The banking industry has advanced alongside technology. Nowadays, opening a digital savings account online is simple, and many people prefer online banking instead of going over to the bank and standing in a queue for every little task. Knowing how to secure your bank account when using internet banking is important. With fraudsters always looking for ways to steal your money, it pays to be vigilant. Keep in mind the following tips for experiencing online banking without worries.
1. Change Your Password Regularly
The easiest way to keep your bank account safe is to change your password regularly. It’s important that you do this because a hacker can steal your personal information by breaking into a website and logging in as you, but they also need access to your password. If you change the password frequently, hackers will find it harder to guess it. You should also make sure that the password is at least eight characters long and contains at least one number or special character such as !@#$%.
2. Do Not Use Public Computers to Login
Net banking should never be done on a public computer. Using a public device increases the risk to your financial information, and a hacker might quickly obtain your secure information, putting you in danger of losing money that is in your bank account. Make it a life rule never to conduct internet banking on a public computer to avoid the hassle of dealing with fraud.
3. Avoid Using Automatic Login
Automatic login is a feature that allows you to automatically log into your bank account using a username and password. As the name suggests, this feature is convenient for people who have trouble remembering their PINs or don’t want to do so. However, this convenience comes with an increased risk of fraud.
If you use automatic login and someone else accesses your account without authorization, they could take money from the account that isn’t theirs. For example, if you have automatic login enabled on your account and someone steals your phone and accesses it with your username and password, they could drain all the money from your account until it’s empty.
This is why to keep your bank account safe, you should avoid using this feature and manually log in to your account whenever possible.
4. Prefer to Type Your Internet Banking URL
It is safer to type the URL of your bank into the browser’s address bar than it is to click on links provided in emails. Fraudsters have been known to send emails with links to fake websites that look exactly like the bank’s official website. Your login information may be used to access your account and steal your money if you enter it on a website like this. When you are logging in, make sure it is the legitimate website for your bank by looking for “https://” in the URL.
5. Enable Two-factor Authentication
Two-factor authentication (2FA) is one of the best ways to ensure that your online accounts are protected from hackers. It uses a combination of two factors to verify your identity: something you know (like a password) and something you have (like an app or a text message).
With 2FA, each time you sign in to an account, you must provide both the password and some other kind of verification. This means that even if someone gains access to your password, they won’t be able to access the account unless they also have access to your phone or another device. This extra step helps prevent unauthorized access to your money, making it much harder for hackers to steal your information.
6. Do not Fall Prey to Phishing or Vishing Scams
Phishing and vishing scams are one of the most common scams that can happen to you. This is why it is important to be aware of this type of scam so that you can protect yourself from falling prey to these scams.
Phishing scams are email-based attempts to get sensitive information from users. Vishing scams are phone-based attempts to get sensitive information from users.
There are many different types of phishing and vishing scams, but they all share one common goal: to steal your personal information and money.
In order to protect yourself from falling prey to these types of scams, follow these tips:
Check your inbox for suspicious emails. If you receive an email asking you for personal information or money, immediately delete it and report it as spam or phishing.
Be suspicious when someone asks for your password or PIN number over the phone or in person. If a stranger asks for either, just hang up the phone and run away!
7. Prefer to Use the Official Mobile Application
Instead of using the desktop website, download the mobile app from your bank’s official website. Unfortunately, the most dangerous attacks target computers.
Although any device has the potential to be compromised, it happens less frequently with mobile devices. You’ll be best protected if you can access your cellular network and log into your bank account instead of using WiFi. If you must use public Wi-Fi, make sure that you’re using a secure VPN to ensure that your information is kept safe.
8. Keep an Eye on Your Bank Statements
Finally, you need to review each of your monthly bank statements carefully. Your bank may fail to notify you if there is fraudulent activity on your card. You can check for any odd transactions by reviewing your statements. You must get in touch with your bank right away if you do happen to find any.
Keeping your bank account safe can be challenging, but it doesn’t have to be. We hope that the information in this blog post has provided you with some useful tips to keep your bank account safe and protected. While we can’t guarantee that you will never be a victim of cybercrime, taking these simple steps can go a long way to helping you avoid fraudulent activity.
A small loan may seem to be like a piece of cake, but in reality, it isn’t so. If you are looking to apply for a loan of any kind, personal or business, you need to be ready for the fight. There are a lot of hoops to jump through with personal loans. This blog will look at the reasons why your loan may get rejected.
What is a Small Personal Loan?
Small personal loans, also known as small instant loans, are a great way to get the money you need without putting up your property as collateral. These loans are typically for smaller amounts of money and can be used for a variety of purposes. Whether you need to make a major purchase, consolidate debt, or cover an unexpected expense, a small personal loan online can be a great option.
Reasons Why Your Small Personal Loan May Get Rejected
1. Income and Debt
Two of the most common reasons for small personal loan rejection are income and debt. If your income is too low, lenders may view you as a high-risk borrower and reject your loan application. On the other hand, if your debt-to-income ratio is too high, it may also signal to lenders that you’re not in a good position to take on more debt.
Fortunately, there are ways to increase your chances of getting approved for a small personal loan. If your income is on the lower side, try applying for a joint loan with a friend or family member who has a higher income.
2. Low Credit Score
Lenders will typically check your credit score to gauge your riskiness as a borrower. If your score is low, they may view you as being more likely to default on your loan and reject your application.
3. Incorrect or Incomplete Details in the Application
When you’re filling out your loan application, it’s important to be as accurate as possible. This means providing the correct information about your income, employment history, and debts. If any of this information is inaccurate, it could cause your loan to be rejected.
In addition to accuracy, your loan application must also be complete. This means including all required documents, such as proof of income and bank statements. If any part of your application is missing, it could lead to rejection.
If you’re considering a small personal loan, make sure you fill out your application carefully and completely to avoid rejection.
4. Existing Loans
If you already have a lot of existing loans, lenders may view you as a high-risk borrower and be hesitant to give you more money. This is especially true if your current debts are close to or at your credit limit. Adding more debt could put you over the edge and lead to default. Therefore, you must pay your existing loans before you apply for new ones.
5. Unstable Income / Job Instability
When it comes to personal loan rejection, one of the leading causes is unstable income or job instability. Lenders want to see that borrowers have a steady income in order to repay the loan, and if there are any red flags in a person’s employment history, it can be enough to cause the loan to be rejected.
There are a few things that can be done to try and overcome this issue:
Borrowers should make sure that they have a strong employment history with no gaps.
They should try to show evidence of stable income, even if it is not from traditional sources.
They should be prepared to explain any changes in their employment situation or income.
With a little preparation, borrowers can increase their chances of getting approved for a small personal loan despite having an unstable income or job history.
6. Mismatching of Signature
If you’re thinking of applying for a personal loan, make sure your signature matches the one on your ID. A mismatched signature is one of the main reasons why personal loan applications are rejected.
Lenders use your signature to verify your identity and confirm that you are the person who applied for the loan. The lender may think you’re trying to commit fraud if your signature doesn’t match.
It’s important to note that even if your signature has changed slightly over time, it can still be rejected by the lender. So if you’ve recently changed your name or had any other major life changes, make sure to update your signature accordingly. If you’re not sure how to update your signature, contact the lender directly, and they will be able to help you out.
7. Multiple Application
If you’ve been turned down for a personal loan, it may be because you applied for multiple loans. Lenders view multiple applications as a sign of financial distress, which can lead to rejection. Avoid applying for multiple loans if you don’t want to look like a credit-hungry person.
8. Age Limit
If you’re over the age of 50, you may be less likely to get approved for a personal loan. That’s because many lenders have age limits in place that can make it harder for older borrowers to qualify.
Age limits on personal loans vary from lender to lender. But they’re generally in place because lenders believe that older borrowers are more likely to default on their loans. As a result, they may require older borrowers to have higher credit scores or incomes in order to qualify.
When applying for a small personal loan, there are a number of reasons that can lead to a loan getting declined. When this happens, the loan seeker is left feeling frustrated and confused. We hope that this blog post has provided you with some helpful information on why your small loan may have been denied so that you can better prepare for the next loan that you apply for.
Are you considering taking out a loan? It’s no secret that drafting an approvable loan application can be intimidating. Applying for a loan is a big decision and one that shouldn’t be taken lightly. But what do lenders actually look at when you apply? What is a loan factor?
Knowing the factors lenders and banks consider can help you make the most informed decisions when it comes to your finances. This blog describes the seven key factors banks and other lenders consider before granting a loan.
From your credit score to your income, you will know everything that maximises your chances of being approved. Let’s get started!
7 Critical Factors Lenders Consider When Evaluating Loan Applications
Knowing these 7 critical factors for lenders can help you improve your chances of loan approval on favourable terms and conditions.
Your credit score is a significant factor in loan approval. Lenders want to know that you are a responsible borrower and have previously managed your credit responsibly. Your credit score reflects your past credit behaviour, so lenders use it to assess whether you’re likely to repay the loan in the future.
Don’t worry if you don’t have a credit score yet. Nowadays, many FinTech companies are willing to provide loan without credit score, depending on other reliable factors.
Income and Employment History
Your income and employment history are also important considerations for lenders. They want to know that you have a steady source of income you can use to repay the loan. They may also consider whether your job is secure or if you’re likely to be laid off soon.
The amount of money lenders anticipates you to make each month will depend on the size of the loan you’re requesting.
Your debt-to-income ratio is also a significant factor in loan approval. This ratio compares your total monthly debt payments to your gross monthly income. Lenders will use this ratio to determine if you can comfortably afford more debt.
Generally, it’s best to keep your debt-to-income ratio below 40%. Anything higher than that could be a hindrance when it comes to getting a loan. So, it’s wise to try and stay within that limit.
Value of Your Collateral
Loans with collateral are known as secured loans. Collateral is an asset you agree to provide to the bank if you can’t make your loan instalments on time. In case you are applying for a secured loan, lenders will consider the value of your collateral.
This is because the collateral serves as security for the loan. The lenders want to ensure that the collateral’s value is enough to cover the loan amount if you cannot repay it.
Loan Type and Loan Term
Different loan types come with different terms, interest rates, and fees. Lenders want to ensure that the loan you’re applying for is the right one for your needs. After reviewing your application, banks sometimes decide what kinds of loans you are qualified for.
You should consult extensively with the lender in such scenarios to choose a loan type that best suits your requirements and financial situation.
Size of Down Payment
The size of your down payment can also influence whether or not you are approved for a loan. Generally, larger down payments show lenders that you are serious about repaying the loan and have enough funds to cover the loan amount.
Making a larger down payment is also beneficial for your financial situation, as you end up paying lower interest due to the initial lump sum.
Finally, lenders may consider your liquid assets when evaluating your loan application. Liquid assets are funds that can be easily converted into cash, such as savings accounts, stocks, and bonds.
Having liquid assets shows lenders that you have the resources to cover the loan amount in case of an emergency.
Lenders consider several factors when evaluating loan applications. And these 7 factors are most vital for assessing your creditworthiness as a potential borrower and the likelihood of repayment.
Thus, take some time to understand and prepare for these criteria to increase your chances of being approved for a loan with the best loan terms and conditions.
Buy Now, Pay Later as a payment solution has been heating up in the B2B space. The pandemic has caused many businesses to move online, and with that, they have made great strides to improve the checkout process to meet buyer expectations. If you are a business owner with an online shop looking to integrate BNPL, this article will guide you through how you can choose a provider. But first, we must look at what B2B BNPL is and whether you will need its services.
What is Buy Now, Pay Later for B2B?
B2B Buy Now, Pay Later, abbreviated to B2B BNPL, is an alternative payment method for businesses. It allows buyers to make transactions immediately and pay for them down the line. BNPL providers facilitate these transactions. They pay business sellers upfront (or within a small window), and they become the point of contact for B2B buyers after the latter makes the transaction.
At checkout, buyers select payment terms based on their needs and preferences. Some standard payment terms are the use of installments, as well as the option to pay in full after 30, 60, or 90 days. Generally, providers oversee conducting credit checks on buyers and approving the transactions. They are also the ones to issue invoices and to chase up on them if payments are late.
B2C spaces have been using BNPL for a while now, and the payment method is popular amongst younger generations. In B2B spaces, the payment method has gained popularity for its ease of use and efficiency.
Advantages of B2B BNPL for sellers
It is not easy to understand why so many sellers and buyers swear by BNPL, despite its relative newness in the B2B space. Here is a run-down of some of the most significant advantages for sellers implementing the payment method in B2B e-Commerce:
Reduced financial risk
BNPL providers take on the seller’s financial risk when they facilitate transactions. They oversee credit checks, and they chase late invoices when they occur. Sellers do not have to worry about late or unpaid invoices, and they can receive big-ticket transactions with less worry.
When a transaction occurs, BNPL providers pay the seller upfront within a specified window. Depending on the provider, this can be within 5 days or 2 weeks. Regardless, the seller does not have to extend credit lines to the buyer directly and wait for payment.
BNPL providers have been improving accessibility within the B2B payment space using automated credit checks conducted by AI. Machine learning has much greater breadth and depth when they perform credit checks, leading to more buyers being able to complete their transactions.
Higher customer satisfaction
Increased B2B buyer expectations include having a variety of payment solutions, fast transactions, and flexibility in making payments. BNPL fulfills all these requirements, meeting buyer expectations even as they soar.
Decreased administrative burden
Finally, as BNPL providers oversee the transaction and invoice-chasing processes, sellers get to relieve themselves of the burden of financial administration. Employees can focus on developing new products and services, and owners can free up time to expand the business.
Do you need B2B BNPL in your webshop?
If you are a B2B seller online, you may have heard all about these advantages of BNPL and wanted to integrate the payment solution into your webshop. Should you? One way to decide is to see if you are currently experiencing any of these difficulties in your business:
You spend a lot of time chasing invoices
In an ideal world, all buyers will pay their invoices on time. However, the reality is that as a B2B seller – or any kind of vendor – it is expected that you will spend time chasing invoices. However, if you find yourself spending a disproportionate amount of time on admin, and a lot of your invoices remain unpaid for months, BNPL may be for you.
You have cash flow problems.
Another reason you should consider BNPL is if these unpaid invoices create a dent in your accounts. Large companies may find it is okay to spend months chasing an account. If you find it difficult to pay your employees, stock your shop, or run your business while waiting for late invoice payments, BNPL can be a good solution.
Your manual credit checks take a long time.
If you find yourself taking forever to conduct manual checks, BNPL may be for you. Many BNPL providers conduct credit checks on your behalf when a buyer chooses to defer their payment. This takes away your burden of having to spend time conducting credit checks. It can also improve your conversion rate, as more and more B2B buyers are growing tired of long approval times.
Your customers could be happier.
If your buyers have explicitly stated, they are not happy with your payment options, adding a new one is a no-brainer. You may know this by sending out a survey and doing market research. Integrating BNPL may be an excellent way for your customers to renew their interest in your
You are looking to expand into new markets.
Finally, a very good reason to integrate BNPL into your web shop is if you are looking to expand into new markets. Research has shown that B2B buyer behavior differs vastly from continent to continent.
Say you are a North American seller, and your local buyers usually have no problem paying for their goods with a corporate card. However, you are looking to expand to European markets, and you are reading that the use of corporate cards is rare in many European countries. In this case, do your research, and integrate new payment methods.
Choosing a B2B BNPL provider
Having read all the above, you may be sure that B2B BNPL is for you. If that is the case, you must know how to choose the best provider for your webshop.
One of the first things to consider is if a provider operates in your country or continent. This is especially important if you are a business with international buyers. There are many continents- or region-specific BNPL providers that limit where they facilitate transactions or conduct credit checks. Make sure you choose one that can take care of your customers.
Another thing you must consider is the payment plans they offer. These plans must meet your buyers’ preferences. Some providers offer deferred payments in installments. Others offer deferred payment in one go, after 30, 60, or 90 days. Some offer both. Consider what will be most beneficial for your buyers.
You should also note how you will get paid as a seller. When a transaction goes through, what is the window the provider requires before they pay you? If it is important to you to receive the transaction amount as soon as possible, choose a provider that can offer this.
It is also crucial to check out the services these providers offer and their solutions. Would it be difficult to integrate the payment method into your webshop? Would your employees know how to navigate it? And does the provider have a team of professionals who can assist you in the way you need?
Finally, you should make sure the provider offers a pricing plan that is reasonable for you. Integrating a new payment method is a great way to expand your business, and it can potentially draw in more leads and conversions. However, you should select a provider that charges only what you can afford to pay upfront.
When I first heard about CRED, I thought its another payment platform. It’s not just a credit card Payment platform it’s more than that. CRED is a platform that encourages people to pay their credit card bills on time by giving members access to exclusive rewards from premier brands. You can also pay your rent with a credit card, avail exclusive pre-approved loan, etc.
CRED helps you pay your credit card bill from all different banks at one single point. You don’t need to run from here to there for paying your bill. You get one single window to pay your bill using UPI, Netbanking, or Debit Card. If you are running out of money you can also pay your house/office rent using a credit card.
CRED also offers Rs.200 instant reward as a sign-up bonus for new users. The reward can be used to settle your credit card dues. CRED has 9 million plus users which is a really impressive number. This shows that CRED is a popular and well-used platform.
How to earn CRED Coin Rewards:
When you use CRED to pay your credit card bill, you earn a CRED coin for every rupee paid.
You can use your CRED coins to claim exclusive rewards from different brands.
CRED Gem Rewards:
for every person that you refer to CRED who makes a bill payment, you earn 10 gems. Currently, each member gets Rs.750-1000 for each referral.
What do you get in CRED?
CRED members make their credit card payment experience easier in several ways, including access to exclusive deals not available to non-members.
You can now pay your bills with ease through UPI, net banking, and debit cards.
You can also use cred protect to reveal hidden fees on your credit card.
Yes, you can get real-time notifications on duplicate transactions on your credit card.
manage multiple credit cards on a single portal.
Reminders for making on-time credit card bill payments
Automate your credit card bill payments and save time.
As a CRED user, what benefits do you get?
Pay Rent using credit card
This is a new feature and you can pay your house/office rent using a credit card.
Access to pre-approved loans
You can also avail pre-approved loan on the CRED platform. The best part is that the interest rate on these loans is very low compared to other lending platforms.
Instant reward on sign-up
As soon as you sign up on CRED, you get Rs.200 instant reward which can be used to pay your credit card dues.
Get rewards for paying your credit card bills on time
One of the best features of CRED is that you get rewarded for paying your credit card bills on time. The rewards are given in the form of Coins which can be redeemed for various items such as vouchers, discounts, etc.
So, if you are looking for a platform to manage your credit card bills and also get rewards for paying them on time, then CRED is the best option for you.
CRED is a payment platform that rewards users for paying their credit card bills on time. Sign up for CRED and get an Rs.200 instant reward. credit score
A chit fund is a type of savings where you deposit some amount every month to someone who manages the chit fund. Chit funds are often organized by financial institutions, or informally among friends, relatives, or neighbors. In some variations of chit funds, the savings are for a specific purpose. The money is either collected periodically and given to one member at regular intervals or collected at the end of the cycle and given to one person.
There are two types of Chit funds:
Auction Based Chit Fund
Chit Fund (Non-auction)
How chit fund works in India
A chit is an arrangement in which a certain amount of money (called the “Bissi”) is collected from each member, periodically or at the end. The participants are called subscribers. Members are expected to pay on a regular basis until the chit matures.
A chit fund is a group of members, which are called subscribers. The organizer, company, or trusted relative or neighbor sets up and administers group activities. In exchange for their work, the organizer is either compensated monthly or upon withdrawal. In some parts, it is also called “Bissi”.
The fund starts on a particular date and runs for the number of months equal to the number of subscribers. Each month, the subscribers pay their monthly installments. Then, the lowest sum a subscriber is willing to take that month is determined through an open auction.
How Chit fund works with example:
If the monthly installment is ?5000 and there are 20 members, the pot in the first month will contain Rs. 1 lakh (100,000). If the auction determines a winner who is willing to accept ?90,000 for that month, ?10,000 of surplus funds will be distributed to other members. In the first month of the auction, a subscriber would get ?90,000, and others in the group benefited from their share of the surplus Rs.10000. so each member will get Rs.500 benefit. The process repeats, distributing the auction amount to a different member each month. All other subscribers, including those who received their share in a previous month, will continue paying regular monthly installments.
The system is a lending scheme because subscribers are able to get large amounts of money before they have paid off the full amount. It also acts as a savings mechanism, because each subscriber contributes every month and will receive their share of the surpluses in the future.
There are different ways to do this. This is similar to a lucky draw. Some people skip the auction and just have other people put their names in a pot. One name is taken out of the pot, and that person gets all of that money. The word “chit” comes from that type of arrangement.
Chit Fund Risk
Both organizers of and subscribers to chit funds are exposed to credit risk because people on the scheme might default on their monthly payments. In addition, if the chit fund does not run smoothly, or is badly managed, members might lose the money.
The whole idea of a “Chit Fund” is based on trust. If your friend or relative who has put together the chit fund cannot manage it properly you might end up losing all the money you put in.
The organizer of the chit fund is responsible for ensuring that the chit fund runs smoothly. The organizer may take a mortgage from members who get the money in the initial stage to protect the money of the other members.
The biggest risk involved with participation in a chit fund is default – if someone you are investing in defaults, you lose your money.
How to avoid chit fund risk? The possible solutions are as follows –
1) Check the integrity of the organizer. You can do a background check by checking if he/she is a reliable person. If you know about him/her, you would be able to judge his/her character better and make a better judgment.
2) Find out the background of your friend and his/her family members to decide if you are comfortable with them managing your money. If you don’t know much about their past, try talking to other people who know him/ her and find out more information from them.
3) Check for the history of the chit fund. In case, you are investing in a chit fund that was started recently, then it would be better to avoid it.
4 . Don’t put all your monthly savings in Chit Fund.
Online chit funds:
With eCommerce booming in India, now you can participate in chit fund schemes online. You can go through the various websites online and decide which one you want to invest in based on your comfort level.
Is Chit Fund Legal?
The short answer is Yes. Even govt. used to promote these types of funds when the banking system was not strong in earlier days. There are some chit fund companies that are registered. The general rule of thumb is to stay with the bigger ones because they will be less likely to try and scam you.
Apart from registered Chit Funds, it may also be run by your friends, groups, etc without registering it. It all depends on trust.
The international development community has also praised the chit fund system as an efficient way for people to save regularly, most commonly in regard to microfinance initiatives, and even the World Bank has recognized chit funds as an excellent way for people to save.
The following laws are in effect for chit funds:
Union Government – Chit Fund Act, 1982 (except UT Jammu and Kashmir)
Maharashtra: Maharashtra Chit Fund Act 1975
New Delhi: The Chit Funds Act, 1982 and Delhi Chit Funds Rules, 2007
Andhra Pradesh: The Andhra Pradesh Chit Funds Act, 1971
Karnataka: The Chit Funds (Karnataka) Rules, 1983
Kerala: Kerala Chit Fund Rules 2012 & Amendment 2016
Tamil Nadu: Tamil Nadu Chit Funds Act, 1961
Chit funds are an excellent way to save for the future, but there are many risks involved with this type of saving. You must do your research before committing any money to a chit fund and make sure that you’re comfortable with both the organizer and members. Avoid putting too much into one chit fund at once; diversify where possible!