Now that the Government is announcing its annual budget, it's time for you as a student or a young professional to plan your own personal expenses. This article will explain what you can learn from the annual budget and how you can get started on your own personal budgeting.

Budget Terms: All you need to know

Let's try and understand some budgeting terms so that when you read about the annual budget.

Revenue deficit

In an ideal scenario, a revenue deficit should be zero. But in case the Government is unable to match the revenue disbursement with the revenue receipts, it might have to borrow money from other sources.

Revenue receipt

Just like you have a savings bank account, the Government has, what is called, a revenue account. This account is a detail of all revenues earned by a Government. For instance, all tax collected will be categorized under revenue receipt.

Capital receipt

Just like it has a revenue account, the Government also has, what is called, a capital account. This refers to details of all government expenses that have led to the creation of assets that will in turn lead to revenue.

Fiscal deficit

A fiscal deficit is a phenomenon when the Government has gone over budget in expenses and will be required to borrow money from the public to meet the shortfall.

The above-mentioned terms are just a few terms to get you started. You might want to deep dive into all the terms around budgeting to understand the subject better.

Factors that may affect the budget 2021

Some of the factors that will affect the 2021 budget are the industries that did not do well this year – like airlines, hospitality, travel, and tourism. India's job market is under duress and as such, India needs to actively advocate and implement Ease of Doing Business policies that will allow foreign companies to set up manufacturing in India. India also needs to focus on encouraging domestic trade in a time when transit and logistics are taking a hit because many countries have closed their borders and subsequent transit routes.

Why is Budgeting so important?

For a Government, a budget is a blueprint that it will stick to for the next financial year. All of its future expense allocations will be dependent on how it allocates its budgets for the next financial year. Now let's understand why budgeting is important for a young student or young professional like you. Budgeting allows you to understand how much you have and how much you can spend versus how much you want and how much your wants cost. It is a clear framework of your wants and needs. It helps you prioritize between spending on the essentials and spending on the impulses. It helps you start preparing for the bigger picture.

Types of Budgeting

Now, a Government budget is usually of three types – balanced, surplus, and deficit. Each budget allows the Government to allocate its funds on the basis of the availability of funds. A balanced budget is structured and allocated on the basis that the estimated Government expenditure equals the expense receipts in the current financial year. In line with that concept, a surplus budget is when the estimation of revenues is likely to exceed expectations in the financial year and a deficit budget is when the estimation of revenues is likely to be below expectations in the financial year.

As a student or a young professional, you too can plan your budget for the next month on the basis of your expense experience in the current month. At the end of the day, budgeting is all about making personal finance decisions that are comfortable and well suited to your needs and expenses.

5 Ways to Manage your Personal Budget

Just like the Government has a federal reserve for all its savings and revenue, you too need to have a secure place to collect your savings.

Let's say you have your savings in one place – like a savings bank account – next, you need to learn how to spend your money. Here's how you can budget your expenses easily.

Switch to a payments bank

Payments bank applications like Paytm are easier to use because you can add a specific amount of money from your bank account to your digital wallet – so you only spend according to your expense budget.

Save for a rainy day

Unforeseen expenses can make managing your expense budget very difficult. So make a note of possible and potential expenses and collect small amounts of money for any possible large expenses in the future.

Look out for large expenses and see if you can curb them

When you allocate your monthly expenses, you will notice there is always that one large expense that takes up a large chunk of your monthly budget. For instance – if your travel budget for the month is ₹3,000 because you always call a cab service, can you switch to taking the train and reduce that budget from ₹3,000 to ₹300?

Don't spend everything at once

A budget means spending your money in a specific time frame – if you spend everything in one go, you're unlikely to have enough to carry on for the rest of the month. So, learn to control your impulse buys and start spending in bits and pieces.

Make a note of your transactions

Always thinking “Where did all my money go?”

Take note of every transaction that you conduct because this will unearth all those tiny transactions like a random cup of tea or earrings etc that don't let you realize that you might be going over budget.

Budget template

If you're living up to your budget allocations or spending lower than expected, great! Keep it up. But if you're overspending and need help managing the excess expenses, read on to find out how mPokket can help.

Feeling the Cash Heat? Get a quick loan today!

While the country has an entire team of seasoned professionals to manage its budgets, you need to manage your personal budget. You might successfully allocate expenses each time, but there will always be some unexpected expenses that might turn budgets upside down. What can you do in such a situation? When you feel the cash heat, you might usually turn to a friend or a loved one to borrow some cash. But that's always an awkward conversation, isn't it? Why not turn to the friend in your pocket?

Just download the mPokket app on your smartphone and fill out your basic information. That's all you need to do to start applying for a instant short term loan, short amount, instant personal loan. From ₹500 to ₹50,000 – mPokket can approve and disburse your loan – into your bank account within just 48 hours. Click here to know more about mPokket.

Planning for higher education abroad? How about higher studies at a premier institute within India? Quality education is expensive! No two ways about it.

Of course, there are many ways of providing for an expensive education. The two most common ways students fund their higher education is through self-funding or Education Loan.

With self-funding, the full fees have to be paid upfront. Additionally, the living costs are separate which also have to be provided for.

Sometimes, the living expenses may be almost as high as 50 percent of the educational costs.

In addition to the tuition fees, and education loan will take care of your living expenses as well. After you complete your course, you can start repaying the loan.

Furthermore, lenders allow borrowers up to 6 months of moratorium after the completion of their courses.

If you are self-financing your education, you pay the whole amount in one shot. No EMIs!

Contrast that with your education loan. Almost all banks offer easy repayment options in terms of EMIs. Some even allow their borrowers to repay the amount over a decade.

When self-funding, you have to dig deep into your savings. This, in turn, could erode your investment opportunities or worse, emergency contingencies.

With an education loan, you have it covered.

Challenges Faced During Higher Education

In India, the challenges to finance higher education are myriad –

• Personal finances: We may be one of the fastest-growing economies in the world. We may even be one of the biggest economies in the world. All said and done, there is still a significant population in our country that does not have access to even primary education, much less higher studies. Financially challenged, a vast majority of our youth cannot afford quality education because they hail from impoverished backgrounds.
• Eligibility for education loans: Conventional banking institutions lend money to borrowers against collaterals. With a large section of the population unable to put up the commensurate assets to be eligible for a loan, students are unable to avail financial aid to secure a good higher education.
• Over-expenditure: Sometimes, even after personal finance and financial aid kick in, it's not enough. A student may get through a University that does not grant him or her a full scholarship.Pupils may simply lack the financial background to be able to afford the balance amount. Banks or other financial institutions may be unwilling to provide the requisite support needed to make up the deficit.

Tackling The Financial Challenges To Higher Education

Fortunately, there are avenues where meritorious students can seek financial aid in order to fulfill their dreams of higher education –

• Government grants: More often than not, governments run schemes that help gifted students secure a berth for higher education. These schemes are customized to suit the unique needs of the ones seeking financial aid. This includes special cases such as government employees, single parents, etc.
• Scholarships: Scholarships are financial incentives that are merit-based. They enable gifted students to pursue higher studies. Scholarships are tailormade to each course within an academic institution. One of the most attractive attributes of scholarships is that they are not geography-specific.
• Student loans: In the event that a student does not secure a scholarship or grant, he or she can always seek a student loan. Banks offer student loans at acceptable interest rates. What's more, financial advisors will guide you every step of the way in order to ensure that you make the most informed decision.

Self-Funding Or Education Loans

Over and above the pros and cons of taking an education loan vs self-financing one's higher education that has already been discussed at the beginning of this article, there are additional benefits to taking an education loan –

• Tax exemption: When you avail of an education loan, the complete interest on the loan is exempted from tax – an enviable attraction you cannot avail of when self-funding.
• Timely payments: If you are paying for your higher education yourself, you have to keep a constant eye out for those deadlines to the installment payments. Contrast this with an education loan where the bank takes care of these formalities.
• Credit History: Anybody who has ever paid a loan on time knows that timely payments positively affect your credit score. This, in turn, helps you to procure more loans in the future for a car, house, etc.

An education loan will take care of your larger expenses such as college tuition and living expenses. Unfortunately, it may not always help in meeting daily or petty expenses. What if you were in need of some stationaries? Or pay for your gym membership?

At mPokket, we understand the importance of loans to meet emergencies, even if they are short-term. This is why we offer loans, not just to college students but to young professionals as well.

Simply download and install the instant loan app, register with a handful of documents, and apply for a loan. Once approved, up to Rs.50,000 will be instantly credited to your bank account.

The nightmare that was 2020 has passed and it is time to actively reflect on our financial goals for the new year. Yes, the past year has passed on ordering take out, online shopping and binge watching on entertainment streaming services.

Needless to say, spending has taken precedence in 2020. But now is the time to find the right balance between saving, investing and spending. If we were to describe the difference between saving, investing and spending in a nutshell, we'd say each is a way to not only spend our income but also grow our income.

Wondering how? Our spends are generally for things we want – to want those things, we need to save up and to save up, we must invest that income. With us, so far? Let's make this simpler and understand each concept, one at a time.

Savings

Let's start with savings. There are different ways to save your money – the simplest way is to let it sit in your bank account and let it build over time. But with today's savings account interest rates offered by banks, your savings will build up at a tediously slow pace. Additionally, your savings are not going to be able to keep up with the rapidly increasing prices. Most banks offer several ways to save money like fixed deposits, term deposits and recurring deposits. These tools can actually help you make disciplined savings – especially if you instruct your bank to auto deduct the amount each month.

You can also save money by tracking your expenses, planning your goals, cutting costs by cutting down on impulse purchases and managing your budgets better. But managing your expenses and setting up a savings account will only get you so far. A great way to save and build your money is through investments. But before we cover investments, let's understand spendings.

Spending

Spending money can be interpreted in many ways – spending money can help you buy what you want but it can also help you save your money. For instance, spending money on motor insurance can help you save money in case of an accident. The same stands true for health insurance. Spending money on the new PlayStation 5 is just that – spending money. But let's say you're spending money to buy supplies for your business. That's spending money to make money. It's a well planned expense which will eventually help you grow your income. Speaking of growing your income, let's understand how spending is different from investments.

Investments

Spending money is not necessarily done with the goal of receiving a return. But investments always have the goal of either saving your money or growing your money. In today's financial market, potential investors have access to several investment instruments like mutual funds, stocks and shares, bonds and securities etc. These investments can help you save money by reducing your income tax burden and can help you grow money by giving you returns after a certain period.

Now that you have a fair idea of what are savings, spendings and investments, let's look at understanding how you can go about getting started on each of them.

Save, Invest then Spend

Every person has a different appetite for savings, spendings and investments. This is usually dependent on how much money they make, their age and their financial goals. Let's say you're a student. Most of your income comes from a parent or a guardian and in the odd case, a part time job. But that income is usually used for expenses like food and entertainment. As you grow older, you transition into being a professional and start making your own money. At this stage you're usually advised by your parents or anyone in a senior position to start saving actively. This means you open up a savings account and might even experiment with deposit schemes. This stage also puts you in the bracket of having a taxable income. So for the first time, you will start to spend on tax saving instruments like life insurance, public provident funds etc. As your income grows, you automatically start considering where you can invest your money. At this stage, you need investment options that will help your wealth grow. This means investing in mutual funds, stocks and bonds and other market securities that will help you accumulate enough wealth to meet your financial goals.

These financial goals could include larger purchases like a home or a car or even a holiday abroad. The wealth accumulated from your investments can also be used to fund further education, your wedding or your own business. All in all, savings, spendings and investments are inversely related to each other. They are a part of your financial life cycle and the state of each determines your financial health.

Don't let expenses cut a hole in your pocket

Whether you are a student or a professional, your financial cycle of savings, spendings and investments has to start somewhere – each element leads to the other. A great way to start saving is to budget your expenses. Sometimes, unforeseen expenses can mean our savings can take a hit. Wouldn't it be better to avail of a quick, instant personal loan than dig into your savings? It is easier to repay off a personal loan at a reasonable rate of interest over a period of time than to deplete your accumulated wealth in one go.

Instant personal loan apps like mPokket can help you get started on the right financial path by approving and disbursing a quick cash loan online small amounts, so that your savings are not burdened. With mPokket, you can apply for an instant personal loan through the app on your phone, use minimal documentation for your application and once approved, you can avail of a short term loan ranging between ₹500 and ₹50,000 within a mere 48 hours. It's safe, convenient and quick – exactly what you need to step onto the road to financial freedom.

An instant personal loan is an invaluable tool, especially during financial emergencies, etc. It offers a one-stop solution to our money problems. Unfortunately, people in dire need of financial assistance also tend to be vulnerable.

They often fall easy prey to unscrupulous opportunists looking to take advantage of unwitting victims who urgently need money.

Fortunately, instant personal loan scams are easy to detect if you stay vigilant. They usually demand advance payments, guarantee approvals, and promise no credit check.

They also try to snare unsuspecting loan-seekers by offering very aggressive schemes for a “limited period only.”

Phishing

Phishing is a form of cybercrime. Hapless victims are contacted via SMS, phone calls, or email.

On the other end of the call, a con-artist poses as a representative of a well-respected institution and manipulates them into giving up confidential information such as passwords, credit cards, and banking details.

Procured information is then used to commit financial crimes and identity theft.

Some of the most common attributes of phishing scams include:

• Irresistible offers:Almost all phishing scams are preceded by snappy statements and eye-catching imagery tailor-made to grab attention.It may say that you have won the lottery or an iPhone.An easy way to avoid falling for such traps is to simply not open such emails.Creating pressure through urgency: The usual catch behind the exceedingly attractive schemes that phishing scams pitch is that it's always for a limited period only.Often, the mail, message, or call will ask you to supply the necessary details within just a few minutes in order to avail of the offer.Sometimes, it will also be accompanied by threats of suspending your account or relationship with the institution that the fraudsters are pretending to be if you do not do as they say.
• The URLs:Dishonest instant personal loan lenders often induce gullible online users into clicking on links that will redirect them to a dubious site. An easy way to counter such a move is to hover over the hyperlink. It will instantly show the actual site to which you will be redirected.Fraudulent sites are invariably a corruption of the site name of a well-known organization. For example, it may say sitibank.com, falsely representing Citi Bank in an effort to dupe unsuspecting visitors.

Guaranteed Approval

There is a simple thumb rule for instant personal loan approvals the world over – there are no guarantees.

In fact, those who fight white-collar and financial crimes advocate looking out for tell-tale signs such as words and phrases like “guarantee”, etc. Any instant personal loan lender that promises instant personal loan approval without a debt score, credit score, or history and income check should not be approached in the first place.

Before approving any instant personal loan, a credible lender will always perform due diligence in the form of employment details, income, and credit score. Only after proper vetting of the borrower will an instant personal loan be disbursed by licensed lenders.

No Credit Checks

There is no exception to this rule – registered lenders always carry out a credit check. In fact, they will verify a host of other factors related to you before lending money to you.

So, if there is a lender somewhere that is offering an instant personal loan without credit checks, you can rest assured that you are being taken for a ride.

Unsecured Website

A secured website will always have the following 2 things –

• A URL that starts with “https” and not “http” (the “s” denotes security).
• Any page that solicits personal information from you will be accompanied by a padlock symbol.

The aforementioned security measures help protect your website from identity theft and other forms of online criminal activity.

The lack of these security measures with any instant personal loan lender's website should be an immediate cause of alarm. For one, it shows a complete disregard for safety protocols, especially when the product or service you're offering is money.

There may also be a sinister aspect to this seeming indifference to online safety. Dishonest instant personal loan lenders often sabotage their own digital security on purpose so that their customers fall easy prey to online criminals.

When a reputable instant personal loan lender installs these security measures, it becomes difficult for unscrupulous digital operators to breach your confidential information. It also builds trust in the relationship between the instant personal loan lender and its customers.

Protection From Instant Personal Loan Scams

Fortunately, there are just a handful of steps that you can take to protect yourself from instant personal loan scams –

• Phishing:The simplest and the best way to protect yourself from phishing is to only open or respond to a communication from sources you are intimately familiar with.That being said, it is not always possible to restrict oneself to trustworthy sources. If you have to open an unsolicited mail, make sure that you do not click on any link within it. Do not download or open any attachments either.Legitimate organizations, agencies, or companies never ask for sensitive information on pop-up screens. If you are being asked to do so, you're being swindled.Phishing filters are also very effective against unwanted emails and messages. They can be installed in both your browser and mail inbox. While these measures are not full-proof, they do provide optimum protection.
• Guaranteed approval and no credit-checks:The easiest way out is also the safest way. Simply do not respond or reach out for an instant personal loan to lenders who espouse these services.The same advice goes for unsecured websites. It is better to stay away from unsafe business practices than to be sorry after.

At mPokket, we treasure the trust that our customers put in us. This is why our safety and security measures are the best in the instant personal loan app business.

When you share your personal details with us, we ensure that it never falls into the wrong hands. mPokket offers world-class protection against instant personal loan online scams. Our systems are state-of-the-art so you know that your confidential and sensitive information is in safe hands.

Do you know how blockchains work? How about Robo-advisors? Or Unified Payments Interface?

Trying to understand FinTech terms can be an arduous task.

Forget the fact that many of them are difficult to pronounce. As they stare at you from your phone or laptop screen, some of these terms can be straight up intimidating.

Unfortunately, there is no way out of it. The FinTech industry is here to stay and how!

According to thebusinessresearchcompany.com, the global FinTech market is expected to be valued at USD 158 million by 2023. That number is expected to reach USD 191 million by 2025 and USD 325 million by 2030.

Cryptocurrency

A cryptocurrency is a virtual or digital currency. It is created to ideally serve the same purposes that physical currencies do.

They function as limited entries in a database. Unless certain specific conditions are met, these entries cannot be altered.

Cryptocurrencies get their name from the exceedingly powerful cryptography used to safeguard its processes. Thanks to them, digital currencies no longer require blind trusts and third parties to function.

Bitcoin

In 2009, an anonymous entity identifying itself as Satoshi Nakamoto introduced the world to Bitcoin. Described as a “peer-to-peer cash system”, Bitcoin is completely decentralized with no controlling authority or servers.

With the third-party approach, authorities were in control of your personal details and your funds. With Bitcoin, this is executed via Blockchain – a public ledger that records all transactions and makes it available to everyone within the network.

Blockchain

Blockchain makes any digital asset transparent and unalterable with the use of cryptography and decentralization.

A simple way to understand Blockchain technology is to think of it as a Google Doc. Google Docs are distributed instead of being transferred or copied.

This allows everyone involved to access the document simultaneously. Any changes made are in real-time and wholly transparent to all the stakeholders.

Blockchain is a revolutionary and promising technology. It brings transparency, eliminates fraud, and reduces risks.

Anti-Money Laundering (AML)

Anti-Money Laundering (AML) comprises of all those procedures, regulations, and laws that stop criminals from disguising funds obtained through dubious means as legitimate income.

Even though AML laws cover criminal behavior and transactions in a limited capacity, their applications have far-reaching consequences.

For instance, AML laws require financial institutions and banks that allow customer deposits or issue a credit to actively stop money-laundering.

AML regulations monitor illegal activities such as tax evasion, public funds corruption, illegal goods trade, and market manipulation. They also target the means of procuring such ill-gotten money.

Know Your Customer (KYC)

KYC is the abbreviation for know your customer or know your client. It is the mandatory process of verifying the identity of any bank customer.

It is a way for banks to validate the identity of their clients on a regular basis.

KYC helps to identify and prevent corrupt activities such as terrorism financing, money laundering, etc. It involves biometric verification, address proof, face verification, ID card verification, etc.

The responsibility to comply with KYC guidelines squarely rests with the banks. Failure to comply incurs heavy penalties.

Robo-Advisor

Robo-advisors are online platforms that provide financial planning services that are algorithm-driven and automated. With the help of an online survey, they collect information about the future goals and financial situation of their clients.

They then utilize this data to invest their client assets and also offer advice. Some of the features of Robo-advisors include competitive rates, customer education, attentive customer service, security features, portfolio management, account services, goal planning, and easy account setup.

Betterment was the first Robo-advisor that was launched in 2008. It started operating with investor money in 2010, at a time when the great recession was in full swing.

Unified Payments Interface (UPI)

The National Payments Corporation Of India has developed the instant real-time payment system called the Unified Payments Interface (UPI). It facilitates inter-bank transactions and is regulated by the Reserve Bank of India (RBI).

It operates by transferring funds from one bank account to another across a mobile platform. In November 2020, UPI hit 2.2 billion monthly transactions.

UPI is an interbank payment system that allows the requesting or sending of money in real-time. A single app can link multiple bank accounts.

Money can be requested or sent using any of the following ways:

• QR Code: Money can be sent via QR code which has an enclosed mobile number, account number, and IFSC or VPA.
• Aadhaar: Money can be sent to any bank account that is mapped to an Aadhaar number.
• Account number and IFSC: Send money directly to someone's bank account.
• Mobile number: request or send money to any bank account that has a registered mobile number.
• UPI ID or Virtual Payment Address (VPA): Request or send money to-and-fro a bank account that has a mapped VPA.

EMV

EMV is a form of payment that adheres to a standard complied by all smart payment cards. It is widely accepted by automated teller machines and payment terminals.

Visa, Mastercard and Europay are the 3 companies that pioneered this standard together. As such, its nomenclature is the first letter of each company.

EMV cards are also called IC cards, integrated circuit cards, chip cards or smart cards. They save their data on magnetic stripes or integrated circuit chips.

Instant personal loan app services are one of the most promising verticals within the FinTech domain. With just a handful of documents and no collaterals, users can register and avail instant personal loan online of small to medium ticket size for a short duration.

By regularly transacting on the personal loan apps and maintaining a healthy credit score, consumers of instant personal loan app services can increase their loan amount.

mPokket is one of the best personal loan apps in India. We provide loans up to Rs.50,000 to young professionals and college-goers.

The mPokket app is available for download from the Android Play Store. To know more about our offering, get in touch with us today!

For any youngsters out there, college is the first step towards adulthood. Unless you're a day-scholar, this is also the first time you will have to live completely on your own.

Whether it's cooking, cleaning, or laundry, young people have to experience a learning curve that comes with acquiring any new skill. Personal Finance is no exception to this rule.

Around Feb 2020, the Mumbai Mirror reached out to a handful of college students within the city and asked them what their monthly allowance was.

The students came back with a range that varied anywhere between Rs.15,000 – 30,000 per month.

Even with such generous allowances, the youngsters reported difficulty in managing their traveling, tuition, food, and recreational expenses.

Personal Finance Challenges

The idea of money in hand gives young people a false sense of freedom. Add peer pressure to it and you have a recipe for disaster.

Unfortunately, this fallacy is an indispensable rite of passage in their eventual journey towards personal financial independence and success.

• Personal Finance Literacy: Lack of financial literacy is very common among Indian college students. Fortunately, it is never too early to plan for the future.
  Frugality is a skill that sets one up for lifetime success. Learning how to stay debt-free, saving every month, and living within one's budget are all essential to long-term prosperity.
• Learning To Invest: Often, youngsters are caught up in the rush to make a quick buck.
  If it's not an internship, it's a gig. Sometimes, it's a hot tip on volatile shares in the stock market.
  At this age, there's still time before you start investing. However, it doesn't hurt to become knowledgeable about personal finance.
  Cultivating a curious attitude towards financial planning will stand you in good stead in the long term.
• Loan App For Students: Today, instant personal loan app products allow college students to borrow money without collateral. Unfortunately, young people get carried away and end up incurring large debts.
  Using instant personal loan app products wisely can help youngsters maintain a healthy credit score. By closely monitoring how much they borrow and spend at a time, they can learn financial planning at an early age.

Ways To Improve Personal Finance Literacy

The OECD/INFE 2020 International Survey of Adult Financial Literacy was conducted across 26 countries from Latin America, Asia and Europe.

According to this report, young people aged between 18-29 years consistently display lower financial literacy when compared to other age groups.

Thankfully, just a handful of good practices daily can help the youth of our country gain their financial prowess in no time.

• Reading: If you are not a habitual reader, start with the very basics.
  Begin with the Finance section of your daily newspaper. Once you are comfortable with common financial terms, you can move on to publications such as The Economic Times, The Mint, The Wall Street Journal, and The Economist.
  The internet is a limitless source of financial materials through which you can improve your understanding of the economy.
  In addition to well-known publications and authoritative sources, you will also find bloggers with unique insights into personal finance that can help you achieve success.
• Apply The Learning To Your Own Personal Finance: All the reading will be to no avail if you fail to apply your learning and manage your personal finance better.
  Luckily, knowledge brings about a change in habits and mindset, often causing a paradigm shift in one's perception.
  Applying your learning to planning for the future, managing debts, and making monthly budgets will help you achieve your long-term personal finance goals and enjoy a lifetime of prosperity.

Managing Personal Finance Effectively

Learning to manage one's personal finance prudently at an early age is easier said than done. Financial literacy is an acquired skill that takes years to mature.

Thankfully, there are a handful of tips that one can adopt with relative ease. These serve as the building blocks to a lifetime of financial planning and security.

• Sticking To A Personal Finance Budget: College life can be fairly routine. The same group of friends, familiar hangouts, and favorite places to eat.
  Once you've settled into a groove, it's a good idea to stick to a monthly budget. In addition to the ease of mind that comes with financial discipline, you may also end up saving for a rainy day.
• Do Not Overspend: We know. Peer pressure eventually gets to everybody. College is as good a place as any to choose your circle of friends wisely. The company you keep not only shapes your present but also your future. A well-chosen group of friends will not force you to validate yourself or seek their approval constantly. This means less time spent in idle shopping and at expensive coffee shops and more time having meaningful conversations, forming close bonds and lifelong friendships.
• Student Discounts: These days, student discounts are all the rage.
  Not just non-profits or government-run institutions, even corporates are sold on the idea.
  Offering student discounts is one way to attract your target group early and build lifelong brand loyalty.
  Be it gadgets, vehicles, traveling, study materials, or dining out, don't shy away from grabbing your student discount at your favored outlets.
  You've earned it.

If you are a college student or a young professional who can manage your personal finance well, mPokket is the right instant personal loan app for you.

Simply download and install the Instant loan app for students. Register by uploading a handful of documents and get approved.

Voila!

Now borrow instant personal loan online up to Rs.50,000 depending upon your credit score and your repayment history with us.

We credit the money directly into your bank account.

Have you ever sought a loan or applied for a credit card?

If you have, you must know that availing a credit card or a loan requires you to fulfil the eligibility parameters set by the lender. Among other eligibility criteria, one of the most important criteria is your CIBIL score based on which the loan or credit is issued.

What is CIBIL score?

CIBIL stands for Credit Information Bureau (India) Limited. CIBIL, now renamed TransUnion CIBIL, is the leading Credit Information Company in India which calculates credit scores of individuals and so the score is commonly known as CIBIL score.

CIBIL score, also called credit score popularly, is a 3-digit number which measures your creditworthiness. The score measures your ability to take credit and also to pay it off within the stipulated time without defaults.

Simply put, this score allows the lender to figure out whether you would be able to repay the loan or not. The credit score ranges between 300 and 900, and the higher the score that you have, the more favourable would be your chances of availing a loan or credit in your name.

Usually, a credit score of 750 and above is considered to be a good score. If you have a good score, your loan application would be accepted, and you would be able to avail easy credit.

On the other hand, scores below 650 or 700 are considered to be bad scores. At these scores, the loan application is either rejected or accepted with high interest rates and specific terms and conditions.

Importance of credit score

Your credit score acts as a pivot on which the availability of credit depends. For every loan application, your CIBIL score is assessed, and the loan is granted only if you have a good score. Besides the importance of loan approvals, credit score also determines the following –

• The interest rate charged by the lender
• The amount of loan you can avail
• The repayment terms of the loan

If you have a high credit score, you can negotiate a lower interest rate, opt for a high amount of loan and get favourable repayment terms from the lender.

Factors affecting credit score

Your credit score is calculated by CIBIL as well as by other Credit Information Companies based on your past credit behaviour. The score is calculated using different factors. The main factors which affect your credit score calculation are as follows –

• Repayment history
  The main factor which has a major impact on your CIBIL score is the repayment history of your past credit. If you had availed a loan in the past or have a credit card, the repayment history on the credit you availed determines a major portion of your credit score.
  If you always repaid your debt on time, your repayment history would be clean, leading to a high score. On the other hand, if you defaulted on your loans or credit card bills, your score would be low.
• Credit utilisation
  Another important factor is the amount of credit that you use against the credit limit allowed to you. This is called the credit utilisation ratio, and the lower the ratio that you have, the higher would be your score.
  In other words, if you limit your credit usage, your credit score would be high.
• Credit mix
  The type of credit that you have availed also impacts your credit score. Credit comes in two types – secured and unsecured. Unsecured loans are those that do not require collateral security while secured loans are those that do.
  Credit card and personal loans are common examples of unsecured loans while home and car loans are secured loans. If you have a good mix of secured and unsecured loans in your portfolio, your credit score would be high.
  Too many unsecured loans, on the other hand, are bad for your score and should be avoided.
• Inquiries into the score
  Every time you apply for a loan or credit, the lender makes a hard inquiry into your credit score. Each inquiry affects your score, and if there are multiple inquiries within a short period of time, your CIBIL score would be negatively impacted.

The concept of credit report

While your CIBIL score is just a numerical figure, your credit report is the total picture of your current and past credit behaviour. Your credit report contains the following information –

• Your credit score
• Your personal information like your name, PAN number, gender, date of birth, etc.
• Your contact information
• Your employment information as mentioned by banks and NBFCs
• Your account information which contains the details of your loans and credit cards
• The history of enquiries done into your credit report and by whom

How to do a CIBIL score check using your PAN?

You should check your CIBIL score regularly to ensure that it is high or to improve it if it is low for future loan applications. Checking your own credit score is called a soft enquiry and does not affect your score.

You can check your score online using your PAN number. To do so, here are the steps which you should follow –

• Visit CIBIL's official website, which is https://www.cibil.com/.
• On the website, you would find the option ‘Get your CIBIL score'. Click on it to proceed.
• A new page opens wherein the subscription plan details would be shown. Subscription to these plans helps you do your CIBIL score check unlimited times.
• If you wish to get a free credit score, CIBIL allows an annual free score and credit report. For that, you would have to register yourself with CIBIL and become a member. Use the link https://myscore.cibil.com/CreditView/enrollShort.page?enterprise=CIBIL&offer=FACRAA and register yourself for an annual free credit score and report.
• Whether you use the paid service or the free service, Under ‘ID Type' choose ‘Income Tax ID Number (PAN)'
• Provide your PAN number and all the details like your name, gender, contact information, date of birth, etc. and verify your identity.
• If you are buying the paid subscription, pay for the plan that you choose.
• After all the details have been entered, and the payment is made, your CIBIL score would be displayed, and your credit report would also be sent to your email ID.

Your credit score is an important eligibility parameter when you seek credit. The score is dynamic and keeps changing depending on your credit behaviour.

So, practice good credit behaviour to maintain your score for getting quick loan approvals. For a high credit score, you can use the following tips –

• Always repay your EMIs on time
• Make credit card bill payments in full
• Avoid too much credit especially if it is unsecured
• Do not make a lot of loan applications at once
• Pay your utility bills on time as they too impact your credit score
• Have a healthy mix of credit in your portfolio

Few simple habits and you can keep your CIBIL score high!

Understand your credit score and pay attention to it. Keep tracking it regularly so that if it falters, you can take the necessary steps to improve it before applying for loans.

Nowadays, people travel for passion. People set a vacation trip to get relief from their busy schedule. They arrange a short tour to get some relaxation from the boredom of daily routines.

But this is facing a huge setback as the Covid-19 pandemic prevails throughout the world. The moving world has come to a stark standstill. As the lockdown started, we all were bound to stay at home.

The hotels, the restaurants, the transport system – every industry faced unimaginable losses. The travel sector as a whole is faring through one of the most challenging phases it has ever seen.

However, we should all remember that whenever we feel stuck in a troublesome situation, we eventually find a way to get out of it. There's always a silver lining in any seemingly negative situation, even if it seems rather faint.

For example, as we all are staying home, our monthly expenditure has drastically reduced. Being passionate travellers, we have all tried to figure out how to save money so that we can go for a trip once the pandemic comes to an end.

Now let's take a look at some proposed steps to save money during this pandemic:

• In this lockdown, you should be careful if there is any chance to save money through your insurance policies. You should stop those policies that are not required at this point.
• You can lower your monthly recharge amount as well. Your data pack, caller pack, and other monthly packages can get reduced. If you want to create a vacation fund, you have to control these expenses.
• You can stop or cancel subscriptions that you do not watch much.
• In this lockdown period, as we all are staying home, we should lower the frequency of shopping. We should systematically create a list and go shopping once or twice a month. It is luxurious to go and shop almost every day. This unconsciousness increases our monthly expenditures.
• We can skip purchasing expensive dresses, goods, or ornaments during the pandemic so that we can create a handsome vacation fund.

In this way, we can increase our vacation fund. We need to reduce unwanted wastage of money and start thinking about how to save money.

It is always better to have a separate vacation fund. When we want to save money, we get puzzled about where to invest.

More often than not, we end up putting that money into our savings account. It generates higher chances of that money being withdrawn.

How To Invest And Where To Invest Money?

Once you get accustomed to how to save money, it is time to search for how to start investing that as well. A couple of things you should keep in mind before looking for options where to invest.

Firstly, you need to invest that money for a short period. So, do not go for long term investment policies. Secondly, as you are saving this money to have a nice vacation, you need to take fewer or zero risks while thinking of how to invest.

When you possess a handful amount of money, the first thought that comes to your mind is how to start investing. Let's take a look at the following options where to invest your savings. These are the safest and better options for your Vacation Fund.

• Low-risk debt mutual funds: If you keep your money in your savings account, there is a high possibility that you would not be able to save it. So if you have a question of where to invest money, then mutual funds are the best answer. Here, you can invest your money at minimum risk. There is also a chance of getting your capital back with some extra amount of money. Specific debt mutual funds are best suited for raising vacation funds.
• Liquid Funds: If you are looking for a short-term money deposit scheme, then you should opt for a systematic investment plan (SIP) in Liquid Funds. Investing in liquid gives you the exposure of getting a 50% higher amount of money at minimal risk. Further, if you can withdraw the money whenever you want. So, if you are searching how to save more money for your Vacation Fund, deposit your money in Liquid Funds.
• Short term funds: Here, the probability of generating higher return increases. But the risk factor increases as well. If you have guts and courage, then you can invest here. Otherwise, settle with Liquid and Ultra-low duration debt funds.

If you are still not sure about where to invest money, then look for Fixed Deposit schemes, various systematic investment policies of different banks. Check out the policies of higher interest rates.

But Mutual Fund is the best option for this purpose of generating a vacation fund. Begin the new journey in investing your savings today. It would lead to a fruitful tomorrow.

If you have grown a habit of saving money, then look for ways of how to save more money. If you have acquired a knack for investing money, then prepare for how to start investing more.

Not many people can acquire the skills of how to save money. So, if you are one of them, try to continue.

So far, we have discussed how the pandemic situation has affected the travelling industry, how people have grown interested in saving money. Saving money is a great habit to develop.

It is more effective if you start saving all around the year systematically. The more you keep for your Vacation Fund, the better you travel.

You can spend more freely during your much-awaited trip. Start saving as much as possible from today itself. Thus, enjoy your vacations with a stress-free mind.

Reading the article up to this point would raise a question in your mind. Maybe, you are someone who is not able to save or invest money in a vacation fund, whether he or she could plan for his or her dream destination in holidays.

The answer is yes! mPokket gives you assistance and assurance by providing monetary support in the form of short-term loans. mPokket is the best place where you can apply for loans easily and get benefitted from that.

So, avail yourself of the instant short-term loans offered by mPokket and travel to your much-awaited destinations. Do not waste time and check out the website of mPokket today. Get yourself available for the loans that are best suited for your purposes.

Online payments and internet banking have made life easy for customers. Users can now make basic financial transactions at their fingertips and do not need to be physically present at banks or exchange money in cash. However, users are also falling prey to various types of financial frauds. As more financial services go online, scams in the online financial industry have also increased. From email phishing to discounting scams and deceiving apps, an increasing number of people experience different types of financial fraud.

A 2019 year-end McAfee survey of more than 1,000 Indian adults showed that ~53.6% of Indians fell prey to different types of financial fraud scams from deceiving apps in the festive season. Further, 25.3% of the respondents said they were victim to email phishing and 21.1% to text phishing.

Although common, most types of financial frauds occur because users do not know how to prevent fraud. The main reason for this is the lack of awareness among users. Many unsuspecting users click on random links and entertain calls from suspicious entities, and end up losing their money. Another common problem among new users is that they do not protect their data and devices, leading to various types of financial fraud.

Let us understand the different types of financial frauds that occur around us and how to avoid being scammed online.

Most Common Scams that occur

1. Phishing: Phishing is a type of financial fraud where a fraudster attempts to steal your personal banking information like customer ID, password, debit card or credit card details via email and misuses this information. In Phishing, the fraudster may try to get you to install malware – software that can steal your data. For example, emails are sent by people who pretend to be a known or trusted source and often ask you for sensitive and personal information. In this case, you must secure your devices and only open emails from legitimate sources.
2. Smishing and Vishing: Smishing is a type of fraud that may affect mobile banking users. This happens when you receive a fake text message from the fraudster asking for your bank account details. Vishing is a fraud wherein a fraudster calls you to reveal your personal and financial information over a call. Asking for OTPs has also become a common way to fraud people.
3. Online shopping frauds: This is one of the most common among the different types of financial frauds over the past few years. Here, fraudsters make fake online shopping sites or apps and typically display products at deeply discounted rates. After you purchase a product and pay the money, either the product is not delivered at all or you receive a fake product. Apart from this, these sites neither have refund/return policies nor customer support details.
4. Lottery and quick money scams: This is also common among various financial fraud types. A lottery scam may come to you as an SMS or email informing you that you have won a humongous amount, and, to claim your winnings, you would need to pay a small fee. Many unsuspecting customers get fleeced by this and end up paying the fee, never to hear back. Many companies also swindle investors by presenting false financial statements, as evidenced by recent financial statement frauds.
5. Credit card and bank loan scams: Hard to believe credit card offers and loan offers are also widely experienced financial fraud types. Many a time, you may also get offers for credit card limit enhancements and personal loans at extremely low rates. These unrealistic offers aim to steal your credit card and banking information such as PIN, passwords, CVV, etc. and misuse it to steal money.

Best ways to avoid these scams/frauds

Now that we are acquainted with different types of financial frauds let us look at how to avoid financial scams.

1. Secure your devices: The first thing you can do to avoid being scammed online is secure your devices. Using anti-spy and anti-spam software can help filter fraudulent emails from entering your inbox. A firewall on your system can help prevent unauthorized access to your computer via malware.
2. Exercise prudence before investing/buying: Recent financial statement frauds show that people often fall prey to schemes and companies that promise unrealistic returns. However, before you invest in a company/business, ensure that you conduct proper research. Further, check the authenticity of the site/app before buying products. Once you develop the habit of researching, you will know exactly how to avoid being scammed online.
3. Red flags to look for in emails, calls, and text messages: Always check who the call/text/email is from before responding. Further, if any sensitive or personal information is requested, it's time to become suspicious!
4. Change passwords periodically: It is a good practice to change your passwords regularly. Ensure that you use a combination of letters, numbers, and special characters. Also, avoid using commonly known facts about you like your birth date as a password.
5. Do not use public computers for financial transactions: If you are wondering how to prevent fraud, this one probably tops the list. Simply avoid using public computers for financial transactions as they may be infected with a virus or malware that can steal your information. Further, someone may even be peeking at your screen while you are entering information.

Ensure that you are aware of the different financial fraud types and how to avoid getting scammed before you transact online.

h4<>CRIF Score: What Does it Mean?

CRIF score is a global credit index or score generated to denote the trustworthiness of a customer. CRIF score meaning is a three-digit score in the range between 300 and 900. A high score signifies more creditworthiness of you, and similarly, a low score represents low reliability. Usually, a CRIF credit score above 700 or 750 is a sound score. This value represents the experiences of a lender with previous credits or loans with you. If you have paid previous ones from time to time, you will eventually have a higher CRIF score. Consequently, the lender will be confident to provide you with the next one.

CRIF is an international credit bureau which is mainly dominant in Asia and Europe. Although, this company acquired High Mark in 2014, which is licensed to maintain a credit bureau in India by the Reserve Bank of India (RBI). Hence, today it is CRIF High Mark.

The CRIF score is of two types. Personal CRIF credit score is to define individual credits, while Business credit score generally signifies credit scores of commercial enterprises and corporations.

In the world of e-commerce, your CRIF score signifies much more intuitions rather than just loan repayment. Often, Insuring agencies look for credit scores to determine the premiums. Sometimes, landlords use this score too to decide whom to lend. So, the CRIF score is more of a commercial tool to denote your worthiness. Having a good score of more than 750 would help you to achieve the most convenient insurance of loans in the market. In this way, you would be a beneficial customer.

How is the CRIF Score Calculated?

Generally, the credit bureaus of each country are responsible for calculating credit scores. There are a variety of factors that play a very crucial role in the CRIF credit score calculation. The significant parameters are credit age, payment history, credit type, and credit utilization.

1. The Credit Utilization Ratio (CUR): Credit usage is one of the two most prominent factors in determining the CRIF score. This ratio implies the fraction of credit you use or have used in comparison to the limit you are allowed to use. Your all-over outstanding balance is divided by the total credit limit you have for generating the Credit Utilization Ratio. Credit usage of around 30% to 40% is necessary to maintain an impressive score.
2. The History of Repayment: Along with usage ratio, repayment is also another most vital factor. It is a crucial part to calculate the value of the CRIF credit score. Bureau tracks the history of loans, bills, and EMI repayment history. Hence, time to time delivery of dues indulges having a sound score. This history assures the lender that you are a genuine and reliable customer and will not cause casualties. On the other hand, missing several payment deadlines will result in a low score and, therefore, delay in achieving further financial assistance. It is a high impact factor.
3. Credit Age: A long credit history often helps to determine the trustworthiness of you. Whereas, short credit history does not make the scoring procedure confident enough to rely on you. Hence, it is good to keep a credit card of long history rather than a new one.
4. Account Total: It is a less significant factor in comparison with the previous ones. The mixed credit value of secured and unsecured types will help improve the overall CRIF credit score.

What Are the Practices That Negatively Affect the Crif Score?

So far, we have talked about CRIF score meaning, CRIF score range, and what a good CRIF score is. Now, let's take a look at some of the practices which harm the score.

• Lack of timely repayment of EMIs: Whenever you fail to pay an equated monthly installment (EMI), your CRIF CIBIL report would take a hit. With every missed EMIs or your payment dues, your CRIF score would decrease. In other words, a low CRIF credit score portraits your pending equated monthly installments.
• Lack of timely payment of credit cards: In recent times, when it comes to purchasing something, people tend to use credit cards more often than before. What is concerning is that the debt on credit cards keeps on stacking. It harms your credit score very much. Heavy usage of credit cards has an adverse effect on your CRIF CIBIL score. Using multiple credit cards would let your credit score go down as well. Therefore the timely due payment of a credit card is crucial for a good CRIF score.
• Unsecured loans: If you have multiple unsecured loans that are due, your credit score will eventually fall. If you have several loans against your name, your CRIF CIBIL report will surely experience a huge setback. So it is better to take one loan at a time to avoid hurting your credit score.

Wrapping Up:

Now, as you know about the negative impacts, it is time to know about the remedies. Let's take a look at the steps on how you can improve your credit score and make it a good one.

• First of all, loans play a significant role in controlling your credit score. So, if you apply for a loan, make sure you completely clear all the debts before applying for another. Proper maintenance of the CRIF credit score would help you take loans as per your need in the future. Hence, long term loans are always preferable.
• Keeping an old credit card helps increase your credit rating. It improves your credit history. Thus, it will generate a sound score. When you cannot clear the dues, you should opt to close that card. But you should always look to keep an older credit card as it enhances your CRIF score.
• As mentioned earlier, the untimely payment of EMIs makes a mess of your CIBIL score. So, it is always advisable to repay your pending installments on time to avoid any kind of consequences.
• It is better to consult with your bank and set a monthly limit on your credit card. In this way, you can minimize using your credit card too much. Hence, your credit score gets improved.

In this article, you get a clear idea about the CRIF score range, CRIF high mark score meaning, negative practices that affect the CIBIL score, and ways to improve the score.

Suppose you are a college student and worried about where to take loans. Don't hesitate to check out mPokket. It is the best place for college students to apply for loans. You have to follow some easy and fundamental steps to apply for the loan.

India loves cricket to an extent where people have been following it like a religion. It brings people together and is the epicentre of an exceptional amount of cheers, prayers, and tears. And with the IPL 2020 season finally, here, the love just blows out of proportion. Now we get game after game of amazing sportsmanship and unmatched skill at the display. It's officially the time to gather your friends or family (or both!) and bond over the couch and cheer for your favorite teams.

The IPL season is already a melting pot for a lot of fun and excitement. But what if we tell you that the IPL is the perfect opportunity to make some money? That would be amazing, right? Let us help you on how you can make the perfect winning IPL team for Dream11's fantasy cricket league and earn extra cash during the cricket season. Topping that with some tips and tricks and possibly some help from the instant loan app– mPokket, we will tell you all that you need to know for your winning streak with Dream11. Being the best loan app in India, mPokket will assure that you make the most of the much-awaited cricket season.

If you don't already know, Dream11 is a game of skill where you can make a fantasy cricket team of real players for an upcoming match. The fate of the match and your team players' performance affects your chances of winning! But it is not a game of pure luck. With a bit of study, analysis, research, and Dream11 tips, you can also crack the code of making a winning team. And we are here to help you earn cash during IPL.

Tricks of the Trade!

You might not be a cricket veteran or a gifted cricket expert. Despite not having an instinct towards the game, you may still stand an excellent competitive chance to win. How may you ask? The answer is simple- by using some well-tested tricks of the trade. Dream11 is one of those games which you can win through research and analysis. Some many apps and websites can help you with Dream11. But let's start with why do you need an app or website to improve your chances of winning Dream11?

• They provide you with accurate stats and analysis for the playing members.
• They also share weather and pitch predictions, which heavily influence the players' performances.
• You also get detailed previews of the upcoming match.
• They give statistically sound suggestions for the captain and vice-captain of the team.

Fancode, CricInformer, Sportskeeda, and Probable11 are a few apps that can help you to make the right decision and give you some dream11 winning tips. You can also refer to some websites like Cricbuzz, profantasycricket, dreamcentric, etc. which share dream 11 tips and predictions for upcoming matches.

The Best Strategy to Create Teams for IPL

It is time to sync your days with the IPL 2020 schedule! Whether you are entirely new to the IPL Dream11 league or have been trying it out for a while now- the following strategies will surely help you to perform better:

• Make transfers strictly after the toss, after the line-ups have been announced.
• Refer to experts for tips for dream11. You can use websites, expert videos, or apps like Fancode where you can get tips from well-known experts like Boria Majumdar, Deep Das Gupta, etc. for your fantasy IPL team.
• Do not stuff your team with the players from a single match. Ideally, fill up to 3-6 players from one match. This is one of the most underrated and beneficial dream11 winning strategies.
• You can also check out websites or apps to get the probable playing 11 before the match. Some apps like Dream Team Go have this feature of today's IPL match prediction.

Additional Tips & Tricks

• Winning is great, but you should always be critical of the amount that you are investing in the prediction. After winning a match or two, players often get excited and pour in all or a major chunk of their winning into the next match. It is risky enough to be never recommended. Your moves should always be precise.
• A good way to manage your finances in the IPL Dream11 fantasy cricket is to fix your investment amount- regardless of whether you win or lose. With this investment plan, you can stray away from losing unnecessarily and save in the long run.
• If you are just starting out financially and are worried about the investment involved, you can try instant loan apps to save extra money for fantasy cricket leagues. mPokket is the best loan app in India as it provides quick, document-free loans.
• Pick your players wisely. Invest in good all-rounders that you trust, as they give you points for both batting and bowling. All-rounders are also great options for captaincy and vice-captaincy.
• Don't be afraid to take calculated risks! Emphasis on calculated. Most of the players in the fantasy leagues end up having the same players majorly. So it all comes down to critically the 2-3 players that you choose exclusively. Thus, a risk or two might be what you exactly need to win the game.

Need Cash? mPokket can help you!

Money management is something we all are put up against early on in our lives. Especially as a student, worrying about money takes a toll on our moods. We all need money to buy study material, parties, college fests, etc. More than often, all our needs cannot be satisfied with our pocket money. Whether you are passionate about cricket in general or are looking forward to trying your hands at Dream11 fantasy cricket during IPL 2020, there is a good chance that you are worried about sparing the finances for it as a student.

But we have a solution for you! Now you can manage your study material, stationery, parties, and other miscellaneous expenses while also sparing some money to invest in IPL Dream11 2020. mPokket is an instant loan app in India for students. So if you are a salaried professional who is crunched beneath the restrictions of your limited salary, we have something for you as well. ,mPokket also provides instant loans for the salaried. No more worrying about monthly expenses- get instant, paperless loans from the best loan app in India– mPokket and spare some money to make the most of the Dream11 IPL season.

The COVID-19 pandemic has spread to the rest of the world since the first quarter of 2020. Barely any country has been unaffected by the effects of the pandemic, be it physically, financially, or emotionally. Life is very monotonous, and the new normal has taken over, the world seems to be adjusted to it by now. Further, the effects of the epidemic have been on all age segments and have not even spared students and young working professionals, particularly financially. This life-altering event has triggered a global recession comparable only to the Great Depression of 1929. This has caused heavy loss of jobs, particularly in businesses that involve discretionary spending.

Students and young working professionals have been heavily hit with unemployment and cash crunch due to job loss and ample free time. Many of them are finding it hard to keep up with daily expenses and also emergency expenses. Even as the world hurries to find a vaccine against the coronavirus, the post-pandemic business scenario looks dull from where we are standing. Thankfully, options such as instant personal loan are available to aid through the financially trying times.

A Closer Look at the Core Challenges Faced by Students and Young Working Professionals

Clearly, the pandemic has had far-reaching effects on students and young professionals. These young folks have faced tremendous challenges during this pandemic phase due to the decreasing unemployment rate and pay-cuts and widespread withdrawal of job offers. College students are finding it difficult to pay their tuition fees, mobile bills, buy books, and add to that one more expense. Since the pandemic has taken everything online, several students need additional gadgets and more data packs to attend their online classes. This is yet another expense. This has been the case even for working professionals as they need proper gadgets to work from home. Also, due to the lockdown, the internet bills have shot up, adding not only the online classes but also the surfing of the web in free time.

COVID-19 has also dented career plans, especially for those just about to begin a job or going for higher education. Many students who just graduated have lost their job offers, and their future in a post-pandemic world remains uncertain. Another problem that many young working professionals are facing as one of the effects of the pandemic is that they struggle to pay their utility bills and even daily expenses, especially if their families depend on them. Many of these young professionals may even have taken long-term loans. Due to unemployment, it has been difficult to repay their loan instalments.

Meanwhile, the monthly bills are always knocking at the door. Hence, college students and young professionals are going through a severe cash crunch. Even the lifestyle of these students and young working professionals has been drastically affected, and it is hard to adapt with less money flow. To start with, there's been a complete halt at meeting friends, visiting restaurants, or going to the movies. At the same time, the cash crunch has not allowed this segment to enjoy the lockdown period, either particularly.

It is in this backdrop that digital lending apps have been a boon. With almost everything halted during the lockdown, digital has been doing a “double shift.” That is, personal loan apps have continued to support those in need of money during the pandemic. Instant personal loan apps such as mPokket have offered an instant personal loan to its users all over the country. They have enabled students and professionals to stay afloat during these challenging times.

Personal loan apps have been providing loans for self-employed and personal loans for salaried persons and college students. These instant personal loan apps have been there in the time of need, especially because traditional loan sources such as banks do not lend without collateral, and these apps have quick disbursal. Further, with the entire application process completely online and contactless, these apps are preferable, rather than taking the risk of getting infected by visiting lenders personally.

Impact of COVID on Different Sectors

The pandemic has wreaked havoc everywhere but has affected some sectors much more. These are sectors that involve contact among customers and the staff. The effects of the pandemic have been most felt by the entertainment, leisure, travel, and hospitality industries.

Theatres have been shut across economies. Most entertainment is now available only online. Even the music industry has been drastically hit as concerts have not been allowed since the pandemic hit the world.

Hotels have also taken a massive hit, given that travel is at an all-time low due to the hygienic paranoia and the pandemic. Many restaurants and cafes have shut down permanently due to escalating fixed costs and halting business for many months. Even though some restaurants are now operating at a limited capacity, the sector has definitely taken a big blow and will have a deep financial impact even post-pandemic.

Many other sectors that involve discretionary spending have also been hurt. This includes the retail industry and many other allied sectors. Retail has mainly been hit due to income uncertainty and shutdown of malls. Significant effects of the epidemic have been seen on the gaming industry as well, with gaming centers shut or operating at limited capacity. The postponement and most-awaited of most sporting events like the Tokyo Olympics 2020 has affected allied sectors as well. Most sports events have been cancelled or postponed indefinitely. Most of them are now going on without a live crowd.

Further, airlines, the automobile sector, and even real estate are seeing a considerable contraction given that most people would want to avoid travel, save their money, and protect their health, rather than travelling or taking on new long-term liabilities such as home loans or car loans. At this point, the damage is not confined to select businesses but is widespread across all the sectors.

The Road Ahead

Like most countries, India too is on its way to “unlock” the country. This refers to easing restrictions on movement and activity. Economic activity is slowly limping back to normalcy. However, it will be a while until things resume to pre-covid levels. Business opportunities post-pandemic are likely to be adversely affected.

Therefore, during such challenging times, students and young working professionals may face a cash crunch. It could be anything—from payment of tuition fees to even arranging medical expenses for a family member. In this case, students and young working professionals may find it individually difficult to secure loans, mainly due to personal loan eligibility and student loan eligibility criteria from conventional lending sources like banks. Also, secured loans may be out of reach due to lack of collateral or security.

mPokket provides instant personal loans to students and young working professionals. This personal loan for salaried employees and students can help them tide over financially tricky times. This instant personal loan is available online easily on mPokket's instant personal loan app.

mPokket, with its quick disbursal times, through its loan app for students and working professionals, has already lent to over 5 million users. mPokket's instant personal loan app has assisted young people through their journey by helping them through any short-term money crunch they may face. Plus, mPokket loans require minimal documentation, are paperless, and need no security. Moreover, the instant personal loan is available for flexible loan amounts for up to 90 days at attractive interest rates. mPokket is your friend in need when it comes to difficult financial situations.

Don't let the pandemic derail your life. Download the trusty and reliable mPokket's instant loan app for college students and young working professionals today!