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All posts by ANAND BHIDE

How can I get FASTag today?

Based on Radio Frequency Identification Technology, FASTag has digitised toll payments, providing convenience and easing road journeys. It is easy to apply for and get IndusInd FASTag.

FASTag is a tag that is fixed on the windscreen of vehicles to enable electronic toll collection. Based on Radio Frequency Identification (RFID) Technology, FASTag was introduced by the National Highways Authority of India (NHAI) to digitise toll payments in the country. Made mandatory since February 2021, these tags save people the trouble of having to wait in car queues at toll plazas. FASTag is used at hundreds of toll plazas across India on state and national highways. Here’s everything you need to know about FASTag, including how you can get one.

How Does FASTag Work?

The FASTag is a prepaid and rechargeable tag. Vehicles which have FASTag on the windshield do not have to stop at toll gates for making a cash payment as the toll fee. Instead, you may keep driving as the toll plaza system scans the tag, automatically processing the applicable toll payment. This is achieved with the help of RFID technology. FASTags are valid for a period of 5 years but must remain readable at the toll plazas.

What are the Benefits of FASTag?

The most obvious benefits of FASTag are as follows:

  • Avoids traffic snarls and congestion at toll booths
  • Helps protect the environment by reducing the use of fuel and paper
  • Saves time as you do not have to stop at the toll gates
  • Helps keep track of all your toll expenses on long road trips with SMS alerts on the registered mobile number
  • Easy and convenient to recharge online with the help of internet banking, debit or credit cards, or via payment apps
  • Frees you from the hassle of carrying cash and change
  • Gives a chance to earn cashback incentives

How to Get FASTag?

The NHAI has authorised 22 Indian banks to issue FASTags to individuals. These banks, along with NHAI toll plazas, have set up thousands of point-of-sale (PoS) terminals across the country. You can also get FASTag at the bank branch.

Looking to apply for FASTag? You can easily get your tag account created by visiting any of the IndusInd Bank branches near you. You may also call the customer care number on 1860 267 7777 to find out more details. When applying for FASTag, you would need to carry your KYC documents – original as well as a copy – along with your car’s RC Book, Driving License and vehicle to the branch location. You may also apply for FASTag online by entering your details and digitally completing the KYC and payment process.

FASTag is easy to recharge and can be done offline at the bank branch as well as online via debit card, credit card, NetBanking, and UPI.

With IndusInd FASTag, the Tag is recharged automatically on reaching low balance without manual intervention, provided there are adequate funds in the customer wallet.

Moreover, there is a FASTag customer portal that you can log in to for accessing your statements. SMS alerts will be sent on the registered mobile number for every transaction related to the tag account. For hassle-free road trips, apply for IndusInd FASTag to day!

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.

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Is It Wise to Convert Your Credit Card Transactions into EMI For payment?

Big-ticket purchases can easily burn a hole in your pocket and interfere with your financial planning. While you can always pay for big-ticket purchases using your savings, it is best to use a credit card for expensive purchases. The reason is you can easily convert your credit card transactions into EMIs which will be easy on your pocket and will also ensure that you don’t need to dig into your savings.  When you opt for an EMI, you don’t have to pay a large credit card bill after a big purchase. You can instead split the transaction amount into several monthly instalments and pay off the debt comfortably. This reduces the financial burden.

But should you convert your credit card bills to EMIs? Let us weigh some pros and cons to find out. 

Benefits

Here are some benefits of converting transactions done through credit cards into EMIs.

1. Easier Repayment

Converting your credit transactions into an EMI allows you to make big purchases without overburdening yourselves. It also makes repaying the debt convenient as EMIs are easier to repay than a one-time bill payment. Naturally, you eliminate the risk of making late payments and bearing penalties too.

2. Attractive Interest Rates

The interest rates on EMI payments are much lower than regular credit card interest rates. This makes EMI payments manageable. But that’s not all. Some of the best credit cards come with the option of zero-cost EMI for certain products. This means even lower EMIs since you only pay for the product price.

3. Flexible Repayment Tenure

You can choose the repayment period for credit card transactions at your convenience. For instance, if you made a large transaction, you can choose a longer repayment tenure so that your monthly EMIs become smaller.

Note that banks allow tenures of 6 months to 24 months. But longer repayment tenures typically mean you pay a larger sum towards interest.

4. Improve Credit History

Strong credit history is essential if you want to avail of credit facilities. You minimize the risks of defaults by converting big purchases into EMIs. So, with each monthly payment you make, your credit history improves.

Drawbacks

Here are some cons that you must consider before opting for conversion.

1. Additional Fees

Most banks levy additional charges such as processing fees, GST, and prepayment charges. Even if the interest payments are low, you may pay more in additional charges. That said, you can review the additional charges applied by each bank before getting a credit card. 

2. Blocked Credit Limit

Once you convert your purchase through credit cards into EMI, banks block a certain amount on your credit limit. So, you get a lower credit limit for every new transaction until you repay the amount in full.

3. Lower Refund Amount

If for some reason, you return the purchased item after the bank has processed EMI, you will not receive the refund amount in full. Banks usually deduct processing charges, tax, and prepayment charges from the loan amount before refunding.

Verdict

The ability to convert transactions into EMI is a convenient option if you use credit cards, and it is ideal for making big-ticket purchases without constraining your finances. However, you must consider the drawbacks of converting your transactions into instalments.

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.

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Factors That Affect Your Personal Loan Interest Rates

Personal loans provide great support when you need funds for a financial emergency or a planned event like a wedding, vacation, or home renovation. The application process for a personal loan is quick and simple. You can also choose to apply for a personal loan online. The process is 100% paperless and convenient. As a result, personal loans are quite popular among borrowers. However, the interest rate determines the affordability of a personal loan. The higher the interest rate, the higher the EMIs. Personal loans have a higher interest rate than other loans because the bank does not keep anything as collateral. The interest rate for a personal loan is not the same for all borrowers; it can vary depending on the borrower’s profile.

If you’re planning to apply for a personal loan, you should be aware of the factors that influence your interest rate. Here are some major factors that can affect your personal loan interest rates.

Monthly Income

Your monthly income has the greatest influence on your loan amount and interest rate. A higher income means a lower risk of defaulting on a loan. It provides the lender with the assurance of timely loan repayment, allowing the bank to offer a low interest personal loan.

Credit Score

Your credit score provides information about your credit history and a brief explanation of your reliability as a borrower. A high credit score indicates that you are a responsible borrower who is good at managing your finances. A borrower with a credit score of more than 7.50 can get a low interest personal loan than someone with a low credit score.

Company’s Portfolio

It makes a good impression on the lender if you work for a reputable company or in a government institution. Lenders believe you have a steady job and will be able to repay the loan on time. This factor plays a crucial role in lowering your rate of interest.

Loan Repayment History

In addition to your overall credit score, your previous repayment history will be examined before deciding on a personal loan interest rate. If you are a responsible borrower who pays EMIs on time, the bank will likely charge you a low interest rate on your loan.

Liabilities

If you’re already paying off another loan, such as an education loan or a home loan, the lender will want to make sure you have enough money coming in each month to repay the personal loan. Too many liabilities increase the risk of loan default, so lenders will probably charge you a high interest rate.

Previous Defaults

When a bank discovers loan defaults in your credit history, the risk to the lender increases, in this case, the lender will either reject your loan application or charge you an extremely high interest rate.

Borrower and Lender Relation

If you’ve been a regular customer of a bank for a long time and are thought to be trustworthy, the bank is likely to offer you a low interest rate. Long-term trust and responsible behaviour on the part of the customer can lead to an interpersonal relationship with the bank, which could result in a low-interest personal loan.

Understanding these factors in depth can help you negotiate with the bank for a low interest rate on your personal loan.

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.

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