September 30, 2022

How to do bankingin a few clicks?

Aug 26, 2022

Time is precious. Standing in long queues to transfer funds and apply for loans isn’t the best way to use your limited time. Digital savings account accessible with a mobile net banking app is better, as it allows you to conduct all banking activities with a few clicks.

A digital savings account can be opened instantly without the need to visit the bank branch for documentation. However, that doesn’t mean you do not need anything to open a digital savings account. Here are the documents and information required for opening an instant bank account:

  • PAN card
  • Aadhaar card
  • Active mobile number linked to your Aadhaar
  • Active email ID

Alongside these documents, you even require an internet-enabled electronic device like a smartphone, tablet, or laptop with a camera to complete the video KYC process. Let us now know the procedure and benefits of a digital savings account.

 

How can you open a digital savings bank account?

Download the new mobile banking app from the Play Store or App Store. After downloading, open the banking app and click on the instant savings account opening option.

  • Input the Aadhaar and PAN number to authenticate. Enter the OTP received on your mobile number.
  • Upon successful authentication, you must fill up the details – name, age, gender, address, and family info.
  • Once you enter the details, the bank official will contact you for a video KYC. During the process, you must keep your PAN card handy as the official will take a screenshot of it. Also, the officer will ask a few basic questions to validate your KYC info.
  • After completing your video KYC, your savings account will be opened instantly. Your account number, customer ID and IFSC code will be mailed to you. You will also receive an e-debit card instantly. With all these details, you can bank on mobile.
  • Note that all the physical collaterals such as welcome letters, debit cards and cheque books will be handed over to you via courier or post.

What are the benefits of opening a digital savings bank account?

Digital savings bank accounts are popular because they offer the following benefits:

  • Instant account opening:You can open a digital account in minutes by entering your KYC details.
  • Fund transfer:Digital accounts allow online fund transfers via NEFT, RTGS and IMPS.
  • Instant virtual debit card:Upon opening the digital account, you get access to an instant debit card, which you can use to avail of exciting offers and deals online.
  • Instant transactions:With the banking app, you can open a fixed or recurring deposit account and pay your credit card and electricity bills.

Leading banks, including IDFC FIRST Bank, offer digital savings bank accounts. IDFC FIRST Bank is especially popular as the approval process is quick and hassle-free. You can receive your account credentials within hours if all your details are correct.

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Factors to Keep in Mind before Applying for a Home Loan Today

Aug 17, 2022

Are you planning to apply for a home loan today? Before you submit a home loan application to a lender, you must understand all the factors that can impact your home loan. On that note, here’s listing out the top five factors to note before you apply for a house loan.

#1 Eligibility

The first and foremost thing to consider is whether you are eligible to get a house loan at present. There are a host of factors that impact your eligibility, such as:

  • credit score
  • age
  • professional stability
  • loan tenure

These are only a few instances of the factors that are considered. So, start by taking care of each of these aspects first. If a low credit score is affecting your home loan eligibility, work on repaying some of your ongoing debt. If age is the issue, try to get a younger co-borrower for the loan, and so on.

#2 Interest rate

The Reserve Bank of India (RBI) has some guidelines and limits set for the interest rate of home loans. However, the decision to set an interest rate ultimately lies with the lender. This is the reason why you see so many different banks have different interest rates.

It also gives them the liberty to offer options to the borrowers. For instance, women might be offered a lower interest rate than men. In any case, it is a good idea to compare the rate of interest for a few lenders before you go ahead and choose one.

#3 Down payment

Down payment is the upfront amount you deposit for the loan. The outstanding amount with interest is paid by you every month as EMIs. If possible, make a high down payment on that loan because that will lower your loan value. You will pay a lower monthly EMI due to a higher down payment.

But remember to consider other necessities and financial obligations before you increase the down payment on your house loan. Also, you will have to pay the rest of the amount for buying or building your house because the lender will not pay more than 75 to 90 percent of the property value.

#4 Credit score

Your credit profile is another thing that attracts a lower interest rate and increases your eligibility for the house loan. If you want to apply for a house loan today, now is a good time to check your credit score.

#5 Documents required

You will find a list of the necessary documents on the lender’s official website. Before you sit down to apply online for the loan, get those documents together. The last thing you would want is to stop the application process midway because you do not have the required documents.

Apart from your identity proof, you are also required to produce your income, income tax returns, bank statements, and so on. If you are self-employed, you will be asked to submit profit/loss accounts and the balance sheet for a particular period of time.

The Bottom Line

As you can understand, getting a house loan has become easier now than ever. If you take care of all the above factors, you will face no problem getting the house loan you need.

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Various Loans to Help You Get Through a Bind or Get Something Started

Aug 15, 2022

Modern finance is dominated by loans. Credit and lending are a huge part of our economy. Without a good credit score and the ability to borrow capital when you need it, you aren’t exactly participating in the modern economy. Digital assets like cryptocurrency have also become a mainstay, but it doesn’t come close to holding the significance that lending and credit do. Whether you are trying to get out of a bind or need capital to start a business, below are various loans that could help you out.

Mortgage Loans

To buy a house you likely need to take out a mortgage. Unless you have enough liquid assets to buy a property in cash, you will likely have to take out a loan. Mortgage loans offer the ability to buy the house and pay the money back in monthly payments. When you buy a house with a mortgage loan, you can own a home over time, but if you need more money in your pocket every month you can take out a home equity refinance loan. This typically puts the property up as collateral to lower the monthly payments. If you can’t make the payments on time, you risk losing the house. If you use mortgage loans carefully, you could create an advantageous situation for yourself.

Debt Consolidation Loans

Debt consolidation is when you apply for a loan that will pay back multiple debts. When you owe money to multiple creditors, you may not know what to pay back first. You will have interest rates for all the different loans and the payments will add up over time. This type of loan will help you pay off all these debts to create a single account with one monthly payment. You will only have to handle one interest rate. While debt consolidation is only a good idea when you are struggling with multiple debts to various creditors, it can come in handy when you need it the most.

Installment Loans

You might be wondering, what is an installment loan? Like the name suggests, it is a loan that you return in fixed rate installments. There are all kinds of installment loans. Whatever type of loan you are looking for, this type of loan is typically used to buy a large item you can’t afford outright. These options can be used for any purpose and are available to borrowers with bad credit or none. If you fail to pay the money back on time, installment loans can get pricey, but when you are on top of it you’ll be able to get the most out of your loan.

Student Loans

Student loans don’t require a credit score. They don’t affect your credit standing. While this is a great benefit to student loans, people often complain about their size of the loan they must pay back. School is expensive. If you establish a plan and understand how to get out of debt as quickly as possible, you will be able to get the most of your student loans.

Personal Loans

Personal loans come in two different kinds—secured and unsecured. Secured loans require that you provide collateral. This is like when you take out a car loan and if you don’t pay the money back, they could repossess the car. You could also put other valuables for collateral. Unsecured loans don’t require collateral, but it does require a good credit score. The terms, amount, and interest depend on your credit score. Personal loans are a common form of lending.

Business Loans

Business loans can be public or private, and the terms vary a lot. A private loan from a bank or another lender can be advantageous if the lender likes your business model and idea, but if they don’t the interest can be quite high. Public loans like government subsidies can benefit the creation of small businesses. It depends on what you are trying to get started, but you should always hop around for your business loans. You just might be able to find the right loan to start your business.

Whether you’re trying to get out of debt or trying to start a business, there are plenty of loan options for your particular situation. The most important thing is to think about what you need to get out of the loan and how you can use it to your advantage. Just make sure to pay the money back on time and you will get the most out of lending!

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