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As the finance industry is frequently changing with the requirements and events in the world, the moratorium has emerged as a savior to many people who have a loan sanctioned in their name. Though, the question is- Is it really a savior? What Is Moratorium? The term moratorium refers to the relaxation provided in paying the EMI for the loan already issued. The generic term for this can be EMI holidays, and is allowed in cases to combat the temporary financial problems such as the one we all are facing today – the Covid-19 pandemic. Understanding The Credit Card Moratorium In lieu of the tough financial situations, the credit card moratorium has been advised and imposed by the Reserve Bank of India, all the banks operating in the country. Being true of its meaning, the credit card users can now choose not to pay the dues 31 August, 2020. This can be implemented as there are disruptions in business, and the earnings have been impacted badly. Though, it is essential to note that this does not mean that the bill need not be paid, only the time period is extended. So, give it another minute and get to know all essentials about the credit card moratorium. Understanding The Time Period’s Significance: The credit card moratorium was brought into effect for a time period of 6 months only, starting from 1st March 2020 to 31st August 2020. If any cardholder opted out from paying their monthly dues during this period, the credit card moratorium became active for them. As per RBI guidelines, Indian bank(s) will not be asking for any payment only until August 31st. Though, the cardholders shall pay the due amount as reflected in their September statement. Interest Is To Be Paid: Even though the relaxation was provided to not pay monthly credit card installments for 6 months, it did not offer any relaxation for the interest being charged for these 6 months. Although there will be no late fees charged for the time period of moratorium. This interest amount will have to be paid with the complete principal instalment, once the credit card moratorium period is over. Impact On Credit Score: As per the directions from RBI, the credit score will not get impacted for the cardholders opting for the moratorium. However, in case, when an individual uses its complete credit limit and then additionally chooses for the moratorium on the same, it can be a tricky situation. In such cases, the CUR (credit utilization ratio) will continue to remain high as the dues are not paid, and it is one of the factors taken into consideration when calculating the credit score. Hence, a higher CUR for as long as three months can impact the cardholder’s credit score unless the minimum due amount is paid or the expenditure is distributed to other cards. Fighting off High Debt Accumulated Over The Moratorium – One can use the following innovative methods to conveniently pay off their credit card principal and interest in a bearable manner: 1. Availing Personal Loan – the interest charged on your credit card dues is much higher than the interest charged by the banks on personal loan. One can avail a personal loan at a relatively lower interest rate to pay off higher interest credit card dues. 2. Convert Outstanding Amount to EMI – Sever credit cards companies allow credit card dues to be converted into EMI such as SBI which offers this service under the name Flexipay EMI. However, this option is less preferable than personal loan since the interest being charged on EMI is higher than that being charged on personal loans. 3. Paying Just the Minimum Due – Credit card allows users to pay only the minimum due however, this option should be seen as a one time emergency measure, the amount which is not paid attracts high interest and is added to your next payment cycle. 4. Transfer Amount To Other Credit Card: Certain credit card which charge lower interest rate allow you to transfer your credit card dues from other cards to such lower interest charging cards. However, it is poignant to note that even the lower interest charged by such cards is higher than the interest charged on personal loans. Conclusion The best way out of the credit card moratorium debt is a personal loan, nothing else comes even close.

In today's time we have a lot more options for investing our money now compared to previous decades; equity is just as popular just as debt funds. Prudent investment into various asset classes is a time tested way of increasing your wealth. Based on your age and risk appetite, you can choose your investment goal and chart your roadmap. The other side of the coin is tax planning. As wealth grows, so will be the necessity to have a good tax plan that will help you save a substantial part of your wealth. One such investment tool is ELSS (Equity Linked Saving Scheme), that not only offers higher returns on your investments but also qualifies for tax benefit under Section 80C (Income Tax Act 1961). What is ELSS? It is a diversified equity mutual fund that has a majority of its corpus invested in equities; therefore, its returns reflect returns from equity markets. Being a diversified equity fund, investors will enjoy both capital appreciation and tax benefits. It comes with a three-year lock-in period and without any age limit to investment. Though, it is recommended that one should start it early. As a practice, it is always advisable to be aware of the benefits, eligibility and the nature of the fund you invest in. t As for ELSS, let us navigate and see each of the factors in detail below. Why Should One Invest in ELSS and What Is The Benefit Under Section 80C? The Association of Mutual Funds in India (AMFI) and the Securities and Exchange Board of India (SEBI) have clearly spelt the investment guidelines on their portals. Simply put, any investor, willing to lock in funds for three years(minimum), should look at ELSS as a great option. According to the Income Tax Act, taxpayers are eligible for benefit under Section 80C and can gain a maximum advantage of up to Rs 46,800/. Besides this, long term capital gains would be taxed at 10% on investments exceeding Rs 1,00,000. Investors can use the SIP (Systematic Investment Plan) option to put their money starting with Rs 500 as a minimum or opt for a lump sum option. SIP gives you the benefit of rupee-cost averaging and compounding that will help you tide market volatility smoothly. By adopting the SIP route, you are staggering your investments, which brings down the risk considerably. As an investor, you can also opt for a dividend option to have some cash flow during the lock-in period. Being a diversified fund in nature, ELSS, therefore, gives you a great option of growth as well as dividend. These are the reasons why ELSS has emerged as an excellent prospect for long term fund creation. For anybody novice to the equity markets, ELSS is a great way to begin and gain knowledge and exposure to equities. Risk Assessment and Mitigation As an asset class, equity is high risk but equally has the potential to give phenomenally high returns, and this is the underscoring challenge that an investor needs to be prepared for. Owing to constant fluctuation in Net Asset Value (NAV), equity funds tend to carry high risks. Because ELSS funds give the option to remain invested for a more extended period, these risks can be mitigated, and you can reap its benefits in the long run. Current Market Volatility due to the Pandemic As the Coronavirus pandemic has brought the entire world to its knees, Global markets are equally affected and have taken a lot of damage. While the carnage seems never-ending, we humans need to stay hopeful and look for the light at the end of the tunnel. Human history has witnessed many such epidemics, and we have overcome all of them sooner or later. In the same vein, stock markets will re-emerge sooner or later. Most experts would opine to buy stock in these times when the prices are down and wait patiently for markets to improve and regain in the long term. Keeping a horizon of 5 years, investors should hold a long view and not focus on short term losses, as this Pandemic is a once in a century occurrence and not a typical business cycle syndrome. Linking it to the ELSS, as explained earlier, the rupee cost averaging methodology in SIP ELSS buys more units when the markets are low or down (as now) and buys fewer units when the market normalizes, therefore benefitting from both scenarios. ELSS ( Equity Linked Saving Scheme) is a great way to safeguard yourself during this Pandemic by staying invested and reaping long term benefits of wealth creation.

Digital gold is a simple and economical way for those who choose to collect the yellow metal in physical form. Digital gold allows you to buy, sell and store pure gold anywhere and, in fractions. And even with 1 Re's tiny monetary investment, a certain amount of precious metal may be purchased. Digital gold is quickly gaining traction in the investor community due to the convenience it provides to the buyer. In India, digital gold investment is available in partnership with Augmont, MMTC-PAMP or both. Various available options In addition to buying physical gold from your local gem store or investing in gold-backed financial instruments such as ETFs, there is now a third option available to buyers of yellow metal: Gold Accumulation Plans (GAP). You can buy as much or as little as you want. There are currently two digital buying options for gold: 'Digital Gold,' available on the Paytm mobile wallet platform and the Stock Holding Corp's 'GoldRush.' E-gold buying through Demat account E-gold is processed in Demat form electronically and can be freely converted into actual gold. E-gold is available in India from NSEL, an international company providing investors with the option of investing in goods such as gold, silver and platinum. E-Gold is one product that allows investors to buy gold on a smaller scale, for example, 1 gm, 2 gm, 3 gm, etc. You will be credited to your Demat account within T+2 days for the gold units you will purchase here. Likewise, for example, if you sell today, in 2 days (from the date of sale) the same will be debited from your Demat list. Difference between E-GOLD and ETF GOLD Trading cost: Based on the costs calculated, the e-gold is earning a better return than gold ETFs as the NAV is given for gold ETFs following a fund-management fee deduction plus additional custodian and storage costs. In the other scenario, e-gold is exchanged for an extremely negligible expense on the spot market. The e-gold trading does not require recurring charges, and hence, returns are higher in comparison over a period of time. Conversion: Both types can be transformed into physical gold, but the minimum quantity varies for each. For e-gold, the minimum quantity is 8 Grams, and for gold ETF, one can only convert from more than 500 gm to 1 Kg. For e-gold. Benefits of investing in E-Gold: ● The NSE gold price is based on the Indian market level. ● Investors in small amounts can buy and sell gold. 2 gm of gold, for example-1gm. ● Pricing stability and smooth exchange are one of this product's main assets. ● The liquidity of this commodity is high. At any time, you can sell it. ● No chances of impurities. Benefits of investing in ETF-Gold: ● Inflation Hedge: Gold is a secure investment as gold can be employed to shield it from fluctuations in currency and inflation. ● Easy trading: To start trading in gold-powered ETFs, you have to purchase at least one piece – up to 1 gram of gold. The buying and selling of products operate much like equities – through the stockbroker or ETF fund manager you can trade. ● Open trade: Gold stock prices are open to the public. Without any uncertainty, you may test the gold prices for the day or the hour. ● Fast transacting: Gold ETFs can be bought and sold from any part of the world at any time of day while the stock is available. ● Inexpensive: The gold equipment listed on the exchange shall not be charged with entrance or exit for buying or selling units. The brokerage charges must be paid just between 0.5-1%. ● Secure asset: Prices for gold are typically not very fluctuating. Even if your equity returns go down, you will not get significant losses from Gold ETFs. ● Portfolio diversification: Gold ETFs are a good way to increase your portfolio's diversity. Different investments will increase your returns and reduce your losses across unsteady market conditions. ● Loan collateral: If you wish to borrow from financial institutions, your gold ETFs will serve as collateral protection. Reasons for investing in Digital Gold: ● Say goodbye to heavy charges: Whenever we buy physical gold in the form of gems, we are worried about the making charges that vary between dealers, ranging between 6% and 14% everywhere. This is in addition to the price of gold in your account. This issue is solved by digital gold. ● Only pay for gold: Many of us choose to purchase it in the form of jewellery when shopping for gold. This means that you pay for that diamond, as well as for other precious metals or stones that have been amalgamated. You are only investing in 24k gold when you buy digital gold. ● Encash gold anytime, anywhere: As previously mentioned, it's easier to say than to sell actual gold immediately in an emergency. And this is a smart decision to invest in digital gold. It allows you to sell gold online immediately. After a certain quantity of gold is sold, the balance is transferred within a couple of hours to your registered bank account. ● No more risky bank savings: Once you continue to invest in digital coins, you no longer have to worry about storing them in vaults, as banks only provide this service at a cost that goes along with a registration fee. Your digital gold is secure in a protected vault without paying for the service. ● Trade your gold without hassles: If you want to buy gold so that you can deal conveniently with it, you 're better off buying digital gold. The trade-in real gold takes time. It isn't easy to purchase gold jewellery because of our often-spoiled choices. It isn't very easy. Yet digital gold gives you the chance to exchange your digital gold freely anywhere and anytime. Why invest in gold during COVID times? Investment in the times of crisis is considered a haven for gold. This is why it is comparatively less volatile and has traditionally maintained wealth than any other class of assets. It was unpredictable this time around. Gold does not play exactly its role in past years with globally stalled markets amidst Covid-19 pandemics. The uncertainty in stock and credit markets is also infiltrating into the yellow metal.

Many banks and Non Banking Financial Companies (NBFCs) have rolled out COVID-19 specific personal loans for their existing account holders and borrowers. This loan is targeted at providing relief to their customers from the liquidity mismatch occurring during the lockdown. Most of the middle and lower-middle-class families are currently facing a cash crunch as they have exhausted their savings. To provide some respite, many banks have launched COVID-19 Personal loans. In this article, we will see a comprehensive analysis of COVID-19 personal loans. List of Banks Providing the COVID-19 Personal Loan Schemes Below is an indicative list of banks offering Covid-19 specific personal loans. ● Bank of Maharashtra Emergency Credit Line- Personal Loan scheme COVID-19 for Individuals ● Punjab National Bank SAHYOG COVID-19 Personal loan scheme ● Punjab National Bank ABHAAR RIN Personal loan scheme ● Indian Overseas Bank Insta Pension-COVID-19 Relief loan for pensioners ● Bank of Baroda COVID-19 for individuals ● State Bank of India COVID-19 emergency Credit Line for businesses Eligibility criteria The banks and NBFCs are, , rolling out the COVID-19 personal loans only for their existing account holders, borrowers or salary and pension account holders. The banks also require the applicants to have a clean track record of loan repayments prior to the lockdown. Bank of Maharashtra offers its COVID-19 Emergency Credit line- Personal loan scheme only to its existing home loan customers. Punjab National Bank ABHAAR RIN COVID-19 Personal loan is being provided only to customers who have their pension accounts in the Punjab National Bank. The PNB home loan borrowers are also eligible for another aid; the SAHYOG COVID-19 loan scheme, provided that they have their payments up-to-date as of 15th of March, 2020. How Is COVID-19 Specific Personal Loan Different From Other Personal Loans? COVID-19 Personal loans are being offered only to existing retail customers. The lenders do want to help people with these loans, but not at the risk of default. Banks have restricted the availability of these loans to only their existing customers because they are aware of their credit history. These offers are being rolled out only to borrowers who have maintained a good payment track record and a decent credit score. As of now, there is no provision of applying for a COVID-19 personal loan online in most of the banks. One has to either physically visit the bank or call the respective branch to get more information on the loan. You can apply for other personal loans online but not for the COVID-19 specific loans. COVID-19 personal loans are designed to meet the temporary mismatch in the liquidity. Therefore, the loan amount ranges from 25,000 Rupees to 5lakh Rupees. Other personal loans can range from 50,000 Rupees to a maximum of 20lakh Rupees , depending on the credit score and the level of income. Benefits of COVID-19 Specific Personal Loans ● Personal loans usually come with an interest rate of 14% to 24%. However, most of the banks have rolled out the COVID-19 loan schemes at 7-15% interest rates. Low-interest rates could genuinely help people whose cash flow has been affected. ● These loans do not carry hefty prepayment fees. Also, the processing fees charged for these loans is either zero or a bare minimum. ● Since these loans are offered only to existing customers, there is a lot less paperwork involved. This helps the people to get their applications approved quickly and get the loans sanctioned. COVID-19 Personal Loan schemes are designed for helping people in facing this pandemic and are one of the best financial product available to the general public to tackle the liquidity crunch caused by the pandemic.

The Reserve Bank of India launched the Banking Ombudsman Scheme in the year- 2006. It was launched under the Banking Regulation Act, 1949 as a forum to hear and address consumer complaints. As a consumer, it is essential to be heard when one is not satisfied with the banking service. The main objective behind setting up the scheme was to give customers a platform to file complaints and resolve issues on a priority basis. When the bank fails to reply and address the complaint within 30 days, a customer can approach the Ombudsman. Role of a Bank Ombudsman The Bank Ombudsman is a senior official whose principal role is to redress customer grievances and complaints against banking services. The Reserve Bank of India appoints the office, and till date, there are 20 RBI-appointed officers. The officer addresses the claims and customer complaints about commercial banks, co-operative banks and regional rural banks. However, there are only specific categories of banking faults and complaints that can be lodged with a Bank Ombudsman. When can a consumer file a complaint with the Ombudsman? A consumer cannot directly file a complaint and redress grievances with the Ombudsman in all cases. There are situations and circumstances which require a special address. There are many scenarios under which a consumer can approach the Bank Ombudsman office for registering the complaint. Hence, a consumer-first needs to complain to the bank, and if they fail to take any action, one can approach the Ombudsman. If the bank fails to reply to the consumer within one month of receiving the complaint/rejects the complaint/not satisfied with the response, the consumer can approach the Banking Ombudsman. What are the eligible categories of complaint? The complaints can be made on various grounds relating to either deposit, account, and remittances or regarding loans. Here are some scenarios based on which the complaint can be made. ● Non-payment or delay in collection or payment of draft, bills, cheques. ● Non-acceptance of small denomination notes or coins without any sufficient cause. ● Delay or failure of providing appropriate banking facilities as promised by the bank or the selling party. ● Failure to delay or issue the drafts, banker's cheque and pay orders. ● Failing to observe the RBI directives for the rate of interest applicable on deposit in saving, current or other related accounts. ● Non-payment of deposit or delay of credit of money. ● Refuse to open a deposit or savings account. ● Adding or levying banking charges on the customer account without prior notice. ● Delay or non-disbursement of pension and non-acceptance /refusal of tax payment as required by government or RBI. ● Non-adherence to instructions provided by RBI on ATM/ debit or credit card functioning. ● Delay or refuse to close an account. ● Closure of an account without valid cause or prior notice. ● Delay, refusal to issue or fail to use redemption of government securities. ● Non-adherence of the bank to instructions by the RBI for mobile banking or electronic banking service. ● Not following fair practice code by the bank as issued by the RBI. ● Non-adherence of code of the bank's commitment to customs as issued by the Banking Codes and Standards Board of India. ● Non-adherence of guidelines by RBI on the engagement of recovery agents by the bank. ● Non-adherence to guidelines by RBI on para-banking services like insurance sale, mutual fund, other investment products provided by the bank. ● No update of CIBIL records. ● Delay in sanction or disbursement of loan application beyond the schedule. ● Rejecting loans or non-acceptance of loan application without providing a valid reason. Any grievance against the bank can be raised with the Bank Ombudsman so that a settlement can be done between both parties. In one incident, an 81-year schoolteacher Laxmi Bhandarkar was harassed and threatened by recovery agents for two months for non-payment of credit card due on her son's credit card. He had not done the transaction on the credit card, and he sent a letter addressing the error. However, the bank refused to help, and in such cases, the settlement needs to be done through the Bank Ombudsman. The original scheme was set up in 1995, but major revisions were done to the scheme in 2006 which covered ATM as well as debit/credit card transactions. As per a survey, it is found that nearly 65% of people face issues with banks, and a lot of cases need to be settled through a written complaint with the Bank Ombudsman. In another case of harassment, a senior citizen was compensated by the BO scheme, a sum of Rs 1 Lakh for receiving recovery calls for a loan he never took. However, it was found that a third party took the loan, and he received the calls due to a KYC lapse. Who and how can one file a complaint? Any consumer can file a complaint using the banking facility and against any of the private or co-operative or rural banks. The complaints can be made by NRIs as well with an account in India regarding remittances from abroad or deposit. The other option is the consumer can authorize a representative for filing the complaint other than the advocate. The complaint can be made in writing on plain paper or even file it online through the official website or via email to the Banking Ombudsman. The complaint can be lodged at the Banking Ombudsman office under whose jurisdiction the bank branch falls. The compensation amount to be paid by the bank for the loss of the complainant is either limited to amount which is lost during the act, or bank fault or maximum of Rs 20 lakh, whichever is lower is applicable.

Are you thinking of borrowing a loan for your house repair, or buying a new car, or any property that you wished to own for a long time? Do you have an adequate credit score for the approval of the loan? Are you aware of the benefits of a good credit score? Let’s have a quick look at what is the credit score and how it will aid you in getting a hassle-free loan. A credit score is a numerical value that signifies the financial worthiness of an individual. The credit score calculation is carried out on the basis of credit report sourced from credit bureaus. That include past loans, EMIs and dues of the individual opting for the loan. In India, there are four credit bureaus licensed by the Reserve Bank of India (RBI) including the Credit Information Bureau (India) Limited (CIBIL), Experian, Equifax and CRIF High Mark. Why Is Credit Score Important? Before lending money, banks and financial institutions evaluate the creditworthiness of the borrower to calculate the amount of risk it poses to lend the money. The credit report along with the credit score come handy for lenders in that case. It enables lenders to quickly assess the qualification of a borrower for the loan, interest rates, and credit limit. Besides banks, organizations like insurance companies, landlords, mobile phone & electronic sellers, and other digital finance companies also use credit scores for calculating the creditworthiness of borrowers. How Is The Credit Score Calculated? CIBIL is the most widely used credit score in India, let’s have a look at how it is calculated. The CIBIL score ranges from 300 to 900. Here are some key pointers of CIBIL score: If someone doesn’t have a credit history, his/her score is -1. If the credit history is under six-months of duration, the score will be 0. CIBIL usually takes 18 to 36 months of time for a proper scoring. In general, the CIBIL score above 750 is considered satisfactory. Which Factors Affect the Credit Score? Although various credit bureaus use different calculation mechanisms, there are four primary factors that all of them consider while calculating the credit score. These factors are: ● Credit History: Your past track record of EMI repayment covers around 30% of the weightage while calculating the CIBIL score. Various financial institutions keep in touch with CIBIL to track the payment records of individuals. Credit history, in general, tracks the records of the past 3 years. ● Credit Utilization: It is calculated by dividing your current outstanding loan by your available limit. It has a 25% weightage in the CIBIL score calculation. ● Credit Mix: There are two types of loans in any portfolio: secured and unsecured. Try to keep your unsecured loans in control as it has a negative impact on your credit score. It has a 25% weightage in CIBIL calculation. ● Other Factors: Besides the above three, the number of credit applications filed in the recent past, the loan applications that have been rejected, and rejections by other banks covers the rest 20% of the CIBIL score. How To Get A Free Credit Score Report? The Reserve Bank of India (RBI) directed in 2017 that all the credit bureaus should offer one free credit report to consumers annually. As mentioned above, there are a total of four credit bureaus in India, so you can get four credit reports in a year by subscribing to them. Notably, the credit report also contains your credit score. How To Maintain A Good Credit Score? ● Timely payment of bills or EMIs. ● Don’t be a defaulter on your loans and credit cards. ● Ensure a low credit usage ratio. ● Don’t go haywire with your credit inquiries. ● Avoid multiple loans at the same time. ● Maintain a balance of secured and unsecured loans. ● Establish a healthy relationship with financial institutions. ● Keep a check on your credit report and credit score regularly. ● Old credit cards are a sign of good credit history, don’t lose out on them. Benefits Of High Credit Score: Individuals with a healthy credit score have 79% of higher loan approval probability. There are a bunch of other benefits as well, which include: ● Easy Availability Of Loans: A good credit score suggests that you have been paying all your EMIs on time. A high credit score is similar to those blue chips that you can cash whenever you are in need. Besides, it also assures your creditors that there is a low chance of you to turn out to be a defaulter. ● Higher Credit Limit: If you have high credit scores, you can negotiate with the creditor easily and can get higher loan amounts. On the other hand, a low credit score signifies that you have not been able to handle credit well. ● Lower ROI: Along with higher credit limits, a good credit score lets you get loans at lower interest rates. Banks or any other crediting agency might offer discounts on your interest rates looking at your repayments history. ● Faster Approvals: Do you know that several lenders offer a pre-approved loan for customers with healthy credit scores and lengthy credit history! This is one of the most significant advantages of a high credit score; the need for money can arise anytime, and you can avoid the waiting time with a higher credit score. ● Adds An Extra Mark On Visa Applications: Many foreign countries like the USA and the UK ask for your credit and income tax history while applying for Visa. You can secure an additional point by keeping your credit score intact. ● Be Future-ready: We all need extra cash now or then, you might not require credit or loan in the near future, but you don’t know how the future might turn out. A good credit score is like a piggy bank, where you deposit a small amount of money on a regular basis and can withdraw a substantial amount at the time of exigency .