All posts by ANAND BHIDE

Today, most credit cards provide you the option of availing a quick loan against your credit limit. These are great for emergency situations where you need a quick inflow of cash. Whether it is a medical emergency or a small education loan, you can rely on a credit card loan to get the funds that you require quickly. But is it worth taking a credit card loan? This blog highlights a few points that you should consider before availing one.

What is a loan against credit card?

A loan against credit card, just like a personal loan, is an unsecured loan that comes with a fixed interest rate over a set tenure. These loans are usually processed very quickly and you can get a credit card loan approved sometimes, in minutes. This makes these loans great for immediate cash requirements.

The maximum amount of credit card loan that you can apply for depends on the credit limit set on your credit card. As soon as a loan is disbursed to your account, your available credit limit is reduced by the amount of the loan taken.

The repayment of your credit card loan happens, just like any other loan, in monthly installments. The amount of these monthly installments depends on the amount of loan taken, the interest rate on the loan, and the tenure selected at the time of availing the loan.

Is it worth taking a loan on credit card?

Whether taking a loan against credit card is worth it or not depends entirely on factors such as your current situation, how quickly do you need the cash, how much cash do you need, etc.

Here are a few points that you should consider when deciding whether you should go for a credit card loan or not.

How much loan is required?

The maximum amount of credit card loan that you can avail depends on your credit limit. If the amount of loan that you require is within your credit limit, you can avail a credit card loan. If not, maybe you should explore other options like a personal loan or a mix of personal loan and credit card loan.

Interest rate

This is a very important factor that you must consider before availing a credit card loan. Since the interest rates on credit card loans can be higher than those on personal loans, you will need to consider whether it is worth paying that extra interest. So, before you opt for a credit card loan, do consider whether you can avail a personal loan for the same amount at a lower interest rate. If you can, then definitely go for the personal loan.

How urgent is your cash requirement?

In case of an urgent cash requirement, it may be worth getting a credit card loan. You can apply for one in a flash using your bank’s mobile app. Simply select the amount of loan that you want to avail and the tenure and you should be able to get the money in your account in no time.

Bottom Line

So, credit card loans are a great way to have an immediate cash inflow for emergencies. Make sure to consider all these points to decide whether it is worth for you to take a credit card loan or not.

If you are looking for a credit card that gives you the option of availing a credit card loan with a host of other features such as unparalleled rewards and cash back program and lower interest rates, do check out IndusInd Bank Credit Cards right 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.

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Manage your Finance

How to Boost your Chances of Getting a Personal Loan from IndusInd Bank?

July 18, 2022 ANAND BHIDE Leave a comment

When single mother Chitra Singh was told by the doctor that her 16-year-old daughter Natasha would need an appendectomy – removal of the appendix – the first thing she did was panic. She was also worried about the medical expenses since Natasha obviously didn’t have health insurance and Chitra’s health insurance plan did not include family members. However, she was equally wary of applying for a personal loan. In fact she wasn’t even sure she’d qualify for one.

Chitra decided to broach the subject of a personal loan with her nephew Uday, who knew a fair bit about personal loans and decided to help out his aunt with all the information she needed. Uday explained Chitra why it wasn’t such a good idea to deplete her savings and instead, apply for a personal loan. But would she even geta personal loan online, wondered Chitra. This is when Uday shared 5 useful tips on how she could up her chances of getting a personal loan from IndusInd Bank.

Check out Personal Loan Application & Tips

Provide Accurate Information:

To begin with, it was important to furnish the requisite documents and provide accurate information regarding her personal and income details. This would render the process smooth and hassle-free, increasing the odds of loan approval.

Consider Debt-to-Income Ratio:

Before applying for a personal loan, it is important to check the debt-to-income ratio i.e. the monthly debt payment divided by her total monthly income. A low debt-to-income ratio – EMIs lower than 30% of her monthly income – indicated creditworthiness and ability to repay the loan.

Show Good Credit Score:

Having a good credit score – more than 700 or 750 – definitely helped in securing faster approval of a personal loan. A good credit score has a positive impact on the credit profile of the applicant.

Maintain Adequate Balance:

In addition to a satisfactory credit history, it is necessary to have an adequate average monthly bank balance. As a personal loan was collateral-free, a good bank balance indicated a higher repayment capacity.

Stick to One Lender:

Last but not least, it is advisable to avoid applying multiple loan applications to different banks. Lenders could see the multiple loan applications and interpret this as a sign of credit-hunger. Moreover, multiple applications could result in multiple rejections, and have an adverse impact on credit score. So it was best to stick only to IndusInd Bank.

Luckily for Chitra, IndusInd Bank offered a personal loan that suited all her needs and came with a bunch of benefits i.e. the Indus Easy Credit Personal Loan. Uday told Chitra all about the key features of the loan such as low interest rate, flexible repayment tenure, and simple documentation. Best of all, applying entailed an easy, four-step, 100% paperless process that was followed by instant approval of the personal loan.

Chitra, convinced of the benefits and convenience of the Indus Easy Credit Personal Loan, profusely thanked Uday for sharing his trove of information.

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Manage your Finance

Earning More and Saving Less: Here’s What You Need to Do

July 15, 2022 ANAND BHIDE Leave a comment

Did you recently received a raise? Congratulations! However, are you baffled by the fact that you are saving even less than before? It indicates that your savings plan has some loopholes. Needless to say, you need to address this issue as soon as possible.

The fact is, people usually do not increase their savings percentage as their income increases. It can only be fixed if personal budgets are correctly adjusted. To solve this issue, you must first understand what is causing it and why you are saving less.

Going Above and Beyond Means

Earning more doesn’t imply that you need to spend without sticking to a budget. Saving and investing are essential aspects of living an economically balanced life. Inevitably, our desires develop as our income increases, but having control over these desires is crucial to save more.

Increasing Credit Card Spending

One of the main reasons people save less when their income goes up is because they tend to spend more.

If you want to start saving more, you need to be aware of your spending patterns and find ways to curb your spending. One way to do this is to set a budget and stick to it. This includes checking how much you spend with your credit card.

Investment is Being Overlooked

Another reason people save less is because they start overlooking investment opportunities and instead spend more.

For instance, if you received a raise, you may feel like you can now afford to buy that new car or house. However, in the long run, these investments may not be as wise as you think.

It is important to remember that it is important to save for rainy days. A good way to do this is to set aside a portion of your income each month and invest it in a solid investment plan. This will ensure that you have a cushion saved up when your income inevitably decreases.

Investing in mutual funds, stocks, shares, and initial public offerings (IPOs) are a few excellent strategies to build your wealth.

Not Tracking Your Expenses

Tracking your spending is equally crucial for great savings. Knowing where your money is going can help you analyse your finances. Start bby analysing your bank and credit card statements and keeping a spreadsheet of your expenses. It will help you in maintaining track of your finances and achieving financial independence.

Taking Out Loans Unreasonably

Another common reason people save less is that they take out too many loans. This can be a very dangerous cycle, as it can be difficult to get out of debt if you keep taking out more loans.

Understand that loans indeed come with a long-term obligation that must be met; as a result, using them only when essential is the prudent thing to do. Personal loans, for example, have enticing offers and are readily available from any bank. However, this loan should only be taken out after careful consideration to maintain a healthy financial situation.

Conclusion

As your monthly income increases, it is imperative for you to increase the number of funds you save every month as well. This is essential for your financial growth and hence, must not be overlooked. An easy way to develop a habit of saving money is to open a savings account. You can easily set aside a particular percentage of money every month and use it to invest in some profitable options. The aforementioned points highlight a few ways to ensure the same.

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Investment

Short-term or Long-term Fixed Deposit – Which one is a smart option?

July 13, 2022 ANAND BHIDE Leave a comment

When it comes to saving money, there are many options to choose from. You can put your money in a savings account or invest in stocks or mutual funds. But what if you’re not sure which option is the best for you?

In this blog post, we’ll compare short-term fixed deposits and long-term fixed deposits – two popular savings options – to help you decide which one is the smartest choice for you.

Short Term Fixed Deposits

Short-term fixed deposits are a safe investment that usually gives you guaranteed returns which can be calculated using Fixed Deposit Calculator. A bank might charge you an early withdrawal penalty if you redeem the deposit before the end of its tenure. There is also a penalty for not maintaining your account balance at the time of renewal.

Here are a few things to keep while investing in short term fixed deposits:

They are ideal if you want to accumulate money for a specific goal
If you don’t want to make any high-risk investment decisions, short term fixed deposits can be a very good option
Short term fixed deposits are also the ideal place to park money without worrying about inflation or fluctuating market rates of interest.
They are a good option if you want to save enough money for your child’s education or marriage.
They will help you accumulate more money for your goals in the long run.
Make a long term fixed deposit and also open a recurring deposit. Your money can grow at a faster rate due to the power of compounding.

Long Term Fixed Deposits

Long-term fixed deposits earn a higher interest rate than short-term ones, but you will typically have to wait for a longer period to receive your money back. In some banks, they can be renewed automatically. In others, you will have to inform the bank before your deposit matures.

Here are a few things to keep while investing in long term fixed deposits:

A Note on Compound Interest

When you make a fixed deposit, your bank pays you interest on the money at regular intervals. This interest is calculated on your original deposit amount, so the balance will be higher than what you initially put in. As the balance increases, more interest is earned. This is referred to as compounding.

Final Word

Both short-term and long-term fixed deposits are safe investments. It depends on your lifestyle requirements and how patient you are. With most of the banks offering the option to open a fixed deposit online, you can easily start saving anytime you want from the comfort of your home. So, read up on this guide and make an informed decision.

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Credit Card

The features and benefits of the IndusInd Bank credit card

July 11, 2022 ANAND BHIDE Leave a comment

Today credit card is no longer a luxury item. Considering their wide utility, credit cards have become a lifestyle accessory that not only opens up access to instant credit for all the small and big ticket purchases, but also helps one build a solid credit history over time.

The best part? You can easily get an instant credit card approved via a simple paperless process with IndusInd Bank! Apart from extending seamless transaction banking services, our wide range of credit cards offer access to exclusive memberships along with exciting deals on dining, entertainment, online retail, travel and many more. Whether it’s your monthly bill payments, movie plan with friends, or a big ticket purchase for your home, IndusInd Bank has a range of credit cards designed to suit your lifestyle.

If you’re considering applying for an online credit card, here are 5 reasons why you should choose one from IndusInd Bank’s Instant Credit Card stack.

1. Ease of application

Worrying about the hefty paperwork for getting your credit card or not getting time to visit the bank branch to submit your credit card application? Why should you! With IndusInd bank’s easy credit card offering, you can apply for the card of your choice through a totally digital process right from the comfort of your home.

All you have to do is visit our official web page, hit the ‘Apply Now’ button, enter your basic details, do a quick credit card comparison, select the card of your choice and you are done. Yes, the approval for your credit card application is online and instant! Sit tight and you will have your credit delivered to your doorstep within just 5 working days from the date of your application.

2. Diverse perks and privileges

IndusInd Bank’s credit cards are designed to offer a wide range of tempting deals, cashbacks and rewards on spending. Whatever you lifestyle preferences may be, IndusInd bank has a credit card offering tailored to your needs to help you maximize your savings. Be it the advantage of discounted foreign currency markup, flight deals, exclusive access to domestic or international lounges etc. for the frequent travelers or the unparalleled rewards and cashbacks on your shopping and entertainment spends, IndusInd Bank credit cards offer flexibility and convenience like no other to suit to your lifestyle needs. Not to mention of other value adds like comprehensive Insurance benefits, fuel surcharge waiver, unique contactless feature and many other endless benefits. Do a quick credit card comparison and choose the one that best suits your needs.

3. No Joining fee and lifetime free cards

Thinking about the recurring annual fees or the one time joining fee applicable on your credit card application? No need to worry! IndusInd bank has a range of instant credit cards that come without the baggage of any application fee or annual recurring fee. Neither you have to worry about crossing certain milestone spends for getting your annual fee reversed. What are you waiting for? Apply for an instant lifetime free credit card with IndusInd Bank today.

4. Rewards that never expire

Tired of keeping track of expiry date for the reward points earned on your spends? Now get rid of all such hassles with IndusInd Bank credit cards where your reward points do not carry an expiry date and you are free to redeem them whenever you wish to.

Not just that, the best part is that you can accumulate your reward points and convert them to cash to pay the outstanding amount on your card statement. Also with some of the cards, enjoy accelerated reward points on your weekend spends, additional bonus rewards points on achieving milestone based spends in a year and up to 4X rewards points on specific merchant categories.

5. Higher limits and relaxed eligibility criteria

IndusInd Bank offers its credit card on very simple terms and conditions. Applying for an instant IndusInd Bank credit card is an easy 3 step online process where all you need to be eligible is a permanent residential address and a stable monthly income. Basis your profile and CIBIL score, the bank offers some of the best possible credit limits to its applicants so that you can make the best use of your credit card and maximize your savings.

Final thoughts

Look no further and apply for an IndusInd bank credit card today!

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What is a loan against credit card?

Is it worth taking a loan on credit card?

How much loan is required?

Interest rate

How urgent is your cash requirement?

Bottom Line

Check out Personal Loan Application & Tips

Provide Accurate Information:

Consider Debt-to-Income Ratio:

Show Good Credit Score:

Maintain Adequate Balance:

Stick to One Lender:

Going Above and Beyond Means

Increasing Credit Card Spending

Investment is Being Overlooked

Not Tracking Your Expenses

Taking Out Loans Unreasonably

Conclusion

Short Term Fixed Deposits

Long Term Fixed Deposits

A Note on Compound Interest

Final Word

1. Ease of application

2. Diverse perks and privileges

3. No Joining fee and lifetime free cards

4. Rewards that never expire

5. Higher limits and relaxed eligibility criteria

Final thoughts