Financial Wellness: Why Should You Care About It?

Like physical wellness, financial wellness should occupy a central place in our list of life goals. Unlike physical wellness though, it is often ignored or taken casually by people. According to research, with 69% of workers being stressed about their finances and 72% worrying about their finances at work, it’s not hard to see why financial wellness is a serious topic to discuss. It is also proven that an employee who maintains a balanced financial life will be more productive and more focused on their work.

Financial wellbeing or wellness is a person’s overall financial health and the absence of money-related stress. It refers to how secure your money is. It’s an integral part of overall employee wellbeing, consisting of physical, mental, and financial wellness.

Generally, financially healthy people have the following four elements in place:

  • Their income covers their costs and permits them to handle their debt repayments
  • They have reserve funds for monetary crises or emergencies like basic home repairs, medical charges, or job misfortune
  • They save and look forward to long-term monetary objectives 
  • They have the liberty to choose for themselves and enjoy their lives

Financial wellness can be classified into three major types:

1. Financial health

Financial health describes an individual’s financial situation involving several dimensions: savings of your employees, fixed expenses, and how much he tends to save in a month

Sound financial health indicates a steady flow of income, a few transactions in investments with solid returns, and a steady cash balance. Fibe can help improve your financial health by budgeting, building a contingency fund that can be used in case of emergencies, and paying off your debts as soon as possible.

2. Financial behavior

The financial behavior of an employee is his attitude towards his financial situation. It involves successfully managing finances to achieve both short-term and long-term financial goals. Fibe helps you control your finances and face a financial shock. We also help organizations to incorporate financial wellness programs. This can improve the employees’ financial behavior and give them a feeling of care.

3. Financial literacy

Financial literacy can help you impart financial education to the employees. This will help them learn skills, which will help them achieve financial stability, lower their financial stress, and improve their financial health. In addition, this will boost their confidence in money matters, debt management, preparation and planning for retirement, etc.

Since the employees will be under less financial stress, this will reduce absenteeism and reduce the organization’s health care expenses. It will also increase employee retention and their output in the organization.

Why should you care about financial wellness?

  • Imbalanced finances could be stressful

Money can be a constant source of stress for people these days. Worrying about finances can result in health issues for employees, varying from depression and anxiety to ulcers and even heart problems. Some respondents said they thought about skipping or did skip doctor visits because of financial concerns. Fibe helps reduce the employees’ financial stress. It can lead to a healthier and happier workforce, leading to higher productivity. 

  • Managing finances takes time

Managing finances is both stressful and it’s time-consuming. Employees bring their worries into the workplace when they can’t control their financial health. Some employees even miss work due to money woes or financial emergencies. It is found that lack of sleep, financial concerns, and family members’ care are negatively associated with productivity. When they worry about their financial wellbeing, they lose focus and become less productive at work. The organization must take care of their employees’ time management, helping them manage their financial wellness.

  • Employees want support

Employees nowadays want their managers to help support financial wellness and want financial planning benefits. In addition, they want to avoid financial stress since it leads to increased absenteeism, presenteeism, and illness, affecting their productivity. Therefore, Fibe helps improve employees’ financial wellness.

  • Financial wellness improves engagement

Employers should provide cost-of-living to their employees, especially to lower-paid employees. Employees who receive this are 15 percent more engaged, on average. They may alleviate their stress, allowing them to work with focus.

This gesture also shows the employees that the organization cares about them, inspiring loyalty and motivation. And when they feel so, they’re 38 percent more engaged. So, investing in financial wellness boosts the overall wellbeing of employees, increasing their health, productivity, and engagement.

Enabling Financial Wellness & Financial Wellbeing

It is very challenging for any organization to formulate a financial wellness program that fits the bill for all employees. Learn more about some strategies to make an excellent Financial wellness program by connecting to Fibe. We can take care of all of your organization’s financial wellness needs.

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How Important is it for HR to Understand Finance?

HR’s passion for employee welfare and finance’s love for financial metrics in an organisation aren’t two distinct functions operating in different universes. The two departments co-exist and function together along with sales, production, marketing and other departments. While HR is tasked with hiring and training the production force, it requires digesting quite a lot of financial information to yield efficiency in its day-to-day operations. An increasing number of organisations are realising the importance of HR and Finance working together. According to an EY Global Survey:

  • 80% of Chief Finance Officers (CFOs) and HR leaders hold that working together leads to better performance.
  • Companies that are high-performing spend 50% more time to better integrate HR and Finance. 

Another study revealed some compelling stats about where the wind is blowing in the corporate sector with respect to the C-level, IT, Finance and HR. Of the total number of respondents:

  • 35% of the participants were planning to introduce a shared HR and Finance function within a year.
  • 46% of the participants from HR and Finance found their collaboration improving significantly.
  • While 42% of the participants saw a considerable increase in productivity and performance.   

The Interdependence: Marriment of Finance and HR

HR and Finance, in an organisation, don’t operate in watertight silos where one is disallowed to invade the operations of the other. The majority of the roles are either overlapping or interdependent when it comes to HR and finance, besides their conventional well-designated functions. For instance, recruiting and hiring involves a considerable number of procedures that add to direct and indirect costs whereas payroll management requires the combined focus of both of them. The data collected by Finance becomes the input for HR to make sound decisions for employee satisfaction and profit maximisation which in turn impacts financial statements. 

The primary task of any HR department is to deliver results for the maximisation of the efficiency of the personnel. This is possible only when HR is fully integrated into the business process and is involved in the financial aspects of the business. 

Why the Metrics Matter for HR? 

John Love, Executive Vice President at TML Group posited a great insight on the HR-Finance marriage: 

“If HR professionals want to move up into senior management roles and make a difference as a partner in the business, an understanding of finance and accounting is essential.”

HR professionals seeking to understand the language of business, i.e. finance also learn what revenues drive their company and what costs tether it. HR people need to be a business person before they become an HR leader. A report released by the Human Resources Professionals Association(HRPA) and Knightsbridge Human Capital stated the viewpoints of top CEOs. As per them, even though senior HR executives stand on equal footing by contributing valuably and acting as trusted advisors to the firm, they often fall short of understanding the actual business challenges. Left on their own, HR is incapable of understanding the cost implications of a program while Finance may grow inconspicuous of its impact on workplace demographics. 

Jerry Curtin, Director of human resources for Standard Process Inc. remarks, “When HR can validate benefits investments with real metrics, finance is beyond happy.” 

Sharing of Data: Shared Goals

HR and Finance both need to have control over the employee data to understand key factors impacting their capabilities, such as:

  • Employee absenteeism
  • Employee turnover
  • Payroll
  • Common business-wide system engagements

Having different sets of data sources can prove fatal to their missing opportunities leading to a lack of efficiency. Once available, real-time financial analytics can help HR to be able to offer competitive salaries and benefits. Experts cite a collaborative approach to data sharing as a powerful tool to encourage integration. HR expert Cristine Sauter confirms the same, “HR and finance can create incentives that reward exemplary work while increasing morale, production and customer satisfaction… all of which have a huge effect on the bottom line and profit.”   

Tackling  High Employee Turnover

Employee retention is a common ground for both HR and finance to save on indirect costs of recruiting again and again. And high employee turnover is a big issue bothering businesses today.  Organisations can suffer losses between 30% to 200% of an employee’s salary each time they replace an employee. Recent findings have shown that 80% of the employee turnover is due to bad hiring decisions which are a direct result of mismatched communication between the two departments.

Optimising Costs

In cases where the largest spend is on human capital, it becomes pertinent for HR and Finance to balance cost management along with attractive programming. Working together, they can control the indirect costs involved in recruiting, hiring and training new employees. Moreover, they can bring in incentives to reward exemplary performance to boost the morale of employees, thus increasing productivity and ultimately customer satisfaction. Obviously, customer satisfaction affects sales and profit. Profit is what drives the business operations and is the common goal of all the departments.  

Planning Strategies

To quote statistically, 84% of the value that a business holds is contained in its intangible assets – the people and their ideas. While HR is well-positioned to manage those assets from the people’s perspective, understanding financial metrics can facilitate their progress better.  Working on shared goals helps avoid duplication of work and conflict among the departments leading to poor productivity and low engagement. When collaborative planning sets in, open communication pervades leading to better coordination of operations. An organisation fluid in its operations is better positioned to tackle competition. 

Management is an all-pervasive activity. The good news is that HR and Finance are working towards finding a common functionality to support each other and in turn, add to the organisational goals. To close the case, Effective use of capital, greater revenue and cutting on costs should be the main aim of HR and Finance. As of now, HR just needs to talk and understand numbers to woo Finance into working together. 

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HR and Finance: Working Better Together

The conventional function of HR, being people-centric, makes it more of a front-office function juggling with minds and ideas. While separated from HR, Finance controls the figures and numbers at the back-office end. This divorce between two essential functions in an organisation slows down processes impacting the business’s ability for growth and adaptation. Peter Spence, associate technical director at the Association of International Certified Professional Accountants comments, “The way that most firms are structured are along silo lines, so you are starting from a bad place.” 

For a considerable time, HR and Finance have been two very distinct strategic functions vying for the same set of organisational goals. Finance seeks to allocate resources for such goals, while HR helps recruit, hire and educate people towards achieving such goals by utilizing the allocated resources. It is, therefore, critical for any organisation to understand that the motivation behind the two functions is the same. Several factors including competition, the complexity of operations, and automation in businesses have brought in opportunities for the two departments to sync their efforts and statistics into an incentive-focused working across HR and Finance teams. 

Currently, the wind seems to be blowing in the right direction. A Research from Oracle and MIT Technology Review, Finance and HR: The Cloud’s New Power Partnership stated that 35% of the respondents surveyed were planning to form a shared Finance and HR function within a year while 46% of the respondents felt that the collaboration between the two departments had improved significantly. There has never been a more favourable time for the two to work towards a robust strategic alliance as businesses evolve and automation sets in. 

Considerations Involved

A firm before employing a collaborative solution for HR and Finance needs to ask itself a few questions to decide the scale and scope of shared activities: 

#1 What is the primary focus of the organisation? 

It is important for the departments to first understand how the organisation earns its revenues and how the money moves within the organisation, especially for HR. Once HR and Finance understand where and how they contribute to these activities, they would be able to develop a more effective collaboration. Jerry Curtin, director of human resources for Standard Process Inc., confirms the same, “When human capital is the single-largest spend, it takes the collective effort of HR and Finance to balance cost management with attractive programming.” 

#2 Do the departments understand each other’s functioning?

For HR it is important to understand the financial aspects involved to run a business and to have a grasp on areas such as: 

  • Budgeting and profitability management
  • Understanding of financial statements

For Finance the areas worth investigating include:  

  • Hiring and recruiting costs
  • Compensation
  • Benefits
  • Workforce planning initiatives such as financial wellness programs, training, and development. 

The overlapping functionalities are the areas where HR and Finance need to work on. The senior leadership must lay emphasis on coordinating data with each other before taking policy decisions. HR decision-makers well aware of the real-time financial reports are able to quickly determine the number of sales professionals they can afford to hire, with what skill-set and what compensation package.  

#3 Does your current infrastructure support the integration?

Traditional business firms still tend to stick to the obsolete systems where HR and payroll records are considered a separate function from Finance. Finance is forward-looking and HR looks at the past trends and their impact. Both of them use different systems. HR professionals and CFOs need to determine whether their current system requires a complete overhaul, or whether minor changes in the setup would be enough to bring in the required agility in business processes. 

#4 Has your workforce got the right skills?

Whether or not the employees are ready to accept this change is another important issue. Once reconciled, the employees need to be trained to employ the new practices and technologies put into place for HR-Finance integration within the organisation. 

The ‘Touchpoints’ of Integration 

The workforce of any organisation is its greatest asset and HR’s role in managing it is quite an expense. Therefore, the collaboration between the one managing the expense (Finance) and the one incurring it (HR) is quintessential for better performance. The collaboration can be worked upon in a number of functions such as payroll management, human capital forecasting, recruitment and training, skill assessment, employee turnover risks, and finally, developing shared analytics and resources to make plans in the short and long term. 

Organisational Benefits

HR and Finance Integration can strategically transform businesses in a two-way equilibrium once they start speaking the same language. While the firm earns a return on investment, it saves on valuable resources via useful insights and better productivity. HR can analyse the past trends and compare them to the current stats to evaluate and revise its decisions. Data sharing eliminates duplication of work and mismanagement issues like HR hiring employees without informing Finance or else, Finance planning budget cuts without discussing the case with HR. 

Also, as employee turnover and absenteeism decline, employee morale is boosted and the goodwill of the firm is ensured. Financial Wellness programmes being employed by organisations these days are a direct attempt where HR and Finance come together for the workforce. Employee morale, profit maximisation, and customer satisfaction can be the long term pros of HR-Finance integration. 

HR and Finance need to focus on workforce engagement as the key indicator of performance. Disengaged employees add to costs, lessen productivity and push up turnover stats. HR-Finance integration can solely be achieved by an in-depth understanding of the shared financial metrics to facilitate sound communication between the two. At the given rate of technological development and automation, it is only feasible for HR and Finance to sort their differences and move together in the same direction to give their best to the organisation.

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This Father’s Day, Be Your Dad’s Financial Hero

Dad, Papa, Padre, Baba, Pére: there are hundreds of words we call one of the most influential people in our lives. Fatherhood and paternal bonds are honored on the third Sunday of every June. This year, we will celebrate Father’s day on the 20th of June.

Parents are the pillars used for development in our live. For most children, fathers set the bar for relationships with other people, and we all look up to our Dads. Their influence on our lives and in society is astronomical. A father’s first and foremost priority is to provide the best they can for their offspring, no matter how challenging the circumstances are. They work hard to shape and mold the future for their children. Be it emotional, mental, or financial support; they give it their all to take care of us. Words aren’t enough to describe their importance in our lives. There are truly #NoneLikeDad.

Fathers keep pushing themselves to provide the best life for their children. Their hard work deserves rewards as well. As children, we all want to pay back our parents for the life they have provided us. Our dads have always been our heroes, so what can we do to make our heroes’ lives comfortable?

This Father’s Day, it is time to become our fathers’ financial heroes, as well. After all, they deserve nothing but the best for being such awesome dads!

Ideas for Father’s Day

For the timeless bond you share and cherish with your father, here are some financial contributions you could give to show your love and support!

1.Get Health Insurance and Check-ups

Every child wants their father to be fit, healthy, and live a long and fulfilling life. However, health issues are unavoidable. Therefore, one of the most thoughtful decisions is to purchase health/medical insurance policies for your dad to meet rising healthcare costs.

Precaution is better than cure. Numerous factors could cause illnesses, so it is crucial to undergo preventive health checkups, especially for people above 35. You can consider taking your dad for regular and timely healthcare checkups; after all, health is wealth.

2. Take a Holiday package

To bond with your dad and unwind with your family on Father’s day: there’s nothing better than a relaxing holiday. If you plan it well in advance, you are sure to get some good deals. You could select and plan a holiday that suits your budget, and Fibe offers you attractive loans to help you make this grand gesture a roaring success. The loan won’t affect your finances or investments assigned to other goals. You will also get a two months moratorium period to repay the loan. Fibe offers loans and low-cost travel EMI‘s on MakeMyTrip and Yatra.

3. Give an Add-on credit card

An add-on credit card is a good choice as a gift option for your father. It enables your family members to enjoy all the benefits you get from your primary credit card. This credit card will have a set limit, just like any other credit card. However, it can be a handy investment on your end so that he can shop to his heart’s content and even be helpful in emergencies.

4. Get him a ME fund or fixed deposit

You can get your dad a ME fund. In this fund, he could save and use it however he wants. The ME fund lets him decide what to do with the money. If you take a mutual fund SIP for him, he doesn’t get to make the decisions. But he’ll be liberated from your choices with a ME fund, as every deserving father should be. 

Fixed deposit is also an ideal option if you wish to not invest in market-linked avenues. Since it’s the safest investment, you could easily open a fixed deposit account for your father, offering him the crucial financial freedom to show that you care about his needs.

5. Make Investments on his behalf

While you are investing in various avenues, doing the same on your father’s behalf can be extremely rewarding. Be it mutual funds, stocks, bonds, corporate deposits, or investment trusts, multiple options are available that can eventually help in building a financial safety net whenever the need arises. 

6. Buy Shares/ stocks for him

If you have a Demat account, this could be a possible contribution for your father. Quality shares or stocks can give him good returns. This can also help extend your relationship from simple emotional support to crucial financial support as time passes.

7. Buy him Gold bonds

Buying gold is considered an auspicious affair, but we know most men aren’t fans of flashy jewelry. So instead, you can give your dad gold bonds which are just as valuable, sans the glitz and glamour. Sovereign gold bonds are an excellent option for gold investments.

8. Set up Emergency funds

You should always be prepared for unforeseen events; it is an integral part of financial planning. Setting up a contingency fund ensures that you and your family are backed by financial stability. But, of course, this contribution can be kept as a secret.

If your dad doesn’t already work with a financial professional, you could always introduce him to one. They might be hesitant at first, but sitting down and having an elaborate and calm discussion often does the trick. This is because you share an unbreakable bond of trust with your father, and deep down, there is an understanding that everything you suggest is for his well-being. The financial advisor will help your father manage his financial portfolio and help him with his retirement goals.

Here are some finance-related gift ideas for your dad

Gift your father books related to finance since financial literacy is a relatively new and underrated topic. There are tonnes of books available to make him a financial expert. You could also play board games of the stock market with him to educate him on the topic and help him start his investment journey to make him more financially independent for the future. Gifting him a wallet with a picture of you two is a great, emotional, and touching gift as well. The possibilities are endless- you just need to pick what works best for you.

We hope that by assisting your father through these means that you become his Financial Hero. You can also introduce him to EarlySalary for tips on financial management, investments and help him build a secure financial future effortlessly!

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How Instant Personal Loan Triumphs Over Credit Card Loan

A financial catastrophe can strike anyone at any time. However, to keep one’s goals and requirements from being harmed, people often seek financial assistance in loans and credits. 

Credit card loans and instant personal loans are the most common financial aid. They have no end-use restrictions and can be used for various personal or commercial purposes, including wedding expenses, house renovations, and vacations.

In this article, we will explain why instant personal loans are better than credit card loans. But, first, let us understand what instant personal loan and credit card loan are:

Instant Personal Loan

An instant personal loan is an amount of money obtained from a bank, credit union, or online lender that can be repaid overtime on a customizable EMI schedule. There are two sorts of personal loans: secured and unsecured. Secured personal loans require you to pledge valuable tangible assets as collateral to guarantee repayment and have a lower interest rate. In contrast, unsecured personal loans do not require collateral and can be used for anything.

Credit Card Loan

A credit card loan is a pre-approved loan that doesn’t require any paperwork. It is the quickest way to get unsecured credit. A credit card loan is not the same as a cash withdrawal.

When you’re in desperate need of cash, a credit card loan can help. Customers with credit cards can take out a loan against their credit limit. Customers can acquire a loan amount in the form of an increased credit limit or use unused credit to receive a loan amount. The extended limit is credited to the card after the loan is approved.

How Instant Personal Loan Triumphs Over a Credit Card Loan

Personal loans are usually preferable for more extensive, longer-term expenses. Credit card loans are known to have higher interest rates than instant personal loans; holding a balance on a credit card for an extended period of time can be expensive. Here are some reasons why instant personal loan triumph over credit card loan

A better choice for long term expenses

Credit card loans can be taken out for shorter periods, on the other hand personal loans are often for more extended periods.

A better option for an enormous loan amount

A credit card loan is a good alternative if you only need a small loan, whereas personal loans allow you to take out a large loan.

Less documentation 

Thanks to the digital revolution and digital money, instant personal loan processing has become much easier and less time-consuming than in the past. Your instant personal loan is granted in minutes after you submit only the most basic documentation. Then, the disbursement takes place quickly in seconds for approved consumers.

Interest rates that are both attractive and low

It’s now much simpler to find the best personal loan interest rates. This is one of the most appealing aspects of instant personal loans on the internet. Fibe is unique in that it provides the most attractive personal loan interest rates based on your credit score, even if you don’t have one. Furthermore, your interest rate is fixed for the entire duration of your loan and is not subject to change. As a result, you need not be concerned about interest rate fluctuations.

The personal loan EMI calculator on Fibe (formerly EarlySalary) is a dependable tool for calculating your loan EMI in only a few minutes and with a few simple steps. First, calculate your monthly repayments based on your sanctioned loan amount and interest rates using this simple and easy-to-use EMI calculator. You can also prepay your loan amount using Fibe without incurring any additional fees.

Conclusion

Personal loans provide significant advantages over credit card loans, including reduced interest rates and consistent, equal payments until the debt is paid off. In addition, the predictability makes budgeting easy, and you’ll know exactly when you’ll be debt-free. With this, our article comes to an end; hopefully, it has helped you understand how instant personal loans are better than credit card loans.

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Loan Without CIBIL Score – Instant Approval & Fast Online Process

You can get an instant loan without CIBIL by showing strong income stability, clean bank statements or applying with lenders who use alternative checks. Many digital lenders offer an instant loan online without CIBIL if you meet basic criteria. Fibe allows you to get loan without CIBIL with quick approval.

Getting an instant loan without CIBIL is possible, even if you have never taken a loan before. Many lenders today check your income, bank statements and financial behaviour instead of relying only on your credit score. This makes it easier for first-time borrowers to get a loan without CIBIL score or a long credit history.

Read on to understand how you can improve your chances and apply smartly.

What Does ‘Loan Without CIBIL Score’ Really Mean? 

Having no credit score means there isn’t enough borrowing history for lenders to understand how you repay loans. Credit bureaus like CIBIL, Experian, and Equifax label this as ‘No Score’, ‘NA’, or ‘NH’ when you have never taken a loan, never used a credit card, or your past credit activity is too limited.

It does not mean you are a risky borrower. It only means there is no data yet. You can still get a loan without CIBIL score, as lenders look at other factors like your income, bank statements and repayment capacity to decide if you qualify.

How to Get an Instant Loan Without CIBIL Score?

When you apply for an instant loan without CIBIL, lenders look at other ways to understand how reliable you are as a borrower. Here’s what they will usually check and how you can improve your chances:

  • Stable income: Lenders want to see that you earn regularly. Salary slips and bank statements help prove that you can repay the loan on time.
  • Clean bank behaviour: Regular salary deposits, no cheque bounces and controlled spending patterns make you look financially responsible. It builds trust even without a credit score.
  • Lower loan amounts: If you have no score, lenders may approve smaller amounts first. Once you repay on time, your loan limit increases for future borrowing.
  • Explain NA/NH status: NA or NH means no credit activity in 24-36 months. You can clarify this to the lender, especially if you recently started earning or have never taken credit before.
  • Improving financial discipline: Paying your bills, rent and EMIs on time and avoiding overdrafts shows that you manage money well. This can build trust with lenders even if you don’t have a solid credit score.

Options to Get a Loan Without CIBIL or Credit Score

Here are the easiest ways to get a loan without CIBIL score and income proof:

  • Digital NBFCs: These lenders use your income, spending habits and bank statement trends instead of a traditional credit score. Their digital checks are quick, so first-time borrowers can get a loan without credit score more easily.
  • Secured loans: Gold loans, loans against FDs or insurance-backed loans are simpler to get because the lender has security. This lowers their risk and helps you apply for an instant loan without CIBIL score and history.
  • Peer-to-peer (P2P) lending: P2P platforms connect you directly with individual lenders. Their approval rules are more flexible.
  • Co-applicant loans: Adding a partner or family member with a good credit score can strengthen your profile. Lenders feel safer, which increases your approval chance and loan amount.
  • Guarantor-backed loans: A guarantor with a strong credit track record acts as an extra layer of assurance. If they qualify, your loan is likely to get approved even if you are new to credit.

Key Risks of Taking a Loan Without CIBIL or Credit Score 

Before applying, keep these risks in mind when taking a loan without credit score:

  • Higher interest rates because lenders cannot assess past repayment behaviour
  • Lower loan amounts since first-time borrowers are treated as higher risk
  • Strict income verification as lenders rely more on salary and bank data
  • Instant rejection if your bank statements show instability or cheque bounces

Getting an instant loan without CIBIL score is completely possible today. The key is to show stability through your income and bank behaviour. Always look out for lenders that offer loans without strict credit score checks and understand the risks and borrow only what you can repay comfortably.

If you’re looking for reliable leaders, Fibe offers up to ₹5 lakhs as an instant loan even if you are new to credit. You can repay comfortably with a tenure of up to 36 months with no foreclosure charges.
Just download the Fibe instant loan app to get started! 

FAQs on Personal Loans Without a Credit Score

Can I get a loan without CIBIL?

Yes. Many lenders offer an instant loan without CIBIL based on income, bank statements and employment stability rather than credit history.

Is it possible to get a loan without credit score and income proof?

This is possible with only secured loans like gold or FD loans. For unsecured loans, lenders will need some income proof or bank data.

What is the minimum eligibility for a loan with no CIBIL score?

You must meet the lender’s basic income criteria and show stable banking behaviour. Each lender has different requirements, but steady income and clean statements can improve your chances in most cases.

Will a loan taken without CIBIL affect my future credit score?

Yes. If you take a loan even with no existing CIBIL score and repay EMIs on time, it helps build your credit history. And if you miss payments or default, that will hurt your credit score like any other loan.

Things to Know before Applying for an Instant Personal Loan

Personal loans can help you through some of the big purchases in your life while saving on interest rates and a lot of related hassle. Not surprisingly, reports suggest that the demand for personal loans has been increasing in the past couple of years. People generally avail of this facility to finance a home improvement, the next big trip, etc. Here are some questions you must ask yourself and pay attention to before applying for an instant personal loan.

#1 The Amount You Need

The first step while taking any loan is to know how much money you’d need. Depending on what you need and how much you need, you can calculate the amount with the personal loan calculator at Fibe – which clearly indicates your expected EMI, interest costs and many more.

#2 Account Where the Loan Amount Needs to be Credited

If you are availing of a personal loan to pay off a consolidated debt, you can have the amount transferred directly to your accounts. However, usually, banks transfer the amount to your checking account.

#3  The Repayment Tenure that Works for You

Once your loan application gets approved and you have received the amount, you’ll generally have to start paying the monthly instalments back within 30 days. The amount you decide to pay monthly and the interest depends on the time you have taken the loan for.

However, Fibe offers an Instant Personal Loan online within ten minutes. You can check your eligibility on the application, get your documents approved in no time and the loan amount will be deposited into your account in no time.

#4  The Interest Amount

The interest rate for personal loans relies on factors like your credit score, loan amount, time for repayment, etc. If you have a good credit score and you choose the shortest repayment term possible, you’d get the least interest rate on your loan.

#5 The EMI Amount

New modern ways of availing of a loan offer you the chance to choose what kind of repayment plan would work best for you. Depending on the level of your income and the cash flow, you can choose your repayment plan. Sometimes, lenders may provide you with an incentive if you choose the option to autopay.

Generally, people choose to make their monthly payments as low as possible to pay the loans back over a more extended period of time. For shorter repayment periods, the monthly payments are generally high. 

But choosing more extended periods of repayment comes with high-interest rates. And choosing shorter periods of repayment comes with low-interest rates. This only means that because your monthly payments are minimal and the interest rates are higher, you pay much more than the actual amount.

You may also choose to enable smart pay via Fibe. Under this, you can clear off your bills easily, and you wouldn’t have to wait for a minimum due amount to pay. Furthermore, once you approve your Fibe limit, you can pay your entire credit card outstanding via a simple journey on the app.

#6 Your Credit Score

It is essential to know your credit score and ensure you qualify to get a loan. Personal loan lenders generally look for candidates who have good credit scores, especially online banks. However, if you already have a relationship with your bank, it may favour your loan request depending on your bill payment history. People with poor credit scores tend to need help in getting loans. While there are many ways by which you can improve your credit score, one way is to ensure that you don’t apply for loans with too many banks.

#7 The Time Taken for Disbursal

Some lenders deliver funds digitally within a day or two once your application has been approved. Some may even take up to ten business days. If it’s an emergency, be sure to check out Fibe Instant Personal Loan online for faster approvals – in the order of minutes! It is one of the many features offered by Fibe that makes it the best Instant Personal Loan app in India.

#8 How will it affect your Credit Score?

Personal loans can be called a form of an instalment credit card but generally for more significant amounts. So if you pay your loans on time and there is no late fee charged, or the bank didn’t have to run behind you to get the payment, your credit score would only get better. Some may say that adding new instalment loans may improve your credit score, but there is no point in adding yourself to more debt unless you need the money.

Conclusion

Personal loans can be a great solution when you need instant cash. Things can be a bit tricky if your credit score is not good. But if you have kept a good credit score, things will go smoothly for you. After the personal loan gets approved, the only next step is to pay the instalments on time.

The Relationship Between Gender Diversity and Our Bottom Lines

The gender gap has been one of the toughest disparities to bridge over the past couple of years. According to the World Economic Forum’s Global Gender Gap Report 2021, closing the global gender gap has increased by a generation from 99.5 years to 135.6 years, especially now with the effects of Covid-19 in the limelight. Those are some staggering projections.

Taking a look at real-world examples reveals that this huge number is not exaggerated, but only reasonable. Even in relatively progressive countries of the West, such as Germany, women face a pay gap of about 17%, which is one of the largest in Europe. 

But it’s no secret that gender diversity is the need of the hour and crucial to making workplaces more inclusive, profitable, and innovative. But even if one were to take a cold, more statistical look at the challenge, they’d be surprised by what’s in store. Several pieces of research have concluded that there is a direct and strong correlation between gender diversity and productivity, and therefore – bottom lines. Like the famous phrase coined during Bill Clintons’ 1992 campaign – It’s the economy, stupid! – perhaps it’s time more people realized that gender diversity is more than a morally righteous call, it’s also a logically obvious decision.

Closing these gender pay gaps and encouraging equal participation in the workforce could help in increasing the size of the world economy by an astounding $160 trillion, according to a report by the World Bank. 

According to a report published by the Harvard Business Review, there was an overall 7% increase in a firm’s market value when they saw an increase on the gender diversity index by just 10%. Such examples illustrate the importance of a good relationship between gender diversity and our bottom lines, and how crucial it is for organisations worldwide to make their workplaces more inclusive. 

There are three major reasons why researchers believe gender diversity in the workplace has a direct and positive impact on bottom lines:

  • First, a diverse workforce that is inclusive and accepting is more attractive and feasible for a majority of talent
  • Second, a workforce with a greater gender diversity shows signs of competent and effective management, which is crucial for attracting relevant investors
  • Finally, gender diversity works on a deeper level – when an organisation values diversity, an interesting and unique exchange of diverse ideas occur, improving and optimising processes

Gender diversity cannot (and will not) be achieved overnight, especially in male-dominated sectors such as technology, energy, and construction. These sectors struggle with diversity efforts due to the fact that men’s contributions are generally recognised on a greater scale and level compared to their female counterparts, as discovered in a 2018 report from Namely, a US-based HR platform. Even though women make up about 50% of the working-age population, their work and effort are often unacknowledged and underrepresented, ironically in the top roles of the workforce. 

Organisations, however, can learn from these statistics and take up opportunities presented by gender diversity policies, which are advantageous to both the workforce when it comes to productivity as well as employee satisfaction. As companies become more gender diverse and inclusive, they pave way for: 

  • Higher employee retention and satisfaction
  • Greater and more room for innovation
  • Accessing and opening untapped business opportunities 
  • Significant improvement in decision making when it comes to teams

Several studies also show that the strong relationship between gender diversity and the bottom line is mutually empowering and advantageous, with diverse teams making more well-informed business decisions at the managerial and executive levels. These gender-diverse teams made business decisions that were well-framed with clear and articulate goals, sufficient information, and a series of alternative routes and options to steer clear from groupthink. 

According to Jackie Vandebrug, the managing director at U.S Trust, there is a growing body of research that states and proves that female leadership and gender diversity help the bottom line. 

Growing organisations must recognise the importance, significance, and relevance of gender diversity in the workplace to create work environments that are more inclusive and nurturing, to leverage the plethora of benefits that come along with doing so. Organizations will definitely benefit a great deal from such practices, while also being able to include more diverse viewpoints, perspectives, and insights.

Download the Fibe app here, or simply log in to our website and be a part of the #OneSmallStep experience.

5 Trends That Will Shape FinTech Industry in a ‘Path-Breaking Year’

Compiled By: Ashish Goyal, Co-Founder and CFO at Fibe
About Ashish: As CFO, Ashish oversees the overall strategic direction of the company and focuses on building the funding profile to ensure that it is diverse and deep. In this role, he is responsible for building Fibe’s business, strengthening Fibe’s position. He oversees the integration of Fibe’s overall growth strategy with Co-Founder Akshay Mehrotra

India is one of the world’s biggest FinTech markets. With China, India has the highest FinTech adoption rate in the world. The $65 billion we processed in digital payments in 2019 is projected to rise at a CAGR of 20% until 2023. According to the Worldline India Digital Payments Report, UPI transactions increased by over 82 percent in volume and 99 percent in value in the second quarter of the financial year 2021. 

Let’s check out 5 trends of 2021 that will shape the FinTech industry in a “path-breaking year”.

OCEN

The introduction of the Open Credit Enablement Network (OCEN) has been a powerful catalyst by the Government in India’s progress toward credit and financial inclusion. OCEN is a collection of APIs that enable lenders, Loan Service Providers (LSPs), and account aggregators to communicate. OCEN is bound to make MSME credit easier once it is fully functional. It is as powerful a revolution as Aadhaar once implemented successfully. The cost of getting information, accessing it, and providing it will fall dramatically. 

Account Aggregator

Source – sahamati.org

An Account Aggregator (AA) can be considered as a manager of consent for sharing all information related to finance. The Reserve Bank of India (RBI) licenses Account Aggregator (AA) services, and an AA cannot retain any user’s data, eliminating the risk of data leakage and exploitation. 

AA is expected to disrupt the way we can manage our finance, share information, tax filing. It can actually make us lazy! (in good ways) by taking care of money management. 

Wealth management services companies will be the biggest winners from AAs, as their products would improve dramatically. This would increase their scope and enable them to analyse client needs and financial situations more quickly, lowering costs.

Digitisation Adoption

Our financial system has seen a massive migration to digital as companies and consumers adjusted to the Covid-19 crisis. Despite the long road still, ahead the future of digital finance appears bright, with the FinTech sector pushing progress across verticals. FinTech has opened up many possibilities for tapping into a vast database of consumers, enabling a solid digital base. We at Fibe have launched the nation’s first end-to-end digital card, SalaryCard, with remarkable features:

  • Enjoy flexible term choices.
  • Shop on EMIs with any retailer.
  • Save up to 12,000 INR a year, all with no subscription charges, yearly charges, or renewal charges.

New Age Technologies

New-age technologies, along with VKYC (Video KYC), CKYC (Central KYC) will ease the process and provide the best services to customers. The task of onboarding new customers has become more complicated in recent times, as people are wary of visiting bank branches for fear of catching the virus. Financial firms have implemented KYC solutions that make the onboarding procedure more comfortable for consumers without requiring them to leave their homes.

  • VKYC – Video-KYC (VKYC) is an alternative to the complete in-person KYC procedure that banking customers must go through before receiving services like account openings or loans. Customers would no longer be expected to follow up with physical document authentication under the newly approved Video-KYC system, which aims to fully replace the old KYC structure.
  • CKYC -The Central Know Your Customer Registry (CKYC) is a centralised repository for KYC information from consumers that use financial services. CKYC aims to make sending KYC documentation easier when beginning a relationship with a new finance firm.

ML and AI changing the game

Big data and the ability to build algorithms powered by ML will create exciting opportunities. Fraud identification, model validation, stress checking, and credit scoring are some particular areas that will be majorly influenced by AI and ML. Since machine learning algorithms can execute larger amounts of data in near real-time, they are more successful at fraud detection than humans. When someone purchases something with a credit card, machine learning algorithms check it right away to see if it’s a fraudulent payment. Banks can use AI and machine learning in banking and data science acceleration to improve their customers’ portfolio offers.

Conclusion

The FinTech industry looks promising in 2021. Payments and the banking industry have evolved in tandem with the growing requirements and demands for financial transactions. The best possible customer experience and fast responses to changes would be the most important factors of evaluating how successful the trends have been in shaping the FinTech industry. 

Learn To Use Credit Card Responsibly

Knowing how to operate credit cards responsibly is crucial, as they come with high interest rates if you do not pay your bills on time. Credit cards provide a convenient way to finance your purchases and offer more benefits and rewards than a debit card. However, using them without clearing your outstanding balance can result in a debt trap. 

Read on to learn about how to use a credit card effectively to enjoy its long-term benefits. 

Purpose of Credit Cards

Credit cards are a form of payment that enables you to make cashless transactions up to the assigned credit limit. When you swipe the card, banks loan the money to you to make a purchase. Since this is essentially a debt, you have to pay back the amount according to the issuer’s terms. 

Unlike loans that require fixed monthly payments, you can repay the outstanding balance of a credit card in different ways. For instance, you can pay the minimum amount due for a month or make a complete or partial repayment. 

A grace period, usually up to 45 days, allows you to pay back the total amount without interest. If not paid on time, the remaining balance amount will attract interest every month. If you fail to pay during the next billing cycle, this amount is added to the outstanding dues and continues to accumulate high-interest charges. As such, you can end up with a large debt, which affects your finances and creditworthiness. 

That said, grace periods are a blessing because you can utilise a temporary interest-free loan. As long as you pay the entire bill amount on time, the banks won’t levy interest on your purchases. So, it’s important that you use your credit card responsibly and pay the bills on time and in full. 

Apply for Personal Loan Online

Tips for Using Your Credit Card Responsibly

Here are some tips for using credit cards smartly:

Read the Terms in the Agreement

After opening a new credit card account, carefully review the customer agreement. Also, read the disclosure. Keep all the details related to the repayment terms, due dates, interest rates, etc. in mind before you proceed.

Avoid Credit Card Debt

You can prevent accumulating massive debt on credit cards by exercising restraint while using the card. Avoid exhausting your card limit frequently. Doing this will also help protect your credit scores as your credit utilisation ratio. This ratio indicates how much credit you have used against your total limit and generally, the lower the ratio, the better your score.

Pay Your Dues on Time

By paying the issuer back on time, your credit history will show repayment discipline. Since credit scores depend on this aspect, a good record can have a positive impact on your score. 

If you have a bad score, you may need to pay higher interest for future loans or credit cards. One way to avoid this and pay your bills on time is to set up payment alerts or sign up for automatic debits from your bank account.

Also Read: Benefits of credit card

Try to Clear the Bill in Full 

Paying minimum dues in every billing cycle helps avoid penalties. However, you will still have a large balance left that will keep accruing interest. The additional interest amount can make it difficult to clear the debt. 

So, try to pay your credit card bill in full every month, or at least pay off as much as you can, over and above the minimum amount due. 

Protect Your Credit Card

By storing your credit card details safely and out of reach of other people, you can secure the essential information to prevent fraud. Never share details regarding your card number, CVV, or OTP codes with anyone.

Always report a lost or stolen card immediately and block the card to prevent unwanted usage. When notified of unauthorised purchases, always report them to the bank immediately. By doing so, the bank won’t hold you responsible for the unauthorised use of your card.

Review the Statements Every Month

One important tip on how to use a credit card wisely is to be aware of your spending limit, annual percentage rate, interest rate, hidden fees and more. Your credit card statement will contain all these details. Make sure to check your statements regularly to notice any updates related to these details or irregularities in transactions.

By using your credit card frequently, you can maximise the reward points you can earn. However, avoid doing so if your existing dues are high. In such a case, it is advisable to limit your credit card use until you repay the outstanding balance.

Monitor Your Credit Score

By monitoring your credit score, you can see what purchasing patterns hurt, maintain or increase your score. This also helps identify mistakes or fraudulent attempts that could hurt your credit score.

Advantages of Using Your Credit Card Responsibly

By being responsible and vigilant, you can make the most of your credit card. First, using it and repaying it on time every month helps you build an exceptional credit score. A good credit score provides you access to more credit card options and affordable loans. Secondly, cards even offer perks like cashback, travel benefits, reward points and more. You can thus save as you swipe and enjoy a range of privileges. 

To access a card that offers all these perks, get the Fibe Axis Bank Credit Card. It is India’s first numberless credit card that links to your UPI ID and provides higher security. Moreover, it is a lifetime free card that offers up to 3% cashback, dining discounts, fuel surcharge waivers, free airport lounge access and more. Download the Fibe Personal Loan  App or register on our website to apply now! 

FAQs on Using Credit Cards Responsibly

What is the responsible way of using a credit card?

If you are wondering how to operate credit cards responsibly, you can employ certain strategies. For instance, set up auto-payments for timely repayment, use only up to 40% of your credit limit, use your card at trusted merchants only and monitor your credit card usage to stay within your budget. 

What are the things you should consider when using a credit card?

When using a credit card, you must evaluate certain factors like the card’s Annual Percentage Rate (APR), fees and charges, cashback and other rewards and more.

What is the safest way to use a credit card?

If you are thinking about how to use a credit card wisely and safely, there are certain tips you must follow. For instance, don’t trust anyone else with your credit card number and expiry date, change your PIN regularly and don’t share it with anyone, check your statement carefully, and use the card at trusted merchants only.