Articles by Bankingontips The Bankingontips Blog
Pradhan Mantri Mudra Yojana & its OfferingsTue Apr 09 2019 / By: Nupur Sharma
In April 2015, the Government of the Union Budget was established as the MUDRA (MicroUnits Development and Refinancing Agency Limited) Bank. This aims to provide the sector of micro enterprises with integrated financial support, including, by name a few, small-scale production facilities, food service units and small industries. The fundamental reason for MUDRA is to expand the institutional finance facility to include small businesses involved in different commercial, production and service activities. PMMY was launched in conjunction with MUDRA (Pradhan Mantri MUDRA Yojana). Under the PMMY system everybody can request loans of up to Rs. 10 lakhs in the non-farm sector.
Types of Pradhan Mantri MUDRA Yojana Offerings
Here are the key types of Pradhan Mantri Mudra Yojana Offerings:
Micro Credit Scheme: This scheme provides financial support for businesses with loans of up to 1 lakh by Micro Financial Institutions. Usually, individuals involved in specific micro-enterprise activities as well as different joint liability groups (JLGs) and self-help groups (SHGs), could be used to deliver such loans.
Women Enterprise Programme: This scheme is an important part of MUDRA Yojana, which targets women entrepreneurs. Its objective is to foster the establishment of various micro-enterprises for women entrepreneurs, female joint responsibility groups and self-help groups. In such cases, for example, a reduction in interest rates of up to 0.25% on loans granted may be permitted with special concessions.
Refinance scheme for Banks: MUDRA makes refinancing of loan amounts (up to Rs 10 lakhs per unit) easier, including Scheduled Co-operatives Banks, Regional Rural Banks and Commercial Banks. The refinancing facility is only available if these business loans for microenterprises activities have been extended. Banks which are eligible for the refinancing facility must meet from time to time notified requirements.
Mudra Card: MUDRA card is an innovative credit product that allows small businesses access to credit easily while offering cardholder flexibility. It can be used as a overdraft (loan) limit credit card and can also be used as a debit card for ATM withdrawal facilities. Under its unique cash loan arrangement Mudra Card can be used by companies to acquire operating capital.
Credit Guarantee Fund: This includes creation and use of a special fund referred to as the Micro - Units Credit Guarantee Fund (CGFMU), also known as a portfolio loan guarantee. The Fund is managed by National Credit Guarantee Trustee Company Ltd. to facilitate receipt of micro - loans by eligible companies.
Equipment Finance Scheme: This scheme under a loan scheme for the MUDRA allows the purchase and upgrade of qualification equipment / machinery by small companies, small businesses and micro-units. This encourages companies to increase overall productivity and efficiency in their companies by improving their production techniques.
Credit to Micro Enterprises: One of MUDRA's fundamental motives is both to maximize the number of benefits and beneficiaries. Much of the Indian population currently operates in particular fields including land transportation, food production, textile production and community services but are not limited to these sectors. Different tailored products and sc to meet the growth requirements of these industries
Investment and Saving
Solo Women Wanderers ' Travel Budget Tips’Fri Mar 29 2019 / By: Nupur Sharma
There is nothing like solo traveling. If you are alone, you learn the necessary skills, become more accountable and connectivity with others, because when you are yourself, all these aspects of life are tested.
Of course, the fun part of every trip is to explore, live and eat local food! But you need to divide up the "not fun" part of your journey–the budgeting–to make your trip seamless. Don't worry, here we are for you to make it fun-the secret is simple.
Invest In Travel Gear
If your hiking desire is not short - lived, you will probably want to go on several excursions in the future, so it makes absolutely sense to buy a high-quality backpack. Although the initial cost is high, you have long lasting and reliable backpack.
You can also obtain certain travel accessories in addition to the backpack, such as trekking shoes, toilet kits, first aid kit and pillows – these are especially useful for your travels that focus on camping and nature.
Book Transport and Accommodation Beforehand
While you may know a few who can't help but devote themselves to how best unplanned trips are, it's never sure. While at your destination, you can still leave room for lots of impulsive travel. However, it is always good to plan when it comes to reserving your stay, or your train or flight tickets, for two reasons.
Firstly, early bookings will usually give you better rates and, secondly, those who do not want to have peace of mind knowing that their next holiday logistics are being cared for ; all that's on the agenda is relaxation.
Always Carry Enough Cash
Although your currency depends on where you go, remember that when you are along the way, cash will always be useful. You can't be sure you'll have enough money in your wallet at every nook and corner of small towns.
Identify All Areas Of Expense
It depends entirely on your place of business. You have to figure out the visa cost, the foreign exchange rates and much more if it is another country that you are interested in. If you're in a different country for the first time, ensure that you get an idea of how much basic things cost.
Get a Travel Credit Card
It not just allows you to book your flights and stay at desirable, discounted rates while your Travel Credit Card is available for free during your holidays (assuming that it is international). Many credit cards link to airlines and hotel chains to provide awesome deals and discounts, so why not save some money!
Want to know how your credit score is calculated?Fri Mar 29 2019 / By: Nupur Sharma
Your credit score usually relies on several factors like the credit office, the score data and the method used to calculate the score by the credit office. Three major credit offices in India are located – Experian, Equifax, and TransUnion (or CIBIL).
Nevertheless, you should note that the results of these credit offices may vary depending on the information provided to these three offices by the different creditors and banks. Several key factors determine how your credit score is calculated.
• The number of active accounts you have (such as credit accounts and other EMI accounts).
• The type of accounts you own.
• The ratio of credit and debit.
• Credit history
• Payment history
Once more, it is important to remember that each of these factors is different in weight / effect on your credit score depending on the model score used by the credit bureau. Let's go into the details and explain what it's all about.
The calculation of your credit score is based on your credit charges. This includes your credit card summary and your loan accounts. Thus, if you pay EMIs for any loan, including personal loans, car loans and home loans, the details will affect your credit value and play a major part in calculating it. If a credit card is provided, this is included in the calculation as well.
Used Vs Available Credit
It's just your credit limit and how much you have used it. It is your credit use ratio and experts believe that more than 30 percent of your credit limit should never be used. Often lenders and creditors regard this information as a key proof of your cost-effectiveness.
There's a lot about you in your payment history. This information is essential for all creditors, who may be worried that you will reimburse the debt. So it is absolutely important that your payment history on your EMIs on the various credits or cards.
If you've ever missed the payment, missed a deadline or failed, your payment history will show the prospective lender. During the calculation of your credit, offices will consider how long your payments have been delayed and how often they have been late or owed.
Your credit history is nothing more than an indicator of how long the payment history has been kept. Disturbed? Don't be. Basically, your credit history is information on all your credit cards and every credit account which you opened many months ago.
Would you like to improve your loan history? Be careful about your expenses and prioritize your reimbursements. You can check your credit score by clicking on the button below if you want to check it.
Ways to protect your money from digital fraudsTue Mar 12 2019 / By: Nupur Sharma
Digital banking fraud has increased in numbers with the increasing use of the internet and mobile apps for financial transactions. Recently in the Reserve Bank of India, around 900 plus banking fraud in the amount of Rs. 1 lakh in April–September 2018 involving ATM, debit cards, credit cards and Internet banks.
Many of us do multiple online transactions every day, as we move to a digital and paperless business. But there are many undesirable risks with the ease and convenience of doing online transactions that could threaten you.
The easiest and best way to ensure that no digital fraud occurs is to educate yourself. Let's look, then, at the three most popular digital frauds taking place in India.
OTPs are a popular method of conducting safe finance transactions these days from ordering food online to paying credit card bills and shopping online. It has a ton of loopholes too, however.
OTP theft usually happens when your phone is malware infected, or if you are bound to disclose a fraudster to your OTP. Newer people are more likely to become involved in online banking.
Never disclose anybody, including bank officials, your personal and important details such as your card data. Remember, no bank will ever request you to provide the verification or renewal details of your card on your phone. And, do not click any link from any unknown numbers that has been suspicious. You give fraudsters access to their personal details by clicking on such links to make it easy to obtain your OTPs.
Fake Mobile Banking Apps
Mobile apps may pose a major threat to your money while they are convenient. Today, Google Play offers many fake mobile applications from leading banks like ICICI, SBI, Axis etc. that can make differentiation between fake and original apps harder.
Once this fake application is downloaded, the Malware can steal and rob you of your money from the account and card details. So it is advisable to always use antivirus software to protect your phone against malware and internet security problems to make sure your personal information is not misused.
SIM swap is again one of the most popular tricks used by fraudsters to obtain your personal bank information through vishing, phishing, malware and so on. Once you have access to your personal information your original SIM is blocked, and a fake ID proof is given to you. Then, a single password (OTP) on the duplicate SIM is easier for them to initiate financial transactions.
Make sure you always sign up for SMS and email alerts that can help you track various activities on your bank account in an effort to avoid getting into this trap. This ensures that the bank sends you a message notice for all financial transactions, even if you don't receive a SMS warning. Also, keep track of your bank statements and all banking history so that problems or irregularities can be identified quickly.
Finally, continue to check the connectivity status of your phone. It is clever to contact your mobile operator immediately to make yourself safe if you receive notifications not for a long time.
Facts about Credit Score you didn’t knowSat Mar 09 2019 / By: Nupur Sharma
Confused about your credit score? Don’t worry. In this article, we're going to share some incredible facts you didn't know about your credit.
Your Credit Score isn’t affected by your savings
Your loan score reflects your credit history only. In short, your credit card or EMI information about your loans will only be reflected in your information such as a house loan or a automobile loan. So you are bound to improve your credit value if you make repayments diligently.
You can make multiple soft inquiries of your Credit Score
A direct inquiry from a credit office or an authorized third-party entity concerning your credit score is a soft inquiry. Countless soft queries have no influence whatsoever on your credit score.
Your credit information can't be edited directly by your credit bureaus
While credit offices are generating your credit report, they are generating it with input by various banks and other NBFCs. You are not authorized to edit / delete your credit data directly. Instead, you can only update your credit report based on the information provided by the lenders concerned.
No credit history will not mean good credit score
You couldn't be more mistaken when you think that having no credit history would mean a good credit score! It's a common Credit Score myth. However, even if you have no credit history, you should know you're still in possession of a credit score. But it's not going to be anything that you can praise.
Even if you haven’t checked it, your Credit Score exists
Your credit score has only one simple rule. If you have a history of credit, then you have a credit score! So regardless of whether your credit score has been verified or not, it is possible to obtain your credit score if you have ever borrowed money from a bank or got a credit card. Banks and other NBFCs send credit transaction history to credit offices in a monthly report from their borrowers.
Low Credit Score will not always mean no loan
While there may be different rules for different banks, a low loan score doesn't always mean a credit. You may still be able to receive a loan, but you may not get the better interest rates compared to a good credit score.
Every year you have the right to a free credit report
Were you aware that you can receive your credit value once a year for free? RBI directed all credit offices to provide credit information once a year to individuals who have a free credit report. If you require this report more than once, it can be provided for you at a small fee.
How to borrow money without paying interest?Wed Feb 27 2019 / By: Nupur Sharma
It's never a fun task to go from pillar to post to collect funds. After all, scrounging for money can lead to one sleepless night too many. How much has your vacant bank account or all the unpaid debts that have accumulated over the years been moving?
Well, for a personal loan you could always apply. Today, it is easier than ever to secure a personal loan, as the whole process is totally unpapered and your loan can be approved with a few days.
However, if the interest you have to pay for the loan scares you, you can borrow money here other ways without worrying about the interest spectre above you.
• Asking friends & family: While borrowing money of friends and family can be bit of a hesitation, ' it is likely time to swallow your pride and ask them to rescue you from your difficulties if you are financially in the dumps. While you're here, some grovelling might go a long way too. Usually your friends and family will help you more often than not financially and will probably not ask you to pay interest on the amount you borrowed unless it's a bunch of thieves. They also allow you to refund the amount for a significant period of time, which can give you the leeway to get back on track with your finances.
• Getting a credit card: You can use your Credit Card to make payments or purchases without paying an interest jackpot on your expenditure, whether you believe it or not. Well, it's really quite simple if you're wondering how. Credit cards give you a free interest grace period that begins with the purchase with the card, until the minimum payment has been due. The duration usually varies between 21 and 28 days. During that time, you can make payments and purchases by using your credit card without any interest.
• Balance transfers: Balance transfers are great ways to borrow money for an extended time frame without paying any interest on the amount. Check out a credit card with a rate of 0 per cent for the first 6 to 12 months or beyond. These are usually introductory rates that are offered to entice customers to make the switch from one Credit Card issuer to another.