Month: November 2016

Smart Ways to Manage Your Personal Loan Interest Burden

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personal-loan-interest-burden

Personal loans may come as an easy option to fulfill immediate financial needs such as the wedding of a son/daughter, medical disbursals, etc., but paying the loan debt can become a niggling situation for the borrower, esp. if the amount is huge. If you also find it difficult to repay your loans, you must follow the listed below strategies to manage your debt situation without stressing your wallet.

  1. Pay costly loans first: Personal loans have higher interest rates, so it is good to pay off this first to reduce your interest burden going forward. Start by paying the maximum amount you can afford without jeopardizing the repayment of the other loans. Once you have cleared the most expensive loan debt, start paying the next big loan.
  1. Pay higher EMI’s with increased income: Instead of paying fixed EMI’s every month till retirement, it is good to pay higher EMI’s whenever there is extra income flowing in to close the personal loan debt as soon as possible. Do not splurge on the latest mobile phone or newest range of the car. Use the money to pay down your personal debt aggressively. Extra cash flows such as maturity incomes from life insurance policies and income tax refunds can be used to pay off these loans.
  1. Don’t forget to save: It is good to pay higher EMI’s on a regular basis even though your personal loan interest rate may be low. But don’t forget to save some amount for future as well even when you are dealing with ill fate such as unemployment, sudden hospitalization, increased medical expenses, etc.
  1. Use current investments to repay debt: If your personal loan interest rate has increased significantly, you can liquidate your current investments to make the payment. You can borrow money from your life insurance policy or pay off your personal loan debt using your PPF balance. The PPF allows the depositor to take a loan against the balance from the third financial year of investment, and the same can be repaid within three years. The maximum loan one can take from PPF is up to 25% of the balance at the end of the previous year.
  1. Cut down expense on dinners and movies: When it comes to paying off the loan debt on time, making little amendments in your life can work wonders in keeping your finances in check. While we have so far discussed different ways with which you can reduce your loan burden, you also need to make some changes in your lifestyle to save money and pay higher EMIs. By making lifestyle changes we mean cutting down expenses on movie shows, dinner dates, weekend getaways, excess shopping, etc. You can also avoid using a credit card and instead make purchases with cash. This will automatically help you save big and pay the loan without much hassle. This change in lifestyle is needed until the time all the loan debts are paid. 
  1. Lower your spending limit: You can also talk to your credit card company representative to lower down you spending limit. You must also avoid taking new loans until the time you repay the previous loan.  If possible, try to automatically debit your repayment dues to your bank account. In this way, the loan amount will be deducted automatically on the due date and you will not be left with extra money to spend unnecessarily. Remember, making late payment impacts your credit score negatively and you are required to pay a late fee as well which means more money disbursal from your end.
  1. Get advice from debt counseling centers: If all the aforementioned ways fail to work in your favor, approach a debt counseling center. These centers offer free advice and effective ways to help borrowers pay off the personal loan debt.

These are numerous ways to manage your personal loan interest burden. In addition to this, you can even liquidate your assets such as jewelry, property, etc. and pay the loan.

How to Check Status of Credit Card Application

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Banks have different ways with which customers can check their credit card application status but most of them have an online facility. Using this facility, one can apply for a new credit card as well as check the status of credit card application too to know how far the application has been processed, so that they can follow up with the bank representative accordingly.

Credit Card Application
Credit Card Application

Usually most banks take 2-3 weeks to process the deliver the credit card to the customer. Sometimes the bank also takes a month to deliver the credit card from the date of registration. The essential information that is required to check the credit card status online on the bank’s official website include:-

  1. The credit card application number
  2. The candidate’s PAN Card no.
  3. Date of birth.
  4. Form no.

Common steps to track your credit card application online:-

  1. Visit the bank’s official website and click on the ‘Track application’ tab.
  2. Once you click on the tab, a new window will be displayed where you need to enter details such as Form no, application number, PAN card No, etc.
  3. Once all details are entered, click on the status or enter tab.
  4. The website will then display the status of your credit card application.

You can even check your credit card application by paying a visit to the bank or by call the bank branch.

Different banks have different procedure to check the credit card status. Some prominent ones include:-

Kotak Mahindra Bank Credit card status:

Follow these steps to check credit card status from Kotak Mahindra bank online:

  1. Visit Kotak Mahindra’s official website https://www.kotak.comand login by entering your customer ID/nickname and password.
  1. Once you login, click on ‘Credit Card’ tab, a window will open displaying the ‘Credit card status’ option.
  1. By clicking on ‘Credit card status’ option present at the upper left of the website, a window will be displayed prompting to fill in either your application status no or application form no. to retrieve the current status of your card application.
  1. After you provide the details, click ‘check status’ tab Check Your Card Application Status to retrieve the current status of your card application.

To save time,you can simply click on https://www.kotak.com/j1001card/CardStatus/Main.jsp. The link displays two fields, application status no or application form no, once you enter any one detail, click on the ‘Check status’ tab to track the status of your application form with the bank.

SBI Credit Card Application Status:

Follow the steps given below to check credit card status from SBI bank:

  1. Visit SBI bank’s official website.
  2. Click on ‘Track Your Application’ option present on the homepage.
  3. Click on ‘Status of your application’ and fill in the application number.
  4. Alternatively, you can also click on ‘Retrieve Application’ tab.
  5. Enter your PAN card number and DOB as mentioned on the application form.
  6. Click on the Retrieve button to get the SBI Card application status.

RBL Credit Card Application Status:

To know the status of your RBL Credit Card application:

  1. Visit the bank’s official website and click on ‘Credit Cards’ option
  2. Once done, click on ‘To know your Application Status’ option present on the right of the page.
  3. Then, click ‘Proceed’, which will take you to another page where ‘Track your online application status’ option is displayed prompting you to fill in the reference number and mobile number.
  4. Once filling both, click on ‘Submit’ to get the credit card application status.

Credit Card Application Status from Standard Chartered bank:

You can track the credit card application status of Standard Chartered Bank by visiting the link: https://apply.standardchartered.co.in/application-status. The link will display two fields, application reference number and mobile number, once you enter both the details, click on the ‘submit’ tab to track the  status of your credit card application form.