choose your EMIs most suitable to your budget. You can even use a personal loan EMI calculator to get an estimate and plan your loan terms accordingly.

Quick approval

Since there is no collateral and paperwork involved, lenders may approve your loan application within minutes once you meet their eligibility parameters.

Allows flexibility in use cases

These loans have no restrictions on how you use the funds. As such, you can use the funding for any wedding-related expenses.

Benefits of availing of a wedding loan

Here are some perks of a marriage loan that you get to enjoy:

Easy access to funds

While you are busy with wedding budgeting and planning, you may not have time to visit the lender’s office and apply for a loan. Thankfully, most financial institutions offer 100% online personal loan applications through their website or app. This enables you to conveniently apply for a loan whenever you want.

Fast approval

Lenders offer instant loan approval and disbursal, so you can get your required funds at the right time.

No assets to put at stake

Since personal loans are collateral-free, you get access to the loan without pledging any assets.

Easy repayment

Flexible repayment terms enable you to select EMIs that are easily adjustable to your monthly budget.

Savings kept intact

By opting for a personal loan, you can plan a wedding the way you want without depleting your savings. Plan the wedding of your dreams and repay its expenses in easy EMIs at your convenience.

Who can apply for a wedding loan?

Any salaried or self-employed individual with a regular income can apply for a wedding loan. All the eligibility requirements are generally basic but the parameters vary from one lender to the other. Most lenders expect you to be a resident of India and of a certain age. Some lenders also set a minimum salary or income requirement to ensure timely EMI payments.

Last but not least, you must have a decent credit score, based on which the lender determines your loan amount and interest rate. However, since the exact terms may be different, you must check your selected lender’s eligibility criteria before applying.

To make your dream wedding a memorable experience for all, opt for Fibe’s Personal Loan. You can get a loan of up to ₹5 lakhs and manage marriage-related expenses with ease. Download the Personal Loan App here, or log in to our website and apply online to get funding within minutes.

FAQs on How to Manage Unexpected Wedding Expenses

How do you manage marriage costs?

You can manage marriage costs by keeping the guest list short or planning your wedding in the off-season. In addition, you can save yourself from the rush and additional charges being levied by making early bookings for venues, caterers, etc. You can also keep a contingency fund or opt for a loan to take care of any unaccounted expenses.

How do you avoid unnecessary expenses at a wedding?

One of the best ways to avoid any unnecessary expenses is doing wedding budgeting. Set aside a price you can put towards your wedding without any financial strain. Then, begin listing all the tasks and associated costs to understand where you can make cuts. You can also opt for a close-knit and simple ceremony, which directly lowers your costs.

Can I take a loan for my marriage?

Yes, you can take a loan for marriage, a type of personal loan, to cover your wedding-related expenses. At Fibe, you can get an Instant Personal Loan at affordable interest rates that can help reduce your borrowing costs.

Easy Tips to Improve Credit Score

Maintaining a strong credit score is crucial as lenders consider it an important element while extending credit. Why? Well, it provides important insights into your overall financial profile and ability to handle credit.

In case you have a low credit score, enhancing it is crucial to get access to various credit opportunities. Here are more details about your score and some effective tips to improve credit score.

What is a Good Credit Score?

A credit score is the numerical representation of your creditworthiness, and it ranges from 300 to 900. It is generated based on your credit repayment behaviour over a period of time. It is assigned to every individual who has availed of a credit product. A healthy credit score is between 700 to 900, depending on the credit bureau.

Generally, all lenders look at credit scores and credit reports before approving any credit request, be it for a secured or unsecured facility. You should strive to maintain a healthy credit score as it determines your borrowing capability. Maintaining a healthy credit score also gets you a lower interest rate on your instant loan.

Currently, there are 4 credit bureaus in India:

TransUnion CIBIL
Experian
Equifax
CRIF Highmark

Each of these credit bureaus has its own algorithm to assign a credit score to every individual. Here is a table with different credit score ranges, which will help you understand your creditworthiness and chances of credit approval.

Credit Score	Creditworthiness	Probability of Credit Approval
300-600	Very low	Very low
600-649	Low	Low
650-699	Fair	Possible
700-749	Good	High
750-900	Excellent	Very High

Ways To Enhance Your Credit Score

Your credit score stands as an essential indicator of your financial well-being, providing lenders with an insight into how you manage credit. Having higher credit scores leads to easier and speedier approval of credit. It also assists you in securing favourable interest rates and loan terms.

You can enhance your credit score through consistent effort over time. Here are some tips that can help you improve credit score.

1. Timely Repayment of Dues

Your credit score heavily depends on your payment history, and making consistent and timely payments can lead to credit score improvement. The key is avoiding any missed loan or credit card payments. Ensuring timely payments of your loan EMIs and credit card bills enables you to achieve and maintain a healthy credit score over time.

2. Never Settle Only the Minimum Amount

When it comes to your credit card bills, you must either pay the full balance or an amount greater than the minimum due. Opting for the minimum due amount reduces your opportunity to enhance your credit score.

3. Maintain Credit Card Limit Utilisation Below 30-35%

To enhance your credit score, it is essential to keep your credit utilisation low. This is because a lower credit utilisation shows lower dependence on credit. Therefore, keeping your credit utilisation ratio below 30-35% is ideal.

4. Regularly Review Your Credit Report

Consistently monitoring your credit report is a crucial step that helps you to improve your credit score. Checking your report at regular intervals helps you identify any discrepancies or errors in the report. Any such errors can negatively impact your credit score. Therefore, you must report these errors to the authorities as soon as possible. You can also learn to avoid financial habits that lead to a drop in your score.

5. Keep Loan or Credit Card Inquiries To The Minimum

There are 2 types of inquiries:

Soft inquiries
Hard inquiries

Reviewing your personal credit score falls under the category of a soft inquiry. Financial institutions conduct a soft inquiry when assessing you for a pre-approved loan. These types of inquiries do not have any negative effect on your score.

Conversely, a credit card or a loan application initiates a hard inquiry. A lender checks your credit score and makes the approval decision. Hard inquiries that occur on a regular basis can affect your credit score.

Applying for a loan from numerous financial institutions at the same time leaves a negative mark on your credit report. Having numerous inquiries for credit within a brief span can adversely affect your score. Therefore, unless essential, you must avoid exploring a multitude of credit options simultaneously.

6. Maintain a Healthy Credit Mix

Ensure you have experience with a combination of credit products since it influences your credit score. Therefore, having a healthy mix of secured as well as unsecured loans in your past record is key.

7. Check Your Score Before Applying

At times, it is not uncommon to encounter some mistakes in your credit reports, and these mistakes can lead to a lower credit score. Therefore, you must assess your score in advance, as rectifying the report at the last minute is difficult. This can help avoid rejections on your credit applications.

Also Read: Instant loan without credit score

How Long Does it Take to Improve Your Credit Score?

Improving your credit scores depends upon the factors negatively impacting your scores and the measures you are implementing to restore them. Therefore, there is no fixed timeline for improving your scores.

In case you missed an EMI payment, you can boost your score quickly by repaying the due amount. On the other hand, if you miss multiple EMI payments in various accounts, the impact may be deep. In this case, credit score improvement will take time. Therefore, the most effective strategy to elevate your low credit score is focusing on timely repayments and keeping your credit utilisation low.

To conclude, consistently meeting your credit card and loan payment deadlines is essential for maintaining a positive credit score. Having multiple outstanding loans can negatively influence your credit score. Additionally, clearing your dues on time can help you avoid paying high-interest rates.

FAQs on Easy Tips to Improve Credit Score

How can I raise my credit score in 30 days?

To increase credit score in 30 days, repay your dues on time, bring your credit utilisation ratio down to 30-35%, and avoid any new credit card or loan applications. Also, check and monitor your credit report to report any errors that can negatively impact your score.

What is the fastest way to improve your credit score?

The fastest way to achieve credit score improvement is by focusing on making consistent and timely payments of your loan EMIs, credit card bills and clearing other dues. You must also try to keep your credit utilisation ratio between 30-35%.

Can you build a credit score of 700 in 30 days?

Yes, boosting your credit score to 700 in 30 days is possible. For this, you must pay your existing dues and your credit card bills in full. Keeping your credit utilisation between 30-35% is also essential. Also, remember to check your credit report and dispute inaccurate information, if any.

What are 3 ways to improve your credit score?

The top 3 ways to increase credit score are paying EMIs on time, paying credit card bills in full by the deadline and keeping your credit utilisation low.

How to improve your credit score fast?

You can quickly improve your credit score by clearing all existing debt. However, remember that scores take time to improve, and you may want to give yourself around 6 months to see an improvement in your credit score.

Personal Loan Tax Benefits: How to Claim and Save

Getting instant funds on meeting simple terms coupled with personal loan tax benefits makes this option a popular choice. This unsecured financing solution helps you fulfil personal requirements like:

Wedding
Vacation
Education Expenses
Buying a car
Making a down payment for a home

Personal loans are the quickest way to arrange funds when you are in need. Furthermore, understanding the personal loan tax benefits and how to claim them can help you save more on your repayment. Read on for comprehensive knowledge to make a smart decision before borrowing.

Methods to Claim Tax Benefits on Your Loan

In most cases, you cannot claim a deduction on your personal loan as it is not considered taxable income. This includes the principal amount, interest paid and any associated fees and charges.

However, you can get deductions when you need to submit proof that these funds have been used for:

Buying a house
Construction of the house
Renovating your home
Educational purposes
Invested in assets for a business

Only the final use of the loan amount will decide whether the tax should be levied. The loan source will also decide whether the principal amount of your personal loan is taxable or non-taxable. Thus, you can only claim deduction if you apply for a loan from:

A bank
An NBFC
Legally approved financial institution
Fasted Instant loan app of a registered lender

In these cases, your personal loan’s interest will be measured as a liability and is not taxable. However, if you are borrowing from a friend or any other non-professional lending source, it will be considered as your income. In this case, you have to add this amount to your net income and pay the tax as per the applicable rate.

Tax Benefits on a Personal Loan: Three Ways to Qualify

As mentioned above, certain conditions and the final use of the loan amount make it a tax-free borrowing option. Such circumstances are described below.

Personal Loan for Business Usage

If you invest the loan money in your business, the interest on that loan becomes a liability for that business. Thus, paying the interest will be considered an expense of the business. This means the interest amount will be deducted from the business profit. In this case, the entire interest amount will be tax-deductible.

Personal Loan for Buying or Construction of a Residential Property

Under section 24(b) of the Income Tax Act, homeowners are entitled to “Deductions from Income from House Property”. If you use your loan amount for your property, then there will be added tax benefits on the interest. You can use it for:

Home Renovation
Home Purchase
Home Construction

If you invest in your residential property, you can claim an interest deduction of up to ₹2 lakhs under section 24(b). You will need to present the required documents to prove the usage.

Personal Loan For Educational Expenses

Say you have borrowed funds and used them to finance the education of your children, your spouse or yourself. In these cases, the interest paid on education loan used for education is considered tax-exempt under section 80E.

You can also acquire these personal loan tax benefits if you opt for Fibe Instant Cash Loan and access funds of up to ₹5 lakhs. Meet simple eligibility criteria and submit the necessary documents to get your personal loan online. Fibe’s processes are simple, so you can complete the application within a few clicks. To get started, download our Personal Loan App or register on our website.

FAQs on Personal Loan Tax Benefits

Which loans are eligible for tax exemption?

Along with personal loans for certain expenses, education, home and business loans are also eligible for tax exemptions.

How do I get a loan on my income tax return?

You can get a personal loan with your ITR as income proof. All you need to do is submit your ITR copies at the time of application. Be sure to check with the lender to confirm if ITR is an accepted proof for your application.

Can I use my tax return for a loan?

Yes, depending on the lender, you can submit your ITR as valid income proof to avail of a personal loan.

Can personal loan tax benefits reduce my overall tax liability?

There are no particular tax benefits on personal loans. However, you can get tax exemptions on your loan’s interest if you provide proof of your loan amount usage. In such cases, it can reduce your liability.

Can a borrower enjoy tax deductions on personal loan interest?

Yes, you can enjoy tax exemptions if you use a personal loan for buying or renovating property, for education and business expenses.

What Makes Fibe One of the Best Personal Loan Lenders in India

Do you know that it is easier to deal with online personal loans instead of traditional lenders? Online loan lenders may approve borrowers with a wide variety of credit/CIBIL scores. Some may offer both large and small flexible loan amounts. It depends on your borrowing needs. These money lenders online can provide instant funding solutions when you need them.

Searching for a personal loan online is a more effortless rate-shopping experience. You can easily consider and compare many loans offers side by side from the comfort of your home. Many online lenders often offer a prequalification process. You can make loan comparisons without damaging your credit/CIBIL score.

Why Fibe?

Fibe is preferred by employees, young or old. This is because of its smooth disbursal of loans and user-friendly interface. It provides several benefits through a secured online personal loan app. Fibe offers Instant Loans to users with less documentation. They just need to have a salary of ₹18,000 or more every month. Those qualified can apply for loans ranging from ₹5,000 to ₹5 lacs, for rates as low as ₹9 per day. It has also partnered with Amazon and Flipkart for shopping loans too. We have more than 5 lacs happy customers, 1 crore app downloads, ₹5,000+ crores of money disbursed.

Now, let’s look at a few reasons why Fibe is one of India’s most preferred personal loan apps!

Loans up to ₹ 5 lacs

One must opt for a plan that can offer the required sum at a reasonable interest rate. Fibe offers higher loan amounts with no collateral or security.

Rapid Processing Times and Application Process

The quicker the loan gets approved, the better it is for the borrower. Choose a lender that does not delay the process by demanding a long list of documents. Fibe Personal Loan gets sanctioned within a day after the minimal documentation process.

Flexibility of Repayment

Life can throw curveballs any time. Hence, one must choose low credit score personal loan lenders. They will offer the borrower a flexible repayment schedule. Fibe provides Personal Loans that offer the options to increase EMIs with time. It also does not charge any extra fees for the prepayment of the loan.

Attractive Rates of Interest

This is perhaps one of the primary determining factors when picking out a lender. You might find different interest rates on personal loans at different lenders. Some lenders also charge elevated hidden prices like processing fees. Fibe has no comparable overheads with local branches.

Brand Value and Trustworthiness

When it comes to financial matters, the reliability of the lender plays an important role. The applicant needs to verify the lender’s reliability. The lender also does a financial check on the applicant. One must check for online reviews, loan policies, etc., before applying. It is always advisable to stick to the big shots in the market. And, Fibe has always been the best with credibility. We have over 5 lacs happy customers, 1 crore app downloads and ₹5,000+ crores money disbursed.

Type of Lender	Online lender
Loan Amount	Up to ₹5 lacs
Loan Duration	Up to 24 months
Approval Duration	10-20 minutes
Repayment Duration	Up to 24 months
Document	Minimal

Conclusion

Online personal loans offer people significant convenience. It can be used to meet many varied expenses. But one must pick only credible personal loan lenders to avoid a financial nightmare.

Keeping all the above advantages in mind, Fibe stands out from its competitors. It is one of India’s most preferred online personal loan lenders.

Bank Statement: Meaning, Format, and How to Download It

Personal Loan to Cover Your Holiday Expenses

A bank statement shows all the activity in your account over a set period. It includes deposits, withdrawals, charges and your fin[‘xal balance. It also acts as proof of income as it shows salary credits.

You’ll get it as a PDF with your name, account number and bank details. This helps you track your money clearly and stay updated. Now that you know the bank statement meaning, here are a few more things you must know.

Features of Bank Statements

Your bank statement does more than just list transactions. It helps you understand your money better. Listed below are some common features of bank statements:

Detailed transactions: Shows all deposits, withdrawals and payments made during the selected period.
Current balance: Lets you check your account balance at the end of the statement cycle.
Interest and charges: Lists any interest earned and fees charged by the bank.
Auto-categorised entries: Helps sort your transactions into groups like shopping, bills or travel for easy tracking.
Easy money tracking: Gives a clear view of how your money is used so you can manage it better.

What Are the Benefits of a Bank Statement?

The purpose of a bank statement is to summarise all bank account activities within a certain period. A few benefits of a bank statement include:

You can easily review all transactions in your bank account
Lenders like Fibe need you to submit a bank statement PDF to apply for a personal loan or an instant cash loan
Credit card firms and banks also need bank statements to validate your loan application
If you apply for any mortgage, credit or financial help, you must submit your bank transaction details for income and employment verification

A bank statement is a key document for many financial services. It shows your income and spending clearly. If you’re applying for a loan, you can use it to show your salary credits. That’s why knowing what is bank statement and how to use it is important.

Importance of Bank Statement

A bank statement is more than just a record, it can be used as a financial tool. Here’s how it can help you:

Track your money: Helps you see where your money comes from and where it goes
Spot errors quickly: Makes it easy to catch mistakes or any unusual activity
Support smart planning: Gives insights to help you save, invest or manage your debt better
Build better habits: Regular checks help you stay in control of your spending and plan ahead

Simply put, your bank statement keeps you informed. This makes you well-equiped to make better financial choices.

How to Get Bank Statement Online and Offline

Getting your bank statement is easy, whether you prefer going online or visiting the branch. With net banking and mobile apps, you can log in anytime and download your statement in just a few clicks. If you prefer a printed copy, you can still visit the bank and request one.

Once you download the bank statement PDF, here’s what you’ll find on it:

Statement cycle: Shows the date range the statement covers
Account details: Includes your name, address and account number
Bank info: Lists the bank name, logo, contact numbers and help desk details
Transaction history: A full list of deposits, withdrawals and payments
Account summary: Starting balance, total credits and debits, and closing balance
Transaction dates: Dates when each transaction was processed
Credits and debits: All amounts added to and deducted from your account

Understanding these details can help you keep track of your spending, plan better and spot any issues quickly.

Also Read: is it safe to send bank statements

How to keep your bank account statement safe?

If you receive your bank statements by mail, keeping them for about one year is safe. However, if you can access your bank statement digitally, you don’t need to save them. This is because, for most banks, you can download and print these statements even after 1-3 years. You can also contact the bank for physical copies if you need older bank statements.

If you wish to apply for a loan, you will need to submit a bank account statement as proof of income. Choose Fibe to avail of an Instant Personal Loan ranging between ₹5,000 to ₹5 lakhs in just a few minutes. Download the Fibe Personal Loan App or register on our website to apply for it.

FAQs on Bank Statements

1. Who can get my bank statement?

Bank account statements are private documents, so you are the only person who can get your bank statement by any legal means.

2. What do credit and debit on a bank account statement mean?

Credits are the funds your bank account receives, while debits are funds deducted from your bank account.

3. Can a bank account statement be used as an address-proof document?

Yes, according to the UIDAI (Unique Identification Authority of India), your latest bank statement is among the documents accepted as valid proof of address.

4. Can a bank account statement be used as proof of income?

Lenders consider your bank account statement of not more than three months old as proof of income, given that the statement comes from the bank where your salary is deposited. Hence, you can use a salary statement from bank to apply for a loan.

5. Do bank account statements work when applying for a passport or visa?

Yes, you can submit your bank statements as proof of address when applying for a passport. For a visa, too, you have to submit a bank statement.

6. Can I get a bank account statement without a balance?

Yes, even if you don’t have a balance in your bank account, you can still download a bank statement PDF through your bank’s digital banking services.

7. Can I get a bank account statement without transactions?

A bank account statement contains more than just the record of transactions you made within a specified period. So, you can still request a bank statement even if you have not made any transactions within that time.

Why we ask for your Bank Statement and the easiest ways you can get it

Are you wondering why we need your bank statement and how you can get it? Fibe asks for your bank statement to provide personal loans and make the process simple. Read on to know more.

How we make use of bank statements

Our assessment engine goes through your bank statement to assign you the best possible cash limit. This helps you pay your EMIs comfortably and boost your score simultaneously.

Your safety first

Fibe is ISO/IEC 27001 certified and offers you a PCI DSS App-based journey for better data security. You can get cash up to ₹5 lacs in minutes — the transactions are highly safe and encrypted.

Avoiding mistakes when sharing your bank statements is key

Did you know these common mistakes when sharing your bank statements can delay your loan approval? Make sure you avoid the following:

Sharing scanned images of bank statements
Sharing mini statements, salary slips, or MPassbook instead
Sharing the wrong or no password for the bank statement PDF
Not sharing the complete bank statement for the last 3 months

Here’s how you can share bank statements error-free

To ensure you share bank statements correctly the first time around, keep the following in mind:

Share the original PDF as you receive it from the bank
Make sure you share PDFs of your salary account
Give the correct password for the locked PDF
Ensure the bank statement reflects your salary credits for the last 3 months

3 easy ways to share your bank statements

Upload the bank statement PDF

Most banks email bank account statements to your registered email address every month. You can share the same with the protected password while applying for the loan. You can also get the bank statement from your bank’s mobile app.

Fibe app helps you to access your bank account using Net banking option. Our systems will automatically fetch the required details keeping your information safe and secure.

To use Anumati to share your bank statements, follow these steps:

Choose Online -> ‘login to Anumati’ on our app while sharing bank statement
You will be redirected to Anumati’s platform
Log in with the mobile number, registered with Fibe and your bank a/c
Once logged in, select bank name and consent for sharing bank statement with Fibe.

Anumati is an account aggregator that allows you to share your bank statement safely with Fibe. It is a service offered by Perfios Account Aggregation Services Pvt Ltd, an NBFC-AA that the RBI licenses.

Anumati cannot access or store your data. All it does is allow you to log in to Netbanking securely and conveniently on the Fibe app itself.

To use it to share your bank statements, follow these steps:

Choose ‘login to Anumati’ when submitting your bank statement
You will be redirected to Anumati’s platform
Log in with the registered mobile number with Fibe same as your bank a/c
Once logged in, select bank name and consent for sharing bank statement with Fibe.

Now that you are in the know, you can share your bank statement to process your application on Fibe hassle-free.

Join the Fibe community:

15 lac+ happy customers | 40 lacs+ bank statements securely processed | 50 lacs loans disbursed

Steps to get your bank account statement

A bank statement, also known as an account statement, is a document issued by a bank. This document provide details of your banking transactions in savings or current account for a specific period. It also helps you keep track of your transactions and accounts on a daily basis.

With a bank statement, you can quickly check your current account standing, any suspicious activity and if there are any errors listed. In addition, reviewing the banking transactions regularly helps you track your spending habits and notice patterns for better budgeting.

Furthermore, bank statements are required as a mandatory document when applying for any loan. This helps the lender understand your financial profile and whether you have a regular income source or not. In some cases, it can also dictate your financial habits, and with the bank statement, the lending institution assesses your repayment capabilities. Before knowing how to get a bank statement, you must understand what is included in a statement.

Here are a few details of what you get on a bank statement online:

Your name and the account number
Your address
The period for which the statement is generated
Customer service number of your bank
All banking transactions for the chosen timeline including debits and credits
Opening and ending balance for the selected period

There are two modes of getting your bank statement — offline and online. If you opt for the offline mode, you have to visit the branch personally and submit a requisition letter to get the statement.

You may receive the statement immediately in hand or by post to your registered address. However, to easily check your statement at any given time, you can choose the online option. To know how to get an online bank statement, read on.

There are several ways to obtain a bank account statement:

1. NetBanking and bank apps

The simplest answer to the question, ‘how can I get my bank statement online?’ is to use your bank’s mobile app. If you don’t have the app or would prefer not to use it, you can sign in through netbanking on website. Both allow you to access your bank statement online.

Let’s understand the general guide to access the information.

Login or perform a one-time registration on your bank’s NetBanking portal
Search for options like ‘Download statement’ or ‘View transaction history’
Select a date range to generate the bank account statement and click ‘Download’, ‘Send PDF or ‘Send on my registered Email.’

Receive the account statement in your mail as an encrypted PDF or get the option to directly download the PDF

2. Check your registered email id

It helps to know how to take a bank statement online in more ways than just one. Your other option is to check your registered email. Banks often send regular summaries of your account or even a consolidated statement every month. Here is the process to check it.

Log in to your email account registered with your bank
Search for terms like ‘Bank statement’, ‘account statement’ or ‘transaction summary’
Receive regular emails from the bank consisting the bank statements in a password-protected PDF format
Download the file and make sure to decrypt it or include the file password while uploading the statement elsewhere

3. At the ATM

Knowing how to get an online bank statement through the ATM is important because it is very simple and can be done by anyone.

Below are the steps:

Visit your bank’s nearest ATM with your debit/credit card
Enter your four-digit PIN number
Select the option ‘Get mini statement’ or ‘Print mini statement’
Receive a printed copy of your account’s mini statement

How to check a bank statement online?

Follow these simple steps to check your bank statement online:

Step 1: Log in to your bank’s website or application using the ID and password
Step 2: Select the period for which you want to check your account transactions
Step 3: Click on the ‘Get Statement’ option
Step 4: View the statement on your screen and check for all the debit and credit transactions

You can alert the respective financial institution if you notice any error or discrepancies in your bank statement. Now that you know how to get an online bank statement, check it regularly to ensure that your finances are accurate. Apart from tracking your expenses, you may need to submit your bank statement when applying for a visa.

Most banks now provide online bank statements, making it easier for you. However, note that banks maintain a limit of 7 years to retain your bank transaction statements. So, you should file these statements either physically or digitally.

Here are a few direct links to obtain a PDF account statement from popular banks:

Canara Bank Net Banking	State Bank of India	HDFC Bank
Axis Bank	ICICI Bank Personal Banking	Bank of Baroda Net Banking
PNB Bank	Bandhan Bank	HSBC Online Banking
Indian Bank	Central Bank	Union Bank e-statement

Bank statements provide a clear overview of your financial activity. Not only does it help monitor your spending but it enables you to be mindful about your finances. This way, you can reach your planned financial goals.

If you are planning to avail of a personal loan at affordable interest rates, Fibe is the solution for all your financial requirements. With minimal documentation and quick approval, you can apply online at Fibe!