What is an IFSC Code and What is it Used for?

With the demonetization & then fresh currency issuance in India during the last couple of months, there has been a major boost to the cashless transactions in our country. At times, people are forced to move towards the paperless banking even against their wish. Thus, 8th November 2016 has marked an important day in the Econnomic History of India for a major step towards digitalization of financial transactions, be it the banking way, the ewallet way or any other innovative methods of transaction!

Online payments in India can be done through Netbanking, NEFT, RTGS, IMPS, Credit and Debit Card, Electronic Clearing Methods, mobile banking, -wallets introduced by banks, NBFCs as well as mobile service providers in India.

All these modes of payment need to be linked to the home branch savings bank account of the individual with reference to its IFSC code.

What is IFSC Code ?

IFSC Code is the short cut of Indian Financial System Code. It consists of 11 characters in an alphanumeric combination. IFSC of any branch of any bank in India is unique and the identity of the bank can be found through only its IFSC. No other information about the bank, branch, address, etc. is needed for online money transfer once the IFSC code is correctly entered. This information regarding IFSC is often not available when you apply for a savings account, but becomes very important when you already have access to a savings account.

The Reserve Bank of India or the RBI is the Central Banking Institution, which controls the monetary operations in India. Thus, RBI issues the IFSC code to each bank and its branch in India.

How does an IFSC Code look like?

The IFSC code is a 11 character code which is alphanumeric. It typically looks ABCD0123456 where in:

1. First 4 characters of the code represent Bank Code,
2. Fifth characters is Zero which is reserved for future utility
3. Next 6 characters represents Branch code, making the entire IFSC a 11 character code.

For example, a typical IFSC code for SBI would be say: SBIN0018382.

Wherein the first 4 digits are SBIN represent State Bank of India, 5th character is zero and the last 6 characters, i.e. 018382 would help you identify that this code is of SBI, Bangalore, its address, contact details, branch timings, etc. The data is readily available online and can easily be searched.

Why do banks give so much of importance to IFSC?

In today’s virtual world with the press of a button , everything can be transacted online. Whether it is shopping,movie booking ,events booking, purchase of groceries ,etc., when we have so many virtual transactions, the use of IFSC code for transfer is of paramount importance. IFSC is used in NEFT and RTGS.

NEFT is the online mode of payment used by an individual or any organization to make an electronic transfer to another account. Amount transferred thru NEFT is transferred in batches to the recipients by the banks.

RTGS or Real Time Gross Settlement is the electronic gateway, which enables account to account transfer in real time. So this can transfer money from one account to another immediately, while NEFT is settled in batches.

How is the IFSC Code helpful?

When we want to transfer money from one bank to another bank through RTGS, NEFT or IMPS , these being transfers within the banking system, the IFSC acts as a unique identifier. The common link to the transfer of funds is IFSC code.

There are has been a significant transformation in the economy since introduction of the online route and because of this, massive financial transactions have occurred across the banking system. The traffic of funds transfer can be handled /eased only through IFSC code which is already prevalent in our banking system.

Points to note about the IFSC Code.

1. IFSC code can be found in a cheque leaf, along with the other details of the account holder. If they want to check the their own branch IFSC code.
2. Other Banks IFSC code can be found on RBI official weblink.
3. Entire IFSC codes of the branches can be located across the country in the particular bank weblink.
4. Easy and quick transfer of funds by using IFSC code.
5. No scope for error, as the funds will be deposited to the particular bank and account.
6. RBI has advised all the banking firms which are under its umbrella to issue to IFSC code. IFSC code is rolled into the system to identify the route , monitor and track every transaction.

It is also better to know the interdependent terms which are commonly used along with IFSC.

IFSC & MICR- Many a time people get confused with these common terms which are used for transferring the funds. MICR-Magnetic Ink Character Recognition. MICR is a 9 digit number representing city, bank & branch. The code which is introduced by RBI acts as a safety of the negotiable instrument i.e. the cheque. Whereas , the IFSC code helps in directly transferring the amount to the beneficiary account. The IFSC code helps in the instant transfer of money.

IFSC & SWIFT Code- With the Globalization and the boost to the import and export trade & more people are settling abroad, we need to understand the SWIFT code. SWIFT - Society for Worldwide Interbank Financial Telecommunication, it is a 11 character code , first 4 characters are bank code and next 4 are alpha country code,next 5 codes are optional with location and branch code. When we want to transfer the money abroad SWIFT code is helpful.

The main difference is IFSC code helps in the funds transfer within India i.e. domestically, whereas the SWIFT code helps in money transfer abroad. Indian economy is the sixth largest economy in the world measured by GDP, this coincided with major changes in the world economy . All these IFSC, SWIFT codes and various modes of bank transfer, which are introduced by the RBI,helps the citizens to get hassle free, quick and secure access to funds in their savings account within India.

What is the difference between ICICI bank home loan and SBI home loan?

SBI bank and ICICI bank are the two most popular banks and reputed names in the country. However, SBI or State Bank of India is one of the oldest banks in India, while ICICI is a newly established bank. The most intriguing part of SBI bank is that its history traces back to British India. Finally, in 1955, India saw the dawn of a new name, the Imperial Bank of India which gradually became the State Bank of India. 

If you are seeking home loan, then you have the country’s best two banks, the SBI and ICICI. If you are confused which bank to choose, then this article will help you. Selecting between the two banks is like picking the best flower better than other beautiful flowers.  

Difference between SBI and ICICI home loan 

Both SBI and ICICI are good lenders, but comparatively SBI is touted excellent when it comes to reducing and lucrative rates. Besides, service of the bank is extraordinary. The only thing is that you will have to look out for sanction personally and even disbursement which may be time consuming. Therefore, it can be concluded that the SBI home loan interest rate is not taxing on your pockets. Also, to apply for an SBI loan you will have to provide all your documents. 

ICICI bank is also one of the best home loan lenders. Its home loan processing service is prompt. Also, you can avail services of customer care all round the clock. 

Let’s have a look at the difference between ICICI and SBI home loan interest rate 

 • The interest rate for women applying SBI home loan interest rate is 9.10% to 9.25%. For general customers, the SBI home loan interest rate is 9.15% to 9.30%. The SBI Flexipay interest rate 9.25% to 9.30%. 

On the other hand, the interest rate for ICICI bank home loan is 9.20% to 9.50% for general borrowers and 9.15% to 9.45% for women borrowers. 

 • If you are applying for SBI home loan, the processing fees is up to 0.35% of the loan amount and the maximum processing fees is Rs. 11,500. If you want to apply for ICICI home loan, then the processing fees is 0.50% of the loan amount or it may be Rs. 11,500 whichever is lower. 

 • For both the loans no guarantor is required. 

Remember, SBI issues a great range of home loans and the SBI home loan interest rate is suitable for the borrower. According to various consumer awards and surveys have bestowed the title ‘The most preferred Home Loan Provider’. Besides, SBI provides loan at lower interest rate, zero hidden charges, flexible payment options. The SBI home loan interest rate is offered at a lower competitive rate. 

Coming to ICICI bank home loans, these types of home loans are easy to apply for various reasons. Suppose, you want to buy a new house then you can apply for loan from the bank (which you already know) or from your bank’s approved projects. The company offers pre-approved loans to only a selected group of customers including existing customers.  

 

What are the different types of SBI and ICICI home loans?  

They include SBI MaxGain Home loan, SBI Yuva home loan, SBI realty, Her Ghar Home loan, etc. ICICI home loan interest rates vary for salaried applicants, self employed applicants, women applicants, weaker section applicants, etc. 

Also, ICICI offers you the advantage of lowering the weight of EMIs to its customers. Thus, you can gain all the benefits of home loans if you are eligible for the same. However, do research for SBI home loan interest rate and ICICI home loan interest rate , and then make your choice. Choose wisely the one, whether SBI home loan interest rate or ICICI home loan interest rate, that will help you meet the kinds of requirements you have on mind.

Top Five Factors Affecting your CIBIL Score

With credit score becoming the latest buzzword when applying for a credit card or a loan it is absolutely essential to understand the concept. Simply put, credit score is a number given to you based on your financial performance with respect to debts and bills. If you have been regular with your EMI and credit card payments, used credit cards only up to a certain limit, and haven’t applied for cards or loans very frequently, you are likely to get a good score which will aid you in your future credit loan applications. However, a low score won’t be music to your ears!

In India, one of the front runners in credit score is CIBIL. Let’s find out more about this institution and their scoring system – CIBIL score.

Importance of CIBIL Score

Credit Information Bureau India Limited or CIBIL is one of as India’s first credit information company. They obtain payment records of individuals or commercial entities that have bank loans or own a credit card from the issuing lending institution. These details are then synthesized to form the Credit Information Report (CIR), which eventually gives way to the CIBIL Credit Score. CIBIL Score helps banks and NBFCs (non-banking financial corporations) to evaluate fresh loan applications from these individuals and decide whether to approve or reject their applications.

How do banks use the CIBIL score?

CIBIL score ranges from 300 to 900. So, individuals scoring closer to 900 are highly likely to get approved for loans and cards on favorable terms, whereas for individuals scoring close to 300, getting approval on new credit applications will be difficult.

Depending on how high or low an individual scores, banks and NBFCs get a glimpse of the applicant’s financial behavior and credit-hungry attitude. If they see that you have been applying for loan and credit cards very regularly, they feel that you are in constant need of money and are unable to manage your budget in the finances already available to you. Second, if you are always behind on your EMIs and credit card bill payments, it means that you are lazy and lack financial discipline. These factors make banks wary of lending you more money.

Top five factors that affect CIBIL Score

Among the various factors that can affect your CIBIL score, the following five deserve special mention.

• Repayment History – For an individual sharing a history of repayments in due time brings an positive impression on his/her CIBIL Score. This includes clearance of all the previous bills and loan repayments within the stipulated time period. Any amount of due or missed payments or payment that is overdue, brings a negative impression on your score indicating trouble in clearance of your repayments.
• Debt Servicing Time Duration – The entire period of time for which you have been using the credit is one of the major factor that aids in the process of calculation of the cibil score. For an individual servicing the debt for a much elongated period of time and also ensuring absolute timely repayment also helps to improve the score.
• Optimum Utilization of Credit Limits – In the present days, credit cards make availability of high credit limits. For any person who makes the optimum use of these limits brings a poor impact in his/her cibil score.
• Higher Percentage of Credit Cards or Personal Loans – For an individual whose is sharing a more secured loan (a home loan or an auto loan), that person share the chance of sharing a more positive score as compared to other individuals who are sharing a more unsecured loans. The most expensive form of credit is unsecured loans as the more higher the number of unsecured loans , higher are the payments as they counts very high interest rates. Thus when a person has more number of unsecured loans, he/she is more liable to share a lower credit score.
• Credit Applications – Nowadays application for multiple loans and credits is a common practice, but this particular practice mostly brings a negative impression on the CIBIL Score. For individuals who are in constant application for more credit or have just sanctioned a new loan, strict caution is exercised. Innumerable credit application refers to the low capability of the individual for any further additional dept and also indicates the person’s debt burden.

Other Factors

Some other factors that affect the CIBIL Score are mentioned below:

• Loan Settlement - When people are unable to settle their loans, it affects highly on their cibil score. In such cases, the banks sometime also reject loan requests.
• Reducing number of Credit Cards - Reduction or cancellation of credit cards brings down the credit limit bringing a negative impact on your score.
• Suspension of Credit Card Use - Suspension or lack of money transactions using the credit card makes your credit file an inactive one.
• Not Checking the Credit Report – If banks misreport facts on the credit report, delay or not rectifying the errors makes bearing on the cibil score.

What is the difference between HDFC bank credit card and ICICI credit card?

If you want to compare between the HDFC bank credit card and ICICI credit card, then this is just the article you need to read. Before getting into the differences, let’s trace back to the history and details of each bank. Considering the ICICI bank, it thinks big and is always looking for marketshare and profound growth. On the other hand, HDFC bank is more cautious and conservative that grows at proficient measured pace without involving any undue risks. 

HDFC bank credit card

Since mid-1999, ICICI bank had already started its venture of retail banking, but by the end of January-2000, the bank had already introduced personal loans, car loans, home loans and credit cards. On the other hand, HDFC Bank started its retail landing in the year 1998, which was year before ICICI bank came into the field. The bank took more time to launch its credit cards which was only two years back.

A few differences between HDFC bank credit card and ICICI credit card 

It should be noted that ICICI bank issued almost 3 million credit cards, which is actually twice the total number of HDFC bank credit card. Industry reviewers have pointed out, however, the effective number of users of the ICICI bank is not so impressive. In the field of online trading, where you will find a relatively lower risk, the ICICI bank boasts two-third of the total market share. 

Besides, if you look at other financial data of both banks you will have an idea why the HDFC bank is celebrated for its quality services that claim better credit card performance, while the ICICI bank has been successful in issuing more number of credit cards. Record has it that according to the stock market the HDFC bank is valued at a higher premium at Rs. 585 current price and the bank is also valued at 3.5 times book value. In contrast, the ICICI bank is quoted at Rs. 415 and has an estimated book value of Rs. 194. 

Also, it should be noted that the financial operations of the HDFC bank is more profitable with its net margin at 3.2 % and is higher than the ICICI bank’s 2.4%. On an average, HDFC bank pays off an interest of 3.2% but ICICI bank offers 4.5%. 

While the HDFC bank offers credit cards in various categories like Super Premium, Featured Cards, Premium Travel, Premium, Regular, Premium Women, Cashback & commercial, etc., the ICICI bank offers credit cards in categories like ‘ICICI Bank More Cards’, ‘ICICI Bank The Gemstone Collection Credit Cards’, ‘ICICI Bank Airline Credit Cards’, ‘ICICI Bank Unifare Metro Credit Cards’, ‘ICICI Bank Fuel Credit Cards’, etc. 

The HDFC Indian Promoters Holding is 23.2 %, Mutual Funds if 10.5 %, Foreign Institutional Fills is 30.7 %, ADR & GDR is 17.3 %, Public Holding at 18.4 % and the number of shareholders is 4.5 lakhs +. On the contrary, The ICICI Bank Indian Promoters Holding is 0 %, Mutual Funds is 26.6 %, Foreign Institutional Investors is 35.9 %, ADR & GDR is 26.9 %, Public Holding is 10.6 % and the approximate number of shareholders is 7 lakh +, etc. 

The HDFC credit/deposit ratio is 80.7 %, while the ICICI bank credit/deposit ratio is 103.6 %. The HDFC Bank has an approximate 66,000 employees, while the ICICI Bank has 58,000 employees. The net fixed deposits of the HDFC Bank are Rs. 2,378 crores, while the net fixed deposits of the ICICI Bank is Rs. 5,432 crores. 

Everything aside, it just boils down to which ban’s credit card offers features that are in line with your requirement. Once you figure that out, the bank becomes secondary. 

What Is EMI? How Is It Calculated? What Are The Factors Affecting EMI?

In the last two decades India has witnessed a revolution in the arena of banking sector particularly in the loan segment. To build a strong customer base, banks as well as other financial institutions simplified the course of loan processing which, in turn, benefited customers to fulfill their dreams.

Nowadays, most of us have taken some kind of loans from the bank, be it education loan, home loan, car loan or some sort of personal loan. While taking a loan, the most important factor that grasps our attention is the EMI part. Here we are doing to throw some light on the details of EMI, calculation of EMI and factors affecting the EMI.

What is EMI?

EMI stands for Equated Monthly Instalment which is usually a fixed amount of money that the borrower needs to pay the bank or the lender on a monthly basis. EMI payment includes contributions towards principal as well as the interest charged on the loan amount. During initial years, a large part of the EMI goes towards the repayment of interest and then it starts to contribute more towards principal amount of loan. 

Usually banks offer two types of loan repayment EMI. These are Fixed Rate EMI and Floating Rate EMI.

• Fixed Rate EMI: Fixed interest rate loans are those where interest rate remains same throughout the tenure of the loan. It is better to opt for fixed rate EMI if interest rate is lower than the usual rate of interest.

• Floating Rate EMI: Loan interest rate largely depends on the volatility of the market and RBI decisions that controls future course of the market. Floating rate EMI can change in accordance with the market trends leading to sudden rise and fall in interest rate. 

How EMI Is Calculated?

EMI consists of two variable components. These components are the principal amount and the interest rate charged on the loan amount. Interest amount part of the EMI is higher in initial years and it decreases over the years. EMI is calculated involving many factors like loan amount, interest rate and tenure of loan repayment. Formula to calculate EMI is mentioned below.

EMI = [P x I x (1 + I)^N]/[(1 + I)^N – 1]

Where, P = Principal loan amount

               I = Interest Rate per month

               N = the number of installments

What Is Online EMI Calculator?

There are many EMI Calculators available online which makes your task easy while calculating the EMI. You just need to provide some loan information to know the exact amount of EMI. Online EMI Calculator is the most simple but accurate way to determine your loan EMI. In fact, you can check your monthly EMI for a certain amount of loan before you actually opt for the loan. Online EMI Calculator helps customer design customized financial strategy and set financial goals. 

What Are The Factors That Affect EMI?

EMI calculation involves factors like loan amount, loan repayment tenure and monthly interest rate. Basically these all three factors determine the loan EMI and change in any one of these factors can manipulate the EMI amount. If loan amount and interest rate are higher, you can expect a bigger amount of EMI to pay every month. Loan with shorter repayment schedule increase the EMI whereas longer loan repayment schedule reduces EMI amount, provided interest rate remains the same. Another factor that affects EMI is the age of the borrower. Some bank applies higher interest rate after crossing the specified age limit.

Conclusion:

From the above discussion, it is evident that loan amount, interest rate and loan repayment tenure are the three governing factors for EMI calculation. Loan EMI is directly proportional to loan amount and interest rate and it is inversely proportional to the loan repayment tenure. Consider these factors and opt for fixed or floating rate of interest after analysing your present and future financial goals. It is recommended to check the EMI amount on an online EMI Calculator to get a fair idea on how much to pay.

All the details about the home loan EMI calculator

The immense pleasure of owning a home is not comparable to anything else. Gone are those days when people used to save throughout their life to purchase a home and then could enjoy the pleasure for a little while. Home loans are here to stay with easy EMI options justifying the capacity of the buyer. To make it even easier, EMI calculators give an actual picture of your monthly expenses.  

How to calculate the EMI using House loan EMI calculator

The home loan EMI calculator can give the answer to your questions regarding the home loans. As it tells you that if you can take that much loan from a bank or not and along with that it also shows the highest amount of home loan that you can get from the bank so that the borrower can prepare him before taking to the bank persons about the loan.

There are a few simple steps that you need to follow while calculating the home loan details online. You have to enter the name, address and some personal details like phone number email id, occupation and amount of income. The most important thing is that you have to decide the amount of loan and the calculator also require that field. Then it calculates the details that you want to know and makes your job easy.

Sometimes the borrowers think why they should choose a long tenure if they can repay the loan, but the fact is that if they choose a long tenure, the EMI that they have to pay from their income becomes less and burden of the loan also decreases. But the people who are able to repay the loan in a short time of period, they can choose a lesser tenure as they may be concerned to be free from the worry of the loan as much soon as possible.

Why is it advantageous to opt for EMI calculator?

·         There are some banks which give a nice amount of discount for the women if they want to take home loans. In that case, the P.A. may vary from a low percentage so that they don not face problems while returning the whole amount of money after the particular period. 

·         EMI calculator helps one to get an approximated amount of money that he/she can get a home loan from the bank. The customers can gain the idea whether he/she is eligible to get that much amount of loan or not which they have decided to take from the bank. In case that they have a low income, they may not be able to get a high amount of loan unless they can show a minimum income yearly or monthly.

·         Many of the lenders charge the p.a by compound interest instead of the simple one. For that, the buyers may not calculate it by their own. When the tenure is also long, and the amount of loan you are thinking to take from the bank is huge, the home loan EMI calculator executes it in a blink of an eye. This is the reason for which most of the time the buyers opt for loan calculator as they have to give less effort and it also a time-saving matter.

·         Home loan calculator gives an opportunity to the customers to compare the facilities they can get from several banks. It takes out the details like rate of interests, required EMI and other the eligibility criteria and gives the customers the best choice by comparing them. So, it is the best helping tool when you are in a plan to buy a property. The top home loan providers give secure and nice offers if someone does not have the that much financial ability. 

Several banks give a good amount of loan for purchasing a home, and online you can calculate the whole thing like the monthly EMI that is taken from the income of the borrower, the interest which the borrower have to pay annually and more details before they are getting the loans. The positive point to the home loan EMI calculator is that you do not need to ask the bank persons or need not visit several banks to know the home loan plans. You can opt for it visiting the bank's official page from where you are going to calculate the details.

Can I get a home loan with less than 2 years’ work history?

Yes, you can. Your dream to get a home can be fulfilled through various ICICI Bank home loan schemes. As one of the leading home loan providers, it offers a variety of home loan schemes with different eligibility criteria that you need to know/fulfill before applying.

Normally, if you are a salaried individual, you need to submit last 2 years IT returns & balance sheet & P/L account statement. To get these documents you need to have an experience of 2 years.

ICICI bank provides an easy and quick way to get a home loan. With a higher eligibility, you can even enjoy lower EMIs at an affordable rate of interest. In addition to this, ICICI also offers pre-approved loans to select customers and existing customers can avail the benefit of reduced documentation requirements. 

Features and benefits of a home loan from ICICI Bank:

1.       Reasonable rate of interest with both floating and flexible options

2.       The home loan can be sanctioned without even selecting the property

3.       A really simple and smooth documentation process for both new and existing customers

4.       Customers opting for this home loan enjoy longer loan term and lower EMIs

5.       The Balance transfer facility is another advantage of ICICI bank home loan. It allows customers to transfer their existing home loan from any other bank to ICICI bank and enjoy long term savings

6.       Customers can get the loan for up to 30 years

7.       Enjoy a fixed rate of interest for the first 10 years, and later choose a fixed or floating interest rates

8.       The facility of pre-approved loans is also available for customers at ICICI bank

9.       An access to Eligibility calculator and EMI calculator on the ICICI bank website

10.   The Balance Transfer facility allows customers to enjoy additional top up loan amount. This can be up to 100% of the original home loan.

In addition to this, the ICICI bank offers complete guidance to its customers to make their home buying process hassle free. Simplified documentation, flexible repayment options, free personal accident cover, sanctioned approval without having selected a property are other key benefits of ICICI bank home loan.

Those who are interested to apply for an ICICI bank home loan need to provide the following documents:-

1.       Identity Proof, Age Proof, and Residence Proof

2.       Bank Statement of The Last Six Months

3.       Salary Slip of The Last Three Months

4.       Processing Fee Cheque

5.       Form 16 / Income Tax Returns   

Furthermore, self-employed professionals and self-employed nonprofessionals are also required to provide:-    

1.       A valid proof of Education qualification and business existence                

2.       Income Tax Returns with computation of Income of the last 3 years           

3.       Last 3 years CA Certified / Audited Balance Sheet, only from ICICI Bank.

4.       You can apply for a Home Loan with ICICI Bank online in few easy steps.

5.       Visit the ICICI Bank website

6.       Select ‘Apply Now’ option

7.       Fill in the ‘Get eligibility’ form and click on ‘Get Quote Now’ option present at the bottom of the page

8.       Once you get the quote in the next window, click on Apply now option present in front of each loan scheme you are eligible for.

9.       In a new window, you need to fill in your name and mobile no.

10.   Once providing both the details, you will get access to ICICI bank home loan application form.

11.   You need to fill all the information and submit online.

The bottom line: From the above concluded topic it is clear that Home loan has become the basic necessity in day-to-day’s life. People greatly look for flexible housing loan schemes to buy their dream home without many hassles.  In this context, the home loan schemes offered by ICICI are benefitting prospective home buyers significantly and helping them fulfill their much-anticipated dream.

Where can I use HDFC Food Card?

The Food Card (known as food plus card) by HDFC is its collaboration with VISA International again. The employer has to apply to HDFC Bank for issuance of food plus cards for its employee. Then the card is distributed by the employer to its employee so that the employee can have meal in the office and the employer gets rid of coupon listing and tracking system. It is hassle free as the paper vouchers that were distributed among the employee of the corporate had to be tracked manually and reconciled. And if the voucher gets lost or damaged no other alternative was available. The food card has very simple documentation and once it is done it can be used as a debit card only by the given employee. The card is reloaded on the request of the employer when ever indicated. It can also be easily funded from Enet or it can have instructions to directly get the amount debited from the bank. The card has the facility to be monitored that is one can check the balance available in the HDFC ATM machines. It has the net banking access also where you can do online groceries shopping. The card also has the phone banking facility to it. If by chances the card gets lost it can be hot listed by contacting the phone banking. The new card can be issued after the hot listing is done and the balance is transferred to the new card. The major advantage is that Government of India has given a provision that a certain amount of expense is free from tax. The biggest one of all is that some amount of tax is saved every month on the amount we put in the card.


Usage

• This card is a boon in the sense that if you run short of money then also you have this card that will be accepted to purchase groceries and food outlets
• However it gives the benefit that it can be used at all the food and beverage outlet that covers VISA.
• The government has put a regulation that the card can be used only for ready to eat food or non-alcoholic beverages.
• They even cover big bazaar, heritage or for that matter Nilgiris are also considered as food outlets.
• Even Kirana stores who have a visa sticker displayed on it the card covers all of them.
• Any supermarket like Reliance Mart, D-mart and Star Bazaar which accept visa the food plus card can be used for any of the stuff being sold out their.
• It can also be used at all the restaurants which cover visa.
• The cad can be used at some clubs also.
• The card as mentioned can be used at KFC, Subway, and Pizza hut.
• Groceries stores like Reliance Fresh and Spenser also accept this card.
• The food plus card can be used at any POS given by HDFC bank.
• The food plus card can be used in India only.

So by this food plus card HDFC bank provides the easiest way to distribute meal allowances amongst various corporate through out India.


The credit cards across banks and mobile money gives offer of cash back on using them. As told by Subrat Pani Head Kotak Creditcards in one of the articles in economic times Cash-back can be taken as instant gratification and influences of customer behaviour. The exclusive credit card Trump constitutes 65% of the cash back for their credit card base.


The cask back offers are given to the customers so that they can be lured to swipe their cards or use their mobile money by shopping through them. The cash back offer is displayed on the bank records when ever the purchase is made. Mostly merchants do this for no other or extra cost and it is a way in which we can save money apart from network atm fee.


However if we think that how the bank can afford to give its customers a cash back it is simple that by charging the merchant a certain amount of fee on the transaction of credit card the bank takes a cut on the project when the cash back offer is prevelant.These offers generally coincide with the shopping festivals running across the country. At the time of these festivals the merchants offer huge discounts and also does tie up with major banks to offer this difference to the customers which is given to them in the form of cash back.

Does it make sense to take out a personal loan to cover credit card debt?

It is very rare when taking more debt or loan to pay off existing liabilities (such as credit card debt) makes sense. Using a personal loan to pay off your credit card debt is just like moving the money around, but the debt is still there. It is considered as moving the money you owe the bank from one pile to another. You will just end up getting another pile of debt with better terms for you and your family. 

These are the three situations when it might make sense to take out a personal loan to cover your credit card debt:

• Lower your Interest Rates

The most imperative aspect of a debt consolidation loan is to lower the annual interest rate of your outstanding amount. Often, taking a personal loan can be the perfect for you to lower the annual interest rates.  You should not consider a personal loan to cover your credit card debts if it doesn’t lower the annual interest rate which you are paying by now. When you pay a lower interest rate, it will allow you to pay off more principal every month, which in turn will help you in getting out of debt faster, and ultimately lower the total cost of your debt.

• Unify your payments into one

Unifying several credit card payments into one loan is a big achievement and having that one loan payment will allow you focus all your attention, time and money into that one payment as it is much easier to concentrate on paying off one debt instead of many other smaller debts that always seem to nip at your heels.

Once you done consolidating your credit card debt with personal loan, you must keep a watch on your credit card balances and should avoid racking it up. It would not do much good, if you focus on one large debt and start accumulating smaller balances again on your credit cards.

It is advisable for you to avoid playing a shell game with your debts. Consider the underlying, basic reason why you are in debt. Whether you spend more or you don’t stick with your family’s monthly budget, solve such issues in order to get out of your debt and stay out of your debt. 

• Lower your monthly payments

If you use a personal loan to consolidate your debts then it may also lower your total monthly payments for the debts you owe. You may have to run the numbers, but often you will notice that your monthly minimum payment for your personal loan is lower than the sum of all your separate credit card minimum monthly payments.

When you lower your monthly payments, it can help you in creating a debt snowball and would help you to cover your credit card and now personal loan debt faster. For instance, if you were at first paying Rs.30,000 per month in minimum payments to the credit card companies and now started paying only Rs.26,000 per month for your new personal loan, then now you can pay for the other Rs.4,000 per month directly to your loan’s principal. This approach will help you in getting out of a debt faster.

If you are not saving much by rearranging your credit card debts using a personal loan, either by cutting down your monthly payments or lowering your interest rates, it is possibly not a good idea to restructure your debt. Make moving your debt around valuable to you. Try insisting on a lower interest rate for your debt and lowering your monthly payment so you can pay your debt faster, also take control over your finances with one lower monthly payment.