You could call us old-fashioned for writing this piece based on cancelled cheques, with internet banking, e-wallets and mobile banking ruling the roost in India’s digital economy. Everything is hassle free or instantaneous nowadays. Banks have also taken a lead forward when it comes to upgrading their website, installing passbook printing machines at branches, allowing cash deposit kiosks and cheque deposit booths as well.
Banking couldn’t have stayed behind with Fintechs and a number of startups taking active interest in making financial products easier to understand, implement and execute for the common public. Although, banks are adopting technology to align with today’s millennial generation consumers, there are still some aspects or processes that are carried out in a traditional way. One such process is the issuing of a cancelled cheque. This is still done manually. We all are pretty familiar with a cheque, but some of us are confused as to what is a cancelled cheque?
A cancelled cheque is basically any cheque which has been crossed with 2 strokes of lines and the word ‘cancelled’ written between. It acts as proof that the holder actually maintains an ongoing account with the bank. Other than this, there is nothing else to be mentioned on the cheque. Sometimes, bank employees will ask the holder to sign at the back of the cheque. The intricacies depend from bank to bank.
A cheque already mentions your account number, your name, MICR (stands for Magnetic Ink Character Recognition, which is a 9-digit code which houses the name of the bank, branch and area code) code, bank name, IFSC (stands for Indian Financial System Code, which is a 11-digit alphanumeric code that assists bank employees in initiating a RTGS or NEFT transaction) code and the branch address. One cannot withdraw cash from the account using a cancelled cheque. This hence means that a cancelled cheque thwarts any attempts by cheque fraudsters. Despite this, make sure you hand over the cancelled cheque to a trustworthy individual, in case you need to.
Purpose of Cancelled Cheque
A number of investment based companies or organizations place high priority to Know Your Customer (KYC) guidelines. So in case you intend to invest in the stock market or mutual funds, the company will ask you for a cancelled cheque, which verifies if the account you have linked to the investments, actually belongs to you.
To set up with the repayment of EMIs in case of loans, a cancelled cheque is generally asked by banks. This is to confirm that the EMI can be auto debited from the same bank account as the cheque. This is common practice when applying for a car loan, home loan or education loan at banks. At times when you need to withdraw your provident fund amount, companies ask for a cancelled cheque to validate your account details. Some companies accept a photocopy, while some prefer the scanned copy.
You basically need a cancelled cheque to:
- Open a new bank account (savings or current)
- Provide KYC as mentioned above
- Withdraw funds from your EPF (Employee Provident Fund) account
- Use it in deduction of cash via ECS (electronic clearing service) activation each month
- Get EMIs assigned for deduction automatically from your account towards a loan
- Purchase an insurance policy which could be endowment, term, health or money back
- Invest in stocks, which will be submitted to the stock brokerage along with other proofs
Personal Loan in India
Talking of EMI repayments, we can take a brief look at the availability of quick personal finance loan in India. If you are just married and need to populate your new home with home appliances or buy new clothes; you might be looking for a funding solution that will help you spend on the required commodities. A personal loan from Loan Singh can get you sorted with the home appliances aspect, but what about the clothing, grocery and accessory needs?
If you are earning enough then there is nothing to worry when applying for a personal loan, which can be termed as a consumer durable loan. Shopping loan is another financial opportunity that is not offered to everyone. Being salaried for at least 6 months, with no credit blemishes, are the traits of someone who can avail a shopping loan in India.
So what makes a personal loan stand out compared to credit cards or borrowing from a ‘langotya yaar’. What you need to understand is that a personal loan is a credit instrument that is different compared to a credit card loan or borrowing from a friend. We, at Loan Singh, want you to upgrade your aspirations and your lifestyle. There is no harm in upgrading your gadgetry or dressing sense. You are salaried and need to look your best. A whole new range of smartphones is being released with awesome features each year. World famous designers have their designs being sold online in India. Summer wear and spring collection are now being made affordable and easy. So, why not join the winds of change. Loan Singh’s finance blog tells you about everything related to unsecured personal loans in India.
Personal Loan Benefits in India
Loan Singh’s hassle-free process and quick approval personal loans are perfect for salaried individuals like you who are too busy to even get a rest. The attractive EMIs and interest rates at Loan Singh, make personal loans affordable to repay back. Add luxury to your mundane lives without putting too much strain on your finances. Your dreams are our dreams. We help turn your dreams into reality. Brand new appliances and electronic products are also needed in case you are relocating due to your job. The job relocation personal loan at Loan Singh helps cover exactly this.
Loan Singh’s easy EMI calculator can help you understand how much you need to pay in order to clear your consumer durable loan. The calculator only needs your intending loan amount and tenure for telling you how much you need to pay each month. A personal loan can be availed between Rs. 50,000 and Rs. 5 Lakhs.
Another huge benefit you have with a Loan Singh online personal loan is that you have the freedom to choose where you want to spend your loan amount on. You can apply for a shopping loan and utilize the cash to spend on an Amazon, some on Flipkart or some on Snapdeal. Unlike so many ecommerce websites that let you gain discounts for possessing a debit card or points of a particular finance provider, Loan Singh’s personal loan can be utilized to be spent on the website you want and on the product you want to spend on.
About Loan Singh
Loan Singh is a digital lending platform that prides in providing online personal finance loan or unsecured personal loan to salaried individuals. You can apply for quick funds as an easy emergency loan which is not a bank loan. We provide a loan with the best personal loan interest rates. The instant funds, or instant loans, are loans between Rs. 50,000 and Rs.10,00,000 taken for purposes such as:
- Home improvement loan/Home renovation loan
- Marriage loan/ Wedding loan
- Medical loan
- Used vehicle loan
- Consumer durable loan
- Vacation loan
- Debt consolidation loan
- Credit card refinancing loan
- Job relocation loan
- Smartphone loan
- Travel loan
- Festival loans
- Gold jewelry loan
- Shopping loan
- Lifestyle loan
- Short term loans
You can calculate your easy EMIs using our personal loan EMI calculator. We accept bank statement and PAN, for quick loan approval. A bad credit score or credit report errors can lead to personal loan rejection. The ‘Loan Singh Finance Blog’ is one of the best finance blogs in India. Loan Singh is a product of Seynse Technologies Pvt Ltd and is a partner to the Airtel Online Store.
Loan Singh’s Online Presence
Loan Singh is not an anonymous digital platform. We are present on almost all leading social media platforms. All you need to do is look for us. You can find us on Loan Singh Facebook, Loan Singh Twitter, Loan Singh Google+, Loan Singh YouTube, Loan Singh Pinterest, Loan Singh Instagram, Loan Singh LinkedIn, Loan Singh Blogarama, Loan Singh Google Business, Loan Singh Medium, Loan Singh Reddit, Loan Singh Tumblr, Loan Singh Scoop It, Loan Singh Storify, Loan Singh Digg and Loan Singh Blogger.