Category: Personal Finance

Union Budget 2026 Expectations: Tax Relief, Sector Boosts & Market Impact

Every year before the budget, public discussion revolves around the same question: what new measures will the government introduce this time for both the common man and businesses? The Union Budget 2026 will be presented in Parliament on February 1, 2026 (Sunday) at 11:00 AM. A notable aspect this year is that despite it being a Sunday, the NSE and BSE will remain open for the entire trading day (9:15 AM to 3:30 PM). The indications emerging regarding tax relief, government spending, and various sectors are considered crucial in determining the direction of the upcoming financial year.

Union Budget 2026-27 Expectations

Area / Sector	Budget 2026 Expectations (As per reports & experts)
Income Tax (Middle Class)	The standard deduction is likely to increase to ₹1 lakh, there will be clarity on the basic exemption limit and tax slabs, and tax compliance will be made simpler.
Section 87A & Capital Gains	Clear guidelines on the applicability of Section 87A rebate on capital gains.
Healthcare & Insurance	Relief from rising hospital costs and health insurance premiums, updating Section 80D limits.
Senior Citizens & Long-Term Care	Increased interest income exemption, policy support for assisted living and home-care expenses.
Real Estate & Housing	Focus on stability, liquidity and sustainable growth, home loan tax benefits for affordable housing policy continuity
Consumer Spending & Rewards	15–20% growth in discretionary spending (electronics, apparel, auto) after Budget, smarter loyalty & rewards ecosystem
Labour Compliance & Power Sector	Simpler labor compliance, predictable inspections, electricity pricing me transparency (market coupling, VPPAs)
Technology in Tax Filing	Simplifying application forms, improving pre-filled data, and streamlining the contactless assessment system.
Crypto & Digital Assets	Clarity on the tax treatment of crypto profits and losses, and rationalizing loss set-off rules.
Retail Investors & Markets	Tax clarity for long-term investing, stable policy direction, harmonisation of capital gains framework
NPS & Retirement Savings	Strengthening pension benefits under the new tax regime, and improving retirement readiness for the aging population.
Housing Finance & Credit Access	Predictable EMIs, easier credit access for first-time and non-metro buyers.
GST & Workplaces	Incentives for GST rationalization, green & energy-efficient offices
Tax Administration	Faster refunds, time-bound disposal of appeals, easier compliance
Surcharge & High Tax Rates	Rationalization of surcharge to ease the high effective tax rate.
New Tax Regime	Stability, fewer changes, focus on ease of compliance rather than new slabs
Health Insurance Adequacy	Making insurance coverage adequate to keep up with medical inflation, not just affordable.
Freelancers & Gig Workers	Simpler, digital-friendly tax framework for multiple income sources
Global Investors	Predictable regulation, lower tax & transaction friction
Digital Payments (UPI)	Sustainable funding model, security & infrastructure investment for payment ecosystem
Indexation & LTCG Relief	Reconsideration of indexation benefits for real estate, gold, and debt funds.
International Credit Card & LRS	Bringing international card spends into LRS framework
Microfinance Sector	Stronger KYC norms and borrower protection
EVs & Green Energy	Clarity on tax rules of EV & hybrid vehicles, battery & storage incentives
Education & Skills	Upskilling programs par GST reduction, AI/ML apprenticeships
Defence & Aerospace	Increase in defense capital expenditure, support to drones & space sector
Digital Economy & Startups	Plea for electronics and infrastructure, and expansion of DPI (Digital Public Infrastructure)
Markets Overall	Instead of big-bang reforms, focus on stability, clarity, and continuity.

1. Income Tax Expectations: Focus on Middle-Class Relief

Standard Deduction: The focus is on increasing the standard deduction for salaried taxpayers to ₹1 lakh.

Basic Exemption Limit: There is talk of aligning the tax-free income limit in the new tax regime to around ₹5-6 lakh.
Section 80D (Health Insurance): Experts are emphasizing the need to allow health insurance deductions in the new regime as well.
LTCG Exemption: The agenda includes revising the LTCG exemption limit for small investors to above ₹1.25 lakh.
Section 87A on Capital Gains: The industry has pointed out the need to clarify the treatment of rebates on capital gains.
30% Tax Slab Entry Point: A proposal to shift the threshold for the top tax slab upwards is being discussed for professionals and entrepreneurs.
Surcharge Rationalization: Rationalizing the surcharge cap to control the high effective tax rate remains a key topic.

2. Old vs New Tax Regime: Policy Clarity Needed

Coexistence of Both Regimes: The Budget 2026 will clarify whether the Old Tax Regime will continue or if the New Tax Regime will become the primary system.
Limited Deductions in New Regime: There is discussion about including some essential deductions in the New Tax Regime, such as:
- HRA (House Rent Allowance)
- Home loan interest
- Health insurance (Section 80D)
- NPS contribution
Senior Citizens Relief: There may be a focus on introducing separate slabs or targeted rebates for senior citizens, especially considering pension and capital gains income.
Taxpayer Shift Trend: Now, over 72% of taxpayers have opted for the New Tax Regime, which means the government is focusing more on stability and clarity rather than frequent changes.

3. Healthcare & Insurance Expectations

Medical inflation has reached approximately 11-14%, so the focus in Budget 2026 is expected to be on controlling healthcare costs.
There is discussion about increasing the health insurance deduction limits under Section 80D to reflect current premium levels and including it in the New Tax Regime.
The need for clear guidelines on hospital room rent and treatment charges is being emphasized to reduce out-of-pocket expenses for patients.
The policy focus is shifting from simply making insurance cheaper to ensuring adequate coverage so that major illnesses are fully covered.
Strengthening group health insurance plans offered by employers through tax incentives is also being considered.
There is a strong push to recognize assisted living and home-care services for senior citizens as healthcare expenses and to create a separate support framework for them.

4. Senior Citizens & Retirement Planning

Interest Income Relief: There are reports that the exemption limit on interest income from bank FDs and savings accounts for senior citizens may be increased from ₹50,000 to ₹1,00,000 to help alleviate the pressure of inflation.
Tax Slabs for Seniors: Discussions are underway regarding separate tax slabs or special rebates for senior citizens to ensure a balanced tax burden on their pensions and fixed incomes.
NPS Support: The need to strengthen the tax benefits available on NPS contributions under the New Tax Regime is being highlighted to encourage better savings for retirement.
Long-Term Care & Assisted Living: Emphasis is being placed on providing policy support for assisted living and long-term care insurance, as medical and care expenses are increasing rapidly with age.
Caregiving Recognition: The need to establish home-care and caregiving services as a structured and recognized profession is being emphasized to ensure reliable care for senior citizens.

5. Real Estate & Housing Finance

Affordable Housing Limit: Discussions are underway to increase the affordable housing limit in metro cities from ₹45 lakh to ₹65 lakh.
Home Loan Tax Benefit: There is a focus on increasing the limit for tax deductions on home loan interest to reduce the burden of EMIs.
REIT & Small Investors: Including REITs under Section 80C could provide small investors with an easier way to invest in real estate.
Green Buildings: The need for incentives to promote energy-efficient and eco-friendly construction is being highlighted.
Easy Home Loans: The focus is on making loan access easier for first-time buyers and those in smaller cities, making homeownership more practical.

6. Infrastructure & Capital Expenditure

Capital Spending: This time, capital expenditure on infrastructure is expected to exceed ₹12 lakh crore.
Roads & Highways: There is discussion about allocating approximately ₹2.9 lakh crore for road and highway projects.
Railways: The railways could receive around ₹3 lakh crore, which would include funding for safety systems (Kavach), Vande Bharat, and Amrit Bharat trains.
Metro & Rapid Rail: The focus is now on expanding Metro and Namo Bharat projects to Tier-2 and Tier-3 cities.
Ports: New funding is being considered for major ports like Vadhavan and port-linked industrial areas.

7. MSMEs & Small Business Support

CGTMSE Credit Guarantee Expansion: The focus is on expanding the CGTMSE credit guarantee cover to ensure that small businesses can access loans more easily.
Quarterly GST Filing: Simplifying the quarterly GST return system for micro-enterprises has been proposed to reduce the compliance burden.
AI-based Customs Clearance (Up to ₹10 Lakh): The focus is on implementing an AI-based fast customs clearance system for import-export shipments up to ₹10 lakh to save both time and costs.
45-Day Payment Rule Enforcement: The need to strictly enforce the 45-day payment rule is being emphasized to ensure timely payments to MSMEs by large buyers.
Simplified Labour Compliance: The emphasis is on making labour laws and inspections simpler and more predictable so that small businesses can operate without fear.

8. Manufacturing & Make in India 2.0

Milestone-based Incentives: Instead of providing blanket subsidies to manufacturing companies, the focus is on a policy of offering incentives upon the achievement of production and performance milestones.
AI & Digital Manufacturing Support: There are proposals to provide tax benefits and subsidies for the adoption of AI, automation, and digital tools in factories.
MSME Competitiveness Platform: The focus is on launching a national scoring platform to measure the productivity and technological readiness of MSMEs, enabling targeted support.
Supply Chain & Logistics Efficiency: Attention is being given to improving logistics and supply chain efficiency to make raw material supply, transport, and delivery systems faster and more cost-effective.

9. Agriculture & Rural Development

NICRA Scheme Expansion: The focus is on expanding the NICRA scheme across the country, aiming to protect approximately 50,000 villages from crop losses caused by climate change.
AgriStack Digital System: AgriStack aims to provide farmers with easier access to loans and crop insurance by integrating land records and crop data.
Climate-Resilient Seeds: There are discussions about providing incentives for the adoption of high-yield and climate-resistant seeds.
Crop Insurance Reforms: The emphasis is on expediting claim settlements by linking crop insurance with digital records.
Food Security: Steps can be taken to strengthen long-term food security through a new Seeds Bill and modern technologies.

10. Education & Skill Development

GST Relief on Upskilling: There is a push to reduce the GST on upskilling and reskilling courses from 18% to 5%, making learning more affordable for working professionals and youth.
AI/ML Apprenticeships: The introduction of AI and ML-related apprenticeship programs in regional languages has been proposed to benefit young people from rural and non-English speaking backgrounds.
Digital Universities & Online Degrees: The focus is on mainstreaming digital universities and online degree programs to make higher education more accessible.
Quality-Based Funding: Education funding is being linked to quality, outcomes, and infrastructure rather than solely to enrollment numbers.

11. Defence, Space & Aerospace

Defence Spending: Defence sector capital spending is set to increase by approximately 20% to boost domestic manufacturing and investment in new equipment.
Space Sector Support: The space sector may be granted critical infrastructure status, enabling private companies to access cheaper and long-term funding.
Drones & R&D: Discussions are underway for a separate PLI (Production Linked Incentive) scheme for the drone industry and strengthening R&D funding to develop local technology.
Aircraft MRO: Tax benefits may be offered to encourage increased investment in aircraft maintenance (MRO), aiming to establish India as a regional MRO hub.

12. Green Energy & Electric Vehicles

GST Reduction on Battery Energy Storage Systems (BESS) : There is a push to reduce the GST on Battery Energy Storage Systems from 18% to 5% to make it easier and cheaper to integrate renewable energy into the grid.
Battery Recycling Incentives: Separate incentives and policy support are being considered to promote the recycling infrastructure for EV batteries, thereby reducing dependence on raw materials.
Focus on Eliminating Inverted Duty Structure: The need to eliminate the inverted duty structure is being emphasized to address the problem of higher GST on inputs and lower GST on outputs for EV manufacturers.
Changes to PLI Scheme for MSMEs: To make PLI schemes more practical for MSMEs, work may be done on lower investment limits and targeted benefits.
Clarity in EV Tax Rules: There is a need for clear rules regarding the tax treatment of electric and hybrid vehicles to avoid confusion for both companies and buyers.

13. Digital Economy & Technology

There are discussions about a ₹10,000 crore PLI (Production Linked Incentive) scheme to boost electronics manufacturing.
Plans are underway to integrate digital services with healthcare and government services to expedite processes.
The need to simplify tax rules on ESOPs (Employee Stock Ownership Plans) for startups is being highlighted.
With the increase in online payments, greater emphasis will be placed on data security.
Work may be done to simplify and standardize the KYC (Know Your Customer) process.

14. Markets, Investors & Capital Gains Policy

There’s talk of increasing the LTCG (Long-Term Capital Gains) exemption limit.
The need for simplifying and standardizing capital gains rules is being emphasized.
The indexation benefit for real estate and gold may be reconsidered.
Discussions are underway regarding balancing the Securities Transaction Tax (STT).
There’s a demand for clear guidelines on cryptocurrency tax rules.

Conclusion

The expectations surrounding the Union Budget 2026 indicate that people want clear and practical changes in decisions related to taxes, investments, and everyday expenses. The focus will now be on how well the budget strikes a balance between the needs of the common man and the market, and how it shapes the economic direction for the coming year.

This Union Budget Day, trade intraday with zero brokerage on Pocketful – featuring advanced charts & fundamentals for new-age traders and investors.

Frequently Asked Questions (FAQs)

When will the Union Budget 2026 be presented?
The Union Budget 2026 will be presented on February 1, 2026 (Sunday) at 11:00 AM.
Will the NSE and BSE be open on Budget day 2026?
Yes, since the Budget is on a Sunday, the NSE and BSE will remain open throughout the day (9:15 AM to 3:30 PM).
What are taxpayers expecting from Budget 2026?
Taxpayers are expecting changes in standard deduction, health insurance relief, and capital gains rules.
Which sectors may get priority in Budget 2026?
Infrastructure, healthcare, real estate, MSMEs, green energy, and the digital economy are likely to receive special attention.
Is Budget 2026 likely to help senior citizens?
Senior citizens are likely to receive relief on interest income and increased healthcare support.

January 30, 2026

Top General Insurance Companies in India

General insurance is something most of us do not think about until we need it. It is like a sudden hospital bill, a car accident, or unexpected damage at home. That is when having the right insurance company makes a difference. With so many insurers in India, from public sector names to new companies, it can get a little confusing to figure out which one fits your needs.

In this blog, we will go through the top general insurance companies in India, share a bit about their story.

What is General Insurance

General insurance is basically a safety net that protects you from sudden expenses when life throws unexpected problems your way, things like illnesses, accidents, or damage to your car or home. It covers almost everything except life insurance. Types of General Insurance are as follows;

Health Insurance, motor Insurance (car & bike), home Insurance, travel Insurance, personal Accident Insurance, business/commercial Insurance.

Industry Overview

The general insurance industry in India is growing fast. In FY24 alone, non-life insurers collected 19.5% more premiums than the previous year, mostly because people bought more health and motor insurance.
Out of India’s total insurance penetration, general insurance still makes up only 0.9% of GDP, which means there is huge room for growth in the coming years.
The non-life sector continues to expand. In FY25, general insurers together wrote over ₹3.08 lakh crore in premiums, which is a good year-on-year increase.
As of FY24 (till December), India’s general insurance market size touched ₹2.21 lakh crore, showing just how large this segment has become.
Private general insurers are gaining more ground. Their market share has climbed to 65.4% in FY25, and analysts expect that number to hit 70% by FY27.
Crop insurance is also becoming a major segment. The crop insurance market is expected to grow steadily, reaching ₹70,000 crore by FY2032.
Motor insurance, one of the biggest parts of general insurance, is set to grow at over 10% CAGR, going from ₹1.12 lakh crore in 2025 to ₹1.83 lakh crore in 2030.
Even newer categories like mobile phone insurance are rapidly expanding. This segment alone is expected to jump from ₹17,000+ crore in 2024 to nearly ₹58,000 crore by 2033.

List of Top 10 General Insurance Companies

1. New India Assurance

New India Assurance began its journey in 1919 when Sir Dorabji Tata founded it in Mumbai. What started as a small initiative slowly grew into one of India’s most trusted general insurance companies. After nationalisation in 1973, it expanded rapidly across India and even overseas

2. United India Insurance

United India Insurance started in Chennai in 1938. After nationalisation in 1972, it merged with several smaller insurers and became one of the major public-sector companies in India. Over the decades, it has built a good reputation for serving people across cities, towns, and rural areas, especially in motor, health, and social insurance schemes.

3. Bajaj Allianz General Insurance

Bajaj Allianz came into existence in 2001 as a joint venture between Bajaj Finserv and Allianz, a global insurance leader. It grew fast and became a household name in non-life insurance. The company is especially known for quick claims and friendly customer service across motor, health, and travel insurance.

4. ICICI Lombard General Insurance

In 2001, ICICI Lombard was established as a venture between ICICI Bank and a foreign insurance partner. It soon became one of the best-known private general insurers in India due to its straightforward products, services that were easy to access digitally and customer-centric approach. It is currently a motor, health, travel, and home insurance provider.

5. Aditya Birla General Insurance

Aditya Birla General Insurance comes from the well-known Aditya Birla Group. Although it officially entered the insurance space in the early 2000s, it has built its presence by offering easy-to-understand plans for travel, health, motor, and business. The company focuses on simple products and helpful service.

6. Bharti AXA General Insurance

Bharti AXA started in 2008 as a joint venture between India’s Bharti Group and AXA, a global insurance company. The company’s domestic reach and international expertise helped it grow quickly. It provides insurance for cars, health, travel, and property, and over the years, it has become known for its technology-based services.

7. Cholamandalam MS General Insurance

Cholamandalam MS is a joint venture between the Murugappa Group from India and Mitsui Sumitomo from Japan. The company brings together Indian market experience and global insurance knowledge. Over time, it has built a strong presence in motor, health, property, engineering, and rural insurance. It focuses on making insurance simple and reliable for individuals, families, and businesses, especially in smaller towns and industrial areas.

8. Digit General Insurance

Digit Insurance is a relatively new company in the general insurance space, launched in 2016 with the backing of the Fairfax Group. The process is simple and easy to use, from buying a policy to making a claim; everything is designed to be quick and fully digital. Digit covers motor, health, home, and even business insurance.

9. IFFCO Tokio

IFFCO Tokio started in 2000 as a collaboration between Indian cooperative giant IFFCO and Japan’s Tokio Marine. With strong rural roots, the company has always been focused on serving everyday households as well as farmers and small businesses. It offers health, motor, home, and commercial insurance, and is known for its customer-friendly service.

10. Future Generali India Insurance

Future Generali was formed in 2007 through a partnership between Future Group in India and Generali from Italy. This mix of local retail understanding and global insurance expertise helped the company grow quickly. It offers a wide range of products, from motor and health to commercial and rural insurance.

How to Choose the Right GI Company

1. Check How Well They Handle Claims (Claim-Settlement Ratio)

Problems often knock on the door without informing, like an accident or a sudden hospital bill, you want an insurance company that supports you instead of giving you the runaround.
Go for insurers known for quick, smooth claim settlements. It saves a lot of time and stress.

2. Look at Their Cashless Network

A wider cashless network (hospitals, garages, etc.) makes your life so much easier.
With cashless services, you do not pay upfront, you avoid paperwork, and things get sorted faster

3. Good Customer Support

During emergencies, you do not want to deal with slow responses or bots. A reliable insurer should offer:

24/7 support
Fast responses
A helpful mobile app

4. Check the Add-Ons They Offer

Add-ons can make your policy much stronger. For example, zero depreciation for cars, and room rent relaxation in health insurance. Pick a company that offers add-ons that you need.

Conclusion

Peace of mind is what it comes down to at the end of the day when deciding on the right general insurance company. What you need is a company that will respond when you call, claim without fear, and be there when you need them most in cases of unforeseen situations. So, sit down and compare what you need, and go with the insurer that you feel comfortable with and can deal with. The correct decision today can save you the worry, time and money tomorrow.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Best Logistics Stocks in India
2	List of Aviation Stocks in India
3	Best Midcap IT Stocks List
4	Best Shipping Stocks in India
5	Top 10 Most Expensive Stocks in India
6	List of Best Chemical Stocks in India
7	List of Best Cement Stocks in India
8	10 Best Agro Chemicals Sector Stocks
9	List of Best Railway Stocks in India
10	List Of Best Footwear Stocks in India

Frequently Asked Questions (FAQs)

How do I choose the right insurance company?
Consider claim settlement ratio, cashless network, customer reviews, and digital convenience.
What is a cashless claim?
A cashless claim lets you get treatment or repairs without paying upfront at network hospitals or garages.
What is the claim-settlement ratio?
It shows how many claims the insurer has settled compared to how many it received. The higher the better it is.
Can I buy general insurance online?
Yes, you can buy and claim your insurance online.
Do general insurance policies offer add-ons?
Yes, you can customise your policy with several add ons.

January 28, 2026

What Is MMID in Banking? Meaning, Features, Uses & Benefits

Earlier, whenever you tried to send money to someone, you were required to ask for their bank details and IFSC codes, etc. If any account number mismatches, the money can be transferred to another bank account. But with the evolution of the digital economy, transferring money is very easy because of the MMID or Mobile Money Identifier.

In today’s blog post, we will give you an overview of MMID, along with the benefits of using it.

What is MMID?

MMID means Mobile Money Identifier, which is a seven-digit unique code issued by your bank to identify your bank account details. It acts as a link between your mobile and your bank account. The MMID code is used to transfer funds instantly. Generally, to transfer funds, people use a long account number and the IFSC Code; users can simply rely on MMID in bank systems along with their mobile number to transfer money instantly.

Features of MMID

The key features of MMID are as follows:

Unique Code: MMID is a unique 7-digit code issued by your bank to identify your account for IMPS transactions.
One MMID: In case you have multiple bank accounts, you will receive a unique MMID for each account.
Mobile Base Transfers: It allows easy fund transfer using only a mobile number and MMID.
Availability: MMID through IMPS works on a real-time basis; it is always available even on the bank’s holidays.
All Banks: MMID works in all the Indian banks which offer IMPS services.

How Does MMID Work

The steps of how MMID works are as follows:

Mobile Number Linking: The first step is to link the mobile number with the bank account.
Creation of MMID Number: Once the bank account is linked with the mobile number, you need to create an MMID number.
Sending Money: To send money, one is required to open their mobile banking app and enter the recipient’s MMID and the amount to transfer.
Approving the Payment: The recipient’s mobile banking app receives a notification for approval.
Transferring Payment: If the payment details are approved by the recipient, the funds are instantly transferred.
Confirmation: Both the receiver and the sender of the money receive a confirmation message or notification for a successful transfer.

Advantages of MMID

The key advantages of using MMID are as follows:

Convenience: One can easily transfer money using a mobile number and MMID, without sharing bank account details.
Instant Transfer: MMID allows real-time transfer of money between the sender and receiver. The amount sent by the sender is transferred to the receiver’s account within minutes.
Secure Mode: Transferring funds using MMID is safe and secure. It only identifies your bank account, and you are not required to share any other details, such as account number and IFSC code.
No internet required: Using MMID does not require any internet connection; it can work on all mobile phones with SMS or USSD.
Economical: Transactions based on MMID involve a much lower cost than other modes of transferring payments, making it more affordable for users.

Disadvantages of MMID

The key disadvantages of MMID are as follows:

Only for Mobile Banking: Customers who use mobile banking services can only use the MMID to transfer funds.
International Unacceptance: The MMID is not widely accepted in other countries; it is only used in regions where mobile banking services are available.
Fraud Risk: Various frauds have been reported related to the misuse of MMID services; therefore, one must be careful while using MMID services for transferring funds.
Approval of Recipient: Transferring money through MMID requires approval of the recipient; therefore, if the recipient is not available or does not approve the approval request, money cannot be transferred.
Low Awareness: The awareness regarding the MMID mode of transferring payment is very limited.

How to Generate MMID

There are various methods through which one can generate MMID. A few of such methods are mentioned below:

Internet Banking

To generate an MMID using NetBanking, you are required to visit the official website of your bank.
Then you need to log in to your NetBanking account using your password and user ID.
After which, you are required to navigate to the fund transfer section and choose IMPS.
There you will find an option to generate MMID, click on it then your MMID will be sent to your registered mobile number via SMS.

Mobile Banking

First, you need to log in to your mobile application.
Navigate to the IMPS section.
Click on the generate or view MMID.

Phone Banking

This step requires calling your bank’s customer care.
Confirm the bank details with the representative.
Ask them to generate the MMID.
Once the request is successful, the MMID will be sent to your registered mobile number.

Conclusion

On a concluding note, the Mobile Money Identifier (MMID) is one of the simplest ways to transfer or receive money from another individual. It just requires your mobile number and an MMID. It acts as a key element of the digital economy or financial inclusion, as money can be transferred using feature phones. The usage of MMID is secured through different layers of authentication. However, it is advisable to be cautious while sending or receiving money using MMID.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	20 Things to Know Before the Stock Market Opens
2	What is Commodity Market in India?
3	Difference Between Trading and Investing
4	Types of Investment in the Stock Market
5	How to Start Stock Market Trading With Low or Limited Capital

Frequently Asked Questions (FAQs)

What is MMID Number?
MMID refers to Mobile Money Identifier, which is used by a user to transfer money to another individual.
What is MMID full form in Banking?
The full form of MMID in banking is Mobile Money Identifier.
What is the MMID number?
MMID is a seven-digit number generated by your bank. It is linked to your mobile number, used for IMPS fund transfer.
Can I have more than one MMID?
Yes, you can have more than one MMID, as each bank provides a separate MMID.
Is it safe to share MMID?
Yes, it is absolutely safe to share MMID as no one can use it to withdraw money from your account.

January 16, 2026

What Is Sensex?

When you read the business news or monitor the market, you tend to hear statements such as Sensex up today or Sensex down sharply, and beginners may wonder what any of this means: What is Sensex, sensex kya hai? Sensex is no more than an index of the main stock market in India.

It is the performance of the 30 strongest and experienced companies that are listed on the Bombay Stock Exchange. The rise in prices of these companies increases the Sensex and vice versa. To put it in the simplest words, Sensex is like a report card that would demonstrate the state of the Indian stock market, whether it is healthy, strong, or weak at any particular time. In this blog we will explore how Sensex works and why it influences investor decisions.

What Companies Make Up the Sensex

The Sensex is composed of 30 large, consistent, and highly traded companies that are the largest in India. Such firms work in the banking sector, IT, energy, fast-moving consumer goods, cars, and manufacturing. Collectively, they demonstrate the performance of the Indian economy.

The list is regularly updated, therefore, leaving only the most significant and powerful companies in the index.

Company	Sector
Reliance Industries	Energy & Conglomerate
HDFC Bank	Banking & Finance
ICICI Bank	Banking & Finance
State Bank of India	Banking & Finance
Infosys	Information Technology
TCS (Tata Consultancy Services)	Information Technology
HCL Technologies	Information Technology
ITC	FMCG & Diversified
Hindustan Unilever	FMCG
Larsen & Toubro (L&T)	Engineering & Construction
Axis Bank	Banking & Finance
Kotak Mahindra Bank	Banking & Finance
Bharti Airtel	Telecom
Maruti Suzuki	Automobiles
Mahindra & Mahindra	Automobiles
Tata Steel	Metals
JSW Steel	Metals
UltraTech Cement	Cement
Titan Company	Consumer Goods & Retail
Bharat Electronics (BEL)	Defence & Aerospace
Bajaj Finance	NBFC
Bajaj Finserv	Financial Services
Power Grid Corporation	Power & Utilities
NTPC	Power & Utilities
Sun Pharma	Pharmaceuticals
Wipro	Information Technology
Tech Mahindra	Information Technology
Tata Motors Passenger Vehicles	Automobiles
Trent Ltd.	Retail / Consumer Retail

How to Invest in Sensex?

The investment in the Sensex is easy and user-friendly. You cannot purchase the Sensex, although you can purchase index funds or ETFs that track the Sensex. There are several basic steps to be followed before you start:

1. Open a Demat Account

You require a Demat account so that you can store your investments in digital form. It has the units of the funds or ETFs that you purchase, and you can easily open your Demat account with Pocketful for a fast and seamless investing experience.

2. Open a Trading Account

An online purchase of Sensex funds requires you to have a trading account, as well. The BSE does not allow people to directly sell or purchase securities.

3. Maintain a Bank Account

You require a bank account in which your trading and Demat accounts are connected. KYC is also required to complete with the help of a PAN card to begin investing.

As soon as you are ready with these three accounts, you can start investing in the Sensex by:

Sensex Index Funds
Sensex Exchange-Traded Funds (ETFs)

Both alternatives allow you to invest in the 30 companies that comprise the Sensex in a very easy and diversified manner.

How Sensex Moves and How Its Value Is Calculated

The BSE periodically revises and updates the list of companies that comprise the Sensex in order to ensure that the index always reflects the actual, up-to-date performance of the Indian market. Initially, the Sensex employed a full market-cap approach. It was later altered in 2003 to a free-float market-cap system, which is the global standard today.

Using the free-float method, only the shares that people can purchase and sell in the market are taken into consideration. Stocks owned by the promoters, insiders, or the government, known as restricted shares, are excluded since they are generally not traded.

The calculation uses this formula:

Free-Float Market Capitalisation = Market Capitalisation x Free-Float Factor.

Market Capitalisation refers to the total of all the shares of the company in the market.
Free-Float Factor: The proportion of the total shares that are freely traded in the market.

Why Sensex Goes Up or Down

The index is a 30-stock index that the Sensex tracks. When the majority of them increase, then the Sensex increases. If they drop, the Sensex falls. These actions are influenced by a number of key factors:

1. Company Performance

As soon as a company demonstrates positive quarterly performance, earns more money, presents a new product, or expands its business, the shares increase. In case it does not work well or makes losses, shares decline.

2. Economic Conditions

Issues such as GDP growth, inflation, interest rates, and job data have an influence on the sentiments of the investors. When the economy is strong, the Sensex tends to be pushed up, and when it is weak, the Sensex will be pulled down.

3. Global Markets

In India markets, market crashes, financial crises, or high growth, experienced in the US, Europe, or other large economies, can alter and cause the Sensex to behave similarly.

4. Government Policies and Budget Announcements

When the government alters the tax regulations, expenditure on infrastructure, reforms, or other regulations this has a direct impact on the companies, which causes the index to either decrease or increase.

5. Foreign Investment

The Sensex increases when foreign investors purchase Indian stocks. Once they sell the stocks and go, the index is likely to drop.

6. Market Sentiment

Markets are also moved by how the investors feel, scared, confident, hopeful, or panicked. Good news drives up the prices, whilst bad news or uncertainty drives down the prices.

7. Sector Trends

When major industries like banks, IT companies, energy companies, and car makers perform well, then the Sensex goes up. When these large sectors perform poorly, the index drops.

Read Also: BSE Case Study

Milestones of Sensex India

Sensex has been on a steady rise over the last 30 years, and this has demonstrated how the Indian economy has expanded. Since its initial large hardships in the 1990s to record highs today, every era can be tracked on how it expanded, hit its problems, and emerged.

Key Highlights

Timeline	Key Events & Milestones
Early 1990s – 2000	In July 1990, the Sensex was approximated to be at 1001 points. It hit 2000 points in 1992 for the first time. Then the index hit a milestone of 5000 points in 1999.
2000 – Mid-2000s	The Sensex shot towards 6006 points in the early 2000s as a result of the IT boom. On January 2, 2004, it reached 6026.59 points. The index surpassed 7000 points after the settlement of the Ambani family, which boosted the Reliance Group stocks. Since June through to December 2005, it has increased beyond 9000 points, owing to strong buying by foreign and domestic investors.
Mid-2000s – 2010	The Sensex was as high as 10, 003 in the middle of the day on Feb 7, 2006. By Dec 2007, it surpassed 20,000 points, since a lot of funds were buying. There was a crash and recovery of the market between 2008 and 2010.
2013 – 2015	The Sensex performed better than the Hang Seng Index in 2014 and was the largest index of stock markets in Asia. In 2014, the index increased at a rapid rate to 28,000 points. It was closed at 29,278 points on 23 January 2015, a new high. Since the RBI reduced its repo rate, it had passed 30,000 points for the first time.
2017 – 2019	The Sensex continued to increase between 2017 and 2018.It hit above 38,000 points.

The Sensex has fluctuated over the last 3 decades with an upward trend. Although it may fluctuate a lot in the short run, the index has increased significantly on average. This demonstrates that it is worth long-term investing in the stock market of India.

When the Sensex Fell: Key Market Plunge Events

Sensex has experienced numerous swift declines in the years, typically due to global financial issues, corporate scandals, or panic attacks within the market. In 2008, the world witnessed a massive crash in the global financial crisis, which hit markets in all parts of the globe.

The world economy took a huge hit in January 2008 when the Dow Jones plunged. This hurt India right away. On 21 January, Sensex had gone down by 1408 points in a single day, the largest ever run-down in the history of the index. The next day, the Sensex continued to go down, and it was halted for an hour to prevent panic selling.

The fall went on all through 2008. Between January and November, the index was falling, indicating the level of uncertainty that existed in world markets as well as local markets. In October 2008, the Sensex closed at 8509.56, one of its lowest points in nearly a decade.

The other major shock occurred in 2009 when a major company in India, Satyam fraud was involved in fraud. The announcement caused the Sensex to fall by approximately 750 points, provoking investor panic once again and shaking the market.

Conclusion

Sensex is not merely a figure on the screen, but it is the heartbeat of the Indian stock market. It is used to indicate the level of strength or weakness of the market through the tracking of the performance of 30 major companies.

For beginners, understanding Sensex meaning helps build confidence and gives a clear picture of market direction. By tracking Sensex changes, one can get to know the way the economy responds to news, events, and global trends.

You can invest in the near future or just wish to know how Sensex works; either way, knowing the working mechanism of Sensex makes you a better and wiser player in the world of finance. And for more such information and details, follow Pocketful today.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	20 Things to Know Before the Stock Market Opens
2	What is Commodity Market in India?
3	Difference Between Trading and Investing
4	Types of Investment in the Stock Market
5	How to Start Stock Market Trading With Low or Limited Capital

Frequently Asked Questions (FAQs)

Sensex full form kya hai?
Sensex full form is the Sensitive Index. It is used to show the overall movement in the market.
Why does Sensex go up and down?
Sensex is volatile since the prices of its 30 companies are constantly varying as a result of news, global markets, investor mood, and economic events.
Can beginners invest in the Sensex?
Yes, beginners can invest in the index with the help of mutual funds or ETFs. Also, now there are options to trade directly as well.
Is Sensex a good indicator of market health?
Yes, Sensex can be called one of the most reliable indicators, as the biggest companies are represented, and the direction of the market can be seen clearly.

January 15, 2026

Best Two Wheeler Insurance in India 2026

Today’s market offers a wide range of two-wheelers with varied designs, features, and performance, making it important for riders to choose a model that suits their lifestyle, safety needs, and usage patterns, ensuring better comfort, efficiency, and long-term satisfaction.

Investing in two-wheeler insurance stocks offers exposure to India’s growing vehicle ownership and rising insurance awareness, benefiting from higher policy adoption, regulatory support, and increasing demand for motor insurance protection.

In this blog, we will explore why choosing the right two-wheeler insurance matters and how two-wheeler insurance–linked stocks benefit from India’s growing mobility and insurance adoption.

Why Two-Wheeler Insurance is Mandatory

According to the 1988 Motor Vehicles Act you are not allowed to drive a vehicle without “Third Party Liability” insurance. This is because the cost of compensating other people is enormous if you cause an accident and injure them, or damage their property. The government wishes to ensure that no matter who causes such an accident, whoever was injured gets money for it anyway.

First Offense: Rs.2,000 and/or imprisonment for up to 3 months.
Second Offense: Rs.4,000 and/or imprisonment.

Top 5 Bike Insurance Companies in India

1. IFFCO Tokio Two-Wheeler Insurance

IFFCO Tokio is a popular choice, especially if you live in Tier-2 or Tier-3 cities. They are a joint venture between Indian Farmers Fertiliser Cooperative (IFFCO) and Tokio Marine Group.

The Rural Edge: In small towns they have unique “Bima Kendras” (insurance centres). If you like face-to-face service, this is something which definitely comes in handy for you.
Auto Crash Insurance: They have a claim settlement ratio (CSR) of around 95.8%. So in terms of paying out claims they’re reliable indeed.

2. HDFC ERGO Bike Insurance

If you are an app user and don’t like heavy paperwork then HDFC ERGO is likely the best fit. They are known for their digital-first approach.

AI Speed: They use Artificial Intelligence (AI) for claims. For minor damages, you can just click photos on your phone, upload them, and get approval in minutes and there is no waiting for a surveyor to visit.
The Numbers: They report a high CSR, often nearing 100% in some segments. They have a big network of 2,000+ garages specifically for two-wheelers.
Overnight Repair: In many cities, they offer a service where they pick up your bike, repair it overnight, and drop it back.

3. Tata AIG Two-Wheeler Plans

The name “Tata” is a name of trust in India. Tata AIG combines this trust with the global expertise of AIG.

Huge Network: Their network is one of the widest in India with more than 7,500 cashless garages. This is a major perk if you tend to road-trip often.
Settlement ratio: Their claim settlement ratio is at a comfortable 98%, which is very good. They are also known for being clear with their terms, no hidden conditions or charges.

4. Bajaj Allianz Bike Coverage

Bajaj Allianz is a joint venture involving Bajaj Finserv. Since Bajaj is a major bike manufacturer, they understand the two-wheeler market.

Super Fast Claims: They pioneered a feature called “Motor OTS” (On-The-Spot). For claims up to Rs.20,000 or Rs.30,000, they can approve the claim instantly via their mobile app.
Network: They have a strong network of over 4,000 garages.
Long-Term Focus: They were among the first to popularize long-term plans, protecting everyone from yearly price hikes.

5. SBI General Insurance Options

This Insurance is supported by the State Bank of India, here the insurer has a wide reach because of thousands of SBI branches across the country.

Affordability: The insurance has a good competitive price as per the market and if you are looking for a budget friendly insurance option that is also reliable then this insurance should be the choice.
Reach: It has a huge network with over 9,000 garages as per the latest official data which covers almost every corner of the country.
Trust: Being a part of the SBI family gives them a high trust factor, especially for people who already bank with SBI.

Top Two Wheeler Insurance Plans

Comprehensive Coverage Options

Key Characteristics: It covers damage to your bike and damage you cause to others (Third-Party).
Why buy it: If the bike is stolen, damaged in a fire, or ruined in a flood, this policy pays you and gives a complete peace of mind.

Third-Party Liability Plans

Key Characteristics: It only pays for damages caused to other people or their property.
Does not include: It does not include the damages of your own vehicle.
Who is it for: This is best for very old bikes (10+ years old) where the repair cost might be more than the bike’s value.

Zero Depreciation Add-On Plans

The Problem: Your claim is subject to “depreciation” with ordinary insurance. Is that if you have to replace a plastic part, they may cover only 50% because your bike is old and you can pay the rest.
The Solution: A “Zero Dep” add-on forces the insurer to pay the full cost of the part, regardless of how old your bike is and it saves you thousands during a claim but costs a little extra.

Factors To Consider While Choosing a Two-Wheeler Insurance Plan

Claim Settlement Ratio (CSR)

This is the most critical number as this number tells us the percentage of claims that the company has settled. Look for a company with a CSR consistently above 90% or 95%. A high CSR means the company is not looking for excuses to reject your claim.

Network of Cashless Garages

“Cashless” means you don’t have to pay from your pocket and wait for a refund. The insurer has to pay the garage directly. Before buying, check the insurer’s list to see if your local mechanic or service center is in their network. If you live in Bangalore and the garage is in Delhi then it won’t help you.

Premium Costs and Discounts

Sometimes a policy is cheap because they have lowered the “IDV” (Insured Declared Value). IDV is the maximum money you get if your bike is stolen. We should never lower the IDV just to save RS.100 or RS.200 on the premium. It is not worth the risk.

Coverage Types: Comprehensive vs Third-Party

Always go for Comprehensive with Zero Depreciation. You might switch to a Third-Party if the bike is very old, but Comprehensive is still safer.

Add-On Benefits and Riders

They cost extra but make the policy better. Essential if you go on long rides. They will bring a mechanic or tow truck if you break down. This covers the rider for injuries or death. It is mandatory to have at least Rs.15 Lakhs coverage.

Read Also: Best Insurance Stocks in India

How to Buy the Best Bike Insurance Online

Buying online is cheaper, faster, and transparent.

Go to an Aggregator: Websites like PolicyBazaar or Coverfox allow us to compare prices.
Add Details: The bike’s number should be added then the system will check the details automatically.
Customize: Add “Roadside Assistance” and “Zero Depreciation” after selecting “Comprehensive Plan” to customize.
Verify IDV: Make sure the bike’s market value corresponds with its displayed value.
Pay: Either use UPI or a card, you will automatically receive the policy PDF in your email instantly.

You can also sometimes save 5% on commission cost if you buy directly from the insurer’s website (like HDFC ERGO or Acko).

How to invest in Two-Wheeler Insurance Companies in India?

Investing in two-wheeler insurance companies means gaining exposure to general insurers that earn premiums from motor insurance policies. You can research, track fundamentals, and invest seamlessly through Pocketful, which simplifies stock analysis and long-term investing.

Understand the business model: Motor insurance is a core revenue driver due to mandatory coverage norms.
Track sector growth: Rising two-wheeler ownership and insurance awareness support demand.
Analyze fundamentals: Focus on premium growth, claim ratios, and profitability.
Use Pocketful: Identify opportunities, compare stocks, and invest with ease.
Think long term: Insurance businesses benefit from compounding over time.

Conclusion

The primary purpose of two-wheeler insurance is to safeguard your bike from unforeseen risks such as theft, accidents, and damage. It also provides mandatory coverage against third-party liabilities. Along with protection from fire and external losses, policyholders benefit from yearly services and flexible payment options, including digital and offline modes, making policy purchase and renewal hassle-free.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top 10 personal finance lessons for self-learning
2	10+ Best Investment Plan for Monthly Income in India
3	List of Best Insurance Stocks in India
4	Top 10 Best Credit Cards in India
5	What is Personal Finance?

Frequently Asked Questions (FAQs)

What is the new 120-day rule for retaining my No Claim Bonus (NCB)?
The Insurance Regulatory and Development Authority of India (IRDAI) has changed and extended the time tenure for No Claim Bonus (NCB) from 90 days to 120 days following the policy’s expiry date.
Can I insure just my bike’s damage if I buy a new one?
Yes. Since new two-wheelers mandatorily come with a 5-year Third-Party (TP) policy, you only need to purchase a Standalone Own Damage (OD) policy to cover damage repairs to the bike.
Does my policy cover me if I’m riding a friend’s bike?
No, the insurance policy is linked to the vehicle and not with the rider. If any accident occurs on a friend’s bike, your policy will not cover the damages.
What exactly is a “cashless garage”?
A cashless garage is a workshop or service center that has a direct partnership agreement with your insurance company.
Why is it a bad idea to drastically reduce my Insured Declared Value (IDV)?
Reducing the Insured Declared Value (IDV) will lower your premium though it significantly reduces the maximum amount the insurer will pay out if your bike is stolen or completely totaled.

January 9, 2026

How is Per Capita Income Calculated?

Have you ever thought about how we find out the average income of people living in a country or a state? That’s where Per Capita income—or simply income per person—comes in. It’s a key economic indicator that tells us, on average, how much each person in a region earns, helping us understand the overall standard of living. In today’s blog, we’ll explain in simple terms how to calculate per capita income, its per capita income formula, and the formula for finding per capita income. This is important to know because this figure reflects a country’s economic situation and its standard of living.

What Is Per Capita Income?

Per Capita Income (PCI) represents the average income earned by an individual in a country, state, or region. It is the amount obtained by dividing the total national income by the total population. This is the measure used to assess the average standard of living of a country’s people.

Importance : Per capita income is an important indicator of the state of any economy. It is used by governments, economists, and international organizations such as the World Bank and IMF to assess how economically prosperous a country or state is. It also facilitates comparisons between different standards of living of countries or states.

What it shows and what it doesn’t : It is important to note that Per Capita Income only indicates average income. It does not indicate whether income is evenly distributed within society. For example, if some people in a country earn very much and others very little, the average figure may not fully reflect the actual situation.

Per Capita Income Formula Explained

Per capita income is an important indicator of a country’s or state’s economic condition.

Per Capita Income Formula: Per capita income = total national income ÷ total population

Example: Suppose a country’s or state’s total national income is ₹14,00,000 crore and its total population is 140 crore. Using this formula, per capita income would be calculated as follows:

Details	Value	Explanation
National Income	₹14,00,000 crore	India’s estimated annual national income
Population	140 crores	Total population of the country or state
Per Capita Income	₹1,00,000 per person	14,00,000 ÷ 140 = ₹1,00,000 per person

Difference Between Per Capita Income and GDP Per Capita

Points	Per Capita Income	GDP Per Capita
Definition	It represents the average income earned by citizens.	Shows the average value of the total production of the country.
Formula	National Income ÷ Population	Gross Domestic Product (GDP) ÷ Population
Meaning	Indicates how much people earn on average.	Indicates how much a country produces per person.
Focus Area	Focuses on income and standard of living.	Focuses on production and economic growth.
Utility	Used to measure living standards and income inequality.	Used to assess productivity and overall economic performance.

Read Also: What is Per Capita Income?

Limitations of Per Capita Income

Ignore Income Inequality: Per capita income is an average figure. If some people earn very much and others very little, the average number will appear high, while the situation of most people will remain poor. For example, in India, high incomes of some states or industries increase the overall average, but the actual situation of the poor remains the same.
Doesn’t Reflect Cost of Living: An annual income of ₹1 lakh is not the same in a metropolis like Delhi and a small town. Expenses, rent, and lifestyle vary in each region. Therefore, per capita income does not reflect the actual purchasing power of people.
Excludes Non-Monetary Benefits: Services such as government subsidies, free healthcare, education, or social security also improve living standards. However, these benefits are not included in the calculation of Per Capita Income, leaving an incomplete assessment of true well-being.
Currency and Inflation Adjustments : The value and inflation rates of currencies vary across countries. Therefore, Purchasing Power Parity (PPP) adjustments are necessary for international comparisons to understand the true economic situation.
Ignore Broader Development Factors: Per capita income reflects only economic progress. It does not measure social development factors such as education, health, gender equality, or environmental conditions.

Why Per Capita Income Still Matters ?

Economic Benchmark: Per Capita Income is used by organizations like the RBI, the World Bank, and the United Nations to classify countries into economic categories such as low-income, middle-income, and high-income nations. This indicates a country’s standing on the global stage.
Policy Decisions : Governments use Per Capita Income data when formulating budgets, formulating tax policies, and allocating funds for welfare schemes. This helps understand which states or groups need more assistance.
Investment and Market Analysis: Investors and companies use Per Capita Income data to gauge a region’s purchasing power and market potential. The higher the average income in a region, the greater the potential for consumer spending and investment.
Human Perspective: When I first looked at India’s per capita income, I thought it was just an average. But after delving deeper, I realized that small economic reforms like employment in rural areas, agricultural reforms, or digital transactions are gradually pushing this average upward.

Conclusion

In conclusion, per capita income is an important indicator of a country’s economic situation. It tells us how much income each person earns on average and in what direction the country’s prosperity is progressing. However, it doesn’t tell the whole story true development will be achieved when this average reaches every segment equally. Therefore, when evaluating any economy, we should consider not just income, but also standard of living and equality of opportunity.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	How to Earn ₹1 Lakh Monthly Dividend Income in India
2	What is Earnings Per Share (EPS)?
3	Mastering Your Finances: Beginner’s Guide To Tax Savings
4	Understanding Futures Pricing Formula
5	What Is Dividend Yield? Definition, Formula, and Investment Insights

Frequently Asked Questions (FAQs)

What is the formula for Per Capita Income?
Per capita income is calculated by dividing total national income by population.
How is Per Capita Income calculated in India?
In India, the National Statistics Office calculates it based on total national income and population.
What does Per Capita Income show?
It tells how much income a person earns on average.
Is Per Capita Income the same as GDP Per Capita?
No, one shows income and the other shows production.
Why is Per Capita Income important?
It shows the economic condition of the country and the standard of living of the people.

January 6, 2026

What Is Fiat Money?

Most of the money we use today cash, cards, or online payments is fiat money. But few people truly understand the meaning of fiat money. This money isn’t backed by gold or silver, but by government guarantees and public trust. Inflation, interest rates, investments, and your savings all are directly linked to fiat currency. In this blog, we’ll explain it in simple terms.

What is Fiat Money and How It Functions

Fiat Money Meaning

Fiat Money or Fiat Currency simply means money that has no intrinsic value, but rather its value is determined by legal tender status enforced by the government. For example, the Indian rupee or the US dollar their denominations are often much higher than their actual paper value. Gold and silver are valuable because of their metal content, but fiat currency is valid only because of its legal status and government guarantee. People accept it because taxes, bills, and other transactions are all conducted in it, maintaining its trustworthiness.

What is Fiat Money?

Fiat money refers to currency legally issued by a country’s government and required to be accepted for all transactions. In India, the Reserve Bank of India (RBI) performs this function, while in the US, the Federal Reserve performs this responsibility. Fiat currency enters the economy through government spending, bank lending, and digital payment systems. Decisions such as interest rates, currency printing, and liquidity are controlled by government monetary policy. Today, everything trade, banking, UPI, and online transactions runs on this system.

How does Fiat Money work?

Fiat money derives its value from government approval : Fiat money has no inherent physical value; its true strength comes from the government’s legal approval. When a government declares a currency “legal tender,” all transactions in that country are conducted in that currency. This is why people accept it with confidence.
The Central Bank Controls the Money Supply : The central bank of every country determines the amount of money in the market. In India, the RBI performs this function. When the economy needs to be supported, the money supply is increased, and when inflation rises, the supply is reduced. This balance is what keeps the system running.
Government spending brings money to the common people : When the government spends on roads, projects, employee salaries, and subsidies, fiat money begins to circulate in the market. This money reaches shopkeepers, employees, companies, and investors, boosting economic activity.
The banking system multiplies the power of money : Banks provide loans based on people’s deposits. This keeps the same amount of money circulating among many people. This promotes trade, encourages the start of new businesses, and creates employment opportunities.
Interest rates control spending and investment : When interest rates are low, loans become cheaper, leading to more spending and investment by corporates and households. However, when interest rates rise, spending decreases and inflation is controlled. This keeps the flow of fiat money in balance.
The strength of a currency is linked to a country’s economic situation :The value of a fiat currency depends on a country’s economic growth, government policies, and political stability. If a country’s economy weakens, its currency value may also fall.
Trust is the foundation of this entire system : Fiat money remains strong only as long as people have confidence that the same money can still be used for purchases tomorrow. The biggest responsibility of the government and the central bank is to maintain this trust.

Read Also: What is Margin Money?

Evolution of Fiat Currency

When Gold and Silver Were the Only Real Money : In the early days, people used gold, silver, and other precious materials for transactions. These had their own value, so people accepted them without any doubt.
Paper Notes Simplified Transactions : As trade grew, paper notes replaced heavy coins. This practice first began in China and gradually spread throughout the world.
As Long as Money Was Linked to Gold : For many years, countries’ currencies were linked to gold. This kept money stable, but governments could not issue more notes even if they wanted to.
Everything Changed After 1971 : In 1971, the US delinked the dollar from gold. After this, most countries adopted the fiat system, where the value of money depended on the trust between the government and the people. This was known as Nixon Shock.
Today’s Digital and Fast System : Fiat money made banking, loans, investments, and digital payments faster. Today UPI, cards and online transactions are the modern form of the same system.

Major Examples of Fiat Currency Across the World

Country / Region	Fiat Currency	Symbol	Key Insight
India	Indian Rupee	₹	It is the official currency of India, issued by the RBI and all transactions across the country take place in it.
United States	US Dollar	$	It is considered the most powerful currency in the world and is most widely used in global trade.
Euro Zone	Euro	€	Many European countries have a common currency, which makes mutual trade easier.
United Kingdom	British Pound	£	It is considered one of the oldest and strongest currencies in the world.
Japan	Japanese Yen	¥	It is the major currency of Asia and plays a major role in international trade.

Advantages of Fiat Money

Governments gain financial flexibility : Fiat money allows governments to increase or decrease the money supply based on economic conditions. This makes it easier to better manage situations like recession, growth, and inflation.
Quick decisions are possible during economic crises : In times of financial crisis, pandemic, or recession, governments and central banks can quickly provide relief packages and liquidity support, which is not possible in a commodity-based system.
Support for digital payments and cashless systems : Today, UPI, cards, mobile banking, and online transactions operate entirely on the fiat currency system. This has made transactions fast, easy, and secure.
Boosting the business and loan system : Banks are given the flexibility to provide loans, which helps start new businesses, expand companies, and create new employment opportunities.
Facilitates international trade : Fiat currencies allow countries to trade with each other, attract foreign investment, and facilitate the smooth functioning of the global financial system.

Risks and Limitations of Fiat Currency

Inflation reduces purchasing power : When more money enters the market, prices rise. This means that the same money can buy fewer goods over time, reducing people’s purchasing power.
Excessive printing weakens the currency : If the government prints too much money without balance, the currency’s value can fall. This makes imports more expensive and everyday essentials costlier.
Government debt continues to rise : Governments can easily borrow money in a fiat system. If this debt spirals out of control, the burden falls on the general public in the form of taxes and inflation.
There is a risk of economic instability : Fiat currencies can quickly come under pressure during sharp changes in interest rates, recessions, or global crises, increasing market uncertainty.
The system can weaken if trust is lost : Fiat currencies operate entirely on trust. If people start doubting the stability of the currency, they start distancing themselves from it, which can become a threat to the entire system.

Fiat Money vs Commodity Money vs Cryptocurrency

Basis	Fiat Money	Commodity Money	Cryptocurrency
Basic Structure	Government-issued currency with no physical asset backing	Physical assets like gold, silver, or other commodities	Digital currency based on blockchain technology
Control System	Fully controlled by government and central banks	Limited control, supply depends on natural resources availability	Decentralized, no direct government control
Stability	Comparatively stable but affected by inflation and policies	More stable in long term due to limited supply	Highly volatile, prices change very fast
Inflation Protection	Weak protection against inflation over time	Strong protection as supply is limited	Partial protection, depends on market demand
Usage in Daily Life	Used everywhere for salaries, shopping, banking, taxes	Rarely used in daily transactions today	Limited real-world use, mostly for trading and investment
Long-Term Sustainability	Very strong due to global acceptance and government support	Limited due to practical usage issues	Still evolving, future depends on regulation and adoption

Conclusion

The simple truth is that the money we use every day for everything is fiat money. There’s no magic or mystery to it, just a government guarantee and public trust. Sometimes inflation increases, sometimes spending, and sometimes savings are affected. Therefore, it’s enough to understand how money works so we can use our money wisely.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Margin Trading vs Short Selling – Key Differences
2	What is Intraday Margin Trading?
3	Top Tips for Successful Margin Trading in India
4	What is SPAN & Exposure Margin?
5	Difference between Margin Trading and Leverage Trading

Frequently Asked Questions (FAQs)

What is fiat money?
Fiat money is money that is backed by government guarantee.
Is the Indian Rupee a fiat currency?
Yes, the Indian Rupee is a fiat currency.
Why is fiat money not linked to gold?
So that the government can easily control the money supply.
Does fiat money lose value over time?
Yes, its value can decrease due to inflation.
Is crypto a replacement for fiat money?
Not yet, fiat money is the most reliable in everyday life.

December 25, 2025

What is Free Float Market Capitalisation?

Free float market capitalisation plays a major role in how market indices are built and how stocks are ranked. When you check index weights or compare companies, you will often see free float values instead of the full market value. This method provides a more realistic picture of a company’s tradable shares, improves index accuracy, and ensures that only actively available shares influence market movements.

In this guide, we break down what is free float market cap, how it is calculated, and why investors track free float market capitalization while studying stocks.

What Is Free Float Market Capitalisation?

Free float market capitalisation represents the market value of only those shares that are freely available for public trading. It removes promoter stakes, government holdings, employee lock-ins, and any long-term strategic investments. These are the ones that are not likely to actively trade.

When investors check the free float market cap, they get a clearer sense of how much of the company’s equity is actually influencing daily price movement. This is why many major indices prefer the free float method over the full market value.

The idea of free float simply helps you understand how much of the stock is open to regular buyers and sellers instead of being tied up with large insiders.

Key Features of Free Float Market Capitalisation

Before you look at index weights or compare companies, it helps to know what makes free float market capitalisation different from the full market value. These features show why analysts and index providers rely on it to understand real liquidity and trading activity.

Only includes shares available for public trading.
Excludes promoter, government, and strategic holdings.
Gives a clearer picture of active market participation.
Helps assess how easily a stock can be traded.
Used by major indices to assign weights based on actual liquidity.
Reduces the impact of large inactive shareholders on stock ranking.

Example of Free Float Market Capitalisation

Let’s look at a practical example using generic company names so the focus stays on understanding the concept.

Company A

Total outstanding shares: 1,00,000
Share price: ₹40
Publicly tradable shares (free float): 35,000
Remaining 65,000 shares are held by promoters, institutions, and long-term investors.

Market Capitalisation

1,00,000 × ₹40 = ₹40,00,000

Free Float Market Capitalisation

35,000 × ₹40 = ₹14,00,000

Why This Matters

This example shows that even when a company appears large based on total market value, the actual free float market capitalisation or free float market capitalization can be far lower. Free float tells you how much of the company’s equity truly participates in daily trading. It reflects real liquidity, not just theoretical size.

What Is Free Float Factor?

The free float factor is a percentage that shows how much of a company’s total shares are actually available for public trading. Instead of using the full share count, the free float factor helps index providers adjust a company’s weight based on only the tradable portion. This factor removes promoter holdings, government stakes, employee lock-ins, and other restricted shares.

In simple terms, the free float factor tells you what part of the company truly reflects market activity. A higher factor means more shares are open to regular buyers and sellers, while a lower factor means most shares are held by insiders.

Advantages of Using Free Float Market Capitalisation

Using free float market capitalisation gives a more accurate picture of how actively a stock participates in the market. It filters out shares that never trade and focuses only on the portion that real investors buy and sell. This makes it useful for index construction, stock comparison, and liquidity analysis. Here are the key advantages.

1. Shows Real Trading Value

Free float market capitalisation highlights only the shares that trade actively in the market. This helps you understand the company’s true market presence instead of relying on the full share count.

2. Reduces Promoter Influence

Promoters and government holdings do not trade often. Removing them gives a clearer view of the company’s active size and prevents inactive stakes from creating a false impression of strength.

3. Improves Liquidity Analysis

By focusing on freely tradable shares, it becomes easier to judge how liquid a stock is. Investors can quickly understand how easily they can enter or exit positions.

4. Enables Fair Stock Comparison

Free float values allow companies to be compared on practical terms. It avoids situations where a business looks large on paper but has very little actual market participation.

5. Creates More Reliable Index Weights

Most major indices use free float to decide stock weights. This keeps the index balanced and ensures that stocks with high promoter holdings do not get oversized representation.

6. Prevents Distorted Market Rankings

Companies with large locked-in stakes often appear bigger than they are. Free float market capitalisation avoids this distortion and gives a genuine picture of a company’s market position.

How Market Volatility Connects With Free Float Market Capitalisation

When you study how stocks behave during sharp market movements, the size of the free float becomes very important. Free float tells you how many shares actually trade in the market. When this tradable portion is small, prices react faster and move more sharply. When the free float is large, the stock absorbs buying and selling better. This is why volatility and free float are closely linked.

1. Smaller Free Float Creates Higher Volatility

When a company has a low free float, fewer shares are available for trading. Even small buy or sell orders can push the price up or down quickly. This makes the stock more volatile.

2. Larger Free Float Helps Stabilise Prices

A stock with a high free float has many active shares in the market. This absorbs buying and selling pressure better. As a result, price swings are usually smoother and less extreme.

3. Volatility Affects Free Float Market Cap Directly

Free float market cap depends only on tradable shares. When prices fluctuate, this value changes faster because it reflects the behaviour of public traders, not promoter-held shares.

4. Low Free Float Amplifies Market Reactions

If news or sentiment hits the market, stocks with low free float react sharply. With a limited supply of tradable shares, the impact of fear or excitement becomes stronger.

5. High Free Float Reduces Manipulation Risk

Stocks with very low free float can be moved easily by a few large trades. A higher free float reduces this risk and keeps volatility closer to normal market conditions.

Difference Between Free Float and Full Float

Free float and full float are two ways of measuring a company’s value, and the difference lies in the type of shares they count. Free float focuses only on the shares that trade actively in the market, while full float includes every share the company has issued. Investors use free float to understand real liquidity, whereas full float helps in seeing the company’s total size. The table below shows the difference clearly.

Point of Comparison	Free Float Market Capitalisation	Full Float Market Capitalisation
Shares Counted	Only shares available for public trading	All shares issued by the company
Excludes	Promoter, government, and locked-in holdings	Nothing is excluded
Market Behaviour	Shows real liquidity and trading activity	Shows total theoretical company value
Sensitivity to Volatility	More sensitive because it reflects active traders	Less sensitive due to inactive holdings
Use in Indices	Commonly used for realistic index weights	Rarely used for index calculation
Best Used For	Liquidity study, volatility analysis, stock comparison	Understanding overall company size

Conclusion

Free float market capitalisation gives you a clearer, more practical view of how a stock behaves in the real market. It removes the noise created by promoter and strategic holdings and focuses only on the shares that actually trade.

This makes it useful when you study liquidity, volatility, index weights, or compare two companies on real activity rather than theoretical size. Understanding free float helps you read market behaviour with better accuracy and make more informed decisions.

For more such simple and useful market insights, you can always explore Pocketful.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Top Sugar Companies In India
2	Business Cycles of a Company
3	Miniratna Companies in India
4	How Many Companies Are Listed on NSE & BSE?
5	Mukesh Ambani Companies List 2024: Mukesh Ambani Stocks

Frequently Asked Questions (FAQs)

What does free float include?
It includes only the shares that are available for public trading and excludes promoter, government, and locked-in holdings.
Is free float always lower than total market cap?
Yes. Free float market cap is always a part of the total market value, never equal to or higher than it.
Does a low free float increase volatility?
A low free float often leads to sharper price swings because fewer shares are available to absorb buy and sell pressure.
Why do indices prefer free float market cap?
It reflects the value of tradable shares, which makes index weights more realistic and aligned with actual market behaviour.
Can free float change over time?
Yes. If promoters reduce holdings or locked shares open for trading, the free float increases and the factor changes.

December 21, 2025

Best Car Loan Banks in India 2026

Car demand in India is growing rapidly in 2025. Passenger vehicle sales increased by over 17% in October 2025, with the significant impact of the GST reduction on small cars from 28% to 18%. Lower prices have led people to take out more loans to purchase new cars. In this environment, it’s important to know the best banks for car loans in India in 2025, their interest rates, and their easiest processing options. This blog will provide clear and practical answers to these questions.

What is a Car Loan?

A car loan is a financial product where a bank or NBFC lends you money to buy a new or used car. You repay this amount in EMIs, which include factors such as interest rate, processing fees, loan term, and down payment. Faster digital processing has made getting a car loan even easier in 2025 many banks now offer instant pre-approval.

Best Car Loan in India 2026

S.No	Bank Name	Interest Rate Range	Processing Fee / Other Charges
1	State Bank of India (SBI)	8.65 % – 9.45 % (New Car)	0.40% of loan amount (Min ₹750; Max ₹10,000 + GST)
2	HDFC Bank	9.40% p.a. onwards	1.00% of the loan amount (minimum of Rs.3,500 and maximum of Rs.9,000)
3	Axis Bank	8.80% – 11.80%	Processing Fee: ₹3,500 – ₹12,000 + ₹750 Stamp Duty
4	Canara Bank	9.15% – 11.95%	Processing fee: 0.25% of loan amount (min ₹1,000, max ₹5,000)
5	Bank of India	7.85% p.a. onwards	1% of loan amount; subject to a minimum of Rs.500 and maximum of Rs.10,000
6	Indian Overseas Bank	7.35%–11.30%	Up to Rs.5 lakh: 0.50 % (minimum of Rs.500) Above Rs.5 lakh: 0.60 % (maximum of Rs.10,000)
7	ICICI Bank	9.15% – 11.25% p.a.	Up to 2% of the loan amount plus GST
8	Bank of Baroda	7.6% up to 14.25%	Start from ₹500 + GST
9	IDBI Bank	8.30% – 10.60%	Minimum: Rs.1,500 plus taxesMaximum: Rs.2.500 plus taxes
10	Federal Bank	10.00% p.a. onwards	–

Overview of the Best Car banks Loan in India

1. State Bank of India (SBI)

SBI is India’s largest public sector bank, and its car loan scheme is considered a reliable option for those looking to purchase a car without much hassle. Under this loan, the bank provides funding up to the on-road price, which also covers initial expenses like RTO and insurance. The EMI tenure is up to 7 years, and the good thing is that there is no initial EMI advance. Typically, salaried or self-employed individuals between the ages of 21–70 can easily apply by providing the required income and documentation.

SBI Car Loan :

Point	Description
Funding	Up to 100% of the on-road price
Duration	Maximum 7 years
Eligibility	Applicants aged 21-70 years with a stable income

2. HDFC Bank

HDFC Bank is known for its fast processing and digital convenience in new car financing. The bank offers 100% on-road funding on many models, eliminating the need for customers to incur any upfront costs. Applications are completely online, and in many cases, pre-approval is received within minutes. Eligibility is also simple: both salaried and self-employed individuals can easily apply with basic documentation and a stable income. Processing fees and documentation charges are clearly outlined, making it easy to understand the total cost.

HDFC Bank Car Loan :

Point	Description
Funding	100% on-road on select models
Duration	12 to 84 months
Eligibility	Salaried/self-employed with stable income

3. Axis Bank

Axis Bank car loans are considered a good option for those who want a quick and streamlined process without much time. The bank offers financing for both new and used cars, and many models offer loans up to almost the entire on-road amount, significantly reducing the initial down payment. EMI tenures range from 1 year to 7 years, making it easy to manage your budget. Processing fees and other charges are clearly stated, and the online application process makes the entire process feel very simple.

Axis Bank Car Loan :

Point	Description
Funding	100% on-road on select models
Duration	12 to 84 months
Eligibility	Salaried/self-employed with stable income

4. Canara Bank

Canara Bank’s vehicle loan is a good option for those looking to purchase a new car without high fees and with a straightforward process. The bank offers loans up to 90% of the on-road price of a new car, reducing the need for a large down payment. Loan tenures can be up to 7 years for new vehicles, while those for slightly used cars can be up to 5 years. The processing fee is usually very low, and the bank sometimes waives it during the offer period. Overall, the low fees and straightforward process are its biggest strengths.

Canara Bank Car Loan :

Point	Description
Funding	Around 90% on-road on new cars
Duration	New: 84 months, Old: 60 months
Eligibility	Salaried/self-employed with stable income

5. Bank of India

Bank of India car loans are popular among those seeking low interest rates and reliable service. The bank typically offers rates starting at around 7.85% on new cars, which is considered quite affordable in this segment. The processing fee is also low around 0.25% of the loan amount, keeping the initial outlay low. EMI tenures are available up to 7 years, so installments can be set to your convenience. Overall, if you’re looking for a simple, clean, and affordable car loan, Bank of India seems like a reliable option.

Bank of India Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12-84 months
Eligibility	Stable income, good credit score

6. IOB Car Loan

Car loans from Indian Overseas Bank are considered a good option for buyers who want low interest rates and a straightforward process. The bank typically offers competitive rates on new cars and, in most cases, offers loans up to 90% of the on-road price, making it easier to raise a large down payment. Loan tenures are available up to 7 years, so EMIs can be adjusted to suit your budget. The documentation requirements are also not onerous basic KYC and income-related documents are sufficient. Being a government-owned bank, the trust factor is also strong.

IOB Bank Car Loan :

Point	Description
Funding	Approximately 90% on-road
Duration	12–84 months
Eligibility	Stable income, good credit score

7. ICICI Bank

ICICI Bank’s car loan is considered a good option for those who need a loan with a fast process and simple documentation. The bank often provides financing up to the on-road price of a new car, reducing the worry of an initial down payment. Interest rates are tailored to your profile and are generally competitive, making EMIs easy to manage. The entire application process is online, and the documentation is very basic making loan approval time quick. Overall, the convenience and speed make ICICI’s car loan a reliable option in 2025.

ICICI Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

8. Bank of Baroda

Bank of Baroda’s car loan is a good option for buyers seeking affordable financing with reliable service from a government bank. The bank offers loans up to the on-road price on a variety of models, reducing initial outlays. Interest rates are generally competitive, and customers can choose between fixed and floating rates depending on their profile. The processing fee is also quite low, keeping overall costs under control. The application process is straightforward, and the eligibility criteria are quite simple, making this scheme a balanced and reliable option for car buyers in 2025.

Bank of Baroda Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

9. IDBI Bank

IDBI Bank car loans are considered a great option for buyers looking for a hassle-free loan from a trusted bank. Interest rates are generally affordable, and loan tenures are available up to 7 years, allowing EMIs to be set to your convenience. Finance is available for both new and used cars, and documentation is simple: basic KYC and income documents are all you need. Processing fees are low, and there are no additional prepayment charges after a certain period, making it even more affordable.

IDBI Bank Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

10. Federal Bank

Federal Bank car loans are considered a good option for buyers who want a streamlined process and a reliable banking experience. Interest rates typically start around 10%, which are stable and transparent compared to private banks. The bank also offers financing up to the on-road price on many models, eliminating the need for a large down payment. Loan tenures up to 7 years are available, making EMIs easily manageable. Overall, this Federal Bank scheme is ideal for those seeking a reliable financing option without complications.

Federal Bank Car Loan :

Point	Description
Funding	100% on-road on many models
Duration	12–84 months
Eligibility	Stable income, good credit score

Read Also: Best Private Banks in India

How to Choose the Best Car Loan Bank

Interest Rate : Every bank displays a “starting rate,” but the actual rate is determined by your profile, CIBIL, and car model. Always compare the effective rate; don’t make a decision based solely on the lowest number.
Processing Fees and Other Charges : Many banks charge fees ranging from 0.25%–1%. Also, consider adding documentation, valuation, and prepayment charges to get a clearer picture of the total cost.
Loan-to-Value Funding : Some banks offer 85–90% of the on-road price, while banks like HDFC/ICICI offer up to 100% funding on select models. This makes a significant difference to the down payment.
Loan Tenure : Options range from 1 to 7 years. Longer tenures lower EMIs but increase the total interest. Choose a tenure based on your income and monthly budget.
Speed of Approval and Disbursal : If you need to buy a car quickly, choose a bank with digital approval and fast disbursal. Private banks are generally faster here.
Special Schemes : EV loans, used-car loan schemes, and festival offers can often reduce the total cost. Include these offers in your comparison.

With the rising demand for passenger vehicles in 2025, the banks financing these cars are also witnessing significant growth in their loan books. If you are interested in the stock market, you can look beyond just taking a loan and consider investing in these banks for potential long-term returns.

Open a Demat Account: To invest in banking stocks, you first need a Demat and Trading account with a SEBI-registered stockbroker.
Identify Top Lenders: Focus on banks with a strong retail loan portfolio. Banks like SBI (SBIN), HDFC Bank (HDFCBANK), ICICI Bank (ICICIBANK), and Axis Bank (AXISBANK) are leaders in the auto loan segment.
Analyze Financial Health: Before investing, check key metrics such as NPA (Non-Performing Assets) to ensure the bank is managing its loans well, and NIM (Net Interest Margin) for profitability.
Monitor Auto Sales Data: Since car loan growth is directly linked to vehicle sales, keep an eye on monthly auto sales reports and quarterly bank results to gauge future performance.

Investing in these banking stocks allows you to benefit from the booming automobile sector in India without buying a car yourself.

Read Also: Best Education Loan in India

Conclusion

The simple thing is, before taking out a car loan, carefully consider two or three things: the applicable rate, the funding available, and whether the bank’s process is easy enough for you. Understanding this will prevent the possibility of choosing the wrong one.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Small Finance Bank Share List in India
2	Best Banking Stocks in India
3	Best Banks for Savings Accounts in India
4	10 Best NBFC Stocks List in India
5	Top 10 Best Credit Cards in India
6	10 Best Bank Penny Stocks List
7	List of Government Bank Stocks/Share in India
8	Top Cash-Rich Companies in India
9	Why Debt Funds Are Better Than Fixed Deposits of Banks?
10	Top 10 Sectors in the Indian Stock Market

Frequently Asked Questions (FAQs)

Which bank is best for a car loan in India?
It depends on your profile, but SBI, HDFC, and ICICI are suitable for most people.
What is a good interest rate for 2025?
A rate between 8%–10% is generally considered good.
Can I get 100% funding?
Yes, some banks offer up to the full on-road amount on select models.
What loan tenure is best?
5 years is cost-effective; if you need a lower EMI, you can choose 7 years.
Is prepayment allowed?
Yes, most banks allow it, but some may charge an initial fee.

December 16, 2025

Check Free CRIF Credit Score Online

In today’s time, the approval of any loan or credit card depends largely on your credit score. This score tells banks and NBFCs how reliable you are in making payments on time. CRIF High Mark is an RBI-recognized credit bureau in India, which prepares your complete CRIF report. In this blog, we will learn how to check credit score i.e. how to check credit score for free on CRIF and why it is important to track it regularly.

What is a Credit Score & Why Does it Matter?

A credit score is a three-digit number (300 to 900) that reflects your financial credibility. It can also be called a “financial report card” because it determines whether you will be able to repay your loan or credit card bill on time.

Who calculates it?

In India, the credit score is generated by four RBI-approved credit bureaus CIBIL, Experian, Equifax and CRIF High Mark. Of these, CRIF High Mark provides both personal and business credit information.

Importance of the score

Whenever you apply for a loan or credit card, banks and NBFCs first look at your credit score. It gives them an idea of your repayment capacity and trustworthy behavior.

Score range and meaning

750+ (Excellent): Loan approval is easy and interest rates are low.
650–749 (Fair): Loan can be obtained but the terms may be a little stringent.
Less than 650 (Risky): Chances of approval are low and interest rates are high.

Why is a regular check important?

Credit score directly impacts your financial future be it a home loan, personal loan or credit card limit. Hence, it is important to check your credit score from time to time. The CRIF score and its detailed CRIF report give you a clear picture. This is why a regular credit score check with CRIF is extremely important for your financial health.

Introduction to CRIF High Mark

Global and Indian History of CRIF

CRIF (Centre for Research in International Finance) is a global company, established in Italy in 1988 and spread across all four continents with presence in around 50+ countries.

The same company acquired High Mark Credit Information Services in India which was established in 2007 and has been operating as CRIF High Mark since March 2011 after it received a license from RBI as a credit bureau.

RBI approved Credit Bureaus in India

CRIF High Mark is an RBI approved Credit Information Company in India, providing credit reports and scoring for both individual and business lenders.

What makes it special?

It is India’s first Microlending-enabled Credit Bureau and the world’s largest Microfinance Bureau database.
It covers all borrower segments: retail, agriculture, rural, MSME, commercial and microfinance.
So far, it has tied up with 4,000+ financial institutions including cooperative banks, NBFCs, insurance companies, etc.

Both personal and business reports

CRIF High Mark provides two types of credit scores:

Personal Credit Score
Business Credit Score

This is useful for both large and small businesses, and this data is used by banks, NBFCs, and other entities for their risk assessment.

Thus, CRIF High Mark is not only a trusted and RBI-approved credit bureau, but is also unique for its comprehensive coverage, analytical capabilities, and providing both types of scores (personal and business).

How to Check Credit Score with CRIF (Step-by-Step Guide)

Step 1: Visit the official website

First, open the website of CRIF High Mark. Here you will find the option of “Free Credit Score” or “Get Your Score”. By clicking on it, you can start the process of checking the score. Remember, according to RBI rules, you get a free report once a year.

Step 2: Fill in your information

Now you have to enter some basic details like name, date of birth, PAN (or any other valid ID), mobile number and email ID. This information is taken so that the system can identify you correctly.

Step 3: Verify with OTP

After filling the form, tick “I agree” and proceed. An OTP will come on your registered mobile number. As soon as you enter it, your identity will be confirmed.

Step 4: Answer additional security questions

Sometimes CRIF asks you some questions related to your credit history like an old loan or credit card details. The system shows your report only after giving the correct answer.

Step 5: View your score and report

Once the verification is complete, your CRIF score will be displayed on the screen. You can also view the full CRIF report by going to the “My Report” section and download it as a PDF. The report is password-protected, usually the password is the first four lowercase letters of your name + the last four digits of your mobile number.

Step 6: Keep the report safe

Once downloaded, save your report in a safe place. It will be very useful for your loan or credit card application.

Understanding Your CRIF Report

When you check your credit score on CRIF, you not only get a number but also a CRIF Report of your entire credit history. By looking at it, you understand how you have used your loan and credit card and banks trust you after seeing it. Let’s understand it in a simple way:

Personal Details : The report starts with information like your name, date of birth, PAN or Aadhaar number and mobile number. This is important so that the report is completely related to you and there is no mistake.
Credit Accounts Summary : This section shows all your loan and credit card accounts – which ones are active, which ones are closed, and how much credit limit you have. This gives you a complete idea of your expenses and debt.
Repayment History : This section tells whether you have repaid your loan or credit card installments on time or not. If a payment is late, it is shown as “DPD Days Past Due”. Paying on time strengthens your credit profile.
Enquiry Details : When you apply for a loan or credit card, the bank or NBFC looks at your report. This is called a Hard Enquiry. Having too many enquiries can have a slight impact on your score, so avoid unnecessary applications.
Your CRIF Score : And finally comes your score CRIF Score (300-900). The higher the score, the more trustworthy you are. Generally, a score of 750 or above is considered good. To increase the score, timely payment and balanced use of limits are necessary.

Read Also: How to Improve Your Credit Score?

CRIF Score vs Other Credit Bureaus (Comparison)

Bureau	Score Range	Free Report	Coverage Strength
CRIF High Mark	300 – 900	1 free per year	Microfinance, Retail Loans, Grameen Data
CIBIL	300 – 900	1 free per year	Widely accepted by banks
Experian	300 – 900	1 free per year	Consumer loans and credit cards
Equifax	300 – 900	1 free per year	NBFC data

Common Reasons for a Low CRIF Score

If your CRIF score is low, it indicates that there may be some things in your credit behaviour that may cause concern for lenders. Let’s know the reasons due to which your score can be affected:

Missing EMI or credit card payment : If you have not paid EMI or credit card bill on time, it negatively affects your score. Even a single default can reduce your score by 50-80 points.
High Credit Utilization Ratio : If you are using 40% or more of your credit limit, it indicates that you are using more credit, which can lower your score.
Multiple loan/credit applications in a short period of time : If you have applied for multiple loans or credit cards in a short period of time, it can lead to a drop in your score. Every application is accompanied by a “hard inquiry”, which affects your score.
Long-overdue accounts : If you have accounts whose installments are pending, it negatively affects your score. Not making payments on time leads to a drop in your score.
Limited or no credit history : If you have a very short credit history or none at all, it can affect your score. Lending institutions find it difficult to evaluate your credit behavior.
Identification errors in the report : If your report has an incorrect PAN number or incorrect loan information, it can affect your score. You should contact CRIF to correct such errors.

How to Improve Your CRIF Score

CRIF score shows your financial health and it is directly related to your daily banking behavior. To improve it, there are some small but effective steps by adopting which you can gradually strengthen your score.

Pay EMI and credit card bills on time : The easiest and effective way is to pay every EMI and credit card bill on time. Even one or two delays can harm the score. Try to always make the payment before the due date.
Keep credit usage balanced : If you are using the entire or most part of your credit limit, it indicates to the bank that you are heavily dependent on debt. Try not to use more than 30–40% of the limit.
Do not apply for new loans or credit cards frequently : Applying for many loans or cards in a short period of time affects the score. Every new application is recorded as a “hard enquiry”, which can pull down the score slightly.
Keep the right mix of credit : If you have a balance of secured and unsecured credit, it is good for the score. For example, having a small home loan or car loan and a credit card can be beneficial.
Check your CRIF report from time to time : Incorrect or outdated information can harm your score. Therefore, it is important to check your credit report at least once a year. This will help you correct the mistakes in time and track your progress.
Build credit history gradually : If you have a short credit history, start with a small loan or secured credit card. Gradually, proper use increases the confidence of banks and NBFCs in your ability to pay.

Conclusion

Your CRIF score tells your financial story to your bank and lenders. If it is correct and strong, it is easy to get a loan or credit card. Therefore, it is very important to pay EMIs and bills on time, use credit limits in a balanced manner and pay attention to your report. If you see any mistake in the report, correct it immediately. These small habits gradually strengthen your credit and make it easier for you to make financial decisions in the future.

S.NO.	Check Out These Interesting Posts You Might Enjoy!
1	Non-Convertible Debenture (NCD) vs Fixed Deposit (FD): Meaning, Features, and Differences Explained
2	Sectoral Funds Decoded: Riding the Investment Roller-Coaster
3	NISM Certifications: An Easy Explainer
4	The Art of Value Investing: Meaning and Strategies
5	A Guide To Investing In Gold In India
6	Top 10 personal finance lessons for self-learning
7	CRED Case Study
8	A Guide To Fixed Deposits: Exploring Types And Interest Rates
9	Best Personal Finance Books to Read
10	How to Set Financial Goals for Your Future
11	Guide to Behavioral Finance: Definition, Biases, and Impact
12	10+ Best Investment Plan for Monthly Income in India
13	Mastering Your Finances: Beginner’s Guide To Tax Savings
14	How to achieve financial freedom before retirement

Frequently Asked Questions (FAQs)

What is CRIF Score?
CRIF score ranges between 300-900 and it indicates the strength of your credit profile.
How can I check my CRIF score for free?
You can check your score and report for free once a year by visiting the official website of CRIF High Mark.
Why is my CRIF score low?
Late payments, high credit utilisation, too many loan applications or incorrect information in the report can lower the score.
How often should I check my CRIF report?
It is good to check your report at least once a year.
Can CRIF score affect my loan approval?
Yes, a low score may make banks or NBFCs not approve your loan or credit card application easily.

December 13, 2025

Category: Personal Finance

Union Budget 2026-27 Expectations

1. Income Tax Expectations: Focus on Middle-Class Relief

2. Old vs New Tax Regime: Policy Clarity Needed

3. Healthcare & Insurance Expectations

4. Senior Citizens & Retirement Planning

5. Real Estate & Housing Finance

6. Infrastructure & Capital Expenditure

7. MSMEs & Small Business Support

8. Manufacturing & Make in India 2.0

9. Agriculture & Rural Development

10. Education & Skill Development

11. Defence, Space & Aerospace

12. Green Energy & Electric Vehicles

13. Digital Economy & Technology

14. Markets, Investors & Capital Gains Policy

Conclusion

Frequently Asked Questions (FAQs)

When will the Union Budget 2026 be presented?

Will the NSE and BSE be open on Budget day 2026?

What are taxpayers expecting from Budget 2026?

Which sectors may get priority in Budget 2026?

Is Budget 2026 likely to help senior citizens?

What is General Insurance

Industry Overview

List of Top 10 General Insurance Companies

1. New India Assurance

3. Bajaj Allianz General Insurance

4. ICICI Lombard General Insurance

5. Aditya Birla General Insurance

6. Bharti AXA General Insurance

8. Digit General Insurance

9. IFFCO Tokio

10. Future Generali India Insurance

How to Choose the Right GI Company

1. Check How Well They Handle Claims (Claim-Settlement Ratio)

2. Look at Their Cashless Network

3. Good Customer Support

4. Check the Add-Ons They Offer

Conclusion

Frequently Asked Questions (FAQs)

How do I choose the right insurance company?

What is a cashless claim?

What is the claim-settlement ratio?

Can I buy general insurance online?

Do general insurance policies offer add-ons?

What is MMID?

Features of MMID

How Does MMID Work

Advantages of MMID

Disadvantages of MMID

How to Generate MMID

Internet Banking

Mobile Banking

Phone Banking

Conclusion

Frequently Asked Questions (FAQs)

What is MMID Number?

What is MMID full form in Banking?

What is the MMID number?

Can I have more than one MMID?

Is it safe to share MMID?

What Companies Make Up the Sensex

How to Invest in Sensex?

1. Open a Demat Account

2. Open a Trading Account

3. Maintain a Bank Account

How Sensex Moves and How Its Value Is Calculated

Why Sensex Goes Up or Down

1. Company Performance

2. Economic Conditions

3. Global Markets

4. Government Policies and Budget Announcements

5. Foreign Investment

6. Market Sentiment

7. Sector Trends

Milestones of Sensex India

Key Highlights

When the Sensex Fell: Key Market Plunge Events

Conclusion