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A personal loan has become a popular way for seafarers in India to finance individual and emergency expenses, such as travel, wedding costs, home improvements, and extra funds during emergencies. Merchant navy officers earn a high income and can maintain a good repayment track record.
However, the unusual terms of their employment can create some roadblocks to the smooth processing of a personal loan request. Being aware of these issues may make the personal loan journey easier and help avoid delays.
Seafarers and officers of the merchant navy work on contracts lasting 6 to 8 months. After completing their contracts, which involve sailing for extended periods and infrequent shore visits, they are entitled to a well-deserved break of 3 to 4 months. This break may be misunderstood by lenders, who might assume the applicant will be unemployed during this time and may doubt their ability to meet financial commitments.
The salaries of merchant navy applicants working with a foreign company are credited to the NRI account, allowing funds to be deposited in a foreign currency. The applicant receives remuneration for the duration of the contract. Banks will average the total funds received over a year to determine the monthly income.
Merchant Navy employees receive their salary from the employer in accordance with the terms of the contract. The company can credit the salary monthly or quarterly. Some organisations allow applicants to draw funds as required against the salary credits and settle accounts after the contract ends, and they leave the ship. Systematic salary transfers and receipts may vary according to the terms of the contract.
Unconventional salary credits can leave the bank uncertain, as regular salary transfers to the account are required under personal loan rules.
As part of the personal loan process, banks verify employment and document validity by contacting the company’s HR or administrative officers. If a foreign company employs the applicant without a local office in India, communication may be challenging.
Policy requirements for HDFC Bank include that the applicant has a self-owned residence, as a merchant navy member is away on the high seas for most of the year, and self-owned residence ownership is mandatory.
Documentary proof of self-owned residence is mandatory. The acceptable documents for residence proof are as follows:
To apply for a personal loan from ICICI Bank for employees of the merchant navy, applicants must submit the required documentation. The documentation required is more extensive due to the unusual job profile of a merchant navy applicant.
The extra documents besides the KYC and income documents are:
Personal loans are unsecured; not all Banks and NBFCs will process personal loans for seafarers. HDFC Bank and ICICI Bank are the primary lenders that issue personal loans up to ₹ 40 lakhs to merchant navy officers who meet the salary criteria.
The best time for an applicant to apply for a personal loan is soon after the contract is completed. This is when all required documents are readily available to the applicant, allowing them to complete the formalities before rejoining a ship for the next contract and returning to employment.
A “Top Up” or an extra amount added to an existing loan has become a convenient option for customers needing additional funds: A Top Up can be applied to an existing Personal Loan, Home Loan, or a Loan against property.
A Top Up loan is advantageous to both the lender and the applicant, as the lender can verify the repayment track and is confident of timely repayment. The borrower is satisfied with the services of the finance provider and would like to avail of the services repeatedly.
Customers requiring funds in an emergency can apply for a personal loan Top Up online from the parent Bank, such as the HDFC Bank Top Up personal loan, the ICICI Bank Top Up personal loan, and the AXIS Bank Top Up personal loan.
They can request the funds needed, but the facilities of a Top-up loan cannot be taken for granted, and the existing loan does not ensure eligibility for a Top-up. The applicant’s eligibility for a top-up personal loan will be reassessed during processing.
The net salary: The minimum salary needed to apply for a personal loan top-up is 35k. The applicant’s current salary must remain the same or increase since the existing loan was issued. If income decreases, financials will be re-evaluated to determine if the applicant can afford the additional instalment with the lower income and other expenses. However, if the salary has increased, the extra amount will likely be approved with ease.
Employment status: The applicant’s company must be listed among the HDFC Bank-approved companies. If the applicant has changed jobs when applying for a Top-Up, the current employer should be included in the Bank’s approved companies. If the current employer is in category A or B, the eligibility calculation will increase; if the company is in category C, it will decrease. If the company is not approved or has been delisted, your Top-up request may be denied.
Repayment track of the existing loan: A primary requirement to avail of a Top Up facility is to pay instalments on the existing loan on time. A customer making timely payments on the existing personal loan with HDFC Bank will have a better chance of approval for an additional amount; however, if there is a consistent delay or default in repayment, a top-up request is denied.
CIBIL Score: As per the norms for a new loan, when you apply for a top-up loan, a request will be made to CIBIL for an updated record.
The applicant’s CIBIL score should be above the required benchmark. The repayment record of credit taken in the form of loans or credit cards from other lenders is reviewed to confirm that the applicant is paying all dues on time.
Suppose there are delays or defaults in repaying credit owed to other banks, if credit card dues are unpaid, or if the applicant has recently borrowed from different lenders; it will influence the bank’s decision to approve a top-up loan.
Vintage of Loans: Most leading Banks, such as ICICI Bank and HDFC Bank, will issue funds as a Top-up to a personal loan three to six months after the primary loan. This interval is used to assess the applicant’s repayment discipline and ensure that the EMI are paid on time.
In exceptional circumstances, a Top Up Loan is awarded soon after the parent loan if the applicant’s income exceeds the debt ratio by an excess margin or the value of the property and the applicant’s income is more than the loan amount granted initially.
Suppose an alternate lender has recently granted the applicant an additional personal loan or has applied to other Banks for a personal loan. In that case, the lender will check the applicant’s eligibility criteria and the CIBIL record for the enquiry count before issuing a top-up loan. ICICI Bank will not process a request for a top-up loan if more than four enquiries are reflected in the CIBIL record.
Financial eligibility: When calculating the loan amount that can be issued as a top-up, the Bank will consider the following:
In conclusion, the process for a Top Up is similar to that for a new account; complete documentation must be submitted to process the application, and all designated steps will be followed. A Top Up loan’s eligibility depends on the applicant’s current circumstances and creditworthiness. Check your eligibility criteria with us to ensure a seamless process for your Top-Up loan.
A personal loan and a loan against property are popular financial options provided by banks and NBFCs. Applicants seeking financial help can choose either option based on the purpose of the funds and eligibility requirements.
To help our customers choose the best loan for their circumstances, we aim to provide essential details and comparisons. Significant features include the following:
A personal loan is unsecured and does not require collateral. Applicants receive loan amounts based on their profile points, which include net salary, CIBIL score, and the employer’s category as per the approved company category list of HDFC Bank.
A Loan Against Property, as the name suggests, is a loan secured by a mortgage over the customer’s property. Loan amounts are determined by the property’s value and the required ownership documents.
The loan amounts issued as personal loans range from ₹ 1 Lakh to ₹ 40 Lakh, depending on the Bank’s policy. An applicant is issued a personal loan based on the lender’s eligibility criteria.
Banks such as HDFC and ICICI Bank issue Loan Against Property (LAP) loans for amounts based on the property’s value. The applicant’s income must also be sufficient to afford EMI repayments.
The repayment tenure allotted for a personal loan is from 12 to 72 months, depending on the EMI payable by the customer. Factors influencing the tenure allotted include the applicant’s income, current obligations, and the approved loan amount.
Loan Against Property can be repaid over a tenure of up to 15 years, depending on the loan amount and the applicant’s income. The longer tenure makes for an easier EMI but an increased cost.
The interest rate for a Personal Loan range from 9.99% at a monthly reducing balance to 15%. Banks and NBFCs pay interest in accordance with their individual policies and the cost of funds. Higher loan amounts are disbursed at a lower interest rate and vice versa.
Banks offer a Loan Against Property at lower interest rates because it is a secured loan, starting at 8.5% with a floating interest rate. The interest rates offered by Banks and NBFCs will vary based on property details and loan amount.
The interest rate for a personal loan is determined at the time of disbursement, and the EMI remains the same throughout the tenure. The terms of the personal loan remain fixed as per the agreement signed.
A LAP is issued at a floating interest rate that fluctuates in line with the RBI (Reserve Bank of India) Repo Rate. The terms of a LAP thus vary as per the policy of the lender, a Government Bank, Private Bank or NBFC.
For a Personal Loan, the CIBIL score and the applicant’s history are essential due to the unsecured nature of the funding. Lenders check the CIBIL score and history before processing. A score of 720 points and above is the acceptable benchmark.
A mortgage secures funds granted under a Loan against property, so applicants with a lower CIBIL score can obtain the funds they need. However, applicants with a CIBIL issue may be charged a higher interest rate.
A personal loan provides quick funding; most Banks offer an online process with funds transferred to the Bank account within 72 hours. An existing relationship, such as a Top Up or parallel personal loan, will accelerate the process.
The processing time for a Loan against Property increases due to the legal assessment, property verification, and documentation. Banks will take 10 to 15 days to process a loan against property.
A personal loan is processed under the primary applicant’s details; a co-applicant is not mandatory. A co-applicant, such as a blood relative or spouse, can be added to increase eligibility for the loan amount.
A Loan Against Property involves all the owners of the property being part of the loan; if the property is in the name of a single owner, a co-applicant is mandatory. The primary applicant is the financial applicant who will pay the EMI.
The similarities between a Personal loan and a Loan against property include the flexibility in how the funds can be used. Customers are free to utilise the amount received for personal and professional purposes.
Both a Personal loan and a Loan against Property can be repaid conveniently through EMI (equated monthly instalments) at a lower monthly interest rate. Given the individual differences and benefits, let us consider the inputs that are deciding factors for both products.
A personal loan offers quick funding: A personal loan from HDFC Bank or ICICI Bank is processed online, and the amount approved is transferred to the account electronically. The documents required are simple and can be downloaded digitally. Thus, if funds are needed in a hurry or for an emergency, a personal loan is the quickest solution to fulfil the requirement.
If you need a smaller loan amount, a personal loan is available without any collateral, based solely on the customer’s net income, CIBIL score, credit history, and the employer’s category in the bank’s approved company list. Banks and NBFCs offer personal loans starting from ₹1 lakh. Therefore, if the required loan amount is not too high, a personal loan that is easily accessible and can be repaid within a limited tenure will be suitable.
Convenient Documentation: Valid KYC documents, such as your Aadhaar card, and Income documents, including a salary slip and Bank statement, are required to apply for a personal loan of up to ₹ 40 lakhs. Suppose the property held by the customer is unregistered or the appropriate documents are unavailable. In that case, loan seekers prefer to apply for a personal loan that the available documents can readily support.
For Significant Loan Amounts: Banks and NBFCs offer LAPs at reasonable interest rates of 8.45% or higher for extended tenures of up to 15 years. Thus, if increased loan amounts are required, Banks will approve up to 60% of the property value as a LAP. With an extended tenure, the applicant is eligible to obtain a loan amount up to six figures, depending on the property’s value and the customer’s income.
For an affordable EMI, the tenure for a loan against property is determined by the applicant’s age and the approved loan amount. Applicants looking for an EMI that suits their budget can apply for a longer tenure, enabling the loan to be comfortably repaid without delay or default. In case of excess funds, customers can make a partial payment towards the principal and foreclose the loan without any charges.
For Debt Consolidation: If you cannot pay your credit card bills on time, the accumulating dues will accrue a higher interest rate of 36% to 40% per year. If you cannot settle your credit dues, have multiple loans, or are making numerous instalment payments, you are likely using revolving credit, which can lead to a debt trap.
Take a reality check on your debt levels and assess whether you can comfortably repay them without defaults. Notice these signs early and consider applying for a Loan Against your property, which offers funds at a reduced interest rate. This can help consolidate your outstanding debts into a single payment. With a Loan Against your property, you can pay off your debts with manageable EMIs and improve your CIBIL score.
With Diwali celebrations coming to an end, it is time to get back to work and responsibilities. The holiday period is one of relaxation and enjoyment, which encourages spending, and it is easy to go over your budget.
Post Diwali, it’s time to review your finances to ensure you have enough funds to cover mandatory expenses and repay credit obligations on time. This includes checking your bank account and credit standing. Listed below are the major checks that will help you consolidate your finances.
Check your account for the balance. Is it sufficient for your needs till you receive your salary credit? Are there any EMI payments due, and are there enough funds to clear them? If not, make arrangements in advance by transferring funds from savings accounts. An instant HDFC Bank personal loan will help meet immediate needs.
Credit cards are handy, especially during Diwali, when the temptation to spend is high. Using your credit card to cover shortfalls and impulsive expenses can lead to overspending. After Diwali, it is essential to review your credit dues. Check each credit card individually for any outstanding dues. Give priority to the credit card used most frequently and with the highest outstanding balance.
Keeping track of your EMI and bill deadlines will help you stay ahead. A late EMI payment for your ICICI Bank personal loan can incur late payment charges and may negatively impact your loan record and CIBIL score. If you cannot pay your credit card bill in full, paying the minimum due amount by the deadline will help maintain your credit score. Not paying the minimum due amount will lead to late payment charges, and the delay will be reflected in your credit score and history.
If you have secured and unsecured credit, such as a home loan, unsecured personal loans, and credit card debts, you need to work out a way to repay them on their due dates. In case of a shortage of funds, a personal loan top-up or a balance transfer can be availed if needed. Planning for your shortfall and applying for a top-up or balance transfer in advance will help ensure you have enough funds in your account to clear the credit bill and pay the EMI.
The interest rate on credit card debt is 36% to 40% per annum, far higher than that on secured or unsecured loans. Building up credit card debt can easily lead to a debt trap, so consider the following ways to consolidate your credit card debt.
A CIBIL update occurs whenever you make a payment or apply for new credit. Monitoring your credit score is crucial. Have you missed any EMI or credit card payments? What is your current credit score, and are you financially prepared to apply for additional credit if needed? If, for some reason, your credit score has fallen below the required benchmark do not apply for further credit, as each inquiry will further lower your credit score.
Timely repayment of credit dues and effective financial management will help you stay above board; better still is planning so that expenses are covered and Diwali celebrations are enjoyed stress-free. Steps you can take include the following:
Setting aside a monthly amount for Diwali expenses will help build stability and avoid an additional burden during the holiday season.
Planning your spending will help you keep it affordable.
Points you have earned on your ICICI Bank Coral Credit Card will help you incur savings by redeeming them for gifts.
Ensure a memorable Diwali by planning your finances. After the break, review your spending and organise a repayment schedule for the credit taken to keep your CIBIL score intact for future requirements.
While shopping at the mall with his family, Sudhir and his wife saw a 55-inch television on display and couldn’t resist asking for the price and details. They really needed a new television for their home, and what better occasion than Diwali to make this much-desired purchase. What made it more attractive was a discounted price and a no-cost EMI offer. Sudhir was holding an ICICI Bank Rubyx credit card and could not resist making an instant purchase. He decided that there could be no better time than now to buy it and fulfil his family’s wishes.
The convenience of a credit card in India is unmatched for spending on personal and household items, as well as emergencies. A personal loan is also available as unsecured funding for personal use and Diwali expenses, which is a better choice than a credit card. Let us explore the functionalities and benefits.
Avail the limit of multiple cards: You can hold various credit cards issued by different lenders. Each card has a designated credit limit, and banks typically permit cash withdrawals of 20% to 30% of the approved limit. You can plan your spending according to the credit card limit and the offers available on each card.
Easy to carry: Credit cards enable instant spending and are an excellent option to carrying cash. They can be used at most merchant outlets for shopping, dining, and purchasing movie tickets. Activate your credit card for online use and ensure it is used safely for your transactions.
Reward points: Reward points from all-year-round credit card spending can be redeemed at this time for festive essentials. Banks have tie-ups with member outlets where customers can redeem credit card points for various goods, including household items, clothing, and electronics. Enjoy online shopping festival offers with the HDFC credit card smart EMI feature.
Discounts, Sales, and No Cost EMI Credit Card Offers: Vendors expecting peak sales during this time go all out to offer discounts on goods and partner with banks to provide easy repayment options, such as no-cost EMI credit card offers. Banks offer discounts and cash back on credit card usage.
As you prepare to celebrate the upcoming festivities, plan your budget and ensure you have the necessary funds to make the occasion truly memorable. The Diwali bonus is expected, and your savings should ideally cover your expenses; however, if you’re short, consider applying for a personal loan to cover any additional costs.
Secure the necessary funds: You can apply for the amount you need in advance to start painting and redoing the upholstery, giving your home a fresh look for the upcoming season. Loan amounts are approved based on personal loan eligibility criteria and transferred to your account, making them easily accessible for paying your expenses.
Suitable terms: A personal loan is available at a reasonable interest rate. ICICI Bank personal loan offers starting from 9.99% onwards for loan amounts of ₹ 15 lakhs and above. If you have an existing HDFC Bank personal loan, you can avail a top-up on the existing loan within 72 hours with minimum documents.
Easy repayment options: Funds as a personal loan can be repaid easily via monthly EMI. Check for a suitable EMI using an EMI calculator to ensure the EMI is affordable; otherwise, request an extended tenure. Let not the worry for repayment affect your Diwali celebrations, as the EMI will be deducted after your next salary credit.
A Credit Card and a personal loan are both unsecured, issued without collateral, and provide funds available for short-term individual usage. Situations that can help decide the better option include the following:
Personal Loans:
Diwali is the time we’ve been waiting for all year to celebrate and give the gifts our family has been eagerly anticipating. It is an occasion to fulfil aspirations and shop to your heart’s content. Buying a new vehicle, the latest mobile phone, or jewellery for your spouse – all plans are postponed until Diwali, when promises are to be kept.
Retail lending in India has emerged as the new-age mantra, with the availability of credit for building assets or lifestyle expenses. The concept of buy now, pay later is gaining widespread popularity, with Banks and NBFCs offering secured and unsecured credit to salaried and self-employed individuals.
Credit cards and personal loans have become essential parts of daily life, and they are being used more frequently due to their convenience and quick processing. Merchant navy officers also appreciate the benefits of using credit cards and personal loans.
A credit card is easy to carry and fits into your wallet, making it ideal for seafarers who are always on the go. There’s no need to carry large amounts of bulky cash that can attract unwanted attention. Feel free to go on a shopping spree or enjoy an exclusive dinner and cover your expenses with a simple swipe of your credit card.
Multiple usages: A Credit card, such as the ICICI Bank Coral credit card, can be used at all merchant outlets, such as department stores, retail outlets, and restaurants, as well as for travel purposes, including airline bookings and hotel stays. It is helpful in emergencies for medical treatment, paying hospital bills, and purchasing medicines. You can pay your utility bills with your credit card and also draw cash.
Rewards and Bonus Points: Banks issuing credit cards add special features to attract customers, such as reward points for spending that can be redeemed at partner outlets and cash back offers. Discounts are applicable for using your credit card for dining, and Banks also tie up with department stores to encourage spending on credit cards, offering interest-free EMI and discounts on purchases.
Domestic and International Usage: Merchant navy officers travel worldwide, and when the ship docks, they are allowed ashore to take a break. This gives them the chance to visit exotic locations that might not be easily accessible otherwise, allowing them to shop, sightsee, and enjoy local cuisine. Most credit cards, including the ICICI Bank Rubyx credit card, support international use, enabling Merchant Navy officers to use their cards and avoid the hassle of dealing with foreign currencies.
Carrying a credit card as a backup is a valuable asset that offers financial security in situations where cash might not be accessible, such as during travel. Merchant navy personnel can use their credit cards to cover unexpected expenses that may occur when funds are hard to access. An additional card can also be issued and given to the spouse or parents for emergencies.
A personal loan is available without security or guarantees. Personal loan requests are processed efficiently, allowing applicants to receive funds quickly. Merchant navy officers can apply for an ICICI Bank personal loan or an HDFC Bank personal loan, both of which are among the top providers of personal loans. Applicants can apply for a personal loan online if they have the required documents for a merchant navy personal loan.
Can be used as needed: The funds approved for a personal loan are released once by the Bank, allowing the applicant to utilise the funds according to their requirements. A personal loan is intended for individual needs, such as home renovation, purchasing the latest gadgets and appliances, travel, children’s education expenses, family celebrations, or emergency requirements.
Secure the necessary funds: A merchant navy employee can borrow a personal loan of up to ₹35 lakhs. The salary received during employment is spread over 12 months, so the monthly income must meet the minimum requirement of ₹80,000 per month. If the applicant is paid in a foreign currency, their total annual earnings must exceed ₹96 lakhs.
Repay via an affordable EMI: A personal loan can be repaid over affordable instalments over a tenure best suited to the customer. The tenure for repaying a personal loan is determined based on the loan amount and other existing obligations. An applicant can use the personal loan EMI calculator to check the applicable instalment for the required loan amount.
Reasonable rate of interest: The interest rate charged for a Personal loan begins at 10.5% with a reducing balance. The personal loan interest rate remains fixed and does not change for the entire tenure. The interest rate varies from lender to lender, depending on the loan amount required and the CIBIL score.
What would work better, a personal loan or a credit card? Both have their advantage and drawbacks. Listed below is a comparison:
Convenient to use
Interest-free period
Prepayment penalty
Interest Rate
A credit card is issued based on an account with the Bank, offering greater freedom of use, but payments must be made on or before the due date to avoid an escalation of debt. Funds secured as a personal loan require documentary proof, and the merchant navy applicant must meet the bank’s personal loan eligibility criteria. Merchant navy applicants require a CIBIL score of 750 or higher to secure a credit card and a personal loan. Both of which are unsecured funds provided for personal use.
Both a credit card and a personal loan share similar basic functions and can help build a healthy credit score quickly. With online banking facilities available via Wi-Fi on most merchant navy ships, account holders can monitor their credit card bills and ensure their personal loan EMI payments are made on time.
Should a merchant navy employee apply for a personal loan, a credit card, or maybe both, the decision depends upon the individual’s financial requirements.
The auspicious Navaratri heralds the arrival of the festive season; Dussehra follows the nine-day puja, and soon comes the much-awaited festival of Diwali!
It’s a special time of year to celebrate with your family and share the joy of giving. Plans are made for renovating and decorating your home, buying a new car, the latest mobile phone your children want, or household gadgets that would make life easier.
Vendors also offer attractive sales and discounted goods because they know this is the peak shopping season. Attractive advertisements are displayed, and whether you are looking to buy goods online or browse through choices in person, you can be sure to enjoy the experience.
Making the celebrations memorable for your family requires extensive planning and arranging adequate finances so that there are no holds barred in making the Diwali celebrations the best!
Planning and securing funds ahead of time is the best way to ensure a stress-free experience. Saving beforehand is a wise choice, allowing you to make payments smoothly and on time. Diwali is the season for receiving the year-end bonus for hard work, which adds to the available funds.
You always want to buy the best for your loved ones and fulfil every wish, but everything comes at a price. This is where the principle of ‘cut your coat according to the cloth you have ‘comes in. It means making an affordable budget and keeping spending within the available funds. This will help you avoid last-minute shortages and ensure a stress-free festive season.
Doing research in advance for your requirements will stand you in good stead, especially for high-value commodities. Checking the availability and prices offered in advance will enable you to negotiate the best price and make the most suitable choice according to your requirements.
Emergencies always come unannounced; having surplus funds available to handle the situation is a wise policy. Having enough money in your bank account to cover your planned shopping spree, plus an extra amount if needed, reflects sound financial planning.
While the festive season may bring additional fees, it’s essential to remember that your regular monthly payments will remain unchanged. EMI will be automatically deducted on the due date, even during the holiday season. Ensure you keep enough funds in your account to cover your regular payments. The additional expenses for Diwali should not impact your monthly budget. This financial discipline is crucial for effective budgeting and managing your finances during the festive season.
Festivities and celebrations can likely deplete your budget. Using your credit card to cover excess expenses is a viable option. Pay off your credit dues beforehand and keep the available credit limit for last-minute expenses. If you have pending dues on your card, additional costs will accrue a finance charge of 36% to 40%, and overusing credit can lead to a debt trap.
A CIBIL score of 750 points and above is required for an ICICI bank credit card or a Personal loan. Keeping a tab on your credit score is crucial to ensure you are eligible to apply for an online personal loan from HDFC Bank, as it helps ensure that funds are readily available to you if needed.
You can easily apply for an HDFC Bank personal loan online using the documents you have available. If you are employed by a company listed in HDFC Bank’s approved category and meet the eligibility criteria, you can receive the loan within 48 to 72 hours. The personal loan is offered at a reasonable interest rate and can be repaid in convenient instalments. It can be used for any personal needs, so go ahead and cover any shortfalls with a personal loan.
There are festivities in the air, and the upcoming month will bring reasons to take a break from work and enjoy the festival of lights with your loved ones, with the financial needs covered you can look forward to joyfull celebrations ahead!
The TransUnion CIBIL Ltd is one of the leading credit rating agencies licensed by the RBI (Reserve Bank of India) to record and maintain customer borrowing and payment information. This information is also used to assess risk and facilitate lending.
In 2007, the CIBIL score was introduced, a three-digit number that classified customers based on their creditworthiness from previous credit usage. The CIBIL score, which ranges from 300 to 900, reflects your credit behaviour.
Over the years, your CIBIL score has become the benchmark for Banks and NBFCs to assess customers’ behaviour and credit transactions. A high CIBIL score also establishes the individual as a person of integrity who repays dues responsibly and manages finances well.
Your CIBIL score significantly impacts your credit prospects. For first-time credit users, it takes 6 to 8 months of consistent credit activity to generate a minimum CIBIL score for a personal loan.
After receiving their first salary, the bank will offer the new employee a credit card based on their salary account, helping them to build a credit score. While gaining exposure to easy credit, it is essential to realise that funds accessed through credit must be repaid at some point.
Enjoying the benefits of their newfound financial freedom, one credit card often leads to another, and perhaps a personal loan is also taken out for an overseas holiday. Suddenly, they realise that their current income does not cover the repayment of the borrowed money. This subsequently results in delayed repayments and mounting credit card debts. Additional credit is denied as the CIBIL score has declined due to irresponsible credit use.
This is the point when the young professional must recognise the importance of financial discipline and understand that the CIBIL history acts as a watchdog that monitors credit use and influences future credit opportunities.
When applying for a home loan or an Auto loan, the interest rates will be affected by the CIBIL score; therefore, there is much to gain by maintaining a healthy CIBIL score.
A 0 or -1 CIBIL score indicates that you have not yet started using credit, or the loans or credit cards you have obtained are recent; it takes 6 to 8 months to generate a CIBIL score. Banks typically consider your repayment track record for a year before extending additional credit. A credit card or a personal loan, which are unsecured and issued without collateral, can help boost your credit score quickly. The short-term repayment cycle of an HDFC personal loan or an ICICI Bank credit card is effective in demonstrating your credit management skills to lenders.
CIBIL score of 650 to 700 points: If your CIBIL score is above 650, your credit usage hasn’t been exemplary; this is the score range where most credit users find themselves due to the following repayment issues;
Obtaining further credit in such scenarios can be a challenge, and it is advisable to wait and work on your CIBIL score. Making impulsive decisions and taking on credit at a higher interest rate can lead to further debt. If there is an urgent need, consider securing funds through a gold loan or against a security, or a personal loan for those with a low CIBIL score. As we advance, every timely payment will be a step towards redeeming your credit score.
A CIBIL score of 750 points and above is regarded as ideal, reflecting your financial discipline and overall stability. Leading banks and NBFCs readily extend further credit to applicants with a CIBIL score of 750. Personal loans are typically processed at the lowest interest rates, as banks are eager to lend unsecured funds to customers who have demonstrated a consistent repayment history and responsible credit usage. ICICI Bank offers the privileges of its premier ICICI Bank Rubyx credit card to applicants with a CIBIL score of 750 or higher.
The CIBIL score has become essential nowadays, not just for securing a loan or credit card. Someone with an excellent CIBIL score and no missed payments or defaults is considered a trustworthy individual who is financially responsible. Conversely, a person burdened with debts is a stressed individual, which can affect efficiency at work and a restful atmosphere at home. Therefore, the CIBIL of an individual is checked before he is offered employment at a higher designation.
To ensure that your tenant who is taking your premises on rent will be paying the rent on time, landlords check the CIBIL of the hopeful tenant to ensure that they pay their dues on time. Business deals also hinge on the CIBIL scores of the directors and the company to check the financial standing.
On a lighter note, a bride-to-be requests a CIBIL check of her fiancé to ensure he is not in debt and is financially dependable for a secure future ahead.
Is too much importance being given to the CIBIL score? This debate has also been raised in Parliament by an honourable Minister who believed that lenders have started to place undue emphasis on the CIBIL score, and banks should look beyond it. As a result, banks have been advised not to reject applicants solely based on their CIBIL record and to process a personal loan for low CIBIL score.
On the other hand, with the digitalisation of identity documents such as the Aadhaar card and PAN card that are linked to an individual’s bank account, all records of dues and payments become transparent. In the future, the payment of your utility bills may also be linked to your credit history.
Getting credit is not impossible without a CIBIL score; an applicant can apply online for an instant HDFC Bank personal loan even without a credit history. ICICI Bank also grants personal loans to applicants lacking a CIBIL score if their employer is listed in the approved company category of the bank. Although the Banks are apprehensive due to the absence of a CIBIL score, they may also do additional enquiries to ensure the applicant has not tampered with the KYC details.
However, with the rise of digital banking and online payment facilities, reporting credit repayments to CIBIL has become increasingly transparent. Keep updated about your CIBIL score and try to pay your credit dues on time, as the CIBIL score may catch up with you sooner than you think!
With the quick swap of cash for credit cards, or commonly known as plastic money, monetary transactions have become relatively easy. Whether you’re trying to buy a trendy outfit or booking a flight ticket with lounge access, you get it all with a credit card. ICICI has been one of the prominent players in the field and offers you a variety of credit cards that come bearing different advantages.
ICICI Bank offers its customers the privileges of the ICICI Bank Credit cards as Visa, Master, Rupay and American Express Cards.
Before directly diving into the types of ICICI Credit cards or how you can maximise the benefits, it’s essential to understand why you should consider applying for an ICICI Bank Credit card.
Now that we have explained why you should consider an ICICI Credit card, it’s time to explore the different types of ICICI credit cards to help you make an informed decision when choosing one.
The ICICI Bank Emeralde Card is the most premium green-black gradient pattern credit card that ICICI Bank offers. This ICICI bank credit card eliminates every cap benefit provided by the bank, with a higher monthly plan membership fee of ₹1,000, which is waived if you spend more than ₹1,00,000 in the previous month. You get premium welcome vouchers, dining discounts, huge savings on entertainment or golf lessons, complimentary lounge access and much more. This card truly stands out with the saying- the more the merrier.
You can earn unlimited bonus reward points and use them at any time, in any way you prefer. For your information, ICICI Sapphiro Credit is the bank’s second-highest-end product and comes with gifts like:
One thing that this card ensures is that you receive upstream benefits, which could include significant discounts on fuel refills or premium offers on culinary delights.
ICICI Bank has designed Coral Credit card for your comfort and convenience, whether it’s offering significant savings on fuel refills or maximising the use of its reward features. With a minimum joining fee of ₹500+GST, you can enjoy these benefits:
This ICICI Credit Card comes in three different variations, wherein American Express offers twice as many reward points as Coral or Master Card. All these cards can be fully used for fuel refill transactions, among other uses, with a minimum joining fee of ₹199+GST.
Do not confuse this ICICI Rupay Credit Card with your regular debit Rupay Card. It is an exclusive offering from ICICI Bank, providing additional benefits. The ICICI Bank Rupay Card is one of the cards designed for anyone with an income above ₹ 30k per month.
ICICI Bank and its distinctive credit cards offer excellent benefits. You can select from a range of cards to find the one that best matches your needs. Whether it’s your monthly fuel expenses or travel preferences, you can save significantly on these areas with an ICICI Credit card. The decision to apply for an ICICI Bank Credit card guarantees substantial savings.
| Card Type | Monthly Interest Rate | Annual Interest Rate |
| ICICI Bank Instant Platinum Credit Card | 2.49% | 29.88% |
| ICICI Bank Sapphiro Credit Card | 3.40% | 40.80% |
| ICICI Bank Rubyx Credit Card | 3.40% | 40.80% |
| ICICI Bank Coral Credit Card | 3.40% | 40.80% |
| ICICI Bank Expressions Credit Card | 3.40% | 40.80% |
| ICICI Bank HPCL Coral Credit Card | 3.40% | 40.80% |
| ICICI Bank HPCL Super Saver Credit Card | 3.50% | 42.00% |
| MakeMyTrip ICICI Bank Platinum Credit Card | 3.50% | 42.00% |
| MakeMyTrip ICICI Bank Signature Credit Card | 3.50% | 42.00% |
| ICICI Bank Manchester United Signature Credit Card | 3.67% | 44.00% |
| ICICI Bank Manchester United Platinum Credit Card | 3.67% | 44.00% |
When you reach a point in life where your finances are stable and you can support yourself comfortably, earning enough to meet your needs and responsibilities, you may wish to consider taking out another personal loan to renovate your home.
The convenience of a personal loan is unmatched, as funds are quickly accessible online for personal use as needed. Alternatively, if you face a situation that demands immediate funds, you might consider applying for a second personal loan to get through this challenging period. But is a personal loan only a one-time facility, or can we get multiple personal loans? Banks and NBFCS issue personal loans as per the individual policy.
Customers who are actively repaying a HDFC Bank personal loan can apply for a second instant personal loan or switch to an alternative lender, such as ICICI Bank, for a new loan. The new loan will be granted independently of the existing one and will run in parallel with the existing one. Let us examine the eligibility criteria for obtaining an additional personal loan.
Vintage of the existing loan: If you have recently been granted a personal loan, allow some time before applying for a second loan. Banks generally do not grant two loans in quick succession, as they require time to track how the applicant manages the existing loan. Usually, Banks require the smooth repayment of 3 to 6 EMIs before granting a second personal loan.
Timely repayment track: Applying for a second personal loan from the same or an alternative bank? The repayment of your active personal loan must be made promptly, with no delays or bounced payments. Banks and NBFCs will consider granting you a second personal loan only if you can demonstrate that you are capable of managing the repayment of the credit taken.
The CIBIL score and repayment history of the existing loan: The applicant’s CIBIL score should be above the necessary benchmark. Each time an applicant applies for credit, their CIBIL score will be reviewed in relation to their CIBIL history. There must be no recent credit taken, and the number of CIBIL inquiries should be limited; otherwise, the applicant may be labelled as credit hungry.
The company category of the employer: If the applicant has changed jobs or is applying to an alternative lender for a second personal loan, a personal loan eligibility check must be carried out. The company where the applicant is currently employed must be listed on the Bank’s approved list of companies for the process to begin.
If the company is listed as a Category A or B, the personal loan lowest interest rate will be offered.
Existing Obligations: The existing obligations of the applicant, including credit card dues, are taken into account before approving a further amount as a second loan. It is a good idea to check the EMI applicable for the additional loan amount required. Use the personal loan EMI calculator to calculate the additional Emi for repayment of the second loan amount before applying. The total of all credit obligations should not exceed the allowed FOIR as per the HDFC Bank eligibility Criteria. In case your existing credit dues exceed the permitted percentage of your income, you have the option of going for a Personal loan Top Up.
An individual with an existing loan can apply for funds when required as an addition or “Top Up”. A Top Up loan is an option to apply for a second or a new personal loan; both loan types serve the purpose of giving an applicant the surplus funds when required.
Choice of lender: A personal loan holder can apply for a new loan with an alternate lender, which offers better terms. However, a Top-up is processed on the existing personal loan with the same lender.
A single Emi versus 2 Emi: With a personal loan top-up, the existing loan is merged with the additional amount approved. The repayment for the new loan is done via a single EMI. With a new loan, the applicant will pay an extra EMI based on the loan amount and applicable tenure.
Documentation: As the applicant has an existing relationship with the Bank, the documentation for funds issued as a personal loan top-up is minimal. In contrast, an applicant applying for a new personal loan has to submit their complete income and KYC documentation.
Interest Rates: Applicants can compare the offers of different lenders and negotiate for the lowest interest rates when applying for a second personal loan, but a top-up to the existing loan is issued at the current interest rate of the parent bank.
The decision to apply for a new personal loan or opt for a top-up to an existing personal loan depends on the individual’s specific situation and requirements. Listed below are the circumstances that can influence the decision.
Urgent requirement for finance: If there is an emergency for funds, apply for instant personal loan online as a top-up. As the bank has an active personal loan account and the details of the applicant are verified, a top-up is a quicker solution for an urgent need.
Need for the maximum loan amount: A top-up personal loan is more effective for applicants who already have multiple credit lines and do not have sufficient financial eligibility for the required loan amount. With a top-up, the principal amount of the existing loan that has been repaid is deducted from the new personal loan. Thus, the eligibility for the top-up loan increases.
Foreclosure clause. Suppose funds are required for a limited period of time. In that case, a second loan works better, as the applicant can apply for a limited tenure for repayment or foreclose the loan after the minimum EMI have been paid.
Existing relationship with the lender: If the existing loan has a delayed repayment schedule, it is a good idea to apply for a second loan with an alternative lender to mitigate this.
| Existing Personal Loan | ₹ 4 lakhs | Existing Personal Loan | ₹ 4 lakhs | ||||||
| EMI paid | 14 | Interest rate | 10.50% | ||||||
| Principal balance | 280338 | Tenure | 36 months | ||||||
| Interest rate | 10.50% | Total amount repaid: | 468035.19 | ||||||
| Top-up amount: | ₹ 2 lakhs | ||||||||
| New tenure applicable: | 36 months | Second Loan | ₹ 2 lakhs | ||||||
| Total amount repaid: | 718049.72 | Tenure | 12 months | ||||||
| Interest rate: | 10.50% | ||||||||
| Tenure | 12 months | ||||||||
| Total amount repaid: | 211556.15 | ||||||||