What is IFSC Code
Indian Financial System Code or IFSC is a unique 11-character code assigned to a bank’s branch. The IFSC is an alpha-numeric code which consists of three parts – first four alphabetic characters which signify the bank’s name, the fifth character which is always 0 (keeping in mind future expansion) and the last six characters which signify the bank’s branch’s address. The last six characters are usually numerical but can be alphabetical too.
Use of IFSC Code
Online transactions are made safe, secure and easy through the bank’s verification of KYC data of both the sender and the beneficiary. Payer needs to confirm both his/her details and the payee’s details before the transaction is carried out. The beneficiary’s IFSC is verified before the payer is able to transfer money through all of such schemes as National Electronics Fund Transfer (NEFT), Real Time Gross Settlement (RTGS) and Immediate Payment Service (IMPS).
Housing Development Finance Corporation and its branches
HDFC Bank or Housing Development Finance Corporation is a banking and financial services company with headquarters in Mumbai. HDFC Bank also has international presence in areas such as Bahrain, Hong Kong and Dubai. Among India’s largest private sector lenders by assets and the largest bank with market capitalization, HDFC offers many baking and financial services such as retail and wholesale banking, loan and mortgages and credit card services. HDFC has an expansive no. of branches in the country with over 4700 branches and 12,000 ATMs in more than 2500 cities and towns. The bank also has an extensive connectivity to the rural areas of the country. HDFC bank has more than 84,000 employees, a profit of Rs. 12,817 Crore as of 2016 and revenue of Rs. 74,373 Crore as of 2016. As India’s economy goes digital at a rapid pace, banks including HDFC are tasked with a challenging task of reaching out to India’s every corner so that banking goes digital seamlessly.
How to find HDFC IFSC Code
HDFC IFSC code can be found: https://www.paisabazaar.com/ifsc-code/hdfc-bank/
- On the first page of your HDFC cheque book
- On the bottom left side of your cheque book’s leaves
- On the official website of HDFC Bank
- Reserve Bank of India’s website
- Other Third Party websites
Concerning the first two points, to encourage electronic banking, HDFC bank along with many other banks have agreed to RBI’s requirement to print IFSC codes on cheque books and individual cheque leaves of all of their customers.
Concerning the last three points, to find the IFSC of your branch online, you should know the exact name of your branch too. Along with your beneficiary’s bank’s IFSC, you also require other key details of your beneficiary such as Name, Bank Name, Branch Name etc. to send money through the various electronic find transfer modes.
A HDFC IFSC looks like HDFC0000485. It is made up of three parts-the first four alphabetic characters ‘HDFC’ identify the bank’s name, the fifth character is a ‘0’ is for future expansion and the last six characters, ‘000485’ are the ones which represent the bank’s branch’s address and are usually numeric but can be alphabetical too. Also, with HDFC accounts, if let’s say your account’s first four characters are 0720 than in most cases, the IFSC’s last four characters would be HDFC000720. However, it is pertinent to confirm your IFSC before proceeding for a digital transaction.
Tools such as IFSC enable you to make and receive safe, quick and secure payments, in conclusion, saving your time and money while letting you carry out the transaction at your comfort and convenience. Moreover, such transactions are reflected immediately in the sender’s and the receiver’s account. Transactions facilitated by IFSC are much quickly realized than transaction done conventionally through demand drafts and cheques. They are way safer, accurate and transparent too as the beneficiary’s IFSC is verified and only then the transaction is completed by the bank. Moreover, once the transaction is complete, all parties involved are informed through SMS and/or email by their respective banks. Also, digital transactions enabled through this code make it easier for the banks to reconcile and validate their data. In conclusion, digital banking through IFSC is making India a digital and transparent economy and we as a society should all encourage that.
Financial hardships in one form or another are a surety of life and everyone goes through ups and downs during their lifetime. In case there is a financial emergency, you might need to take a loan in order to tide over the hard times. One of the most popular options when seeking financial help in case of these hardships is a personal loan, however, this option does have a few problems such as high interest rates and a borrowing limit depending on your income. Additionally, such loans might be a lot more difficult to avail in case you are a self employed individual or do contractual work that does not have a constant revenue stream. In cases such as these, a gold loan can truly be a rescuer from hard times if you have the precious metal to use as collateral. The following are some of the key reasons why gold loans are preferred by many in order to overcome financial hardships.
Short Processing Times
A gold loan can be availed within as short a period as a few hours and in most cases the same day no matter who your lender is. No other loan currently features as short a processing time and this makes gold loans a popular choice if your own gold jewelry or coins and need to get hold of your money really fast. This processing time also include the time it takes for the in-house valuation expert to determine the value of the ornaments or jewelry to be used as security for the loan.
Another key benefit of the gold loan is the availability of multiple payment options. While most loans have to be paid in EMIs spread over the loan duration, a loan against gold has a unique bullet payment option. In case you avail this option, you only need to service the interest component of the loan during the loan tenure. Towards the end of the tenure, you can choose to make a single large payment and pay off your gold loan in one go.
Zero Pre-Payment Penalties
A loan availed using gold as collateral is one of the few borrowing options that you can hope to pay off without incurring the standard 1% to 3% penalty usually applicable to loan payments made before completion of their tenure. As a result of this, the borrower is in complete control when he/she wants to pay off her loan. This way you can save on interest charges that may be applied in case the borrowing was to run its original tenure. This is one of the key reasons why this secured loan is preferred by many.
Low Interest Rates
Aside from home loans, which incidentally is also a secured loan, a gold loan is probably the cheapest loan an individual can avail in terms of the rate of interest that is charged. This benefit definitely makes this asset-backed loan easy to pay off in a hurry, while the money to be borrowed is readily available in case of an emergency.
In case of most loans, the borrower has to worry about the wide range of documents that they need to submit. In case of a loan against gold, the prospective borrower can rest easy because he/she only needs to furnish the most basic of KYC documents mainly for identity and address verification purposes. Even a valid PAN card is not necessary unless the loan amount being sanctioned is above a certain limit. Also no credit score information needs to be considered by the lender, which further decreases the time to disbursal.
A loan provided using gold as security can have a tenure ranging from a few days to a few years, though in most cases, the maximum limit is fixed at 12 months. This flexibility is perfectly suited for individuals who might need a cash infusion in a hurry and can pay it off within a very short time once they have the money hand to pay the loan off.
In view of the above benefits, there shouldn’t be any reason to doubt how helpful a gold loan can be in case one is going through a temporary financial hardship.
If you have already decided that you will be taking a personal loan, be very clear about the purpose you would be using the funds for. It might be anything from home renovation to debt consolidation. The purpose should be clear because a personal loan is not a cure to all your financial problems but just a financial tool. Here are five things you should know about or rather five questions you should have answers to before taking a personal loan:
1). Where and how should you apply for a personal loan?
There are a number of ways through which you can apply for a personal loan online, offline or by availing doorstep services. You can either directly apply to a bank or financial institution or seek help from a financial marketplace such as Paisabazaar to choose the best possible option. While taking a personal loan make sure that you take it from a registered bank or financial institution and not from any illegal moneylender, doing so may land you in trouble because of their unregulated charges, rates and practices. You can apply for a personal loan in as less a time as 10 seconds, provided you are eligible for the amount required. You can apply online through financial marketplaces, official websites of the bank or through netbanking. For the offline mode you can either opt for doorstep services or visit the branch personally to apply for a personal loan.
2). What is the amount that you can borrow through a personal loan?
The amount offered as personal loan depends upon your income and your liabilities. Before you apply for a loan amount, make sure that your DTI (Debt to Income ratio) is less than 60%. Ensuring this will help you get your loan application approved easily. Depending upon the policies of the bank or the financial institution the loan amount offered may vary from 3-15 times of your monthly income in general.
3). How can you save the payable interest amount on your personal loan?
The interest rate charged on your personal loan primarily depends upon three factors: loan amount, tenure opted for and your credit score. Your relationship with the bank may also fetch you lower rates at times. In order to keep the payable interest minimum, you must compare the schemes offered by various banks and then choose the most suitable option with reasonable interest rates. You must also decide the loan amount and tenure wisely to keep your interest rates to the optimum level.
4). What all documents are required to apply for a personal loan?
The documentation requirement may vary from bank to bank, however, in general the following documents are asked for with a personal loan application.
1). Address proof such as Passport, Aadhar Card, Voter Id card, Utility Bill etc.
2). Id Proof such as Pan Card. Voter Id card, Aadhar Card, Passport etc.
3).Income proof (Latest salary slips or IT returns filed)
4). Last 6 months’ account statement.
5). What impact can a personal loan have on my credit rating?
A personal loan may greatly upgrade or degrade your credit ratings depending upon how you go about your loan repayments. If you pay your loan EMIs on time regularly, it will improve your credit ratings, and any late payments or default will reflect negatively on your credit ratings. Credit ratings or score are important for any type of credit requirement in future and it is therefore important to keep your credit ratings in check even under pressing financial needs.
Once you decide to take a personal loan, make sure that you have proper answers to the 5 questions listed above and you have evaluated your needs and income flow properly before actually applying for the loan.
A majority of salaried individuals tend to get worried when they see the TDS deduction on their pay slip and most wish that taxes were lower. This year the government seems to have heard this vast majority as the lowest income tax rate was effectively halved from the earlier 10% to 5%. But it is easy to forget that it’s not just the salaried individuals that have to worry about paying income tax as even self employed as well as corporations are liable to pay income tax. Through the years, various changes have been introduced in the way taxes are calculated, collected and paid, so let’s see if these changes including paying income tax online have been a boon or a bane for the stakeholders.
Fewer Paper Documents
The pinnacle of achievement for a digital society, according to many thought leaders, is a paperless existence. We in India might not be there yet, but with the introduction of the online income tax payment system, the submission of paper documents has definitely been eliminated to a large extent. In the past, everything required a paper submission and copies of these had to be stored carefully by the tax payer for up to 5 years in case there was an audit requirement. Moreover, when submitting these documents to the Income Tax Department, a prescribed order had to be followed and in case of a mistake, the papers often had to be filed anew. Thankfully these problems are in the past if you have been paying or have started paying your income tax online. The online system does not need any reordering of papers and in case you make a mistake while filling out the form, the error will get marked automatically allowing you to make the changes immediately. Additionally, rectifications and re-submissions too are a breeze as new documents just need to be submitted as scanned copies if required by the IT Department and not otherwise.
When paper documents are submitted, they have to be verified one at a time by hand and this requires a lot of time and effort. The online system uses interlinked databases like TRACES that automatically check the tax payer’s entries by running it through multiple databases simultaneously without any human intervention. The system automatically flags errors/mistakes/mismatching data based on the entries available on the various interlinked databases vs. the forms submitted by the income tax assessee. In case an error is detected by the system and the submission is flagged, the form is checked manually. Thus the system of paying income tax online saves time and there is lesser scope of errors creeping into the process.
Cheaper Cost of Collecting Tax
The old system of collecting taxes often required multiple tax collectors knocking on the tax payer’s door or sending out multiple notices to make errant individuals pay their taxes. Then there was the paperwork that had to be sorted through sometimes more than once to ensure that everything was in order. This required not just time but also an army of clerks, assistants, paper pushers, stenographers and so on. For the government especially the IT department, this was a problem because all these employees had to be paid out of the government’s coffers and thus the efficiency of income tax collection was quite low in the pre-digital age. When a tax assessee pays his/her income tax online, it no longer requires such a large workforce to corroborate these requirements due to the higher levels of automation that the online system provides.
Conclusion: Definitely a Boon
From the above points it is easy to conclude that the introduction of the system that allows individuals to pay income tax online is nothing short of godsend. The system is indeed a boon for both tax payer and the collection agency. Furthermore, the system will work even better as it gets even more streamlined in the future with the introduction of more efficient systems and technologies.
PAN or Permanent Account Number is a ten digit alphanumeric number issued by the Income Tax Department of India to individuals and companies. This important ID proof is mandatory for Indian residents, NRIs and international companies in order so that the government can track any financial transactions in the country and avoid any tax evasion.
Need of PAN Card in India
Other than serving as an important identity proof, PAN card is also needed to carry out important functions like:
- To start a business in India
- To open a bank account
- To apply for credit/debit card
- To file income tax returns
- To apply for passport or visa
- To apply for a loan
- For sale/purchase of property above Rs. 5 lakh
- To make an investment in mutual funds or shares above Rs. 50,000.
- To exchange foreign currency
- To deposit any more above Rs. 50,000 in bank
- to pay for life insurance premium above Rs. 50,000 in a year
- To purchase or sell vehicle/s
How To Apply For PAN Card In India?
Applying for a PAN card is extremely easy. One can apply for a PAN card by two means – Offline and Online.
Online Application of PAN Card
One can apply for PAN card online using Form 49A (for Indian residents and NRIs) and Form 49AA (for foreign citizens). This application form is available online on the official NSDL and UTIITSL website. Both are government authorized portals that issue new PAN card or make changes in the existing one. Here’s how it works:
- Visit the official UTIITSL or NSDL website to fill the form. Ensure that one needs to fill Form 49A in case of Indian Residents or NRIs or Form 49AA for foreign citizens.
- Fill in all the details in the form carefully. Recheck before you submit.
- Once verified, you can click on “Make Payment” to proceed with the online payment.
- You will be directed to the payment gateway where you can make a payment via credit card/debit card or net banking. You need to pay Rs. 107 (inclusive of service tax) in case of Indian citizen or Rs. 994 (inclusive of service tax) in case of foreign citizen.
- Once the payment has been successfully done, you will get an acknowledgement number. Save that for future reference.
- After this, take a print out of your application and affix same photographs and sign in the space given. Along with this form, send necessary documents (self-attested copies) through post to NSDL or UTIISL for verification. These documents are one proof of identity, one proof of address and one proof of date of birth. Don’t forget to mention the acknowledgment number on the envelope.
- After successful verification, your PAN card will be delivered to your resident within 15-20 days.
Things to Remember While Applying For PAN Card
- Some of the supporting documents that can serve as a proof of identity are Aadhaar card, voter’s ID card, passport, driving license, photo ID issued by central or state government. For proof of address, you can submit self-attested copies of electricity bill/water bill/landline bill/gas bill/credit card system/bank account statement under your name, passport, driving license, Aadhaar card, etc. The documents that can serve as a proof of date of birth are birth certificate issues by the municipal authority, marriage certificate, matriculation certificate, passport, driving license, etc.
- If you have applied through UTIISL, send the documents to any of the following address
New Delhi region
UTI Infrastructure Technology And Services Limited
1/28 Sunlight Building, Asaf Ali Road,
NEW DELHI -110002
UTI Infrastructure Technology And Services Limited
Plot No. 3, Sector 11, CBD Belapur
NAVI MUMBAI – 400614
UTI Infrastructure Technology And Services Limited
29, N. S. Road, Ground Floor,
Opp. Gilander House and Standard Chartered Bank,
KOLKATA – 700001
UTI Infrastructure Technology And Services Limited
D-1, First Floor,
Thiru -Vi-Ka Industrial Estate, Guindy,
CHENNAI – 600032
- In case you have applied through NDSL, send the documents to the following address:
Income Tax PAN Services Unit,
NSDL e-Governance Infrastructure Limited,
5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bungalow Chowk, Pune – 411016′
- Ensure that the documents and application should reach the concerned office within 15 days of filling the online application.
Most of us don’t like the idea of taking debt unless needed. However, the vicious circle of credit wants us to first borrow money in order to build a positive credit history that would, in return, help us take a loan at considerable rate of interest in case of financial emergencies. Whether one has to lend money loan due to an emergency, to fulfil certain life goal or just to build credit, people tend to pay the loan amount early when they have extra cash in order to stay away from deb. But is it recommended? And how will it affect your credit score? Let’s find out! But, before we understand the effect of early loan repayment, let’s understand how loans affect our credit score.
Impact of Loans on Your Credit Score
Surprisingly, taking a loan is a step ahead towards creating a positive credit score, given that you pay the debt amount on time. Here’s how it affect your credit score.
If you already have a credit bill, then opening a new loan account will add diversity to your existing credit, which will enhance of your credit score
Duration of Credit History
Another thing that installment loans help you is to manage your credit over a long period of time. If you have a long history of great credit, then it will not only increase your credit score, thus making loan process easier for you.
Raise Credit Score with Timely Payments
Since, on time payments play the biggest role when it comes to increasing credit score, timely loan payments will not only improve your credit score but will make you an attractive borrower for future.
So, Should One Go For Early Loan Repayment?
Well, experts suggest that having an open loan/debt account is beneficial for your credit score rather than a closed one, which is what your installment loan becomes once it is paid off. So, if you have multiple debts, then you might consider closing one earlier. But in case of single loan, then you might consider it paying as per the schedule. Also, one must remember that paying off loans early will not have any positive impact of your credit score. However, depending upon your credit history, closing your loan account is not recommended in the following cases:
Limited Credit History
According to Experian, one of the major credit bureaus in India, open and active credit account enhances your score. So, in case you have limited or only open loan account, then it is not advisable to close it early. Yes, it will help you save money in interest but will not help in your credit score.
Establish Credit History
In case you have an established credit history, then with too much debt, the lender may see you as a risk. It is important to maintain the debt-to-income ratio. This is basically the percentage of your gross monthly income applied towards debt. This means that the gross income should be able to afford the debt taken.
Instead of paying off the loan, you can pay down the balance. One of the major factors affecting the credit score is the percentage of the available credit compared to the limit. Therefore, if you have taken a new loan or having an outstanding credit card bill, then paying off your personal loan can help lower the ratio.
Hence concludes that if you are paying off the loan early just to enhance your credit score, then don’t go ahead. Instead, you can invest that money in various schemes like mutual funds or fixed deposits or just save it for financial emergencies. Whether you pay the loan amount early or as scheduled, one thing that every borrower should keep in mind is to always pay the due bill on time.
When it comes to lending money, even the banks needs to be assured about the person to whom they are giving loan. Approximately 5 years back, customer background verification for credit worthiness was a difficult task. However, Credit Information Companies (or Credit Bureaus) have made this task easier. Credit Information Companies are financial institutions who collect and maintain credit and loan related information of individuals and commercial entities. Based on this information, they generate a credit report and score of every individual that helps the bank in approving or rejecting the individual’s loan application.
As per the latest guidelines, it is mandatory for every bank and financial institution to be a member of atleast one Credit Information Company in India. These companies collect and maintain the credit/loan information of every individual who has a PAN card from the member credit institutions. This information is updated regularly every month or on short intervals.
How Does Credit Bureaus Work In India?
As mentioned above, Credit Bureaus of Credit Information Companies collect, maintain and provide credit information (related to credit cards and loans) of an individual from banks and other member institutions and share the same with them that defines the credit worthiness of an individual. This helps the bank authorities to make a decision of whether to lend money and if yes, then at what terms and conditions. Here, one must note that CIC does not act as a watchdog. It caters the information related to salary, savings account, fixed deposits and other information are not shared by the members.
For example, if you wish to take a personal loan from a bank, your bank will contact the credit bureau for your credit report and score. This report contains all the payment history, including past defaults (if any). Based on the credit score and report, your bank will make a decision on whether the loan should be granted to you or not. More credit score means higher chance of getting a loan at a considerate interest rate.
In India, there are four credit bureaus namely TransUnion CIBIL, Equifax, Experian and Highmark.
India’s first credit bureau/credit information company, TransUnion CIBIL plays an important role by helping banks and other financial institutions to manage their business. It is organized into 3 divisions, namely consumer bureau, commercial bureau and MFI bureau.
Year Of Establishment – August 2000
Scoring System – 300-900 (900 is the best credit score)
Charges – Free credit report once a year. Beyond that, it charges Rs. 550
Time taken to generate report – 7 days
Equifax India is a joint venture between Equifax USA, State Bank of India, Kotak Mahindra Bank, Bank of Baroda, Religare Finvest Ltd., Sundaram Financial Services and Union Bank of India. It offers a range of credit services including information, business analysts and risk management.
Year Of Establishment – 2010
Scoring System – 1-999 (1 being the lowest)
Charges – Free credit report once a year. Beyond that, it charges Rs. 400 (+taxes)
Time taken to generate report – 10 days
Experian Credit Information Company of India or simply Experian is a joint venture of GUS Holdings, Axis Bank, Union Bank of India, Indian Bank, Federal Bank, Punjab National Bank, Sundaram Finance Ltd, Magna Fincorp Ltd and VIC Enterprises Private Ltd to provide credit information services to banks and individuals in India. It has also tied up with online financial marketplaces like Paisabazaar to offer free credit report and score to its customers.
Year Of Establishment – 2006 (got license in 2010)
Scoring System – 300-900 (900 is the best credit score)
Charges – Free credit report once a year. Beyond that, it’s Rs. 399 (including taxes)
Time taken to generate report – 20 days
CRIF Highmark is the only credit bureau in India that caters the need of segments like MSME, commercial borrowers, retailer, micro-finance borrowers. It provides analytics, data management and related credit services in order to sustain the financial needs of business and customers.
Year Of Establishment – 2007 (got license in 2010)
Scoring System – Not Available
Charges – Rs. 399
Time taken to generate report – 5 minutes