What are the different tools that will help you get an ideal personal loan?

A loan that is unsecured, in other words a loan that is borrowed by individuals from a bank or a money lender without securing it against any asset like a car or a house is called a personal loan and is also known as an unsecured loan. In order to get an ideal personal loan, there are some things or tools that a person should refer to and keep in mind before applying or during the application of a loan.

Loan tools help calculating the personal loan effectively. One can also make comparison between the interest rates offered by different banks with the help of loan tools. They are-

• Loan calculator or an EMI calculator the personal loan EMI calculator is very efficient in comparing different types of loans. EMI stands for equated monthly instalment, which is the fixed amount that is to be paid to the bank or any lending institution until the entire amount loaned is completely paid off.

The personal loan EMI calculator makes complicated calculations easy and simple.

• Budget calculator- it is very difficult to keep track of all the monthly expenses that one has and this is where a budget calculator comes in handy. The budget calculator breaks down the person’s finances and then offers tips to help the person make optimum utilisation of his total income.

• Credit Report-Several credit bureaus gather data and information regarding a person’s credit history to create credit reports on the basis of which the money lenders or banks often determine whether they can sanction a loan or not and how much interest rate should be offered on the loan sanctioned. These reports are available online and even at different credit report companies.

There are other ways of acquiring an ideal personal loan. A person may not receive the same rate as advertised by a company or bank as it is based on individual credit scores. A person may apply for the best rate loan in order to find out the rate of interest he is eligible for. Opt for a best rate loan that doesn’t use risk-based pricing. If there’s any way to repay the loan early, one should opt for the best-rate loan which does not have any early repayment charges.

Borrowers may also take help from debt advice agencies or get official help from the pension’s ombudsman service, which will take into consideration all the complaints that the person might have regarding his or her loan. The agency will also give suggestions as to how to repay the loan and effectively use the tools.

What is the key difference between mobile banking and internet banking

Internet banking, also known as online banking, is part of the many e – banking channels. This channel has gone on to create a change in banking operations, providing virtual banking facilities to its customers all year and day long. Through this channel, customers can now access their bank account through the online portal.

In addition to internet banking, mobile banking is another channel that allows customers to access their bank account. However, in this case, customers can specifically operate their bank accounts through specific devices, with the help of customized websites or mobile applications.

The service provided by both these facilities may resembles a lot. However, there are instances when people assume they are one and the same facility. This often leads to confusion in terms of the facilities offered and the benefits you can gain through each channel.

The difference between mobile and internet banking can be drawn clearly on the following grounds:

• With internet banking, the banking transactions can be carried out over the net. This can be done via respective bank or financial institution’s website under a personal profile. It can also be done through any device that supports an internet connection. On the other hand, mobile banking is a service that enables customers to perform banking transactions using a cellular or tablet device.

• Internet banking will need an independent connection along with a device like a computer and laptop. With mobile banking, very often the mobile network provides the relevant network connection, through telecommunication devices such as the mobile or tablet. In each case, the network communication will have different features and function differently. It will also have different speeds, security and protocols.

• Mobile banking normally utilised ‘apps’, that are custom made for specific purposes and more precise in terms of functionality and access. On the other hand, internet banking offers the usage of bank’s website to access the bank’s functionality. 

• Through mobile baking, you can transfer funds with the help of IMPS (Immediate Payment Service), NEFT (National Electronics Funds Transfer System) or RTGS (Real Time Gross Settlement). With internet banking, you can transfer funds from a bank or a branch to another, with the help of NEFT (National Electronics Funds Transfer System) or RTGS (Real Time Gross Settlement).

• The number of functions performed by mobile banking, is often limited. While it does offer a custom like service, it is often restrictive, especially with limited services. On the other hand, internet banking offers the perfect pathway for a wide array of services to their customers.

Banking apps versus Browsers: Which is the best option?

While the smartphone trend and app usage is still taking root, several individuals are still opting for the old fashioned web browser to satisfy their requirements. After all, there are several benefits that the website offers that the app may not, and vice versa.

This is no different for the banking institutions that have offered their services through the website and mobile apps. Options such as the SBI, Axis and HDFC Bank are some of the various banking institutes that have offered their services on the website as well as their apps.

Given below are pros of each of these options and how they can benefit you:

Mobile website: The mobile website is designed in such a manner that is not a separate website like the mobile apps. In fact it is designed in such a manner for all screen sizes. Visitors will be able to access most of the content on the full website, which is often optimised for smaller screens. Given below are the pros of the mobile website:

• Functions on all phones: If you need to access any of the SBI, Axis and HDFC Bank websites, you only need to access your browser and visit the website of your choice. This is often a challenge for apps as the programming needs to support the OS of the phone, which requires considerable difference between an Android platform and iOS platform.

• Save on space: One thing about accessing the website through the browser is the space you will save on your phone. You need not download a platform, such as the app, to access the services on your phone. This will help avoid downloading a platform, which will constantly take up space on your phone.

Mobile apps: Mobile apps are separate program features that required to be installed on your phone. They are custom built perform a specific function, or in the case of banks, offer specific functions and services. Given below are some of the pros of the app:
• Push notification: You can easily get text messages if you subscribe for the push notification service. Axis and HDFC Bank net banking push notification service are some of the notable ones.
• Offline access: You can easily read about offers, browse the available product services when you are offline.
• Faster performance: As compared to the website, you can get a faster service.
• Less cluttered: Depending on the website design, apps can be very interactive and informative.

As you can see, the mobile banking app has a lot more to offer, that a website would offer. You would stay updated with the current trends that will allow you to take advantage of financial deals or make calculated decisions. You would also get a user experience which is clutter free and faster, as compared to the website browser.

What should you look for in banking apps?

With the combination of technological progression and the need for convenience, comes the introduction of banking apps. These mobile banking apps, combine the traditional methods of banking with smartphone technology known as app.

This leaves you with the means to make any banking transaction, right at your fingertips. No longer will you be required to visit the bank to check your account, or even make a transfer. Now you only need to log into your bank app account, and make the necessary transaction you would want to do.

But before you can utilise any of the functions of the bank apps, you will first need to install the appropriate app. Plenty of banks have their own versions of the mobile banking apps which combine their own offers, along with their USPs. This leaves you with a wide choice of mobile banking apps for android and the iOS.

So how do you select the one that is most appropriate to you? Here are some features you can consider:

• Simplicity: Financial processes are often complicated. App provides the perfect opportunity to simplify it. They will need to be presented in a straightforward fashion, that is not only easy to complete but logical. This is especially crucial for common tasks which are repeated on a daily basis, such as depositing funds. By breaking down the process into a step by step interaction, along with visual assistance and a transparent call to action, will ensure the user is comfortable through a multistep system.

• Streamlined: A centralised ‘wallet system’ goes a long way to support your financial file and all the transactional habits. Imagine an app that will offer you a wide range of products in an integrated and streamlined process. This automatically eliminates a disjointed experience that doesn’t connect with the different parts of your financial life.

• Transparent: When it comes to finance, you would want to know all the details. Whether it is interest rates, bill payments or even mobile deposits, or even terms and conditions, it must be easy to find. It should also be well branded and clearly indicated. Lack of these this feature will lead to distrust over time and thus causing you to restrain from using the app for any of your banking transactions.

• Security: In today’s world, every individual is a ‘mobile first’ user. Through this app, you are more likely to apply for a credit card, or any other product on the mobile phone. Through this process, the user, such as you must feel secure, thus imparting trust. Plenty of banking apps have offered security tactics, such as enabling touch ID, or biometric scanning. In other words, just like the brick and mortar bank offers security through its massive building and watchful security guards, so should your banks digital presence impart the same level of security.

What are the safety features that banking apps offer?

The day and age has come where financial transactions have now been executed, literally on the go. Thanks to mobile banking apps you can now effectively manage your funds, check your balance, make a transfer and even pay bills online.

However, only about two – thirds of banks customers, who own a smartphone, actually utilise and enjoy the benefits of mobile banking. The main reason behind this number, is that not many of these individuals are unaware of the safety features offered by these mobile banking apps. In fact, these apps have been designed in such a manner, where it offers more safety benefits as compared to the traditional form of banking.

They include:

Multi factor authentication: The submission of a single password, in order to grant access to your customer’s bank account, is no longer used as a defence system, as it can be easily beaten. Banking apps are now coming with multi factor authentication features, which add additional layers of defence. In fact, it integrates well with the safety features of the phones, to offer optimum security. Features such as fingerprint scanning or facial recognition unlocking will help you restrict the access on your phone and apps. With each added security, it makes it difficult for hackers or cyber criminals to access your banking details through the app.

Offer real-time text and email alerts: One of the main causes of fraud in any form of banking transactions, is the obliviousness. When a fraudulent transaction takes place, the bank account owner, may be unaware of it, and thus take the measure to block or trace the access point. By setting up alerts through real time texts and emails, customers, such as yourself, can stay updated constantly on the activity in the bank account. You can even set up the alerts for custom work, such as getting to know if a specific amount of funds is being withdrawn from your account. Such alerts will help you know if your account has been compromised, and you can immediately contact the bank to track and stop the transaction.

Utilize behaviour analysis: Most of the banking apps are now integrated with software security features that will monitor and analyse your login location and account activity of the customers. By doing so, the banking app will flag down abnormal behaviour, which will either alert you, or monitor for further investigation. This will take you one step ahead when it comes to protecting your banking details or even your bank account even before any irreversible fraudulent activity can occur.

While these are the current features, these banks apps are continuously being upgraded to ensure that your banking data is well secured against any evolving threat.

How to use online banking app safely

Online banking has become a popular option, due to the very fact that it makes financial management easy. Plenty of high end banks are now offering online facilities that will allow you to check your balance, set up direct debits or even access statements from their website. In fact, you can now do all these facilities through the new banking apps, a form of internet banking that will allow you to check information on the move.

While these mobile banking apps, increase the convenience to handle your finances, it also raises the risks of becoming the victim of fraud. However, there are certain steps you can take, in order to protect yourself. They include

• Choosing a very secure password: When you first set up internet banking on your phone, your bank will provide you with a password to initially log in. Once you log into the app, you should change the password to new and secure alternative. While you are changing the password ensure that you, never write down the new password, store the password in your browser, or pass on your password to anybody.

• Enable biometric authentication: Most of the phones that are being introduced into the market have now included biometric authentication to unlock the phones, or even use certain apps. It could be fingerprint scanners or even facial recognition to unlock or access the app. This prevents any unauthorised access to the apps. When you download the app, ensure that is compatible with this feature and include it. This is because biometric authentication is almost impossible to hack. This makes it difficult for cybercriminals to gain access to your device, let alone your app. Moreover, in the event your phone is stolen, your data will still be safe.

• Avoid banking on unknown internet networks: A free network will definitely be tempting to access, especially to surf the web or share a quick Facebook status. However, you should never ever use your mobile banking apps for sensitive activities, such as making transactions or making payments. Any unknown network runs the risks of cybercriminals intercepting your password.  In such a case, it is most appropriate to use your cellular data over the WiFi connection.

• Install anti – malware software: Malwares make it easy for cybercriminals to access your data. Without your knowledge, the malware, which is normally installed without your knowledge, will collect all your passwords and log in details. It will then send this information to the cybercriminals who can easily access your bank accounts whenever possible. In such a case, it is most appropriate to install an anti malware software which will block viruses and spyware from being installed on your phone. Furthermore, it will update you to any suspicious activities, so that you can take appropriate measures to block any unauthorised access.

Stages of a loan application: How the bank loan app will assist you

The loan application process has several stages that you, as an applicant must be aware of. Each of these stages plays an important role in your loan applicant, thus leading to your loan approval and disbursal. While the traditional way to apply for a loan would be to approach the bank of your choice, and its closest bank branch, the new method is to download the bank loan app on your phone and apply for the loan of your choice.

More and more loan applicants are now opting for the new age method to apply for a loan, as it is not only convenient but also time and resource saving. But how can this loan support you in your loan application?

Once you download the app and register for it, there are various features you can check out. One option there is to apply for the loan. Through this app, here are the stages of a loan application and how the loan app will assist you:

Stage 1: Confirm basic identity: This plays an important role in your loan eligibility. The first you would need to take is to confirm your identity. This would mean, you would need to provide details of your age and your gender. You would also be required details of your residency.

Stage 2: Income and employment details: As the next step, you will need to provide details of your employment and income details. In this stage, you would need to provide details of the type of employment you are working in, the name of your company, the income you earn, and whether you have any current EMI’s to pay. All these factors contribute to your loan eligibility to ensure that you will be able to afford the loan you are applying for.

Stage 3: Calculation of your eligibility: Once you have provided the relevant details, the app will automatically calculate your eligibility. This is one way to check loan eligibility without having to take the time and the effort manually to do it. Furthermore, it will help you understand how much of a loan amount you can opt for, and whether you can increase or decrease to match your financial requirements. This way, it will also help you manage your other current debts or any other debts that you will take upon in the future.

Stage 4: Verification of identity details: Once you have proceeded and satisfied the loan eligibility criteria, you can move ahead with the verification of your identity details. You would be asked to provide your PAN and Aadhar card details, wherein which, your identity details will be accessed online from a secured server. Once the details have been verified and confirmed, you can then proceed ahead with your application.

Stage 5: Loan tracking: Once your loan application has been submitted, you can check online for the status of your application. You only need to log into the app and prove your application reference number in order to gain access to the tracking status of your loan application.