The Government of India levies income tax on the earnings of the country’s citizens and non-resident Indians with a source of income in this country. For every financial year, individuals are also required to file their income tax returns within 31st August for the respective assessment year.

The procedure of income tax payment has now become more straightforward and hassle-free with the introduction of the online process. The income tax India login portal will help you to pay your taxes online without depending on any third-party.

How to register and log in to the income tax portal?

Before paying your income tax, you need to complete the online registration process. Following is a step-by-step guide to help taxpayers complete their registration for income tax login in India and return filing –

• First, visit the official website of the Income Tax Department of India.

• On its homepage, you will find an option ‘Register Yourself’. Click on it to begin this process.

• At the beginning of this registration process, you need to select the user type from a drop-down available.

• Enter the necessary details like PAN, name, date of birth, etc.

• Duly fill in the registration form with other essential details and password.

• Once this process is complete, you will receive a six-digit OTP. Enter it to verify the details provided.

A point to note here is that your PAN will be your user ID. So, there is no need to create a separate username for your account.

The process of income tax e-filing

The process of e-filling of an income tax return includes the following steps –

• At first, visit the portal of income tax e-filling.

• Next, log in to this portal via user ID (PAN), password, and captcha.

• Now, click on ‘e-File’ and then on ‘Income Tax Return’.

• After that, select assessment year, ITR form number, filling type (original or revised return), and then choose the ‘submission mode’.

• Click on ‘continue’.

• Following that, fill up the applicable and mandatory boxes on the online ITR Form, and make sure to read the instructions carefully.

• Then, select the adequate verification process under the ‘Taxes Paid and Verification’ tab.

• Now, verify the ITR information by clicking on ‘Preview and Submit’.

• Submit the income tax return.

• Use the OTP sent to your mobile phone to complete verification and conclude the process.

Documents required for registering and filing income tax

Since income tax login in India is mandatory to file the IT return, one must keep the essential documents handy to finish this process without any hurdles. Here is a list of essential documents that you need to complete this process –

• PAN.
• Aadhaar card.
• Valid mobile number and e-mail ID.
• Bank account details.
• Income proof.
• Investment details along with certificates as their proof.
• Form 16 and 26 AS.
• Documents associated with deductions under Section 80U and 80D.

Importance of income tax return as proof of earning

An income tax return is one of the essential documents required for your home loan approval, among several other requirements. Lenders consider this document as proof of your monthly income and evaluate your repayment capacity based on that.

Additionally, while repaying a home loan, you should know the tax exemptions and benefits that you are eligible for on your repayment.

The loan application is further streamlined with pre-approved offers provided by lenders. The aim of these offers is to help save time on loan processing and make it hassle-free. These offers are available on financial products like home loans, loans against property, etc. You can quickly check your pre-approved offer by providing your essential contact details.

A simple income tax login in India allows you to file your IT return quickly and in a simplified manner. The introduction of this online process also helps you to pay your income tax as per your convenience, not to mention simplifying the process of availing a home loan with documentation fulfilment.

Personal loans are one of the best ways to take care of your financial requirements in the short term. Financial Institutions, like Fullerton India, provide some of excellent schemes for personal loans at very attractive interest rates.

However, there is a complete process to gauge the financial viability of the borrower before the loan amount is disbursed. The basic documents are collected only as per the norms of the RBI. Financial institutions are more interested in the quality of your portfolio i.e. your credit rating when you are taking a loan through a personal loan app.

In this article, we will be discussing the two major concepts of loan processing which are credit appraisal and credit processing.

2 Major Concepts of Loan Processing:

CREDIT APPRAISAL:

Credit appraisal is the process of assessing the various risks creditworthiness associated with repayment of the loan. 

This is a basic exercise to establish mutual trust so that the loan can be taken forward to the final stages of processing. Since there is no collateral in a personal loan, therefore, it becomes necessary for the lender to check for the credibility of the customer.

The fundamental questions asked analyzed by the lender during the processing are:

• Who is the customer?
• How much amount they need and when?
• How will the loan amount will be utilized and for what specific purpose?
• How will the borrower service the debt obligation?
• What protection can the borrower provide the bank in the event of him/her unable to meet the agreed obligation?
• What is the key metrics and how well are they measured, monitored and comprehend?

The five Cs of credit are kept in mind during the credit appraisal.

• Capacity: Capacity to repay the loan.
• Capital: To gauge the risk of pitting the capital in the hands of the borrower and deciding on the final amount. 
• Collateral: Personal loans do not require any collateral. However, this point is taken into consideration while measuring exposure.
• Character: To know the customer applying through an online loan app in a better way.
• Common sense: The most subjective of the five criteria where it is one the discretion of the lender to take the final call.

CREDIT PROCESSING:

The entire flow of credit processing can be divided into the following stages.

• Prospecting: Finding a worthy client who is need of a loan.
• Pre-approval: Getting to know the basic requirements of the client and to get done with the intial documentation.
• Loan processing: Risk assessment and credit checks are done in this stage.
• Credit appraisal: As discussed in the section above.
• Disbursal: The final amount is handed out to the borrower.
• Evaluation: Post-disbursal evaluation is done by a central agency to make sure there was no loophole in the entire processing.

This is how the entire credit processing and appraisal is done at the end of financial institutions after you apply through an online loan app. These steps are strictly adhered to in order to make sure that the process is free of any errors or malpractices. Gauging the risk at the end of financial institutions is critical as there is no collateral in a personal loan through an instant loan app.

While planning your finances can go a long way in ensuring a timely fulfilment of various funding needs, encountering unexpected expenses is unavoidable. It can further get challenging for individuals who have already availed financing. That’s where my top up loan comes in handy, taking care of an urgent funding need during emergencies. Existing personal loan borrowers can thus avail top-up advances to fulfil their additional financing needs.

Let’s take a look at how beneficial these advances can be,the top up personal loan interest rates, and the eligibility criteria associated with them.

A quick overview of top-up advances on personal loans

Select lenders offer a significant portion of the existing personal loan amount as top-up advances. Financial institutions also provide attractive top up loan interest rates to the applicants.

The interest rates on such additional advances on personal loans are also comparatively low, making top-up loans preferable for customers.

• Reduced processing charges and affordable rates

Since the applicant is under an existing loan, top up advances bear minimal to no additional processing charges. A new loan, on the other hand, comes with fresh processing charges and a one-time fee. Top up loan interest rates are also cheaper than a new personal loan, making them more affordable than availing a fresh advance.

• High loan value

Borrowers can avail funds up to Rs.25 lakh over their existing loan amount. A high loan amount can thus be used to meet several emergency funding needs without depleting the savings.

• Minimal documentation and quick verification

To avail this loan amount, the applicant must be an existing customer of the lender. Therefore, it is likely that the financial institution already possesses almost all the necessary documents. It thus ensures quick verification of a customer’s application for top up loan.

• No hidden charges

The loan documentation from the financier will list all the associated charges in complete detail. This record of possible expenses makes borrowers aware of the repayment amount they need to meet, and there are no hidden charges to pay later.

The requirement for additional funding: Reasons to apply for top up loans

As Unsecured advances with no restriction to end-use, top up personal loans can be availed for any possible reason.

• Medical emergencies

With high loan amounts and fast approval, applicants can use these funds to meet any medical emergency conveniently. Therefore, if an existing borrower requires additional funds for a medical emergency,he/she can rest assured knowing that their remedial expenses are taken care of as well with the advance.

• Home Renovation expenses

Home renovation is one of the most common reasons why borrowers may take top up loans as it involves big-ticket financing. These funds are provided over and above a pre-existing personal loan and can also be used to buy new fixtures and furniture for the property under renovation.

• Consolidation of existing debts

Managing multiple loans can be cumbersome at times as borrowers need to track individual credits and payment schedules. Top up advances can thus be availed for debt consolidation loan and be beneficial depending on your current financial situation as putting it to such use helps reduce the monthly instalments as well.

• Big-ticket purchases

Top up loans can also be extremely beneficial when an existing borrower needs to make a new purchase requiring a lump sum payment such as the purchase of high-end gadgets, holiday bookings, etc.

One can also avail a customised personal loan for travel if such a tour involves high-value spending.

• Increase in liquidity

Keeping more cash in hand gives the freedom to make purchases conveniently instead of opting for a financing facility. Paying money upfront helps in reducing the overhead costs in the form of interest accruing on financing the purchase. 

Also,at times making full payment in cash comes with exciting discounts.

What are the eligibility criteria to avail a top-up advance?

A pre-existing relationship with the lending institution helps while availing a top up on a personal loan. Since the borrowers are existing customers, the lender is most likely to possess the required documents already. 

Some lenders also require borrowers to complete stipulated numbers of EMIpayments to provide a top-up on the existing loan. Being a responsible borrower thus increases the chances of securing additional funds. The applicant’s credit history and repayment capability are taken into account as well.

For instance, lenders like Bajaj Finserv offer top up advances on personal loans with many attractive features to eligible customers. Any existing personal loan borrower can thus avail the advances via quick processing.

They Also provide pre-approved offers to make financing hassle-free and time-saving. Such offers are available on several financial products, such as personal loans, business loans, and credit cards. You can check your pre-approved offer using your contact details only.

The associated flexibility and reduced top up loan interest rates make it preferable over new loans.

Make sure to check your repayment capacity before availing a top-up advance. With quick financing facilities and other attractive benefits, top up personal loans can be of great assistance to existing personal loan borrowers during emergency funding needs.