AU Small Finance Bank: Benefits and Drawbacks
AU Small Loans Bank. It has been doing its thing since 1996, when it began as a non-banking financial company (NBFC). It’s like the cool kid on the Indian financial block. Now it’s 2017—bam! The Indian Reserve Bank gave it the go-ahead to become a real bank. Right now it’s in 15 states and union regions, has over 700 stores, and has 1.4 crore users.
You may be wondering what’s going on with AU Small Finance Bank. Yes, they want you to have the best banking experience possible. but How? By using a mix of technology, new ideas, and putting the customer first. It doesn’t matter what you need; they have it: savings and checking accounts, loans, insurance, investments, even money sent abroad. Also, the AU 0101 app, video banking, and personal banking are all great digital tools that they use.
In order to prepare you for your banking journey, let us tell you about the good and bad things. This blog post lists the good and bad things about using AU Small Finance Bank for your money.
Benefits of AU Small Finance Bank
Here are a few of the best reasons to bank with AU Small Finance Bank:
- Very high rates of interest on deposits: You can get some really cool interest rates on savings accounts and fixed deposits at U Small Finance Bank. Rates from 3.5% to 7.25% per year are being talked about. The good thing is that these rates are higher than what you’d get at most regular banks. It means that your savings might grow faster and that your investments will earn you more money.The AU Small Finance Bank doesn’t wait; they pay the interest every month, not just every three months. and you can make interest on interest. If you want to save a lot more money,
- Zero Balance Accounts: they give you a Rupay Platinum debit card, throw in free NEFT/RTGS/IMPS transactions, toss 25 free cheque leaves your way every year, and guess what? Unlimited ATM withdrawals at AU Bank’s ATMs!
- Customized Credit Products: They can help you with microloans, small business loans, agri loans, and cheap home loans, among other custom credit products. They’re expanding credit with flexible repayments and low rates!
- Doorstep Banking Services: Using doorstep banking services means you don’t have to work hard. The AU Small Finance Bank takes banking to your door, which is helpful if you live in a place where getting to a bank can be uncomfortable. Mobile agents are providing services like starting accounts, making payments, taking money out, and giving out loans, all right at your door.
- Financial Inclusion: They’re on a mission! It’s all about financial equality at AU Small Finance Bank. They are sending carefully made goods to low-income families, small companies, micro-entrepreneurs, and farmers. Using them for banking means you’re part of a movement that gives communities power through financial participation.
- Building people’s financial knowledge and skills: it’s not just about having money, but also knowing how to oversee it! Small Finance Bank of Australia is your business friend. You can learn everything about banking through seminars, workshops, and training Looking to raise your credit score or make a budget?
Drawbacks of AU Small Finance Bank
AU Small Finance Bank may have several drawbacks:
- Limited Branch Network: they don’t have as many branches as the big traditional banks. Most of their branches are in the north and west of India. If you like doing your banking in person or live somewhere that AU Small Finance Bank isn’t, it might be problematic.Also, keep in mind that there is a fee for dealing with more than a lakh in cash at their branches every month. That’s not the nicest surprise, is it?
- Helping Customers in Person: AU Small Finance Bank adores digital and video options. We’re all different, though, and some people just want to talk to someone in person. If so, AU Small Finance Bank might not be the best choice for you.
- Internet Problems: The digital goodies from AU Small Finance Bank need it, though. But, let’s be honest: not everyone has good internet, especially in the country. In that case, living somewhere where Wi-Fi is hard to find might be a bit of a pain.
- Risk of Cybersecurity Threats: Going digital comes with risks when it comes to cybersecurity. The online playground at AU Small Finance Bank could put you at risk of hacking, phishing, and other bad things that happen online. Guard your passwords carefully and be careful of sketchy things you find online.
au lit credit card review
Customize the shape, color, and name; it’s your credit card and your rules. Get creative on the bank’s website or app. the interest rate changes all the time. If you pay your bills on time and keep your credit score high, the interest rate will do a happy dance in your favor. Just so you know, there is a 999 rupee yearly fee. Spend at least 1.5 lakh rupees in a year, though, and poof! Like magic, the fee goes away.
- ✓ Design Power: Picture having a credit card that you could use as a blank medium. AU LIT lets you make it look the way you want, so it fits your style and personality.
- ✓ Flexi-Finances is like a yoga teacher for credit cards. Do you want a cheaper interest rate or a bigger limit? It will help you handle your money like a pro if you just ask it to.
- ✓ Fiesta: This card has a lot of great features, such as the ability to convert balances to EMIs, move funds between cards, withdraw cash, get protection, and more. On steroids, it’s like a credit card with extra perks.
- ✘ Fee Fumble: The kicker is that there is a yearly fee of 999 rupees. Oh no, right? But if you spend 1.5 lakh rupees or more in a year, the fee goes away.
- ✘ No Points Party: This is a bad news story for people who like points: there are no reward points or cashback here. Still, you can’t have everything
- ✘ Rupay Realms: Things get a little tricky when you leave the Rupay network. Keep in mind that some places might not be on the same wave length.
au small finance bank is safe?
Get help with your money from AU Small Finance Bank. The Reserve Bank of India (RBI), which is kind of like the big boss of banks, keeps an eye on this cool, actual bank. When it comes to things like having enough money in the bank (capital adequacy ratio) and being ready for the worst (bad loans provision), they follow the rules set by the RBI.
These folks are the finest at risk management. Credit risk, market risk, business risk, and even cash risk are all things that they keep an eye on. Everything seems to be under control thanks to a group of superheroes.
Don’t worry about your money either. DICGC, the Reserve Bank’s friend, has your back. The DICGC has insurance that covers up to 5 lakh rupees per depositor in case things go wrong and the bank fails. They also provide a customer service helpline, a nodal officer (fancy), and an ombudsman to help you with any financial issues.
The safety and performance of AU Small Finance Bank are shown by:
- Capital Buffet: 23.1% capital adequacy; A financial safety net. The RBI likes 15%, but AU Bank rocks it harder.
- Next, the gross NPA ratio is 4.3%, below the industry average of 7.5%. AU Bank manages problematic loans well. You might call them quality’s A-team.
- ROARockstar: The industry’s freezing 0.4% contrasts with 2.2% ROA. AU Bank leverages assets to profit.
- Finally, AA+ from CRISIL and ICRA. Safe and stable like gold. The financial institution VIP lounge is AU Bank.
au small finance bank is good or bad
Such a cool bank is working in India. It’s all about helping people that big banks don’t usually pay much attention to. Consider this: you get high interest rates on your money, accounts with no balance (so you don’t have to keep a lot of cash in them), special loans just for you, and they even bring banking to your door! Really wanting everyone to be in the money world, you know?
Consider AU Small Finance Bank as a possible love interest. Actually, they might be your jam if you want a smooth, modern banking experience with great interest rates and tech-savvy solutions. This is a big but: think about the pros and cons.