Do you wish to buy a new vehicle but have been denied a car loan? Don’t feel disheartened! Read about these 5 possible rejection reasons to figure out the mistakes you could have avoided.

Top 5 Reasons Why Your Car Loan Application Was Rejected

Remember, you can apply for car loan quickly after rectifying the following gaps in your application.

1. Unhealthy Credit Score

Maintaining an unhealthy credit or CIBIL score is one of the primary reasons behind that rejection letter. Your CIBIL score informs the lender about your creditworthiness. Banks work on the basic principle that higher the borrower’s CIBIL score, lower their chances of defaulting on EMIs.

Naturally, the opposite is also true. So, if your CIBIL score is below 600, the chances of car loan approval go down. A credit score that lies between 600 and 750 might get you an auto loan but at a slightly higher interest rate. However, a credit rating above 750 is considered excellent, and a borrower with such a score will almost certainly get a car loan at attractive interest rates.

Therefore, before applying for car loan, check your credit score.

How to Improve Your Credit Score?

Improve your credit score by repaying all your dues on time. Defaulting your credit card payments and other EMIs can negatively impact your CIBIL rating. Also, make sure you don’t make multiple loan enquiries or apply for finance with several lenders at the same time.

2. Economic Instability or Inadequate Income

A lender assesses how much loan amount you can avail and repay by going through your monthly income and employment stability. It often happens that a lender rejects a borrower’s application just because the loan amount is higher than repayment capacity of the borrower.

How to Counter the Problem?

Ensure stable income with a credible employer. If you are self-employed or are a freelancer, show documents like IT Returns, balance sheets, etc. that proves you have a stable income. Lastly, don’t borrow more than what you can afford.

3. Incomplete Paperwork

Even though certain banks these days have relaxed their car loan eligibility criteria and documentation requirements, you must compile them to improve your approval chances. Hence, talk to your lender and make a checklist of all the documents you need.

How to Ensure Complete Paperwork?

Incomplete or incorrect paperwork is also one of the reasons of your car loan getting rejected. It is advisable to take help from friends or family members, who have recently taken a car loan, when completing the paper work. In addition, check the bank’s website to make sure that you have a clear idea about the documents that you need to share for the loan approval process.

4. Parallel Loans

A car loan generally runs in lakhs, which is why you should refrain from applying for parallel high-value finance along with it.

How to Counter this problem?

Consolidate your debt and pay off before you apply for car loan. Therefore, you can take calculated risks and plan for a better future.

5. Credit Card Utilisation Ratio

A high credit card utilisation ratio can negatively affect your approval chances and credit score. Maxing out your credit limit when you are not applying for a car loan is not a problem. But, if you plan to avail auto finance, make sure you maintain a healthy credit card utilisation ratio a few months before applying for the loan.

How to Ensure a Low Credit Card Utilisation Ratio?

Draw up a budget to avoid unnecessary expenses, request a higher credit limit and ensure timely repayments.

Looking for an Affordable Car Loan?

If yes, then your search ends at IndusInd Bank. Apply for car loan at attractive interest rates and flexible repayment tenure with minimal paperwork.

So, don’t wait any longer! Get in touch with us to finance your dream car 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.

It’s the sales season, all the cards are aligned in your favour, and your Mercury is finally out of retrograde; because the Smith machine you had been waiting to add to your home gym is launching last. Now, instead of exhausting your savings, you decide it’s better to go take a personal loan to finance your big-ticket purchase. This leaves you puzzled over the two options: using your credit card or availing personal loans.

Well, no matter what your big-ticket expense is, a personal loan will almost always fare better between the two. Let’s explore why.

Difference Between Personal Loans and Credit Card Loans

Personal loans are unsecured loans taken to meet various personal needs, ranging from debt consolidation to home renovation projects, and provided as a lump sum amount. In contrast, credit cards are classified as revolving credit, which allow you to borrow money up to a prespecified limit and pay it back monthly.

Both the financial products are deliberately designed to serve a gamut of personal needs the customer may have. Having said that, it’s also equally important to highlight how the two differ.

When you take a personal loan, you’re obliged to repay the borrowed sum over a predefined tenure, so you have a clear overview of your debt. Credit cards, in contrast, have a monthly billing cycle, where all your monthly transactions are added to your credit card bill, including other charges. As a result, your debt varies from month to month.

Benefits of Personal Loans Over Credit Card Loans

If you’re looking to buy a high-end item, it makes more sense to go for a personal loan. Not only does it allow you to make bigger purchases but also repay the loan amount over a longer period comfortably.

Here are three other reasons why personal loans are undeniably the better credit instrument for big-ticket funding.

• Affordable Interest Rates

While credit card loans are undoubtedly convenient methods to overcome a cash shortage, nine out of ten times, they are usually accompanied by higher rates of interest, often between 10-18%. Personal loan interest rates, on the contrary, are relatively affordable and don’t take a toll on your financial health.

Personal loan interest rates are also negotiable in most cases. If you boast of a high credit score (700 or above), you may even get a competitive rate on your loan. The same is not the case with credit cards.

• Limited Spending

With a credit card in your hand, there’s always a chance you may end up relying on it for day-to-day purchases, whether big or small. It may even affect your spending habit, leading to overborrowing of credit. But since you only get a one-time lump sum amount when you take a personal loan, you’re more careful about how and what you spend it on. This keeps you in check and from going on a spending spree!

• Instils Discipline

Sure, there’s a greater measure of flexibility with credit cards, given how you can access funds 24×7 and almost instantly. But in the end, they also leave a bigger window for losses and bad debts. In contrast, the personal loan EMI obligations make you financially responsible and foster a habit of savings.

Now, when it comes to quick and easy personal loans, IndusInd Bank undoubtedly tops the list. So why look anywhere else? Get an instant loan of up to Rs. 15 lakhs and finance your premium purchases conveniently.

We’ll consider your eligibility, repayment capacity, monthly income, and nature of your job to check your creditworthiness. Once you qualify, we only take 4-7 working days to disburse the loan amount. Sounds like a deal you’d want? Then, wait no more and apply for a personal loan 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.

Imagine your vehicle fitted with a magic wand that lets you zip in and out of toll plazas? No hassle of stopping before the boom barrier, tending the exact change or waiting in a long queue just to reach your destination. All of this is now possible with a FASTag.

What is a FASTag, and What Are Its Benefits?

It’s a device that uses Radio Frequency Identification (RFID) technology for facilitating toll payments electronically. User/Vehicle Owner recharge their FASTag, and the sensors at the toll plaza deduct payment by automatically accessing their prepaid account. Doing this ensures smooth traffic flow at expressway and highway tolls.

Other than ease of payment and cashless transactions, a FASTag can be recharged online within a matter of minutes. You even receive alerts on your smartphone about toll transactions and when your balance starts running low.

FASTag, comes with at least a 5-year validity. As long as your FASTag is not tampered and can be read by the reader, you can continue recharging and using the same.

Is There an Easy Way to Apply for FASTag Online?

One of the convenient ways to create your FASTag is by visiting the nearest branch of IndusInd Bank. Bring your original KYC documents, vehicle Registration Certificate (RC) booklet, driving license and car at the nearest IndusInd Bank branch and state your request.

You can also login on https://fastag.indusind.com to apply for the FASTag in self-assisted way or else call on the bank’s customer care number – 1860 210 8887 for more details. After an initial visit, you can keep recharging your FASTag online.

How Can I Activate my FASTag with IndusInd Bank?

After getting your FASTag, you can self-activate your account by entering your vehicle’s details on the ‘My FASTag’ mobile app. The bank officials can also assist you in doing the same.

How to Recharge my FASTag Card or TAG Account with IndusInd Bank?

• You can recharge your TAG account by following the steps listed below:
• Login or signup with https://fastag.indusind.com/
• Head to the payments section.
• Select the tag accounts and the top-up amount(s) to be recharged.
• Select your preferred online payment mode and click on ‘Continue’.
• After this, follow your payment gateway instructions and complete the payment.

*You need to get a minimum recharge of Rs. 100.

Documents Required by IndusInd Bank for Issuing Your FASTag

Here is a detailed list of all the documents you need to carry to get your FASTag issued at IndusInd Bank.

Individual

• A duly filled out application form (can be found both at the bank or by logging ) https://fastag.indusind.com
• Identity and address proof (PAN card, passport, voter ID card, Aadhar card with address)
• You can also just bring your driving license as that will act as both your address and ID proof
• 1 passport-sized photograph (optional)

Corporate (Private Ltd., Partnership, Public Ltd.)

• A duly filled out application form (can be found both at the bank or by logging )
• Registration certificate of the firm/ Partnership Deed/ Certificate of Incorporation
• Corporate PAN card
• Photo ID of the primary signing authority
• Name and addresses of Partners / Directors’ list with addresses

Proprietorship

• A duly filled out application form (can be found both at the bank or by logging )
• Proprietor’s PAN card
• Proprietor’s address proof
• Proof of firm or Shop

All the documents mentioned above must be in the vehicle owner’s name. In case the vehicle’s owner is not present at the time of FASTag issuance, the driver must submit the owner’s photo ID proof and other documents.

Easy Does It!

As you can see, procuring, activating and loading a FASTag is smooth, especially with IndusInd Bank. Apart from our other seamless banking and finance services, we also ensure you get your FASTag locked and loaded to save you time on the road.

So, why wait? Get in touch with us and get your FASTag 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.

You’re all set to take your international trip. The top two questions you most likely have in mind are –

• How much foreign currency should I carry?
• What is the best way to carry it?

Sure, you can still do it old school and carry some cash, but there are restrictions to how much hard currency you can take on a trip without declaring. So, why bother carrying bundles of moolah when you can easily pay for your transactions with a prepaid forex card?

What is a Prepaid Forex Card?

In a nutshell, a prepaid forex card allows you to load multiple currencies on it, depending on the countries you plan to travel to. If you are touring just one country, you can load this card with only a single currency as well. How much money can you load into your prepaid forex card? As per RBI guidelines, you can charge your card to an equivalent of US$ 2.5 lakh per annum.

Once you have the forex card ready, swipe it at a Point-of-Sale (PoS) machine or use it to withdraw cash from an ATM abroad – the choice is yours.

Where Can I Get a Forex Card?

In no time, you can get your forex card at IndusInd Bank. The Indus Multicurrency Forex Card is a convenient way to carry international money on your travels abroad. This card comes in 14 currencies and protects you from foreign exchange fluctuations. Use this card for hassle-free transactions at merchant outlets, ATMs, and for online transactions.

What Are the Advantages of Carrying a Prepaid Forex Card by IndusInd Bank?

● We extend incredible convenience to our travelling customers by letting them load up 14 currencies simultaneously on one card. These 14 currencies are – United States Dollar (USD), Euro (EUR), Australian Dollar (AUD), Great Britain Pound (GBP), Swiss Franc (SWF), Canadian Dollar (CAD), Hong Kong Dollar (HKD), Arab Emirates Dirham (AED), New Zealand Dollar (NZD), Japanese Yen (JPY), Singapore Dollar (SGD), Saudi Riyal (SAR), Thai Baht (THB), and South African Rand (ZAR).

● Your exchange rate remains unchanged after you load the card. This feature protects you from currency fluctuations.

● We don’t charge extra when you make flight bookings, hotel reservations, or any other purchase with your forex card on loaded currencies via POS or online shopping.

● With the Indus Multicurrency Forex Card, you avoid the rigours of standing in long queues at the foreign exchange counter at airports or marketplaces.

● You can withdraw cash from all VISA-enabled ATMs around the world.

● Quickly cash out the residual funds that remain in your card on your return to India.

Terms to Know Before You Buy a Prepaid Forex Card

Know these terms before purchasing a forex card:

Card Issuance fee – This includes a nominal bank charge for issuing the card.

Charge on cash withdrawal(s) – Before you apply for a forex card, figure out if there is any cost you incur on ATM withdrawals. While one withdrawal per day may be free, your bank will likely charge you for multiple ATM transactions.

Charge on Balance Inquiry – Of course, you will need to figure out how much balance is left on your card. But, can you do this for free? Make sure to ask beforehand.

Charge on SMS Alert – It’s a safe practice to receive an alert every time you use your card. But, when you are abroad, these alerts are international SMSs that may be charged out of your pocket. Best to check!

Fee for a Replacement Card – Before applying, make sure to ask if there is a way to replace your card should you lose it when on your international trip. If yes, you should also know of these charges.

To Sum Up

Are you planning on jet setting for an international trip? Well, then reach out to IndusInd Bank and apply for a forex card with us right away. With our slew of benefits, you can forget transaction worries on your international travels for good.