1. EarlySalary: EarlySalary is a popular instant loan app that provides quick access to funds with minimal documentation requirements. Whether you have a low CIBIL score or need an instant loan without documents, EarlySalary offers flexible borrowing options tailored to your needs.
2. MoneyTap: MoneyTap is another leading instant loan app in India that offers a line of credit to users, allowing them to borrow funds as per their requirements. With MoneyTap, you can settle your loan process swiftly and conveniently manage your debt with ease.
3. PaySense: PaySense is renowned for its instant loan offerings, catering to individuals with varying credit scores. Whether you need an instant loan without a credit score or prefer a seamless loan settlement process, PaySense provides personalized borrowing solutions.
4. CASHe: CASHe specializes in providing instant loans to young professionals and individuals with low CIBIL scores. With its innovative credit scoring system, CASHe offers quick access to funds without the hassle of traditional documentation.
5. FlexSalary: FlexSalary is a reliable instant loan app that offers salary advances and personal loans to individuals facing short-term financial crunches. Whether you need an instant loan without CIBIL or documents, FlexSalary ensures a hassle-free borrowing experience.
6. LazyPay: LazyPay, powered by PayU, offers instant personal loans with flexible repayment options. Whether you’re looking for an instant loan without a credit score or prefer a seamless loan settlement process, LazyPay caters to your financial needs.
7. NIRA: NIRA is a popular instant loan app that specializes in providing small-ticket loans to salaried individuals. With its user-friendly interface and quick approval process, NIRA ensures that you can access funds instantly, without the need for extensive documentation.
8. mPokket: mPokket is a preferred choice among college students and young professionals seeking instant cash loans. With its simplified loan application process and swift disbursal of funds, mPokket makes borrowing hassle-free for individuals with low credit scores.
9. MoneyView: MoneyView offers instant personal loans to individuals based on their financial profiles and repayment capabilities. Whether you need an instant loan without CIBIL or prefer a transparent loan settlement process, MoneyView provides flexible borrowing options.
10. KreditBee: KreditBee is a trusted instant loan app that caters to the diverse financial needs of individuals across India. With its quick approval process and minimal documentation requirements, KreditBee ensures that you can access instant loans without any hassle.

In conclusion, the availability of instant loan apps has revolutionized the way individuals access financial assistance in India. Whether you’re facing a cash crunch or need urgent funds, these top-rated instant loan apps offer convenient borrowing options tailored to your specific requirements. With the Reserve Bank of India (RBI) approving these loan apps, you can rest assured of their credibility and reliability in providing instant financial solutions.

Loansettlement.com is India’s leading online loan settlement company and can help you with debt relief advice.

Register with us today at https://loansettlement.com/ to get started!

Our team of experienced professionals can help you negotiate repayment plans with your lenders.

In addition to offering tailored advice and guidance, Loansettlement.com also provides access to financial education materials that can help you make informed decisions about your finances.

Whatever situation you are in, don’t hesitate to reach out for help with your loan payments.

We understand that everyone’s situation is unique, so we offer personalized advice and assistance that fits your specific needs.

With the right advice and assistance, you can get back on track and make progress toward becoming debt-free once again

The post 10 best instant loan apps in india appeared first on Loan Settlement.

What Is a Credit Card Write-Off?

A credit card write-off occurs when a lender deems a debt as unlikely to be collected and removes it from its books as a loss. While this might sound like a relief, it’s crucial to understand the implications of a credit card write-off in India.

When a credit card is written off, it means that the credit card company believes it’s unlikely to recover the money you owe. This decision is made after a period of non-payment or when attempts to collect the debt have been unsuccessful. While it might seem like a relief, it has significant implications. The credit card issuer acknowledges the debt as a loss and removes it from their books. This can adversely affect your credit score, making it harder to borrow in the future. Additionally, the credit card company may take steps to recover the debt through other means, such as selling it to a collection agency. Understanding the aftermath of a credit card write-off is crucial for individuals navigating financial challenges.

Strategies to Settle Written Off Credit Card Debt

Debt Snowball : Start by tackling smaller debts first to gain momentum. As you pay off each debt, roll the payments into the next one. This systematic approach can provide a psychological boost and help you gain control.

Refinance Debt: Explore debt consolidation or refinancing options. By consolidating your debts, you can streamline payments and potentially secure a lower interest rate, making repayment more manageable.

Prioritize Debts: Assess the severity of your debts based on interest rates, outstanding amounts, and other relevant factors. Develop a prioritized repayment plan to address the most critical debts first.

Renegotiate the Settlement: Engage with your creditors to renegotiate the settlement terms. They may be open to adjusting interest rates, extending the repayment period, or offering a settlement amount that is more feasible for you.

Also Read : https://www.loansettlement.com/blog/what-you-need-to-know-about-the-rbi-guidelines-for-credit-card-defaulters/

Seeking Professional Assistance

Debt Settlement Companies in India: Consider the services of reputable debt settlement agencies in India. These professionals can negotiate with creditors on your behalf, aiming to reduce the total debt amount and facilitate a more manageable repayment plan. Their goal is to lower the total debt amount and work towards establishing a repayment plan that better aligns with your financial capabilities. By enlisting the support of these experts, you can navigate the complexities of debt settlement more effectively and strive towards a more manageable financial future.

Personal Loan Defaulter Legal Action: In the event of personal loan default, it’s crucial to comprehend the potential legal consequences and take proactive measures for resolution. Seeking legal advice becomes paramount to gain a clear understanding of your rights and responsibilities. This not only provides guidance on potential legal actions creditors may take but also empowers you to make informed decisions to address and resolve personal loan default issues. Legal assistance ensures you navigate the situation with awareness and safeguards your interests in the resolution process.

Loansettlement.com is India’s leading online loan settlement company and can help you with debt relief advice.

Register with us today at https://loansettlement.com/ to get started! Our team of experienced professionals can help you negotiate repayment plans with your lenders.
In addition to offering tailored advice and guidance, Loansettlement.com also provides access to financial education materials that can help you make informed decisions about your finances.
Whatever situation you are in, don’t hesitate to reach out for help with your loan payments.
We understand that everyone’s situation is unique, so we offer personalized advice and assistance that fits your specific needs.
With the right advice and assistance, you can get back on track and make progress toward becoming debt-free once again.

The post Credit Card Write off: How to get rid of your debt appeared first on Loan Settlement.

What Are Debt Reduction Strategies?

Debt reduction is a financial approach aimed at decreasing the overall amount of money you owe to lenders or creditors. It’s essentially a strategic effort to minimize and eliminate the burden of debt. This process involves employing various methods and tactics to efficiently pay down the outstanding balances on loans, credit cards, or other forms of borrowed money. This might include budgeting, negotiating with creditors, or exploring alternative repayment plans. The ultimate goal is to relieve the financial strain caused by debt and work towards achieving a debt-free status.

5 Debt Reduction Strategies

1. Develop a Budget to Track Your Expenses

Creating a budget to monitor expenditures is similar to crafting a financial plan, essential for prudent money management. Begin by meticulously outlining income sources, including salary and additional earnings. Catalog all expenses, from fixed costs like rent to variable ones such as groceries and entertainment, gaining a comprehensive understanding of spending patterns. Once categorized, establish spending limits for each group to avoid exceeding the budget. Consistently track actual spending versus budgeted amounts, enabling timely adjustments. Identify areas for improvement, aiming to reduce non-essential expenses and direct funds toward debt repayment. Insights gained from budgeting provide a foundation for a tailored financial plan aligned with both immediate and future objectives.

2. Increase Your Income

Increasing your income is a strategic approach to enhancing financial flexibility and achieving your monetary objectives. It acknowledges that a higher income not only improves your current lifestyle but also empowers progress in debt repayment and savings. To boost your income, explore side hustles or freelancing opportunities in areas aligning with your skills or interests, directing the extra earnings toward debt or savings. Invest in professional development to enhance your market value, making you eligible for higher-paying positions. Negotiating a raise by showcasing your contributions is another avenue. Keep an eye out for job opportunities matching your skills or consider exploring new industries for potential salary growth. Passive income streams, online platforms, and consulting services are additional avenues to explore for supplemental earnings. Active networking within your industry can lead to career growth and potential income increases.

Also Read 10 Tips to Manage Your Finances

3. Use the Debt Avalanche Strategy

The strategy of debt avalanche involves a step-by-step method to overcome debts, starting with the one that has the highest interest rate and then progressing through the list. This systematic approach enhances efficiency by reducing the total interest paid and expediting the path to becoming debt-free. To apply the Debt Avalanche, begin by pinpointing high-interest debts, such as credit cards, and prioritize them for aggressive repayment. Concurrently, maintain minimum payments on other debts to uphold a positive credit history. Allocate any surplus funds to the highest interest debt, initiating a snowball effect as payments transfer to the next debt in line. This gradual elimination of debts not only lessens interest payments but also acts as a motivational factor, instilling a sense of achievement and progress towards complete debt freedom. With each conquered debt, the strategy guides you towards financial control, paving the way for a future free from the burden of multiple debts.

4. Consider Debt Consolidation

Debt consolidation is a financial strategy that involves combining multiple debts into a single, more manageable loan. This can be particularly helpful when you have  high-interest credit card balances or personal loans and you want to streamline your repayment process. Simplifying the repayment process is a primary advantage as it replaces numerous payments with a single monthly payment, reducing complexity and the risk of missed payments. Additionally, debt consolidation often secures a new loan with a lower interest rate, potentially lowering the overall cost of borrowing and providing significant savings. Loans typically come with fixed interest rates, ensuring payment predictability for better budgeting. The option of extending the repayment period can result in lower monthly payments, easing financial management. Beyond financial benefits, debt consolidation reduces stress, preserves credit scores when managed correctly, and may involve professional guidance from financial institutions or credit counseling agencies, streamlining the path to financial stability.

5. Loan Settlement Companies

Loan settlement companies, also known as debt settlement companies ,are entities that offer services to negotiate with creditors on behalf of individuals who are struggling to repay their loans. These companies aim to reach a settlement or agreement with creditors to reduce the total amount owed, making it more manageable for the borrower. Here’s a closer look at how loan settlement companies operate and the considerations involved:

When engaging a loan settlement company, the initial phase involves a thorough assessment of your financial situation. This examination encompasses a review of your debts, income, and overall financial standing, providing the company with the necessary insight to formulate a negotiation strategy. To facilitate debt negotiations, settlement companies often advise clients to establish a dedicated savings account, where regular contributions accumulate to settle debts once an agreement is reached. Acting as intermediaries, these companies take over communication with creditors, negotiating reduced settlement amounts. Upon reaching an agreement, they present a settlement offer to the borrower, involving a lump sum payment less than the total owed. However, borrowers must be mindful of fees charged by settlement companies, which can impact their overall financial situation. Debt settlement can also affect credit scores, with settled accounts marked on credit reports. Additionally, there may be potential tax implications for the forgiven amount, necessitating consultation with a tax professional. Choosing a reputable loan settlement company is paramount, involving thorough research, reviews, and verification of credentials to ensure a trustworthy partnership.

Also read : https://www.loansettlement.com/blog/category/debt-settlement/page/2/

The post 5 Debt Reduction Strategies That Will Save You Money appeared first on Loan Settlement.

Debt: A Silent Agony

“Debt is like cancer, it eats you from inside.” This poignant analogy highlights the severe impact that financial burdens can have on individuals and families. Recognizing the lack of readily accessible help, Loansettlement.com was founded as a beacon of support for those trapped in the throes of debt stress. Run by alumni of prestigious institutions like IIT and IIM, the company’s mission is to alleviate this silent agony and offer viable solutions.

A Glimpse into Loan settlement.com’s Efforts

With a team of over 100 lawyers assisting more than 2000 clients, Loansettlement.com is dedicated to providing practical debt relief strategies. The sheer volume of inquiries, exceeding 30,000 each month, underscores the pressing need for their services. However, with such a significant demand, it’s nearly impossible to satisfy everyone. Yet, the emphasis remains on solutions, and the company stands by its commitment to helping individuals overcome their debt challenges.

The Power of Perspective: Why 99.9% Matters More

Here are five compelling reasons why focusing on the 99.9% satisfied customers is essential:

1. Review Bias: Positive experiences don’t always translate to positive reviews, but dissatisfied customers are more likely to voice their concerns. This tendency often skews the overall perception of a product or service.
2. Universal Truth: All major companies have negative reviews. Even hospitals, the most critical of services, are not immune to criticism. This universality of negative feedback underscores the importance of perspective.
3. Anonymity and Intent: Many negative reviews are posted anonymously by individuals who may not have even used the service. Such reviews might originate from competitors or unrelated sources, raising questions about their authenticity and intentions.
4. Resolution Mechanism: Companies typically offer a dispute resolution mechanism for genuine grievances. However, some customers prefer the ease of writing a negative review rather than engaging in the resolution process, undermining efforts to address their concerns.
5. Accountability: Human nature often leads individuals to deflect blame rather than introspect. Blaming external factors for personal mistakes is a common pattern. In many cases, the root cause of negative experiences lies within the customer’s actions, not the company’s services.

Choosing Solutions Over Distractions

When it comes to overcoming debt stress, the path forward lies in solutions, not distractions. Loansettlement.com is committed to providing tailored assistance that addresses the unique financial challenges each client faces. The company’s track record, driven by a team of dedicated professionals, speaks for itself.

While negative reviews can’t be entirely ignored, the overwhelming satisfaction of the majority reflects the effectiveness of Loansettlement.com’s approach. Just as a person’s family would prioritize taking them to a hospital during a health crisis, individuals facing debt stress should prioritize seeking expert help over fixating on the fraction of dissatisfied voices.

In the end, it’s the commitment to resolution, the pursuit of relief, and the determination to move forward that truly matter. Loansettlement.com stands as a testament to these principles, ready to provide the financial guidance and support needed to overcome the burden of debt.

In a world dominated by reviews and opinions, it’s crucial to distinguish between valid concerns and noise. Loansettlement.com’s unwavering focus on solutions and its dedication to helping those in debt stress underscore the importance of prioritizing real solutions over distractions. Negative reviews may exist, but they are a small fraction of the whole picture. By choosing to tackle debt challenges head-on, individuals can pave the way for a more stable and secure financial future.

Register with us today at https://loansettlement.com/ to learn more about our services and how we can help you!

The post Clearing the Air on Negative Reviews: Why Solutions Matter appeared first on Loan Settlement.

Overview of CIBIL Score and its Importance for credit cards

When it comes to applying for a credit card, your CIBIL score is at the forefront of decision-making. A CIBIL score is a numerical representation of your creditworthiness, based on your credit history and payment behavior. This score ranges between 300-900, with a higher score indicating a better credit standing. Credit card issuers typically only approve applications from individuals with a score of at least 750. In addition to determining whether or not you’ll be approved for a credit card, your CIBIL score is also used to determine your credit limit and interest rate.

Maintaining a good CIBIL score is crucial for financial well-being and is indicative of responsible financial behavior.

Also Read Rebuilding Your Credit with a Low CIBIL Score Credit Card: Tips and Tricks

Factors that affect your CIBIL score

Your CIBIL score is an important factor that affects your credibility as a borrower. It is one of the first things lenders look at when considering your loan application, so managing it well is crucial for financial wellness. There are several factors that contribute to the calculation of your CIBIL score, including timely payments, credit utilization, credit mix, and credit history length. Each of these factors holds a different weight in determining your score, and neglecting even one of them can have a significant impact on your ability to secure loans in the future.

It’s essential to stay on top of your credit health and take proactive measures to improve your score if needed.

How to maintain a good CIBIL score 

Having a good CIBIL score is essential for borrowing credit from banks or other credit institutions. A good CIBIL score not only enables you to secure loans, but also increases the chances of getting loans at better rates and terms. Therefore, it is important for individuals to maintain a good CIBIL score and keep their credit utilization ratio low. The minimum CIBIL Score for credit card is 750, and individuals must ensure that their scores are above this limit. While this can be achieved by making timely payments on all your existing liabilities, it is also essential that you write off debt by not exceeding 50% of your approved credit limit on any of your cards.

Sticking to these tips while having a good payment history will help you maintain a good CIBIL score in the long term.

What is the minimum CIBIL Score required to get approved for a credit card

When it comes to getting approved for a credit card, having a good credit score is crucial. The CIBIL Score is one of the most commonly used credit scores in India, and it ranges from 300 to 900. While there is no fixed minimum CIBIL Score requirement to get approved for a credit card, most issuers look for scores above 750.

However, bear in mind that having a higher score not only increases your chances of approval, but also helps you get better interest rates and credit limits. So, whether you’re looking to apply for a new credit card or improve your current score, it’s important to keep a track of your credit history and take necessary steps to maintain a good credit score.

Different types of credit cards available with their respective requirements 

Managing finances is an integral part of adult life, and credit cards play a crucial role in this aspect. The market is flooded with different types of credit cards that cater to various needs of the consumers. For instance, there are rewards cards that give you cash backs or reward points on every purchase, travel cards that come with travel-related perks, balance transfer cards that help you transfer your outstanding debt to a low-interest card, and secured credit cards that require you to deposit a security amount.

However, each card has its specific set of eligibility criteria that you need to fulfill. So, before applying for a credit card, it is imperative to understand its requirements to avoid getting rejected and damaging your credit score.

Tips on increasing your CIBIL score

Your CIBIL score is a crucial factor to consider when applying for a loan or any other financial transaction. It is a reflection of your creditworthiness and shows how responsible you are with managing your finances. To increase your CIBIL score, you can start by paying your bills on time, reducing your credit utilization, avoid credit card debt  and maintaining a good credit history. Manage your credit cards wisely, by not maxing them out, and avoiding applying for numerous credit cards simultaneously. Keep a track of your credit report, and if you notice any inaccurate information, dispute it immediately. By following these tips, you can steadily increase your CIBIL score and gain the trust of lenders, ultimately achieving your financial goals.

In conclusion, one’s CIBIL score is an important factor in dictating the type of credit card they can apply for and the likelihood of successfully achieving it. Having a good understanding of what affects your score and how to maintain or improve it is necessary to ensuring you get the right credit cards to fit your lifestyle & needs.

Ultimately, the minimum CIBIL Score required for a credit card depends on the type of card you are applying for. However, having a score at least above 750 will increase your chances of getting approved, where possible try to aim for a score higher than 800 if you’re serious about getting accepted into a particular card scheme. Lastly, setting aside time each month to review & manage any outstanding payments, debts or even running regular credit check are excellent tips to keep up with. Keeping these tips in mind should help you get the desired CIBIL Score bringing you one step closer to obtaining that much-desired Credit Card!

The post What is the Minimum CIBIL Score for Credit Card? appeared first on Loan Settlement.

Defining a Good Credit Score in India – what does it mean and how is it calculated 

Your credit score is the most important factor that determines your financial health. In India, a good credit score is essential if you plan to avail of any loans or credit facilities. So, what exactly does it take to have a good credit score in India? Essentially, this score is a reflection of your creditworthiness, or in other words, how well you manage your money. The credit score is based on a range of factors, such as your payment history, current debt levels, credit utilization, length of credit history, and so on. Achieving a good credit score requires maintaining financial discipline and staying on top of your financial commitments. Once you have a good credit score, you can enjoy numerous advantages, such as faster loan approvals, better interest rates, and a wide range of financial opportunities.

Also Read Loan Settlement and How it Affects Your Credit Score

Understanding the Credit Bureau System in India and its role in evaluating creditworthiness 

The Credit Bureau System in India is a complex web of data that plays a vital role in evaluating the creditworthiness of individuals and businesses alike. From assessing credit scores to monitoring credit reports, the bureau operates with a mammoth task of reducing the risks associated with lending money. With an increasing demand for loans and credit facilities, understanding the workings of this system has become increasingly important. The credit report generated by the bureau reflects one’s payment history, credit utilization, and other valuable financial data, helping lenders make informed decisions. Despite its complexities, the Credit Bureau System in India remains a crucial component of the financial ecosystem, benefitting both the lenders and borrowers alike.

What are the different types of credit scoring models used in India and their importance 

In India, credit scoring models have become increasingly important as financial institutions become more rigorous in their lending practices. There are different types of credit scoring models used in India, including statistical models, behavioral scoring models, and judgmental models. Statistical models rely on mathematical algorithms and statistical analysis of a borrower’s financial history to determine their creditworthiness. Behavioral scoring models take into account non-financial factors, such as how an individual manages their finances, to create a more complete picture of their creditworthiness. Judgmental models are based on the experience and expertise of credit professionals who assess an individual’s creditworthiness based on a range of factors. With the growth of India’s economy and the rise of digital lending platforms, credit scoring has become a vital tool in assessing risk and expanding access to credit for individuals and businesses alike.

Tips to Improve Your Credit Score in India – from budgeting to timely payments 

Your credit score is a crucial aspect of your financial health. It determines your eligibility for loans, credit cards, and other financial products. If you’re looking to improve your credit score in India, there are several things you can do. The first step is to create a budget and stick to it. This will help you keep track of your expenses and ensure that you don’t overspend. Another essential factor is to make timely payments on all your debts and bills. Late payments can negatively impact your credit score, so it’s crucial to stay on top of them. With discipline and these tips, you can take control of your financial wellbeing and watch your credit score soar!

How to use your Credit Score for Loans, Mortgages, and Other Financial Needs 

Your credit score is a crucial component when it comes to securing loans, mortgages, and loan settlement . It determines your overall creditworthiness and helps lenders assess the risk involved in lending money to you. But how exactly can you use your credit score to your advantage? For starters, you need to understand what your score means and what factors contribute to it. There are various tools available to check your score, and it’s important to keep a close eye on it, as even small improvements can lead to significant benefits when it comes to securing loans or mortgages with lower interest rates. With a little bit of effort and some strategic planning, you can leverage your credit score to reach your financial goals and secure the best possible terms for your financial needs.

The Benefits of Maintaining a Good Credit Score – rewards, lower interest rates, etc.

Maintaining a good credit score can pave the way for a multitude of benefits that can improve your financial standing. One perk is earning rewards through credit cards, which can help you save money and earn points towards travel and other rewards. Additionally, having a good credit score can result in lower interest rates on loans, making it easier and more affordable to borrow money. This not only helps with larger expenses, such as buying a home or a car, but can also provides debt relief. Overall, keeping a good credit score is a wise financial decision that can open doors to numerous advantages.

It is very important to be aware of the credit bureau system in India and how credit scores can help you in terms of loan, mortgage and other financial needs. By understanding what a good credit score means and how your credit score is calculated, you can take proactive steps to maintain or improve it. This includes budgeting, making timely payments and accessing helpful resources that will provide further guidance on improving your credentials. Finally, remember that maintaining a good credit score brings about rewards like lower interest rates on loans and mortgages as well as better negotiation power for all kinds of financial deals. Keeping these tips in mind can help you work towards a strong credit rating that reflects your financial health positively, allowing you to reap the benefits for yourself now and in the longer run.

The post What is a Good Credit Score in India? Understanding Credit Scores appeared first on Loan Settlement.

When looking for a debt settlement company, it’s important to consider the following factors:

– The company’s fees: Make sure you know how much the company will charge and what services they provide.

– The company’s reputation: Do your research and make sure you choose a reputable company with solid management team and a good track record.

– The company’s experience: Make sure the company has a lot of experience in debt settlement and knows how to negotiate with creditors.

– The company’s approach: Make sure the company has a plan that is right for you and your specific situation.

Loansettlement.com is led by experienced entrepreneurs who are alumni of IIT, IIM and MIT USA. They bring more than 30 years of entrepreneurial experience in varied domains – finance, consulting, online education and global careers management.

Our goal is to assist individuals in financial difficulties in getting out of debt. It’s widely acknowledged that if you default on your loan payments in India, recovery agents will pursue you and your life will become hellish, despite several Supreme Court rulings prohibiting the use of harsh measures during collection. We not only help you to negotiate settlement with the banks/ NBFCs but also put a stop to this kind of illegal harassment.

If you’re looking for a debt settlement company in India, please contact us today. We have significant expertise and we know how to get the best results for our clients.

For more information and to talk to our financial and legal advisors, register at loansettlement.com.

The post Debt Settlement Companies in India: How to Choose the Right One for You appeared first on Loan Settlement.

• The complainant, Vibhu Bhakru, had taken a credit card from the Opposite Party, Standard Chartered Bank in 1999 and had been very regular and prompt at payments.
• On 24.02.2004 an invoice was sent to the complainant demanding payment of Rs.750/- charged on account of renewal. The complainant requested redemption on the points accumulated under the reward scheme by the bank against the renewal charges of which he was assured.
• The credit card duly expired in February 2004 but he was not issued the renewed card. He made several calls to customer care which were unhelpful.
• In May 2004, he was shocked by a telephonic call from an agent of the bank demanding payment of Rs. 28,000/-. Any explanation that he had not used the card after Jan 2004 had fallen on deaf ears after which he was visited by agents who demanded payment towards credit card usage.
• He filed another complaint with customer care but was again demanded payment of Rs. 28,000/-. After a dispute declaration by the Bank in March/April 2004, the complainant started receiving threatening calls. Despite several attempts to mediate the misunderstanding, he once again received a threat on 11.12.2004 for the collection of a levy of 20% on the outstanding if the payment was not made within 20 days.
• The bank claimed the complainant as frivolous who was filed with intentions of unjustly enriching himself at the expense of the OP Bank.

Judgement

The Commission imposed punitive damages of Rs.10 lacs deposited in favor of state consumer welfare fund and Rs.20, 000/- as compensation towards the complainant for trauma, mental agony, and harassment, loss of reputation and loss of creditworthiness.

Learnings from the case

Banks and financial institutions that provide loans and credit cards are not to resort to methods that have no legal back up. They are not to use abusive and threatening languages on the telephone and are most certainly not to visit the residence of consumers. They should keep a record of all the transactions between them and the customer and not demand unfair compensation.

The post Vibhu Bhakru v Standard Chartered Bank appeared first on Loan Settlement.

An important feature of credit cards is the option of paying minimum amount due. If any individual falls short of funds, they can pay the minimum amount offered on the credit card and avoid penalties. However, it is easy to fall into a debt trap if one uses this facility for a long time.

What is minimum amount due?

It is the minimum amount that a person is required to pay on or before the due date of payment to maintain the card account. Minimum amount due is usually calculated at 5% of the outstanding balance. Any unpaid amounts from previous bills also get added to the current minimum amount due. It also gets higher if the cardholder bought something on EMI through the card or spent more than the credit limit.

Most credit cards charge an interest rate of 3% per month which is equivalent to 36% annually. Banks keep levying interest on the outstanding amount left after the payment of the minimum amount. Since the interest rate is very high, most of the minimum amount paid goes towards interest charges and the outstanding amount is reduced marginally.

Let us take an example. Say an individual has an outstanding balance of Rs.50,000 and pays the minimum for each month- the minimum amounting to at least Rs.2000. In this case, it will take a minimum of 44 months for the entire outstanding amount to be paid in full, assuming that there are no more transactions done on the card.

Though the interest on the bill outstanding amount is not waived, minimum amount helps one avoid late payment fee which usually ranges between Rs.100- Rs.1000.

If an individual chooses to pay the minimum amount due, they do get temporary relief but a habit of paying minimum amount every month will result in the total bill multiplying quickly.

What happens if a person chooses not to pay the minimum amount?

A person choosing not to pay the minimum amount of due will be charged an additional fee, interest, and other charges. There may also a possibility of suspension of the card when the dues cross the credit limit. Not to mention that the effect on the creditworthiness and the credit score will make it harder to get loans in the future.

Paying the minimum is okay if it is for genuine reasons and used once in a while. Ideally one should not use more than 50% of their credit limit in a month as credit card spending usually comes with a risk of overspending and it is easy to fall int a debt trap.

Want to get out of debt trap? Register and talk to our counsellors for credit card settlement

The post Minimum Amount Due (MAD) On Credit Cards – Good or Bad for You? appeared first on Loan Settlement.

Here are some options to repay EMIs during difficult times:

• Create and Maintain Emergency Fund

The future is always uncertain but it can be at minimal risk with an emergency fund. Creating a savings account or a fixed deposit and accumulating funds in it regularly can come in handy at times of crisis. It makes sure one doesn’t fall into a debt trap or lose creditworthiness. Ideally, this amount should be at least six times the current monthly income. The emergency fund can help pay the EMIs and ensures there is no default.

• Insurance for the loan

Loan Insurance, also known as Loan Protection Insurance, is a service designed specifically to cover the monthly loan payouts in case of temporary/permanent disability, loss of job, or any such eventuality. It protects the borrower from defaulting on loans. A loan protection insurance plan is a short-term measure, but beyond it, you will need concrete ways to repay your debt.

• Dispose of assets to raise funds

Assets such as gold, car, electronics, or furniture that are not necessarily needed can be sold to raise funds. Long-term investments, like Public Provident Fund, which focuses on inducing small savings to accrue returns on the same, can be used to save your ship from sinking into the debt trap.

• Communication is the key to any relationship

Under genuine circumstances of loss of livelihood or medical condition, along with a good track record of credit, can help convince the lender to aid with late repayment of EMI. After evaluation of the credit history and the seriousness of the circumstance, the lender may provide one of the following options:-

1. Grace period: A grace period is a period after the due date during which payment may be made without resulting in loss of creditworthiness. During this time, no interest accrues to the loan balance as long as it is paid within the time further provided.
2. Restructuring the loan: By restructuring the loan, the tenure period and the EMI amount is modified to fit the situation of the customer to repay the amount feasibly.
3. Reduction of interest rate: A lower interest rate may be offered with certain terms and conditions. However, this reduction must be permissible within the rate grid and a rate below that is neither permissible nor customary.

It is always inadvisable to get tangled in the legal path whilst repaying the loan. Thus it is important to maintain contact with the lender and repay the dues in time.

One must note the following points:

• In case of home loan, if the lender is ready to auction the property, the amount can still be paid before the auction or an appeal can be made in the Debt Recovery Tribunal to stop the auction.
• 90 days is the limit after which the loan amount becomes a Non-Performing Asset (NPA) and the lender can initiate recovery process.
• Last but not least- plan your finances. Finances should be planned, budgeted, and regularly managed to maintain personal funds carefully.

If you are not able to repay your credit card dues, consider loan settlement. Register and talk to our counsellors for more information.

The post How to pay your EMIs in difficult times appeared first on Loan Settlement.