Summary: The growth trajectory of the loan against property sector in India reflects a growing awareness about the benefits of leveraging one’s property for financial requirements. Hasten your loan against property journey by taking advantage of IndusInd Bank’s online application process. 

Technological progress has ushered in a generous measure of convenience in every aspect of our lives. Banking processes too have undergone a revolutionary transformation, not only making financial transactions easier but also offering services like loans at the click of a button. As we embrace digitalization, the cumbersome paperwork that once defined the loan against property (LAP) process is now giving way to a more customer-centric approach. The lending process is significantly more efficient, leading to a seamless digital experience for every customer from start to finish.

Understanding a Loan against Property

A loan against property as the name suggests, is a secured loan where you pledge your property, commercial or residential, as collateral in exchange for a loan amount. The key advantages of a LAP include lower interest rates compared to unsecured personal or business loans, extended tenures, and a larger sanctioned amount. As a property owner, taking out a LAP is a convenient way to acquire funds for business expansion, emergency needs, or debt consolidation.

The best way to get an LAP online is to ensure you meet the loan against property eligibility criteria and compile the required documentation before applying. IndusInd Bank offers its customers enhanced convenience with its online application process.

Loan against Property Eligibility Criteria

The following constitution borrowers are eligible

Private Limited Companies

• Closely held Public Ltd Companies that are not listed on any stock exchange
• Partnership firms
• Individuals and Proprietorship concerns
• Limited Liability Partnership

Documentation Requirements

To initiate the process of taking a loan against property, the following documents need to be submitted:

Why Opt for an IndusInd Bank Loan against Property

Benefits of an IndusInd Bank loan against property:

• Hassle-free application process, with quick disbursal time 
• Flexible tenures for repayment, ranging up to 20 years
• Convenience of doorstep service
• Balance transfer option
• Overdraft facility

How to apply for a loan against property at IndusInd Bank:

• Head to the loan against property page on IndusInd Bank’s website
• Select the ‘Apply Now’ option and fill out the form with your name, contact number, email ID, and place of residence.
• You will receive an interaction ID. A bank representative will reach out to guide you through the next steps in the loan process.

In Conclusion

As you navigate the digital realm for your loan requirements, reap the benefits of an online loan against property with IndusInd Bank for a smoother application process. Apply today.

(Please ensure to use the Apply Now, Apply Today , Apply today with IndusInd Bank Call-To-Action
A Non-Resident External account is a type of bank account that can be opened by Non-Resident Indians
NRIs to manage their earnings and investments in India. The process of opening an NRE account online
is quite simple. The advantages of an NRE account include the following:

• Tax-free interest income.
• Easy repatriation of funds.
• No currency conversion risk.
• The ability to hold funds in Indian rupees.

NRE accounts can be used for depositing income earned outside India, such as salaries, rent, or
dividends. They also offer high liquidity and flexibility, allowing NRIs to make investments or payments
in India.
This blog will let you know about the uncomplicated way to open an NRE account online. So, read below
and apply now to open your NRE account: –

Choose a Bank that Suits Your Needs

The first step is to choose a bank that offers online NRE account opening services. Select the bank that
provides the most suitable NRE account for your needs. With so many banks offering NRE accounts, it’s

crucial to compare each account’s features, benefits, and charges to make an informed decision. Many
banks in India offer this service, including IndusInd Bank, HDFC Bank, ICICI Bank, SBI State Bank of
India, Axis Bank, and more. You can call their customer care, walk into any branch, or check online to
find answers to your queries.

Visit Your Favoured Bank’s Website

Once you choose your favourable bank, you should visit the website to compare the features, benefits,
and charges of NRE accounts offered by different banks and choose the one that best suits your needs.
Apply to open your NRE account online only after this research.

Fill in the Application Form

After the first two rigorous steps, your work is more accessible now. You must click on the “Open NRE
account” and complete the application form. You must provide your personal details – name, DOB,
address, email ID, phone number, passport details, occupation, income, etc.

Upload the Required Documents

All the documents supporting your details in the application form must be provided now. The
documents typically required to open an NRE account online include a scanned copy of your passport,
visa, overseas address proof, passport-sized photograph, etc.

Fund Your Account

After you apply for an NRE account online and present your documents, the bank will verify each of
them minutely and upon confirmation, your NRE account will be ready. You can transfer funds to your
new NRE account using wire transfer or online banking services. For the fastest NRE account opening
services, apply with IndusInd Bank today.
To summarise, the process of opening an NRE account online offers NRIs a hassle-free option for
managing their finances while abroad. Thanks to technology, this process can be completed in just a few
minutes from the comfort of your own home or office. By following the steps outlined in this blog, you
can easily open an NRE account and begin taking advantage of the many benefits it provides.
Nevertheless, it’s crucial to review the terms and conditions of the bank you choose and make sure you
have all the necessary documents ready before starting the application process.

Summary:  Mandated by the Indian government, FASTag simplifies toll payments, saving precious time and fuel for commuters. To ensure your wallet has sufficient funds for toll payments, recharge your FASTag online and offline with IndusInd Bank in three simple ways. If you do not own a FASTag, apply through IndusInd Bank’s official portal for smooth journeys across India’s highways.

 Introduced in 2014, FASTag has revolutionised the collection of toll payments across highways in India. This nifty electronic toll collection system enables drivers to pass swiftly through toll plazas without the hassle of cash transactions. As the vehicle approaches a toll plaza, an electronic reader scans the tag to automatically deduct the applicable amount from the linked wallet. Not only does this accelerate the toll collection process, but it also reduces traffic congestion, and facilitates a seamless travel experience for commuters. 

Owing to FASTag’s success over the years, in 2021, the Indian government mandated its use for all four-wheelers, for payments at toll plazas across the country. If you do not have a FASTag affixed to your vehicle, you must pay double the toll amount as a penalty.

After purchasing your tag, you only need to recharge it as per usage.

Three Ways to Recharge FASTag

Your FASTag is linked to a rechargeable prepaid account, which allows for quick digital payments at toll plazas. This easily accessible account stores all the details of toll transactions and balance usage. However, insufficient funds in your account can cause unnecessary hassles and delays at the toll plaza. Thus, it is wise to keep your account recharged ahead of road journeys.IndusInd Bank’s FASTag program is a part of the National Electronic Toll Collection NETC initiative rolled out by the National Payments Corporation of India NPCI. IndusInd Bank offers three easy ways to allow for instant onlineFASTag recharge:

1. Online FASTag Recharge

You can recharge your FASTag account online through IndusInd Bank’s online FASTag portal using debit cards, credit cards, net banking, and other payment modes.. The maximum limit is INR 1 lakh for full-KYC accounts, and INR 10,000 for limited-KYC accounts. Follow these steps for instant FASTag recharge:

Step 1: Log onto the official portal using your registered mobile number and password/OTP.

Step 2: Select ‘Wallet Recharge /Wallet Recharge via UPI’  In home page

Step 3:  Click add money and enter the amount and select the payment option

Step 4: Enter the required details and complete the payment

On successful payment, you will receive a FASTag recharge confirmation message on your registered email ID and mobile number.

2. AUTO Recharge

Login to IndusInd FASTag customer portal.

Click on ‘Auto Top Up setting’ 

Enter required details and set up auto recharge 

Only applicable for customer having IndusInd bank account.

3. Bank Authorized Partners

Another way to recharge your FASTag is to visit a Point of Sale (POS) location near toll plazas. The partner  at the location will guide you through the process.

4. BBPS

• Recharge FASTag wallet using Bill Payment section in IndusMobile app or any other app.
• Select biller name as ‘IndusInd Bank FASTag’ under ‘FASTag’
• Enter the registered vehicle number & amount which need to be recharged
• Upon successful payment the amount shall be credit to your FASTag wallet

5. UPI

• Recharge your FASTag using via any apps like BHIM/Google Pay/PhonePe etc
• Use UPI ID as NETC.VehicleNumber@Indus for example if your registered vehicle number is AB12CD1234 then use NETC.AB12CD1234@Indus as your UPI ID to load your FASTag wallet
• Enter the amount you want to recharge; enter the UPI PIN
• All successful transactions shall be credited to wallet immediately

Travel Non-stop with IndusInd Bank

By automating toll payments, FASTag has eliminated congestion at toll plazas, reduced highway commute time and improved fuel efficiency. With a FASTtag affixed on your vehicle’s windscreen, you can enjoy uninterrupted journeys and experience convenience as you bid goodbye to long queues at toll plazas across India.  With IndusInd Bank, you can recharge your FASTag account through three easy ways. If you do not already have a tag for your vehicle, apply today through IndusInd Bank’s official FASTag portal for smooth journeys across India’s highways.

Summary: When applying for a loan against property, a critical decision that you need to make is selecting the tenure. This decision influences not just your monthly EMIs but also the overall cost of borrowing. Contrary to popular belief, opting for the maximum tenure offered by your lender may not always be the best choice for you. To ensure a smooth repayment journey, it is important to take certain factors into account while determining the loan tenure.

According to recent statistics, the loan against property market in India has experienced substantial growth. It is forecast to grow at a CAGR of over 14% in value terms, to reach a whopping US $ 857.87 billion by 2026. This convenient means of arranging funds, by leveraging the value of your property, owes its popularity to benefits like lower interest rates, and disbursal of a large loan amount with a longer repayment tenure.

A question that needs to be addressed is ‘What should be the ideal tenure for your loan against property?’. While conventional wisdom dictates opting for the maximum tenure, your choice of tenure must be based on a careful assessment of several factors.

How to Choose the Ideal Tenure for Your Loan Against Property

A careful examination of the following factors will help you choose the ideal tenure of your loan against property.

1. Income

Evaluate your monthly income and other sources of cash flow. Opt for a shorter tenure if you have a substantial income as you can afford higher EMIs. If you already have previous loans, choose an extended tenure for more affordable EMIs. It is prudent to maintain a debt-to-income ratio of 21% to 35%. Your debt-to-income ratio measures your ability to repay your debts and helps the lender determine your borrowing risk. In short, it is essential to assess your financial capabilities and choose a tenure that aligns with your income and repayment capacity.

2. Age

If you are younger, you may wish to choose the maximum tenure offered, as you have more years ahead to repay the loan. However, if you are closer to retirement, it is advisable to choose a shorter tenure that allows you to become debt-free before retiring. Remember that lenders will also consider your age while evaluating your eligibility for a loan against property.

3. EMI and Interest Rate

The equated monthly installments (EMIs) and loan against property interest rates are integral components of any loan. A longer tenure typically results in lower EMIs but higher interest payments over time. Conversely, a shorter tenure may lead to higher EMIs but reduced interest payout. Use a loan against property EMI calculator to help you make an informed decision. Put in a combination of various tenure options with the proposed loan amount to calculate the interest. This will guide you towards striking the right balance between EMIs and interest payments.

4. Loan amount

The loan amount you borrow is another crucial factor to consider when deciding on the tenure of your loan against property. Higher loan amounts may warrant longer tenures that can help you repay the loan comfortably in smaller EMIs. Conversely, lower loan amounts might be

comfortably repaid within a shorter tenure. Evaluate the loan amount in relation to your financial situation to determine the most appropriate tenure.It is imperative to analyze your finances carefully and choose a tenure that aligns with your repayment capacity. Failure to make timely EMI payments may lead to a fall in your credit score and thus jeopardize your chances of acquiring a loan in the future. Additionally, you may risk losing ownership of the mortgaged property. You can also extend the tenure of your loan against property or repay it before time. However, this may lead to additional charges depending on the type of loan against property interest rate opted for i.e. fixed or floating rate.

Why Choose IndusInd Bank’s Loan Against Property?

IndusInd Bank provides tailored loan against property solutions designed to help you unlock the hidden value of your property. This versatile loan can be utilised for various personal or business needs. The key benefits of opting for a loan against property at IndusInd Bank include:

• Hassle-free application process, with quick disbursal time
• Access to a higher loan amount
• Long and flexible repayment tenure of up to 20 years
• Availability of doorstep banking assistance
• Simple eligibility criteria
• Overdraft facility

Apply for a loan against property with IndusInd Bank, and benefit from favourable terms that will contribute to cost-effective borrowing.

Personal loans are your saviour when you need a financial boost. They help you get instant funds to manage your cash needs without much hassle. The best part? No collateral is needed. Many turn to personal loans owing to their simple and quick nature. But there’s more to personal loans than just quick financial relief.

Beyond the obvious perks, personal loans also bring certain tax benefits. Most borrowers aren’t aware of this. They focus on the primary use of personal loans – to deal with urgent money requirements. Yet, with the right knowledge and documentation these loans can offer more. This lesser-known feature can be valuable in your financial strategy.

Know the Tax Benefits on Personal Loans

Personal loans may have tax deductions, but they apply in limited cases only. Whether or not the personal loan you take qualifies for tax deductions depends on the end use of the loan or how you use the loan money. Here are a few cases where you can claim personal loan tax benefits –

• Business investment: If you apply for a personal loan and use it for your business/profession, the interest paid on such loans is deductible. This falls under Section 37(1) of the Income Tax Act, 1961. This deduction applies even if the loan is for buying fixed assets like vehicles for the business.
• Purchase or construction of residential property: You can claim a deduction for the interest paid on the personal loan if it is used for the purchase, construction, or repairs of a residential property. These deductions go up to ₹2 lakh in a financial year under Section 24(b). However, only the property owner can claim this tax benefit on personal loans.
• Asset purchase: If you use the loan for buying assets like non-residential property, jewellery, stocks, or shares, there are tax benefits. The interest component of the loan can be added to the cost of the acquisition of the asset. This method effectively reduces the capital gains when you sell the asset.

Remember, tax deductions apply only to the interest paid, not the principal. Also, you can’t get tax benefits on personal loans if you take them for non-qualifying purposes like weddings, holidays, luxury purchases, recreational activities, etc.

Importance of Proper Documentation of Personal Loans

The Income tax benefit on personal loans can only be claimed through proper documentation. After all, documentation serves as evidence of how you utilise the loan funds. Here are some ways to maintain proper documentation:

• Open a separate bank account: If possible, use a different bank account for your loan-related transactions. This will help you easily track the flow of loan funds and, thus, simplify record-keeping.
• Save bills and receipts: Every time you spend part of your loan, save the receipt or bill. They are evidence for the usage of the loan’s funds. Be it for business expenses, asset purchases, or property construction, having all receipts in order will make your tax claim process smoother.
• Record how you use funds: Maintain each use of the loan amount in a ledger or digital format. This record should include dates, amounts, and purpose of each transaction. Such detailed entries ensure transparency in how you used the loan.
• Loan agreement and bank statements: Your loan agreement contains the loan’s terms and conditions. Along with this, save all bank statements showing loan disbursement and related expenses.
• Audit reports: If you use a personal loan for your business, get an audit report. This report, prepared by a CA, details the use of funds in your business. It helps you identify and rectify any financial management discrepancies.

Get an Instant Personal Loan from IndusInd Bank Digitally

Capitalising on the tax benefits of personal loans comes second – first, you need to secure the loan with ease. You can choose IndusInd Bank’s Instant Personal Loan and experience a truly digital approach to get access to credit. Features like instant approvals, quick fund disbursal, favourable repayment options, and a 100% paperless method help you focus on leveraging the tax benefits without getting bogged down by complex procedures.

Apply for an instant personal loan with IndusInd Bank today and manage your expenses, all the while optimising tax advantages.

Apply Now.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

If you use a credit card, the chances are you often look at the CVV, your name, or the bank name printed on the card. Amidst various details, one tiny but mighty detail is the credit card expiration date. Whether you swipe your card while on a shopping spree, or even do a routine check of your wallet, that little combination of month and year is a constant companion on your credit card.

Credit card expiry date might look like another set of numbers but holds significant importance. What more should you know about this credit card validity period? Let’s find out.

Credit Card Expiry Date Defined in Detail

The credit card expiration date is a crucial element that defines the functionality of your credit card. Essentially, the expiry date represents the month and year until your credit card is valid. When you check your credit card in detail, you’ll notice this information prominently displayed, usually in the format MM/YY.

The significance of the credit card validity period goes beyond a mere timestamp. Here are the multifaceted purposes this essential detail serves:

1. Prevention of fraud

The card expiry date acts as a preventive measure against unauthorised use and mandates periodic card renewals. This way, it ensures that the cardholder regularly engages with their account, reducing the risk of fraud.

2. Cardholder verification

When making online purchases, the credit card expiry date, together with other authentication factors, adds an extra layer of security. It confirms that the person conducting the transaction is the legitimate cardholder.

3. Card maintenance reminder

The expiry date also serves as a visual cue for cardholders to get their card renewed before the expiry date to continue using the card.  A worn-out, expired credit card may not function properly, prompting the need for a replacement.

4. Adaptation to technology and security updates

As technology evolves, so do security standards. The expiry date ensures that credit cards are periodically updated to incorporate the latest security features, keeping pace with advancements in the financial industry.

Where Can You Find the Credit Card Expiration Date?

Here’s a quick guide on how to locate the card expiry date:

1. On the front of the card

On most credit cards, you’ll find the expiration date displayed on the front. Look for a set of numbers typically in the format MM/YY.

2. Near the card number

The expiry date can also be positioned near the card number, usually to the right or left. Its proximity to the card number streamlines the verification process during transactions.

3. Distinct font or colour

The expiry date may be in a distinct font or colour to make it easily identifiable. This visual distinction ensures that cardholders can quickly locate and use this information while making a transaction online.

What Should You Do Once Your Credit Card Has Expired?

1. Check for a newly issued card

The credit card issuer typically mails a replacement card 30-60 days before your existing card expires. Verify if you’ve received a new card, as it will carry the same credit card number but with a new expiration date and CVV. If not, it might be a good time to explore your options and apply for an instant credit card online for a seamless transition.

2. Activate the new card

Your new credit card won’t be operational immediately upon arrival. Activate it by following the instructions provided by the card issuer. Usually, this involves a quick call to the customer service number on the card or a series of steps to set up the card pin.

3. Update automatic subscriptions

An expired credit card may result in interruptions to services tied to recurring payments. You can ensure the continuation of recurring payments for subscriptions by updating your billing information.

While the credit card expiry date may seem like a small detail, understanding its importance and addressing card expirations promptly can contribute to a secure credit experience.

Apply for an instant credit card online with us here!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Many of you might have already embraced the ease and versatility that credit cards offer in your daily lives. You know about the kind of rewards you can get. Some even create a list of things that they can fulfil using a credit card. But do you understand the clauses of the credit card repayment grace period? If not, you have come to the right place.

In simple terms, the credit card grace period acts as a financial safety net provided to consumers by credit card issuers. It offers them a window of time between making a purchase and repaying the same. If this sounds intriguing and you want to know more about this aspect, let’s get into the details of the credit card due date and grace period, covering its significance and how it can positively impact your financial decisions.

What Does Credit Card Grace Period Mean?

A credit card grace period is the timeframe between the date of the statement generated for your credit card and the repayment due date scheduled as per your next billing cycle. In other words, the card issuing bank will not charge any interest if you repay the outstanding amount in full on or before the due date. This period typically ranges from 15 to 45 days. Besides this, each credit card issuer has specific terms related to the grace period, which you should be aware of.

How Does Credit Card Grace Period Benefit You?

The credit card grace period can be used as a strategic advantage by cardholders. Here’s how:

1. Interest avoidance

During the grace period, you can settle your entire credit card bill without incurring any interest charges. Clearing your dues within this timeframe ensures your credit card usage remains interest-free.

2. Enhanced liquidity

The grace period, as per credit card repayment rules, also provides a breathing space between your purchase and the repayment obligation, allowing you to manage your cash flow effectively. This liquidity can be particularly beneficial for planned, high-value expenses.

3. Smart financial planning

Understanding the duration of your credit card’s grace period enables you to plan and time your purchases strategically. You can optimise the interest-free window and minimise the financial impact on your budget by aligning your spending with this period.

4. Credit score improvement

Timely repayment of credit card bills within the grace period contributes positively to your credit score. It reflects responsible credit management – a factor that can influence your eligibility for future credit and favourable interest rates.

What Will Happen If You Miss Repayment During Grace Period?

While the credit card payment grace period offers a valuable interest-free window, you should know about the repercussions of missing a repayment within this timeframe.

• If you fail to settle the outstanding balance before the grace period concludes, interest charges will be applied, leading to additional financial strain.
• Late payments can negatively impact your credit score, which in turn affects your ability to secure credit in the future.
• Credit card issuers impose late payment fees for missing the grace period deadline. These fees can add up quickly as a financial consequence.
• Missing grace period deadlines may lead to a pattern of late payments, eroding financial discipline and creating a cycle of debt accumulation.

Significance of the Credit Card Grace Period

Here’s a closer look at why this period is a crucial component of your credit card usage:

• It acts as a protective shield, offering you a window to settle your outstanding balances without incurring any interest charges. This can significantly contribute to reducing overall interest expenses.
• It can enhance your financial flexibility by providing a brief interval between the transaction date and the commencement of interest accrual.
• Understanding and utilising the grace period also empowers you to make informed decisions about when to use your credit card.

To sum it up, understanding the credit card grace period can help you use your credit card wisely, save on interest, and keep your finances in good shape. If you want to apply for a credit card online and leverage it to your advantage, click here.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Your credit card opens up the world of personal finance to you. It offers a convenient and rewarding way to spend money online or offline. However, credit cards need to be used responsibly. Money spent on a credit card can be considered a short-term loan that the borrower needs to pay back within a specified time duration. If one fails to pay back the owed money during the grace period, they are charged an interest. The percentage of interest charged on credit card debt is called the annual percentage rate or APR.

Pick a Credit Card with a Low APR

It is worth finding a credit card with a low or reduced annual percentage rate or APR.  Reduced APR allows you to use your credit card without the stress of high interest. This way, you can finance your next vacation, buy your dream outfit, or even purchase a car through your credit card.

Commonly, credit card interest or APR is meaningfully higher than other forms of credit – like a personal loan, home loan, or a line of credit. It means the best way to pay credit card bills is to pay in full. Here are some tips to help you with your credit card repayment if you are in debt.

1. Acknowledge It To Yourself

It is common to have a strong reaction to being in any kind of debt. However, when you accept being in debt, you can begin the steps to completecredit card bill payments. It is important to remember that credit card interest is often higher than other loans. It means paying your credit card bill in full, should be a higher priority.

2. Make Repayment A High Priority

Often, people wonder why they should clear credit card dues promptly. It’s due to their higher interest rates, called the annual percentage rate or APR. As per the logic of this interest rate, it is recommended to pay your credit card bill fully as quickly as possible. It should be a higher priority, which means it comes before other payments. An unpaid credit card bill may cost you more in interest than a home loan or a car loan until it is paid in full.

3. Automate Payments Where Possible

Automating recurring tasks can help you preserve your energy. For example, automating can be a simple answer to how to repay credit card bills without fail and delays. By automating your credit card bill payment, you can ensure timely and hassle-free repayments. This lets you save interest and optimise the remainder of your income or cash in hand.

4. Review and Alter Your Monthly Budget

The typical framework for a budget is 50% towards needs, 30% towards wants or lifestyle expenses, and 20% towards savings and investments. While you are repaying credit card debt, it is worth altering your budget for the duration. This may mean a moderate dip in lifestyle or short-term sacrifices till your debt is repaid.

5. Practice Moderation

While reviewing your monthly budget to reduce expenses, you can develop new spending habits. Moderation is often looked at as pain or sacrifice. However, sometimes we may notice that we are spending on things we don’t particularly want or enjoy. Moderation or reducing your spending on unnecessary things can be unlocked in different ways. It can mean being more intentional about what you spend on and why, without sacrificing what matters to you.

Credit card debt can be stressful because of its higher interest rates. However, you can escape credit card debt with clear-sighted action. Typically, this includes accepting your situation of being in debt to decisively act your way out. Start with making credit card bill repayment your highest priority.

Remove decision-making from this equation by considering automating credit card bill payments. You may have to review your monthly budget for this. Use your budget review to remove any expenses that may have become defaults you no longer find value in. Finally, consider a low APR credit card so you can use it without the stress of high interest.

Explore IndusInd Bank credit cards that suit your needs. We offer some great credit cards which you can apply for online as well.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Are you feeling the pinch of financial stress, longing for a personal loan to alleviate the pressure, yet haunted by the fear of rejection? It’s a scenario many can empathise with. But fear not; understanding why lenders may reject your application is the first step toward securing that much-needed financial assistance. So, let’s delve into the five common reasons why personal loan applications hit a roadblock with banks. But before we embark on that journey, let’s take a moment to grasp the essence of personal loans.

Understanding Personal Loan

A personal loan is money you can borrow without needing collateral, based on your income and ability to repay. It can be used for various purposes like vacations, consolidating debt, or handling unexpected costs

Benefits of Personal Loans

Personal loans offer convenient access to funds with flexible repayment terms. The simple application process and minimal documentation requirements make obtaining a personal loan straightforward. Additionally, lenders prioritise quick approval and disbursement, ensuring timely financial assistance.

Exploring the Causes Behind Bank Rejections of Personal Loan Applications

Before delving into the reasons for personal loan rejections, it’s crucial to grasp the factors lenders weigh when assessing applications. While banks may offer instant personal loans, understanding why applications get rejected is paramount. Here are common reasons your personal loan request might be declined.

Insufficient Income: If your income is not deemed sufficient to comfortably repay the loan amount requested, banks may reject your application. They assess your income to ensure you can meet the monthly repayment obligations.

Poor Credit History: Banks assess your credit history to determine your creditworthiness. A poor credit history, characterized by missed payments, defaults, or bankruptcies, may lead to rejection as it indicates a higher risk for the lender.

High Debt-to-Income Ratio: Your debt-to-income ratio measures how much of your income goes towards debt repayment. If this ratio is too high, indicating that you’re already heavily indebted, banks may hesitate to extend further credit, fearing you may struggle with additional loan repayments.

Lack of Collateral: Personal loans are typically unsecured, meaning they don’t require collateral. However, if you’re applying for a secured personal loan and lack sufficient assets to pledge as collateral, banks may reject your application due to the higher risk associated with unsecured lending.

Incomplete or Inaccurate Application Information: Providing incomplete or inaccurate information on your application can raise red flags for banks. They rely on the information you provide to assess your creditworthiness and repayment capacity. Any discrepancies or missing details can lead to rejection.

Understanding these reasons can help applicants address potential issues before applying, increasing their chances of approval

Also Read: Understanding the EMI of a ₹2 lakh Personal Loan: A Comprehensive Guide

How to apply for a Personal Loan

If you are planning to apply for a personal loan online, simply visit the IndusInd website and fill out the required details, including your PAN Number, Mobile Number, Email ID, and current PIN code. Additionally, ensure you have the following documents ready:

• PAN Card
• Proof of residence such as Aadhar Card, Passport, or driving license in case your current address is different than your permanent address

Make sure you meet the eligibility criteria listed below:

• Applicant must meet the personal loan eligibility requirement of being at least 21 years old.
  • Maximum age at personal loan maturity should be 60 years or retirement age whichever is earlier.
• Applicant must be an Indian citizen or resident
  • Minimum net monthly income should be Rs.25000 for personal loan online application
  • Should have completed minimum 2 years in employment and minimum 1 year in the current organisation.

Conclusion

In conclusion, understanding the common reasons for personal loan rejections empowers applicants to address potential issues, increasing their approval chances. Consider instant personal loans from IndusInd Bank for convenience and ease of access to personal loan solutions. Click here to learn more about things you must keep in mind before applying for a personal loan online.

Apply for a personal loan with IndusInd Bank today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

Imagine Sarah, a single mother, suddenly faced with unexpected medical bills for her child’s treatment. She urgently needs funds but finds it challenging to understand the eligibility criteria for a Personal Loan, given her limited income and average credit score.

To help Sarah and others like her, this blog provides essential details about Personal Loans. By understanding the process and seeking guidance from financial advisors, individuals can navigate the requirements and secure the funds they need for emergencies like medical expenses. Through clear information and proactive steps, borrowers can overcome hurdles associated with eligibility criteria and access the necessary financial support.

Let’s delve into the prerequisites for checking personal loan eligibility. Discover what criteria you need to be eligible to be able to secure financial assistance.

Eligibility Criteria for Personal Loan

As mentioned earlier, personal loan eligibility varies depending on the lending institution. Here’s a breakdown of the standard criteria typically assessed by every lender before approving Personal Loan requests.

Age: Lenders consider the age of the borrower as it reflects their ability to earn and repay the loan. Generally, individuals between 21 and 60 years are preferred as they are perceived to have a stable income. However, some lenders may extend loans to senior citizens with certain conditions.

Annual Income: Personal loan salary eligibility also holds significant importance. The borrower’s annual income is a significant factor in determining their loan eligibility. Lenders typically require a minimum monthly income, often around ₹25,000, to ensure the borrower can comfortably repay the loan.

Credit Score: A borrower’s credit score is a measure of their creditworthiness. A higher credit score, typically 750 or above, indicates a better likelihood of loan approval. Factors such as income, loan repayment history, and credit utilisation ratio contribute to the credit score.

Credit History/Debt: The borrower’s past credit history and existing debts impact their eligibility. A history of timely repayments improves creditworthiness, while excessive debts may raise concerns for lenders.

City of Residence: The location where the borrower resides affects their eligibility due to differences in living expenses between cities. Lenders may have varying criteria based on whether the borrower resides in a metropolitan or Tier II/III city.

Employer/Organization: The borrower’s employer or organisation plays a role in assessing their eligibility. Working for a reputable and established company enhances the borrower’s credibility, increasing the likelihood of loan approval compared to employment with a startup or less-known organisation.

Ensure that you fulfil the aforementioned requirements, as they are crucial for assessing your eligibility for a Personal Loan. Conducting a thorough personal loan eligibility check is essential before proceeding with your application.

Also Read: Personal Loan Interest Rates and Charges – IndusInd Bank

How to check your Personal Loan Eligibility

Obtaining a Personal Loan is a straightforward process. Simply visit IndusInd Bank with the necessary documents and apply in person. Alternatively, you can apply online by clicking here, and completing a simple application form. You can also calculate personal loan eligibility by using a Personal loan calculator.

A personal loan calculator is a tool used to estimate monthly payments and total repayment amounts for a personal loan. Click here to check the calculator.

Here’s a list of documents typically needed for a Personal Loan application:

Documents for Salaried Employees

Generally, banks require the below-mentioned documents to apply for a Personal Loan.

• Application: Application form with photograph
• Proof of Identity: Self-attested photocopy of any one of the following:
  • Driving license
  • Passport
  • Voters ID
  • Aadhaar
  • PAN
• KYC: Valid identity/Residence/Signature proof
• Income proof:
  • Form 16/ITR for the last 3 years
  • Latest 3 months salary slip
• Banking: Latest 3 months’ Salary Credit Bank Statement

However, new-age banks like IndusInd Bank do not require any physical documentation. The application process is 100% digital with no income-proof requirement. This simplifies the entire personal loan application process and makes the disbursal process quick and efficient.

Also Read: Using an Instant Personal Loan to Fund Your Dream Wedding: The Dos and Don’ts

To Conclude

Before applying for a Personal Loan from any lending institution, it’s crucial to verify your eligibility. A rejected application can negatively affect your credit score. If you believe you don’t meet the minimum eligibility requirements for a Personal Loan, it’s advisable to wait and enhance your eligibility before proceeding with the application.

IndusInd provides Personal Loans with straightforward eligibility requirements and no physical paperwork. With us, you can explore Personal Loan options tailored to various needs, including Education, Medical Expenses, and Travel.

Apply for a personal loan with IndusInd Bank today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.