Month: December 2023

What are Processing fees & Charges on Personal Loan?

Posted on by Mudra Mentor

Sometimes life throws unexpected financial needs, and that’s where personal loans swoop in as your reliable backup plan. Unlike loans designated for specific big purchases like cars or homes, personal loans offer flexibility in utilisation. They’re known for swift disbursement and minimal paperwork, making them an attractive option in times of urgency.

However, before applying for a personal loan, it’s crucial to understand the associated charges. Here are the top five charges you should consider:

personal loan

1. Loan Processing Charges:

Financial institutions typically levy a processing fee, usually ranging between 0.5% to 2.5% of the principal loan amount. This fee covers administrative costs during the loan processing phase.

2. Verification Charges:

To ensure repayment capability, lenders often engage third-party organizations to authenticate a borrower’s credentials. These verification expenses are added to the loan amount.

4. Penalty for Defaulting on Monthly Installments:

Timely EMI payments are vital to avoid penalties and prevent negative impacts on your credit score. Selecting a manageable EMI amount is advisable to ensure consistent repayment.

5. GST Tax:

During loan approval or repayment, a nominal GST tax is imposed on service charges associated with the loan process.

6. Foreclosure or Prepayment Charges:

Repaying a loan before the agreed duration may incur a prepayment penalty, typically ranging from 2% to 4% of the outstanding loan amount, to offset potential losses for the lender.

Please note that these charges vary among lenders. Contact your lender directly to understand their specific terms and conditions regarding personal loan charges.

Also, Read: What are Processing fees & Charges on Personal Loan?

Now have you ever wondered about the costs linked to getting a personal loan from India’s top banks? It’s important to know what you might face—fees for processing. Here’s a peek into the charges set by some of these banks:

Breakdown of Processing Fees for Personal loans from leading banks in India

Name of the bank: Processing charges: 
HDFC BankUp to 2.5% (Min Rs.1,999, Max Rs.25,000)
SBI (State Bank of India)Nil to 1% of the loan amount (Varies based on the loan applied for)
Yes BankUp to 2.5% of the loan amount (Min Rs.999 + tax)
Kotak Mahindra BankUp to 2.5% p.a. + GST

Calculate Your Personal Loan EMI

Personal loans serve diverse purposes, whether it’s for your dream wedding, travel, purchasing consumer goods, or consolidating credit card debt. The beauty of these loans lies in their versatility, allowing you to use the funds as needed, albeit with specific fees due to their unsecured nature.

At Credmudra, we prioritize a seamless borrowing experience. Upon application, we match you with a suitable financial institution within a minimum turnaround time.

Awareness of these personal loan charges is crucial, as they directly impact the total loan amount. Make informed decisions to achieve your financial goals responsibly.

Also, Read: How to Get a 50000 Loan on Aadhaar Card?

FAQs: 

1. Can I be arrested if I do not repay my personal loan?

Loan default is a civil dispute, and as such, any lender cannot press criminal charges against an individual for failing to repay a loan. Therefore, the police do not have the authority to make arrests in such cases. It is important for genuinely struggling individuals who are unable to meet their EMI obligations to not lose hope or become hopeless.

2. What are the legal actions against loan defaulters?

Under Section 138 of the Negotiable Instruments Act of 1881, if a loan remains unpaid for a period exceeding 180 days, the lender has the right to initiate legal action against the borrower.

3. What do I need for a personal loan? What are the five typical personal loan prerequisites?

The Standard Five Personal Loan Prerequisites:

  • Credit Score and History
  • Income Verification
  • Debt-to-Income Ratio Assessment
  • Collateral Evaluation
  • Origination Fee Understanding

4. What is a good personal loan interest rate?

Finding the right personal loan interest rate often aligns with your credit score:
For a credit score of 750 and above, you can secure rates below 8% (ideal for excellent credit).
If your score ranges from 670 to 739, expect rates to hover around 14% (common for good credit).
For those with scores between 580 to 669, rates might average around 18% (typical for fair credit).

5. What exactly is a personal loan?

It’s a type of credit offered by financial institutions, relying on factors such as your work history, income, ability to repay, profession, and credit background.

Vidya Lakshmi Portal: Your Gateway to Education Loans

Posted on by Mudra Mentor

As Dr APJ Abdul Kalam, rightfully said and we quote “ Education is the most powerful weapon which you can use to change the world” 

In the spirit of Independence Day back in 2015, the Union Government unwrapped a special gift for students: the Vidyalakshmi Portal. This online haven was crafted to be a one-stop solution for students seeking educational loans. If you are curious about this loan, let’s first understand the features it offers. 

personal loan

Key Features that Define the Vidya Lakshmi Loan:

1. Comprehensive Access to Loan Information: Registered applicants gain access to education loan schemes from 37 renowned banks via the Vidyalakshmi portal. By evaluating multiple bank offerings on the platform, students can make well-informed decisions regarding their financial choices.

2. Unified Application Process: Utilizing the Common Educational Loan Application Form (CELAF), students can initiate their loan application process seamlessly.

3. Multiple Bank Application: Through the Vidya Lakshmi portal, students have the facility to apply to up to three banks of their preference using a single application form.

4. Efficient Bank Processing: Banks are equipped to download student loan applications, assess the eligibility of applicants, and update the loan processing status directly on the Vidya Lakshmi portal, ensuring a streamlined and transparent process.

5. Digital Accessibility and Grievance Redressal: Embracing the digital realm, the entire loan process operates online. Students have the facility to voice their concerns or seek clarifications regarding education loans directly to the banks through digital channels.

6. Seamless Access to Government Scholarships: As an added benefit, students are presented with a link enabling them to apply for Government Scholarships via the National Scholarship Portal, broadening their avenues for financial aid.

These features collectively represent the Vidya Lakshmi Education Loan’s commitment to providing a comprehensive, accessible, and digitally-enabled platform to support students in their educational pursuits. 

Also, Read: EPFO Higher Pension Scheme: Steps to Apply with Example

Banks Offering Vidya Lakshmi Loans:

Quite a few banks are part of this loan program, ready to help students out. 

  • Abhyudaya Cooperative Bank Limited
  • Allahabad Bank
  • Andhra Bank
  • Axis Bank
  • Bank of Baroda
  • Bank of India
  • Bank of Maharashtra
  • Canara Bank
  • Central Bank Of India
  • Corporation Bank
  • Dena Bank
  • Dombivli Nagari Sahakari Bank Limited
  • Federal Bank
  • GP Parsik Bank Ltd
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Karnataka Bank Limited
  • Karur Vysya Bank
  • Kotak Mahindra Bank Limited
  • New India Cooperative Bank Limited
  • Oriental Bank Of Commerce
  • Pragathi Krishna Gramin Bank
  • Punjab And Sind Bank
  • Punjab National Bank
  • RBL Bank Limited
  • State Bank of India
  • Syndicate Bank
  • Tamilnad Mercantile Bank Limited
  • UCO Bank
  • Union Bank Of India
  • United Bank Of India
  • Vijaya Bank
  • Yes Bank

Vidya Lakshmi Portal Registration Procedure:

The steps to get this loan are laid out clearly, making the process less confusing:

Registering on the Vidya Lakshmi Portal:

1. Begin by visiting www.vidyalakshmi.co.in, the Vidya Lakshmi website.

2. At the top of the homepage, find and click on the ‘Register’ option.

click on the 'Register' option.
3. Fill in essential details like your name, age, date of birth, email address, and mobile number.

Fill in essential details like your name, age

 

4. Take a moment to carefully read through the Official Agreement Terms and Conditions located at the bottom of the registration page.

5. Once you’ve filled in the information, submit the form. This will prompt a confirmation link to be sent to your email.

6. Click on the confirmation link received in your email to finalize and confirm your registration.

Also, Read: Post Office Monthly Income Scheme

Login Procedure on Vidya Lakshmi Education Portal

1. Once registered, proceed to fill out the Vidya Lakshmi Portal Application Form, also known as the Common Education Loan Application Form (CELAF).

2. This step will allow you to explore and apply for various education loan schemes available on the portal.

How to Search for Education Loan in Vidya Lakshmi Portal

1. Visit the Vidya Lakshmi Education Loan Website again.

2. Click on ‘Login’ at the top of the page and select ‘Student Login’.

Click on 'Login' at the top of the page and select 'Student Login'
3. Enter your registered email address and password as prompted.

Enter your registered email address and password as prompted

4. Input the Captcha Code displayed in the text box.

5. Click ‘Login’ to access your personalized Vidya Lakshmi Dashboard, offering a range of services for students.

6. Explore the portal to search for diverse loan schemes that cater to different educational needs.

Documents Required For Loan Application: 

When applying for education loans through the Vidya Lakshmi Portal, you’ll need specific documents. These include:

1. Your Filled and Signed Application Form: Make sure to complete the form accurately.

2. Passport-Sized Photos: Photos of both the person applying for the loan and anyone else involved.

3. ID Proof: Things like your Voter ID, PAN card, or Aadhar card that show who you are.

4. Birth Proof: Documents like your 10th certificate or birth certificate to confirm your date of birth.

5. Address Proof: Papers like your Aadhar card, ration card, passport, or driver’s license to confirm where you live.

6. Educational Certificates: Records showing your educational qualifications, like your Xth, XIIth, and Degree certificates.

7. Admission Letter: A letter from the university confirming your admission.

Remember, the documents needed might change slightly depending on the bank you’re dealing with.

Also, Read: RBI Floating saving bond – Full Details Along with Calculation Process

Eligibility Criteria for Vidya Lakshmi Education Portal:

To qualify for an education loan through the Vidya Lakshmi portal, banks generally set these basic eligibility criteria:

1. Indian Citizenship: You need to be an Indian citizen to apply for the loan.

2. Education Level: Having finished 10+2 (high school) is a must to be eligible for the loan.

3. Admission: You should have secured admission to a recognized educational institution, either based on merit or by passing an entrance exam.

4. Study Options: Whether you’re studying in India or abroad, whether you’re a domestic or international student, you can apply for a loan.

Remember, these criteria might vary slightly from bank to bank, but generally, these are the common conditions you need to meet to apply for the Vidya Lakshmi Education Loan. 

To Sum Up: 

The Vidya Lakshmi portal for education loans is truly a game-changer initiated by the Indian Government. This all-in-one platform has made securing financial assistance for education a breeze. Not only does it simplify the process, but it also empowers students to explore, compare, and discover suitable loans and scholarships to support their studies. If you dream of furthering your education but find finances to be a hurdle, this platform might just be the helping hand you need. 

FAQs: 

1. What’s the Highest Loan Amount Possible to Request through the Vidya Lakshmi Portal?

The maximum loan amount you can apply for on the Vidya Lakshmi portal is Rs. 4 lakhs. This loan offers a tenure of up to 15 years and doesn’t require any collateral, making it accessible for aspiring students.

2. What’s the Process to Monitor the Progress of my Loan Application on the Portal?

To check the status of your loan application on the Vidya Lakshmi Portal, you’ll have to log in to your account. From there, you can easily track the progress of your application.

3. Does the Vidya Lakshmi Portal Impose any Registration Fee?

No, there’s absolutely no registration fee on the portal. It’s a completely free service for all users.

4. What’s the Limit on the Number of Banks One Can Apply to Simultaneously through the Vidya Lakshmi Portal?

Under the Vidya Lakshmi Portal, students can simultaneously apply to three different banks.

5. Does the Vidyalakshmi Portal have A Specific Age Limit for Education Loan Applications?

The age limit for applying for an education loan varies among different banks. Hence, it’s essential to review the eligibility criteria of the respective bank before applying for a Vidyalakshmi education loan through this portal.

How To Link Aadhaar With PAN Card Online in 2024

Posted on by Mudra Mentor

The PAN card comes from the Income Tax (IT) department, while the Aadhaar card is issued by the Unique Identification Authority of India (UIDAI). PAN serves as a unique ID for tax for individuals and businesses, whereas Aadhaar is a 12-digit unique ID given to all residents.

If your PAN card becomes invalid, you will not be able to get all these financial services like receiving a taxable salary, paying income tax, and completing large-ticket financial transactions. You may wonder how the government-issued PAN card can become inoperative as it does not come with any validation date. 

Central Board of Direct Tax (CBDT) issued a circular mandating PAN and Aadhaar card linking on or before 31st March 2023. In case these cards are not linked, the PAN card will become inoperative. However, CBDT later revised the date to 30th June 2023.

personal loan

Who Should Linking their PAN and Aadhaar Card?

The Central Board of Direct Tax announced in 2017 that all tax-paying individuals having a PAN card will have to link their Aadhaar numbers with the PAN card. However, in this announcement, CBDT has stated that this Aadhaar number linking is necessary for those individuals whose PAN card was issued on 1st July 2017. 

In 2023, CBDT declared that people who have failed to follow the prior announcement will be able to complete the PAN and Aadhaar card linking by 31st March 2023 by paying Rs. 1,000 as a fee. This last date has been revised to 30th June 2023. 

If you still have not completed the process, you must not delay any further. If you fail to meet the deadline now, your PAN card will become inoperative. Besides, you may have to face other legal repercussions as per the Income Tax Act of India.

What is the Status of Your PAN and Aadhaar Card Linking?

If you do not know whether your PAN card is already linked with your Aadhaar number, you need to check and confirm the same before the last date of linking. You will have to go to the e-filing portal of the Income Tax Department of India and complete the steps as mentioned below:

Step 1: Go to the home page of the portal, and click on ‘Link Aadhaar Status’ from the list of ‘Quick Links’

go to the e-filing portal

 

Step 2: Enter your PAN and Aadhaar number on the respective boxes

Enter your PAN and Aadhaar number on the respective box

 

Step 3: Tap on ‘View Link Aadhaar Status’

image1-1-768x351.png (768×351)

 

After this, you can finally see your PAN and Aadhaar card linking status.

Also, Read: How to Download e-PAN Card Online from NSDL and UTIITSL

How to Link Aadhaar Card with a PAN Card?

If you find that your PAN card is yet to be linked with your Aadhaar number, you will have to complete two interlinked processes to link the same, which we have broken down for you. 

Linking your PAN and Aadhaar is smooth! Follow these two simple steps:

  • Pay the fee: For the financial year 2023-24, you need to pay a nominal fee to link your PAN and Aadhaar.
  • Submit the request: Head over to the Income Tax e-filing website and fill out the Aadhaar-PAN linking request form.

Don’t forget to keep these documents handy:

  • Your Aadhaar Card
  • Your PAN Card
  • Your mobile number linked to Aadhaar

Note: Your mobile number must be registered with your Aadhaar card to receive the OTP (One-Time Password) for authentication.Step 2: Choose the option of ‘Continue to Pay Through E-Pay Tax’.

  • Payment of Fee

Primarily go to Income Tax e-Filing Portal.and then follow these simplified steps to pay the fee:

Step 1: Under the ‘Quick Links’, click the ‘e-Pay Tax’  

View Link Aadhaar Status

 

Step 2: Provide your PAN number and your aadhar card number

Provide your PAN number and your aadhar card number

 

Step 3: Click on the “continue to pay through e-pay tax”

link on the “continue to pay through e-pay tax

 

Step 4: Input your PAN details, reconfirm the PAN, and provide a mobile number for OTP receipt. 

Input your PAN details, reconfirm the PAN, and provide a mobile number for OTP receipt

 

Step 5: After the OTP verification, you will be redirected to e-Pay Tax page.

After the OTP verification, you will be redirected to e-Pay Tax page.

 

Step 7: Check the automatically filled challan and complete the payment of Rs. 1,000

Step 8: Now, Click on Proceed on the Income Tax tile.

Now, Click on Proceed on the Income Tax tile

 

Step 9: Select the applicable Assessment Year and Payment Type as Other Receipts (500), then click Continue.

Select the applicable Assessment Year and Payment Type as Other Receipts (500), then click Continue

 

Step 10: The relevant amount will automatically appear under “Others.” Proceed by clicking Continue.

The relevant amount will automatically appear under "Others." Proceed by clicking Continue

 

Step 11: A challan will generate next. Choose your payment method, then you’ll go to the Bank’s site for payment. After, link your Aadhaar with PAN on the e-Filing Portal.

  • PAN and Aadhaar Linking

Here is the final stage to link your Aadhaar number with the PAN card and the step-by-step process to complete it:

Step 1: Log in to the e-filling portal and go to ‘Dashboard’ 

Log in to the e-filling portal and go to ‘Dashboard

Step 2: Click on ‘Link Aadhaar to PAN’

Click on ‘Link Aadhaar to PAN’

 

Step 3: Tap on ‘Link Aadhaar’

Step 4: Enter your Aadhaar number 

Enter your Aadhaar number 

 

Step 5: Press the ‘Validate’ button

Press the ‘Validate’ button

 

Step 6: Enter your name and mobile number as mentioned in the Aadhaar card 

Enter your name and mobile number as mentioned in the Aadhaar card 

 

Step 7: Click on ‘Link Aadhaar’ and enter the OTP received on your mobile number for the verification

Click on ‘Link Aadhaar’ and enter the OTP

 

After this, you will successfully send your request for the PAN and Aadhaar card linking.

PAN and Aadhaar card linking

 

Why Linking the Aadhaar Number with the PAN Card is Important?

Here are the following purposes that PAN card and Aadhaar number linking fulfill:

  • Tracking Transactions: The Aadhaar number contains information regarding financial transactions made by an individual. It includes large-ticket transfers as well as small UPI payments. Linking this number with the PAN card will enable the Income Tax Department to track all these transactions effectively.
  • Spotting People with Multiple PAN Cards: Having more than one PAN card is a legally punishable offence. Since people can get only one Aadhaar number, they cannot link it with their duplicate PAN cards. As a result, the duplicate one becomes automatically inoperative.
  • Simplifying ITR Filing: As all the transactions get stored with the Aadhaar number, after this linking the filing process will become quick.

CBDT has made this PAN and Aadhaar card linking a legal requirement. It announced citizens to link the same in 2017. Now, people can do the same within 30th June 2023 by paying a nominal fee of Rs. 1,000. However, failing to link your Aadhaar card with your PAN card on or before this date may lead to legal repercussions.

Also, Read: Check PAN Card Application Status Online: NSDL and UTIITSL Portal

FAQs about PAN and Aadhaar Linking

1. Can I Link my Aadhaar Number with my PAN Card if there is a Mismatch in the Spelling of my name or Date of Birth?

No, you cannot link your Aadhaar number with your PAN card if details, such as names and birth dates mentioned in both these cards do not match. In such a scenario, you will have to rectify the incorrect details first.

2. Who has the Option to Avoid Linking Aadhaar with their PAN Cards?

You will not have to link the Aadhaar number with your PAN card if you are: a resident of Jammu and Kashmir, Meghalaya and Assam, a non-resident of India, or a senior citizen whose age is 80 years or more.

3. Do I have to Pay Again if the First Payment Fails Even after the Deduction of the Amount from my Savings Account?

If your balance is deducted but the payment fails, you will have to pay again. In such a case, you can resubmit your request for linking Aadhaar number considering the first challan issued in the portal.

4. Is it possible to detach an Aadhaar Number from my PAN Card?

Absolutely. If mistakenly linked with the wrong Aadhaar, you can unlink it and re-link to your correct Aadhaar.

5. Do NRIs require an Aadhaar for E-filing?

NRIs are not obliged to provide their Aadhaar for income tax e-returns.

6. What if my Income is below Taxable Limits? Is linking PAN and Aadhaar Mandatory?

Even if one’s income is below taxable limits, linking PAN with Aadhaar is mandatory to prevent deactivation.

 

Laugh Your Way to Prizes! Credmudra’s #BudgetLOLContest

Posted on by Mudra Mentor

At Credmudra, we believe in turning the serious world of finance into a laugh riot! And what better way to do that than with our latest giveaway – the #BudgetLOLContest! Are you ready to tickle those funny bones and win some fabulous prizes? Here’s how to get in on the hilarity:

personal loan

How to Enter:

Step into the spotlight by creating a hilarious reel related to expensive loans or items. Show us your wit and creativity! Once you’ve crafted your masterpiece, post it in your Instagram story, tag @credmudra, and don’t forget to use the hashtag #BudgetLOLContest. Oh, and make sure you’re following us too! Keep it light-hearted and fun, but let’s keep it classy, folks. Remember, the final call rests with our organizers.

Get Instant Personal Loan

Winner Announcement & Prize Claim:

Hold onto your seats! The winner will be crowned within 48 hours after the contest wraps up. We’ll spill the beans on our Instagram page, so keep those eyes peeled. Once you’ve bagged the glory, make sure to slide into our DMs with your contact details within 24 hours. Otherwise, we’ll have to pick another lucky soul.

Prize:

The prize? Ah, now that’s the real fun part! But trust us, it’ll be worth the giggle. Just remember, prizes can’t be swapped, traded, or cashed in – they’re all about spreading joy!

The first winner gets Boat’s smartwatch

The second winner gets Mivi’s Speaker

And the third winner gets Boat’s neckband

Publicity & Privacy:

By jumping into the contest, you’re giving us the thumbs-up to use your Instagram handle and reel for some good ol’ promotional fun. Your personal info? Locked up tight and used solely for managing this sidesplitting contest – no funny business here!

Disqualification & Liability:

Keep it clean! Anyone tampering with the entry process or indulging in rule-breaking antics risks disqualification. And as for disappointment, loss, or any unexpected surprises, our team or affiliates won’t be held responsible.

Eligibility & Contest Period:

If you’re 18 or older and not part of our Credmudra family (or their clan), you’re game! Mark your calendars – entries are open from December 18th to January 1st. Don’t dilly-dally; latecomers won’t make it to the laughter party!

Sponsorship:

Just a heads-up, this shindig is all ours! It’s not linked to Instagram or Boat or any other company; it’s our own little comedy show!

So, get those creative juices flowing, turn on the humor, and let’s make this holiday season a barrel of laughs. Who knows? You might just be the comedy king or queen we’re looking for!