1. What is CIBIL?
CIBIL stands for Credit Information Bureau India Limited. CIBIL's aim is to fulfil the need of credit granting institutions for comprehensive credit information by collecting,collating and disseminating credit information pertaining to both commercial and consumer borrowers, to a closed user group of members. Banks, Financial Institutions, Non-Banking Financial Companies, Housing Finance Companies and Credit Card Companies use CIBIL's services. Data sharing is based on the Principle of Reciprocity, which means that only Members who have submitted all their credit data may access Credit Information Reports from CIBIL.
The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors' portfolio quality. CIBIL provides a vital service, which allows its Members to make informed, objective and faster credit decisions."
2. What Is KYC?
KYC stands for 'Know your Client', a term commonly used for the Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries, including Mutual Funds, to 'know' their clients. This is in the form of verification of identity and address, financial status, occupation and other personal information.
3. What is a KYC Application Form?
A KYC Application Form has been designed for Individual and Non-Individual Investors separately. These forms are available on the Mutual Funds website, AMFI and Central Depository Services (India) Limited (CDSL). You may also approach your branch / distributor for a form. It is important to read the instructions printed on the KYC Application Form while filling the form.
4. What is Amortization?
Amortization is paying off debts in regular instalments over a period of time.
5. What is Pledge?
A right over the security is created in favour of ABFL. Hence shares cannot be transferred or sold by the customer or shareholder.
6. What is Un-pledge?
Removal of a pledge from the security to regain the rights over the security is called de-pledge.
7. What is Guarantor?
A Guarantor is a person who guarantees to pay for someone else's debt if he or she should default on a loan obligation.
8. What is an Escrow account?
We collect funds from you as part of your monthly mortgage payments, and deposit them into an account which we maintain on your behalf. We use the account to pay your real estate taxes, hazard insurance premiums, and if applicable, your flood insurance and/or mortgage insurance premiums. This allows us to ensure that your annual expenses for real estate taxes and insurance are paid in full and in a timely manner.
9. What is approved list of shares?
This is the list of shares/securities approved by Aditya Birla Finance against which loan can be availed subject to predefined hair cut or margin. Aditya Birla Finance has approved more than 500 shares with a haircut ranging from 25%-60% depending upon the scrip category. This list is subject to change from time to time
10. What is Haircut/ Margin?
This represents the amount reduced from the Current Market Value of the stock/ securities the client intends to pledge as collateral against loans to arrive at the loan eligibility.
11. What is Margin Call?
Margin call is the intimation given by the lender to the borrower for replenishing of the short fall in the market value of the collateral stipulated or the loan
12. What is Margin Shortfall?
Margin shortfall is the difference between your customers' loan eligibility and his loan/dues outstanding. This is caused when there is a reduction in the value of the customer's collateral/ securities. The minimum margin is defined in ABFL's Approved List of Securities for each company. Margin shortfall occurs when the margin falls due to a drop in the market price of the shares. As an illustration, assume the margin amount for a particular company is 25%. If the value of shares given is Rs. 100, loan provided is Rs. 75 and the margin is Rs. 25. If the value of shares falls to Rs. 95, the margin amount is now Rs. 20. The shortfall of Rs. 5 must be recouped by the borrower in the form of cash or other collateral.
13. What is Top-up?
Top-up refers to the pledging of additional approved shares/ securities or making part repayment.
1. How do I get in touch with Aditya Birla Finance Limited?
You can reach us through:
Helpline:1-800-270-7000: 9 am to 9 pm, Monday to Sunday (Closed on National Holidays)
Service Branches: 9.30 am to 6 pm, Monday to Friday & alternative Saturdays (2nd, 4th and 5th Saturdays are working. Branch closed on Sundays and National Holidays)
| Aditya Birla Finance Ltd,
Prius – GYS Infinity,
Near Garware Club House,
Paranjpe B Scheme, Subhash Road,
Vile Parle East,
Mumbai - 400057
| Aditya Birla Finance Limited
Plot No. 17, First Floor, Vijaya Building,
New Delhi - 110 001
2. How can I access my loan account information online?
We have always strived to offer you a hassle-free experience. To enable you to be in control of your loan account, we are introducing a unique and completely secure service platform called ABFL Connect. You can access your loan account by using your login credentials
Features of ABFL Connect are:
- View your loan account whenever, wherever
- View and save your amortization schedule for any future reference
- Make an online request for disbursement
- Change your ECS mandate
- Ask for a top-up loan
- Apply for a new loan
3. Why should I opt for a loan from ABFL?
- Customised Solutions. Hassle-free Financing.
- Complete transparency in charges and processes
- Quick Approvals & Minimum processing and disbursement time
- Easy online application process and instant eligibility
- Door step services with simplified documentation through service RM's
- Choose between simple EMIs or structured repayments
- Attractive balance transfer option available to transfer your existing loan to us without any hassles
Disclaimer: The above questions and answers are provided for general information only and may not be completely accurate in every circumstance, do not purport to be legal/ commercial advice, and are not intended to be binding on Aditya Birla Finance Limited (ABFL). ABFL shall have right to change them from time to time. Each case would be reviewed independently, and the FAQs will have no binding effect on ABFL.
1. Who can apply for the loans?
Proprietorship, Partnership, Public and Private Limited Companies
2. How soon will I get the loan?
A loan is generally disbursed within 7-10 working days after the submission of complete and correct documents.
3. What are my loan tenure options?
ABFL provides both short term and long term loans based on the business requirement of the client. This may range from 3 months to 12 years.
4. How much processing fee would I have to pay?
Processing fee will vary from customer to customer upto 2%.
5. What are my various loan repayment options?
You can repay through RTGS, NACH or through a cheque favouring Aditya Birla Finance Limited.
6. Can I directly deposit / withdraw cash from the loan account?
No, you cannot directly deposit / withdraw cash from the loan account. All transactions can be carried out only through cheque / ECS / NEFT / RTGS.
7. Can I apply for an overdraft facility ?
ABFL can help the customer avail Overdraft facility through its partner banks.
8. Can I prepay my loan? If yes, what are the charges involved?
Yes, the loan can be prepaid. Please note that prepayment charges may be applicable.
9. Do I receive a tax benefit from the loan?
Interest paid on the loan is a tax deductible expense.
10. Can I use the loan for any other purpose?
Loans can be used only for the purpose mentioned in the offer document.
11. How can I pay the processing fee?
You can pay the processing fee through cheque / NEFT / RTGS facility.
Disclaimer: The following questions and answers are provided for general information only and may not be completely accurate in every circumstance, do not purport to be legal/ commercial advice, and are not intended to be binding on ABFL. ABFL shall have right to change them from time to time. Each case would be reviewed independently, and the FAQs will have no binding effect on ABFL.