Till now, you had to spend Rs 500 to Rs. 1200 to know your credit score or CIBIL score, but do you know, now you can check your CIBIL score for free? Yes! You can check your credit score on the official website of Credit Information Bureau, without spending a single penny and can quickly know that as per your CIBIL score, at what interest rate and monthly EMI, you can take the loan from the bank.
Why good credit score is important: In the recent years, almost every bank has changed its policies and added a clause for good credit scorers. According to it, good credit scores will not only help in getting the loan on easy EMI terms, but also will assist in getting concessions in interest rates. For example, People having CIBIL score more than 760 in home loans for Bank Of Baroda, will get the loan at 8.35% interest rate only.
If your CIBIL score is not good, then you may face hurdles in getting your loan approved. As per the latest policies regarding credit score, if your previous loan repayments and the transaction record is stable, then the bank can even lessen your monthly EMI.
Frequently asked questions about Credit Score: Due to lack of the proper information regarding credit score, many people have doubts regarding it, like, what is CIBIL Score, how much CIBIL score is considered good, how to check CIBIL report online and how to improve credit score?
There would be many who need to know how credit score is calculated, if one has done negligence in previous transactions and loan repayments how to handle this situation of lousy track record. Here, in this article, we are bringing an answer to each of these questions & that too in straightforward words so that you can understand each term easily.
If you still have any query to ask or have valuable information about CIBIL score to share with our readers, then you can post it in the comment section at the end of this article.
What is a Credit Score?
How does CIBIL Bureau work: Trans-Union Credit Information Bureau India Limited (generally known as CIBIL) is India’s first ever credit information company, which keeps the transaction record of loans and credit cards, as provided by the banks in India.
CIBIL keeps the record of all reputed banks, creditors, commercial bodies and not only this, more than 2400 financial institutions are part of it. CIBIL maintains a complete record of above 550 Million accounts & credit records worldwide. Amazed, right? This huge database is the very reason behind the high credibility of CIBIL credit scoring algorithm.
हिंदी में पढ़ें: सिबिल स्कोर कितना होना चाहिए
These records are submitted by banks and other creditors to CIBIL on a monthly basis, and this information is then used to prepare the Credit Information Report (CIR) of creditors and to decide credit score so that lenders can judge the loan application of person by their financial records.
Why is it necessary to have a good CIBIL score?
Credit/CIBIL score plays a significant role in the loan approval process in any bank. Whenever you fill a loan application form, then the lender bank or the lender company inspect each detail of your credit report regarding your previous loan history. After analyzing your repayment capacity, lenders decide whether to lend you a loan or not. If your credit score is too low, then the lender will immediately deny to give you any loan.
How credit score is calculated: In simple words, CIBIL score presents your credibility in financial dealings, that whether you have repaid the previous loan amount by following the guidelines of the bank timely or not. If you have not paid EMI correctly or have not paid the loan as per the terms and within the stipulated period, then this behavior may add up to a bad credit score and can have adverse effects on your future loan approvals.
How much Credit Score is good?
As per CIBIL, the measure of credit score can be from 100 to 1000 points. Points less than 650, are considered as poor, that means, if your score is less than 650 then you may face difficulty in getting credit cards and loans. On the other hand, points more than 750 are considered as a good credit score. You will not face any hassle in getting loan from various banks or getting the credit card if your score is above 750 points.
- Excellent Credit Score: 750+
- Good Credit Score:700-749
- Fair Credit Score: 650-699
- Poor credit Score: 600-649
- Bad Credit Score: below 600
What would be Credit Score if there’s no credit history
What if you never had a credit card or loan before: If you are applying a loan for the first time or applying for a credit card, then in the column of credit score in CIBIL table, N/A will be written. In this situation, the bank will check out your monthly income, bank statement of the previous six months and by estimating your payment capacity, the bank will set credit card limit or can approve or disapprove your loan.
How to check credit score online?
To know your credit score, go to the official website of CIBIL, https://www.cibil.com/freecreditscore/ and fill your PAN Number, Date of birth, monthly income and other necessary details and then click on submit. After submission, a new page will open up. Here again, you will have to fill your information; however, details regarding PAN card will automatically get filled.
After it, you will get an email from CIBIL, in which you will get a link and password for your CIBIL account. After clicking on the link, you will be directed to a new page, here do login by filling your email id and password that you got in your email. After getting logged in, you will be asked to change your password. After setting the new password, your CIBIL Account will be logged out.
Then, login again with your new password. After login, you will get your credit score. Remember, through this process of checking CIBIL score; you will get information about credit score only. For any further detail, you have to pay fees of Rs. 500 to Rs. 1200.
How to improve your credit score?
Although, it’s not an easy task to improve your bad credit, as it takes a huge time to cover up, yet, your continuous efforts to fix credit score can prove fruitful to you. Here are some essential points, you should consider to improve your credit score:
- Firstly, thoroughly review your credit report by requesting its free copy. By doing so, you will come to know all the loopholes, errors and other faults. In case of errors in the credit report, you can confidently tell your point to the credit bureau.
- Make your payments on time & set proper reminders for it. You can enroll to automatic fees and get your loan installments, or EMIs paid on time.
- Make a proper payment plan, wherein, mention your budget, all accounts, loans taken, their interests, etc. In this way, you come to know about credit with the highest interest & can manage to lessen loans by maintaining the accounts accurately.
- Don’t put a negative impact by delaying bill payments. If you have neglected it before, then start making bill payments on time. Your these efforts will fade the earlier negative implications.
- Anyhow, if you are facing problem in setting your credit score, then it’s better to take the help of a credit counselor. This way will help you improve your credit score.
- Outstanding debt is dangerous. So keep your credit card balances low always.
- Pay the credit card balance on time. Don’t delay.
- You can raise your scores, by showing unused credit cards, so don’t close these down.
- If you don’t need those, then don’t issue new credit cards. More accounts mean less average account age, as it can prove risky for credit scores. So, if you can manage credit within the short span, then don’t open new accounts.
These are pretty hacks to improve your credit score. If you follow these thoughtfully & don’t open new accounts often, make payments on time, don’t leave any outstanding credit card balances, then slowly, you will be able to get your credit report improved.
(With inputs from Komal Singla)
Doctor vs Engineer – What Will Be A Better Career Option For You – Ask Yourself!
After 10th Class Exam, the biggest transition of the life takes place in every student’s life, a student has to decide his career path after high school. While hanging between the choices whether to go for arts, commerce or science after 10th, the most challenging task is to pick one among stream – medical vs non-medical.
It all starts in Class 11. As soon as you pass your high school, you start questioning yourself what to do after 10th class and start hovering around the list of careen options after 10th in arts, commerce and science stream. But if you are amongst the top 10 students of your class, half the people in your little world would advise you to become a doctor or an engineer.
Gender biases the inescapable ingredient of Indian society gives a shot here too. One of the greatest Bollywood flick 3 Idiots was not far off that Indian parents think:
Ladka hua to Engineer, Ladki hui to Doctor
If it is a boy, he will become an engineer. If it is a daughter, she will turn out to be a doctor.
These ideals do not work in real lives.
Your choice of career after 10th depends on a number of factors:
- Your passion and motives,
- Your capacity to study,
- Access to good study resources,
- Affordability of the program you choose,
- Importance of money in your life,
- How long can you wait until you earn?
- Your mobility (Are you an only child who can’t leave your parents and shift to another place? Are you not allowed to move out of town to pursue your study or career interests for any reason?), and
- Your board exam marks (which might limit your options when it comes to taking Science subjects).
Here is a step-by-step guide on deciding whether you should become an Engineer or a Doctor:
Do you like Math or hate it?
It is the first indication of what your career choice should be. If you ‘like’ Math and calculation and solving new problems, engineering might be the profession for you. If you ‘hate’ Math and waiting to get rid of it, medical studies might be your best bet.
This approach might be simple but may not be accurate. Remember, aversion of a subject lasts only as long as you don’t study it. So, if you don’t like Math, you can still be an engineer if you work hard. Yet, in most cases, it works.
We study Math right from the kindergarten classes. If you have not developed an interest in the subject, you might want to drop it as your core subject in Class 11 and focus on subjects where you can use your natural instincts better.
Also Read: जानें क्यों है नॉन मेडिकल कॉमर्स से बेहतर
Medical preparation requires you to solve Physics and Chemistry numerical – so you’ll still need a bit of Math, but it will not be as difficult as ones you’ll have to tackle in all three of your subjects (Physics, Chemistry, and Math) as an engineering aspirant.
Does Rote Learning come naturally to you?
Engineers require higher critical thinking, logic, reasoning, and problem-solving abilities than doctors. On the other side, doctors need to remember facts and figures, and information (a lot of information actually) about human or animal bodies, diseases – their symptoms, causes, and treatments, and a lot of other stuff. It means that doctors need to have the ability to a lot of reading, and commit the information to their memories for later use.
NEET coaching expert Nishtha Gupta shares, “In Botany and Zoology, the ability to rote learn something is a must. Physics and Chemistry are reasoning-based. You can just learn formulas in these subjects, and understand the application of concepts. In Botany and Zoology, it is all about learning. I recommend my students to use flashcards or quiz-based educational apps to be able to learn them better.”
It is not all about entrance exam preparation. You’ll need the same abilities once you get admission in B.Tech or MBBS programs – and even to your career lives.
If you are not good at problem-solving or coming up with innovative solutions, you’ll never be able to succeed as an engineer. As a doctor, you’ll never want for work, but you’ll be able to reach the top ranks only if you remain updated about the latest medical trends and research.
Remember, participating in the national and international conferences as a speaker or as an attendee is one of the essential aspects of carving out a big name as a doctor.
Do you prefer Direct Questions?
All the coaching providers, who provide both IIT JEE coaching as well as medical coaching programs, agree that the difficulty level of engineering exam question papers is higher than that of medical entrance exams – including the highly competitive AIIMS exam.
In IIT JEE, the questions asked are conceptual and tricky while in NEET, questions are direct and much simple. Many questions asked in the NEET exam are picked directly from the NCERT books of Class 11 and Class 12.
The trend continues throughout your lives as a doctor or an engineer.
A doctor is successful if he or she can correlate the symptoms of a patient and diagnose the disease correctly – and can prescribe the best possible treatment in his or her case. An engineer is successful when he or she can identify the problems and be able to provide solutions to them.
At the topmost levels, a doctor’s work is cut out while an engineer has to find his or her own way.
Do you want Respect or Money?
The long hours you spend slogging during your NEET preparation seems worth it when you get to wear the white coat and the stethoscope – and all the patients refer to you as ‘Doctor Sa’ab’ or ‘Sir’. With time, your respectability soars – as you carve out a name in your respective field.
If you are good at your job, are patient with your patients and their caretakers, and have good communication skills, you are treated as ‘God’ by everyone you know. You are in demand during an emergency situation – and all your relatives and friends cherish your presence for the respectability associated with your profession.
Engineers have to wait for that kind of respect until they prove themselves in their respective workplace. However, if you are from one of the top engineering institutes in India, you might be earning more than a doctor fresh out of college. Every year, we hear news of engineers who get a salary package of over-a-crore at campus placements.
You must remember that the number of such high-salary-package-getters is minuscule and the income disparity between engineers and doctors reduces with time. In fact, if you have a clinic or a hospital of your own, you might be earning more than many top-ranked engineers around you.
Medical vs Non Medical, What Will Be Best For You? Ask Yourself:
Ask yourself these questions to access whether you’ll perform better as an engineer or a doctor. Whatever you choose, always make an informed decision. Do not give in to the peer pressure or the parental pressure. To be happy, you must learn to make your own choices, and then find ways to achieve your goals.
What To Do After 10th Class – List Of Courses After 10th Infographic
Since many students are seeking an advice on how to choose best career option after 10th class and which course would be best for them to pursue their dreams, we have summarized the list of most popular courses after 10th class in an infographic format. This infographic includes – after 10th courses list chart, after 10th diploma courses list, list of subjects in various courses; and which stream to choose after 10th among arts, commerce & science.
Author Nishant Sinha is the co-founder of emedicalprep.com, an Online Medical Coaching platform for Medical Entrance Exams like NEET (earlier known as AIPMT), AIIMS and other school entrance exams aiming for a career in the Medical sector. He is passionate about making Doctors and Medical aspirants meet their goal (NEET or AIIMS). The mission was clear to give breakthrough education to the students in the field of online Medical Exam Preparations and make them pass with flying colors in exams such as NEET, AIIMS or other medical entrance exams. For this dream of his, he left his lucrative career in one of the American Management Consulting firms named Kurt Salmon Associates. He can rightly be called an optimistic entrepreneur and passionate educationist. You can check his LinkedIn profile to know more about him.
All that you need to know about long term investment in PPF
Public Provident Funds, abbreviated as PPF, is exceptionally beneficial to save tax. But what it is & how could it prove as a tax saving instrument, let’s know it in a better way:
- What is PPF & How to open a PPF Account
- What documents would you require to open PPF account?
- How to make a PPF investment and get returns from PPF Account?
- Is PPF returns tax-free and does it come under 80C?
- Can the PPF account be opened online?
- Can the PPF account be opened for a minor?
- Can the PPF account be transferred?
- Does PPF have compound interest?
- How to earn maximum interest from PPF Account?
- Can the PPF account be seized by the court?
- Can PPF amount be withdrawn from any branch?
- Who will get the PPF amount, on the death of the holder?
- Can the PPF account be closed before maturity?
PPF is Govt.’s long-term debt scheme, wherein one can earn a massive tax-free return just by investing some amount. This return is usually more than the return on FDs by banks. Anyone can take its benefit, either a salaried employee or self-employed person. It gives a double advantage to the PPF holder, on the one side, a secure investment with the definite handsome return and on the other hand, a safe and legal way to save the tax.
What is PPF & How to open a PPF Account
PPF Account: For a definite period, one can open and invest in PPF account. It will make you eligible for fixed earnings on the amount being invested by you. To open PPF account, you can go to any authorized bank/branch, a nationalized bank or even a post office.
What documents would you require to open PPF account?
- Fill the required details in the form provided to you.
- Attach your photograph at the required place.
- You must have a PAN card because it is necessary to mention a PAN number in the form.
- Anyhow, if you don’t have PAN then attach a copy of passport, Aadhar Card or ration card or voter’s ID card.
- You have to deposit minimum Rs. 500 in PPF account.
That’s enough to create your PPF account. You will be provided Passbook after recording each of your details.
How to make a PPF investment and get returns from PPF Account?
- From 1st to 5th of a month, you can invest. April is considered as the best time to invest in PPF account.
One can make the maximum investment of Rs. 1.5 Lakh annually. In one year, a maximum number of installments are 12 only.
- From the 5th day to month’s last day, whatever the lowest balance left, on that amount interest is being calculated.
- Return is fully guaranteed in PPFs, but the rate of return keeps on changing every quarter or year.
- One can withdraw 50% of the lower of either balance at the 4th year’s end or of the preceding year.
- The maturity period will end after 15 years. After maturity, you will get three options:
Withdraw the entire amount. This whole amount is exempted from tax.
Extend the account by five years & make more contributions.
Extend & earn interest for more years, without contributing more amounts.In case of PPF extension, if you want to withdraw some amount, then 60% of the amount remained on starting of extended years, can be withdrawn. But if you aren’t contributing further and want to extend, then withdrawal can be of any amount.
Is PPF returns tax-free and does it come under 80C?
The amount contributed in PPF is entirely exempted from tax up to Rs. 1.5 Lakh. This exemption is available as per section 80C of Income Tax Act. You will neither be taxed for accumulated PPF returns nor for the withdrawal amount or amount you get on maturity. From all the sides, you are safe from a tax point of view.
Can the PPF account be opened online?
Yes. It’s possible to open a PPF account online. In selected bank branches only, you can get your PPF account opened. For the even online opening of an account, you have to deposit required documents, photographs and ID proofs as demanded. The online process differs from bank to bank.
Can the PPF account be opened for a minor?
Yes, parents can open the PPF account in the name of their child below the age of 18 years. The income from it will get merged with parents’ income. Either father or mother, anyone, can open it, but they can’t do so individually in the name of the same child.
Can the PPF account be transferred?
Yes, it’s possible to transfer the PPF account, if this account has become a hassle for you. Follow these simple steps to transfer your PPF account to any bank or post office:
- Fill the transfer request form and submit it to post office or bank, in which account was opened.
- Pay Rs. 500 to discontinue the account.
- The bank or post office, from where you want to discontinue, will transfer all your original documents like nomination form, account opening application, specimen signature and all.
- The bank will also send DD or cheque of the amount outstanding in PPF account. These will be transferred to the new bank or post office where holder wants to shift.
- After transfer, the holder has to deposit fresh account opening form, fill the nomination form (if required) and submit original PPF passbook.
- Deposit your KYC documents.
Does PPF have compound interest?
Yes. On balance left in the PPF account, annually, interest is being compounded. Every month its calculation is done on balance left from 5th day to month’s last day.
How to earn maximum interest from PPF Account?
To get excessive interest, invest at least Rs. 1 lakh in the starting of the financial year. Before the 5th April of each year, you will get maximum interest, as it follows accounts as per financial year. To deposit amount every month, remember always to deposit before the 5th day of that particular month. In this way, you will get the whole month’s interest. By following these simple tricks, you will be able to get more benefit of this saving option.
Can the PPF account be seized by the court?
No, this will not happen in any circumstance. You are entirely safe to invest in it & will never get a seizure order from the court ever.
Can PPF amount be withdrawn from any branch?
This is a big question, and people always want its answer that whether it’s possible to withdraw PPF amount from any bank or its necessary to withdraw only from the bank where the PPF account has been opened? Then its answer is yes. Government banks give you the facility to withdraw amounts from a different bank branch, but post offices will not give you this service. For this, follow the following procedure:
- Get ready your KYC documents and form C. Submit it to the bank along with a copy of passbook, ID proof and proof of address.
- Submit a canceled check of the bank in which you want your PPF amount. Keep original as well as a copy of canceled cheque in with yourself.
- Go to the local branch of your bank. Give the reason for withdrawal to the bank. You have to sign some documents at the bank. To fulfill queries of the bank, you have to visit your regional bank branch.
- The bank itself transfers the documents to the bank where you want to get withdrawal.
- The bank will complete the process under NEFT or RTGS process. You can follow it to withdraw either full or partial amount as well.
Who will get the PPF amount, on the death of the holder?
In such a case, the PPF nominee will get the entire amount. The holder, while completing the procedure of opening a PPF account, gives the name of a nominee. Anyhow, if nominee’s name has not been mentioned, then that amount will go to the legal heir.
Can the PPF account be closed before maturity?
Yes. Now its possible to withdraw the entire amount before maturity, but in some instances only. For higher education of children or case of severe ailment, you can do premature withdrawal amount from PPF account. As a penalty, 1% interest, you have to forget. In this way, in extreme circumstance, it is possible to close the PPF account before completing the maturity period.
Hope this information will help you a ton and your all queries regarding this secure long-term investment get solved. Anyhow, if you have any question or information to share with the public regarding it, then don’t forget to tell us in the comment box.
Things You Need To Know Before Applying For Education Loan For Higher Studies
Approximately, Rs. 1 crore is what my friend spent over two years to get her daughter educated in the renowned London Business School. This information could very well be resonating your bit of story too. Everyone wants to be in one of the top educational institutes for their higher studies, the cost of education is, however, increasing rapidly. In fact, the cost of higher studies at reputed institutions is already quite high. In such condition, the education loan comes as a savior for those who aspire to study in esteemed institutes but do not have a strong financial background.
As an ambitious student, you may be ready to take on any challenge to get admission into your dream college – for you are sure it will be the ticket to your dream career. And, your parents too may not be wanting to leave any stone unturned to fulfil your dream. But, more often than not, financial crunch poses a major hurdle.
Increasing admission and tuition fees, accommodation, travel, and living expenses do require a handsome amount of fund. In such a scenario, education loans come as a respite, but, it is wise to consider multiple factors before applying for.
What to Consider When Applying For an Education Loan
The sphere of education loan is so dodgy and has many questions in the air like criteria, interest rates, how to apply and repayment. Here in this article we have discussed few basic things that you need to check before applying for a study loan.
Is Education Load Expensive and difficult to avail: Increased number of defaulters in the past years have led banks to increase the interest rate to 12-14% from the previous 9-11%. In addition, if you apply for a loan above Rs. 4-lakh, you will have to provide either a guarantor or security as collateral or both.
So, apply for an education loan with parents as co-applicants to maximize your chances of getting a loan. But, ensure that they have maintained a high credit score, failing which your loan may get rejected. You can also consider opting for a personal loan for education, as personal loans do not require any collateral.
College Placements – Claims vs Reality: Many colleges promise 100% placement with a high salary, but in reality, it could be quite the opposite. Also, there are many courses such as liberal arts and humanities which do not have high placement rate. In such scenarios, it will be difficult for you to repay the education loan.
So, you must work smart by doing a complete background check of the college and course you are applying, talking with alumnus, researching on job prospects, in addition to keeping the window for part-time jobs open.
Single education loan may not be sufficient: Most of the banks offer Rs. 10-lakh for domestic education and Rs. 20-lakh as the maximum loan amount for foreign universities. This amount may not be sufficient to cover the entire cost of your education; moreover, foreign universities also require you to buy an insurance cover, thereby adding to the overall cost.
Thus, make a detailed budget and factor-in aspects like the possibility of getting scholarships and student grants, part-time work options and average salary packages. Here, personal loans could also be a wise option.
Consider the impact of your education loan on future credit needs: As a student, if you avail an education loan, it becomes your first credit. Thus, if you miss timely payment of EMIs on your education loan, it will negatively reflect on your credit history impacting all future loan approvals and interest rates. So, ensure that you do not default in payments.
As an afterthought, you must research well and plan smartly before taking an education loan so that you can repay it without much burden.
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