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What is 5nance.com?
- It is an integrated, one stop shop for all your financial needs.
- Consider us as your holistic financial partner.
What can I do at 5nance.com?
- All your money management needs such as budgeting , expenses tracking and savings optimization.
- Do a comprehensive financial planning and get investment recommendations
- Track your portfolio and optimise the returns.
- Invest through us at no extra cost. You don’t have to pay anything for our services. There are no hidden charges too.
How is this platform different from others?
- Its one platform where you can get the benefit of budgeting, planning, advisory, tracking and investing in a click.
- Link your bank accounts for ease of operation.
- Execute all the transaction and get prudent advisory at zero cost.
How does 5nance.com make money?
- We are in the business of distribution of investment products, hence we get commissions from the product manufacturers. However this is the normal industry practice, hence the cost of the investment products on our site or any other site or from any distributor or advisor is the same.
- As a user of 5nance.com, you have no extra cost for investing through us. However advisory services are offered for free and no charge to you, which is the benefit you derive on this site.
Does it recommend me where should I invest?
- Yes. We provide prudent research on various asset classes that helps you take an informed decision for the correct investments.
- You have an option to compare products across asset classes to make smart investment choices.
How can I initiate investing with you?
- We offer a wide range of investment products ranging from Mutual Funds, FDs, Bonds, Gold, Real Estate, Loans , Credit cards etc.
- You need to get registered with us and follow a simple process.
- We help you do the required documentation. All your transactions are absolutely free.
Is it safe to invest through 5nance.com?
- The security standards are same as what your bank offers, hence its absolutely safe to do a financial transaction on our site.
- All our processes are complied as per required regulations.
- The ownership of all the assets remains with the investor. We provide an excellent platform for you to invest and keep your records updated.
What is the research methodology that you use?
- In-house research is done by domain experts who hold a significant experience on various investment products and advisory.
- We provide an exhaustive research on various product classes that helps you make a smarter choice of investments
How do I make a payment for the transaction that I initiate?
- You can initiate the payment through net banking, credit cards whichever are applicable.
- We provide a platform where you are initiating payments directly to the respective company from where you purchase a product.
What if my account is debited but have received the mail for failure of transaction
- 5nance uses third party payment gateway for facilitating transfer of amount from customers bank account.
- 5nance sends the successful order mail to customer on receipt of confirmation from payment gateway (Techprocess or Billdesk). The amount is directly remitted to the bank account of AMC (Asset management company) by payment gateway and does not come to the account of 5nance.
- In case of debit of amount from customers account but failure of receipt of intimation from PG, the amount would be refunded within 3 to 5 working days to the registered bank account of customers by PG/AMC.
How can I register myself on 5nance.com?
- Provide your Email ID and password.
- Click on the link sent in confirmation e-mail.
- You are ready to explore the world of 5nance.com
How is the KYC process taken care of?
- At 5nance.com, the Know Your Customer process is extremely simplified.
- We keep a copy of your documents for all future references.
- It is backed by an option of sending the documents to us via courier or arrange for a pick up.
What is the cost attached to be a registered member of this site?
- The registration is absolutely free.
- There are no additional charges for any transactions executed through us.
- You can avail our advisory at zero cost. There are no hidden charges.
Do I need a registration to invest through you?
- Yes. It’s a mandatory yet simple process.
How will the site help me on a pro-active basis?
- We facilitate you with various alerts that will help in better management of your finances.
- You can create customized alerts too.
Are there any pre-defined alerts?
- Yes. We have this facility on selected parameters that will help you keep up with the pace of your finances.
- We pro-actively send you the alerts on your registered mobile number, mail that will help you take better control on your financial aspects.
Can I use only selected features on the site?
- Yes. You can use any part of the site. We offer Budgeting, Financial Planning, Portfolio tracking and investment platforms.
- We recommend you to use all our offerings to help you have an integrated experience.
What is the best way I can use this site?
- You can make the best use of our platform in 5 easy steps:
- Register yourself with 5nance.com and create your profile.
- Create your budget and track your cash flows.
- Update your financial portfolio and monitor the growth at different time lines.
- Create your financial plan and optimise your returns through our advisory.
- Invest through us and save a transaction cost, otherwise incurred on other platforms.
- You can make the best use of our platform in 5 easy steps:
What is Health Insurance?
Health insurance is a type of insurance that covers your medical expenses. A health insurance is a contract between you (the insured individual/group) and the insurer, wherein the insurer agrees to cover your specified medical bills and other treatment-related expenses at a particular premium.
What are the forms of Health Insurance available?
There are several forms of health insurance that offer a range of health covers depending on your (the insured’s) need and choice. However, the Hospitalization Plan is the most common and widely popular form of health insurance in India. The type and amount of healthcare costs that will be covered by your health plan are specified in advance.
Further, your insurer can cover the cost as per your convenience in the following ways:
- Cashless Facility (Direct Payment to Hospital)
- Reimbursement of expenses associated with illness and injuries
Disbursement of a fixed benefit on occurrence of an illness
What is cashless facility?
Insurance companies have tie-up arrangements with several hospitals all over the country as part of their network. When you opt for cashless facility under your health insurance plan, your hospital bills are taken care of by a Third-Party Administrator on behalf of your insurance company. This applies to hospitalization and treatment in any of the specified network hospitals. Thereupon, you will have not to pay a single penny in case the expenses incurred are within the limits or sub-limits that’re allowed by your insurer. If, however, your medical bill is beyond the specified expense limit or includes any unspecified costs not covered under your policy, then you will have to settle the residual amount with the hospital directly. The same goes for treatments taken in a hospital that is not in the network.
What are the tax benefits I get if I opt for Health Insurance?
Health insurance comes with attractive tax benefits as an added incentive. There is an exclusive section of the Income Tax Act which provides tax benefits for health Insurance-Section 80D.
Under this section, any individual who purchases a health insurance policy by any mode of payment other than cash can avail tax deduction of INR 25,000. This deduction can also be claimed for premium paid with insurable interest towards your spouse, your dependent children or dependent parents.
If your dependent parents are more than 60 years old, then you can claim deduction of up to INR 50,000.
In case both you (the taxpayer) and your dependent parents are 60 years or above, then the maximum deduction you can avail is to the extent of INR 100,000. For example, suppose a taxpayer named Roshan is 65 years old and his father’s age is 90. In this case, the maximum deduction Roshan can claim under section 80D is INR. 100,000.
In addition to this, a cumulative additional deduction of INR 5,000 is allowed for the preventive health check up to individuals effective from FY 2015-16.
What are the factors that affect Health Insurance premium?
Several factors affect your Health Insurance premium. Some key factors are as follows:
- Gender: Many insurance companies offer different premium rates for men and women.
- Age: The younger you are, the lower will be the premium rates. This is because young people are less prone to illnesses.
- Medical History: If you are a healthy individual with no prior medical history, the premium offered to you will automatically be lower.
- Consumption of injurious substances: Everyone knows smoking is injurious to health. If you do not smoke, you will benefit lower rates of premium.
- Insurance History: Having a previous health insurance plan deems you responsible in the insurer’s eyes. It is even more beneficial in case you have claim-free years, as it increases your chances of getting a lower premium.
Premium rates may also vary depending upon factors like your marital status, choice of profession, place of residence, and prevailing taxes/GST.
What does a Health Insurance policy not cover?
The features included and excluded in a health insurance policy depend upon the insurance company, you choose. Generally, pre-existing conditions are excluded under Health Insurance policy.
Pre-existing conditions refer to any health problems an individual might be facing before seeking health insurance. These include usual suspects, such as diabetes, asthma, high blood pressure, cancer, and even acne.
Further, most health insurance policies generally exclude certain diseases from the first year of coverage and also impose a waiting period. You must read the prospectus/policy you are interested in to get a fair idea of disease and treatment coverage along with the terms and conditions.
Certain standard exclusions in every health insurance policy are as follows:
- Cost of spectacles
- Contact Lenses and Hearing Aids
- Dental treatment/surgery
- General Debility
- Congenital External Defects
- Venereal Disease
- Intentional Self-Injury
- Use of Intoxicating Drugs/Alcohol
- Expenses for Diagnosis
- X-ray or Laboratory tests not consistent with the disease requiring hospitalization
- Treatment relating to Pregnancy or Child Birth including Cesarean Section,
- Naturopathy Treatment
What if my policy is not renewed in time before expiry date, will my renewal be denied?
Most insurance companies provide a 15-day grace period for renewing your policy. This means you have a chance to pay the premium within the next 15 days if you miss the expiry date. However, you will not get any coverage from the insurance company during this period. Further, your policy will lapse in case you do not pay the premium within the extended grace period.
What happens to the policy coverage after a claim is filed?
- After a claim is filed and settled, your policy coverage is reduced by the amount that has been paid out on settlement.
- For Example, suppose you buy a policy in January that offers coverage of INR 5 lakh for the year. Then, in April you make a claim of INR 2 lakh. Your balance for the rest of the year (May to December) will be INR 3 lakh, and the policy will continue as it is. You will suffer no reduction in benefit.
What is the maximum number of claims allowed over a year?
You can make any number of claims during the policy period provided that there is no cap prescribed in your policy. However, the maximum monetary limit is the sum insured under the policy.
What is ‘health check’ facility?
Some health insurance policies pay for specified expenses towards a general health check-up once in every few years. This referral is termed as health-check facility. Generally, this is available once in four years.
What do you mean by Family Floater Policy?
- Family Floater is a package policy that takes care of the hospitalization and treatment expenses of your entire family. It covers all sorts of medical expenses including sudden illnesses, accidents, and surgeries.
- Family Floater plans are usually more beneficial rather than buying separate individual policies for each family member. Here you pay premium for one single sum insured and the coverage can be utilized by any or all insured persons. The claim can be made in any proportion or amount subject to the maximum overall limit of the policy sum insured.
Why is Health Insurance important?
Medical emergency can strike anyone at any time without any prior warning. In addition to that, healthcare is becoming increasingly expensive. Technological advances, new procedures, and more effective medicines have also driven up the cost of healthcare. Nonetheless, you cannot ignore the need for hospitalization and/or treatment just to save up some money. Health insurance can provide you the much needed financial cover against unexpected costs of hospitalization in such trying times.
How to buy insurance?
- Log onto 5nance.com/corporate/Insurance
- Get quotes for Health, Motor or Life Insurance
- Select the product, you need
- Pay at the Insurer Payment Gateway
- Fill the Proposal Form, upload the documents
- Your Policy gets issued
Is there any Waiting Period for claims under a policy?
Yes. Most insurance companies have an initial waiting period of minimum 30 days. This means that any claim made upto 30 days from the policy’s inception date will not be admitted (except for accident cases). This restriction has been put so that people do not exploit insurance companies by buying a policy after being diagnosed with a serious condition.
Can I transfer my policy from one insurance company to another without losing the renewal benefits?
Yes. You can transfer your policy from one insurance company to another without losing any renewal benefits. The Insurance Regulatory and Development Authority (IRDA) had issued a circular effective from 1st July, 2011 in compliance with the same. It directs the insurance companies to allow portability from one insurer to another and/or from one plan to another. It further allows you (the insured) to keep any and all renewal credits for pre-existing conditions accumulated in the previous policy. However, this credit is limited to the sum insured (including bonus) under the previous policy. You must check with your insurance company for further details and/or clarification.
Which are the insurance companies that’re associated with 5nance?
- HDFC Ergo
- Aditya Birla Capital
What Motor Insurance cover should I buy? Should I buy Comprehensive Insurance or Liability Policy only?
Third-Party Liability Insurance is mandatory for all vehicles plying on public roads in India. However, if you are confused between comprehensive and liability only insurance, it is better if you first understand what each type of insurance offers.
- Comprehensive or Package insurance covers damage to others as well as your vehicle, including property damage and bodily injuries. It is also known as fully comp insurance.
- Liability only insurance covers damages and injuries caused to others by your vehicle. Any damage to your vehicle is your own problem. It is also known as Act only insurance.
It is best to buy a Comprehensive Package Policy, which covers both ‘Own damage’ along with ‘Third-Party Liability’. Some insurance providers also offer additional riders for maximum protection at a nominal fee.
What coverage limit meets my needs?
Motor insurance coverage requirement varies from person to person and vehicle to vehicle. Most insurance companies typically provide unlimited coverage for Third-Party Injuries and upto a sum of INR 750,000 for Third-Party Property Damage. However, if you want to get a lower ‘Liability only’ premium, you have the option to restrict coverage for Third-Party Property Damage to INR 6,000. Further, since different insurance companies provide different features for similar coverage, you can settle on the one that offers the most competent premium rates and riders as per your needs and capability.
What is the period of the policy?
A motor policy is usually valid for a period of one year and has to be renewed before the due date. No Insurer currently offers a grace period for paying the premium. So, it is important to pay the premium on time. In case of lapse of policy by even one day, your vehicle will have to be inspected again by the insurance company.
Additionally, you will lose the accumulated benefit of NCB (No Claim Bonus) if you have a lapse for more than 90 days in your comprehensive policy.
What is ‘No Claim Bonus’?
No Claim Bonus (NCB) is a form of reward for you (the vehicle owner) for not making any claims during the policy period. It helps you get a significant discount on premium during renewal. However, most insurance companies in India consider NCB of minimum 5 years when working out a discount. It is likely to get you a discount in the range of 20 to 50% on own-damage or comprehensive premium. It is not applicable on Liability only premium.
If, however, a claim is lodged, No Claim Bonus is lost in the subsequent policy period.
Further, NCB is given to you (the insured) and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy will be transferred to the new owner but not the NCB. You as the original owner can, however, use the NCB on a new vehicle purchased.
What if I want to change my insurance company? Will my No Claim Bonus get migrated?
Yes. You can get your NCB migrated if you change your insurer on renewal. However, you will need a proof of the NCB earned. You can get it by asking for a renewal notice or a letter confirming NCB entitlement from the previous insurer.
Alternatively, you can produce your original, expiring policy along with a certification that you have lodged no claims on the expiring policy.
What is deductible?
Motor insurance deductible (also known as ‘excess’) is the amount of money that you have to pay toward repairs or other bills before your insurance company covers the rest. For example, if you have an accident that causes INR 5,000 worth of damage and your deductible is INR 1,000, you will have to pay INR 1,000 toward the repair. Your insurance company will pay the remaining INR 4,000.
Further, there is a compulsory deductible in motor insurance covers as follows:
- INR 100 for motorized two wheelers
- INR 1,000 for private vehicles not exceeding 1500cc
- INR 2,000 for private vehicles exceeding 1500cc
You can also apply for voluntary deductibles in your vehicle insurance plan for possible discount on premium. However, do check with your insurance company regarding their discount offers before applying.
What is the procedure for recording any changes in the policy?
If you want to record any changes, you can do so by getting an endorsement on your insurance policy. The changes may include:
- Change of Address
- Modifications to the vehicle
- Modifications to the purpose of use etc.
You have to submit a letter to the insurer along with proof of changes in order to obtain the endorsement. You may also have to pay additional premium for some endorsements. Also, do check the accuracy of endorsement before accepting.
What is a Certificate of Insurance under Motor Vehicle Act?
Certificate of Insurance is a document issued by your insurer showcasing all the details of your effective insurance plan for your vehicle.
As per Rule 141 of the Central Motor Vehicle Rules 1989, it is mandatory for your insurer to issue a Certificate of Insurance along with the policy document at the time of purchase or renewal. In addition to this, the certificate must be issued in the format laid down in Form 51 as given under the Motor Vehicle Rules.
You must always carry this certificate in your vehicle. It is required for any sort of police inspection along with other important documents such as your driving license. It is also advisable to keep a copy separately at home or office.
What are the documents to be kept in the vehicle while plying in public places?
You must always carry the following documents while plying in public places:
- Certificate of Insurance
- Xerox copy of Registration Certificate
- Pollution under Control Certificate
- Photocopy of Your Driving License
What are the documents that need to be submitted for a Motor Insurance claim?
You are required to submit the following documents when making a Motor Insurance claim:
- Duly filled-in claim form
- RC copy of the vehicle
- Original estimate of loss
- Original repair invoice and payment receipt.
In case you want to avail cashless facility, only the repair invoice would be needed. You may also be asked to submit an FIR in case of theft.
In case of a pure theft claim, you will have to submit the keys of the vehicle as well along with the FIR and a non-traceable certificate.
How is the premium determined?
Third-Party Liability (only premium) rates are laid down by IRDA.
In case of own damage or comprehensive insurance covers, various factors are used to determine the payable premium for your motor insurance. Further, different insurance companies may provide different coverage, deductibles and IDV for the same vehicle after duly filing rates with the Insurance Regulatory and Development Authority. There may also be a significant difference in premium rates offered for similar coverage by different insurance companies. So, it is best to compare three or more insurers before buying a policy.
You can use the 5nance platform to get a list of offers from various insurance companies in one place. You will need the following information:
- Vehicle registration details with Engine No. (Used to calculate Insured Declared Value or IDV)
- Chassis No.
- Class and Age of vehicle
- Cubic Capacity
- Seating capacity (All relevant details are in the RC book/card)
- Tax paid details
- Certificate of fitness
- Driver Details
- License Validity
- Previous insurance history, if any.
In case of break in insurance, vehicle inspection is required and extra charges may be incurred for the same.
How to get your vehicle insured
- Log onto 5nance.com
- Get quotes for Motor Insurance
- Select the product, you need (two-wheeler, car insurance)
- Pay at the Insurer Payment Gateway
- Fill the Proposal Form, upload the documents
- Your Policy gets issued
Are there any discounts that will lower my premium?
Insurance companies in India offer discounts on motor insurance premium for the following:
- Membership of ARAI (Automobile Association of India)
- Vintage Cars (Or Private cars certified by the Vintage and Classic Car Club of India)
- Specially designed or modified vehicles for the blind, handicapped or mentally challenged individuals
- Installation of Anti-Theft Devices approved by the ARAI
- Impressive Credit Score
- Long-Time Customers
- Higher Deductibles
- Low Annual Mileage
- Voluntary Deductibles
- More than one vehicle
- No accidents in a period of over 3 years
It is important to remember that different insurance companies have different criteria and discount offers. So, it is best to check with your insurance provider directly to avoid any confusion.
Is Service Tax applicable and how much is it?
Yes. Service Tax is applicable on all motor insurance policies. It is as per the prevailing rule of law.at any given time.
If I am using the car in a particular city, what premium rate is applied?
The premium rate applicable on a vehicle is reckoned on the basis of city of registration (not the place where the vehicle is used).
For example, if your vehicle is registered in Chennai in Zone A, the rate applicable for Zone A is charged. The same rate will be applicable even if you shift to a different city / town.
Similarly, if a vehicle is registered in a town in Zone B, it will attract Zone B premium rates. Subsequently if the owner shifts to a metro, he will continue to be charged the Zone B rate.
Is it necessary to inform the Insurance Company if I fit CNG or LPG kit in my vehicle?
Yes. Insurance companies usually have a clause on CNG and/or LPG conversion. So, it is necessary to inform the Insurance Company if you fit a CNG or LPG kit in your vehicle. As it is considered as a major modification to the vehicle, it has to be endorsed in your insurance policy. If you fail to do so, your entire policy will be nullified at the time of the claim.
You must also notify the RTA (Road Transport Authority) office where your vehicle is registered. It is crucial for the accurate updation of the registration certificate (RC) of the vehicle.
Can I transfer my insurance to the purchaser of my vehicle?
Yes. You can transfer your insurance to the buyer of your vehicle. However, the new owner will have to submit a proof of transfer (in writing from the seller-You) to the insurance company along with a fresh proposal form. He will also have to pay a nominal fee for transferring your insurance. This includes pro-rata recovery of NCB from the date of transfer till policy expiry.
Can I continue the insurance in the name of the previous owner even after the vehicle is transferred in RTO records in my name?
No. Registration and insurance of the vehicle should always be in the same name and with the same address. The claim is not payable otherwise.
Besides, there is a nominal fee charged for transfer of insurance, which includes pro-rata recovery of NCB from the date of transfer till policy expiry. You simply need to submit a fresh proposal form along with a proof of transfer from the previous owner.
Further, it is mandatory to record the transfer of ownership within 14 days from the date of transfer in case of comprehensive/package policies. If you fail to do so, no claim will be payable to for own damage to the vehicle.
I have lost the insurance policy. Can I get a duplicate one?
Yes. You can easily get a duplicate copy by approaching the same office that issued your original insurance policy. You may have to submit a written request and pay a nominal fee for the same.
Which are the motor insurance partners that’re associated with 5nance?
- New India Assurance
- HDFC Ergo
What can I use a personal loan for?
You can use a personal loan for all kinds of expenses like home renovation, clearing off debt and business investment. A personal loan also comes in handy while making a down payment on a new house, meeting unexpected medical expense or repairing your car.
What is the eligibility criteria that’s required to apply for a personal loan?
Any salaried individual, self-employed business individual or a professional having a regular source of income is eligible for a personal loan. Employment details, credit history, and residential location are other factors affecting your eligibility.
What is the tenure of the personal loan?
Usually, personal loans are available for durations ranging between 12 and 60 months. Lenders might allow periods shorter than 12 months and longer than 60 months on rare occasions, depending on the circumstances.
What are the essential documents required when applying for a personal loan?
The documents differ as per the lender. However, the most important documents you need to submit while applying for a personal loan are:
- Income Proof (Salary slip if you are salaried or a recently -acknowledged ITR if you are self-employed)
- Address Proof documents
- Identity Proof documents and more
- Certified copies of your degree/license in case you’re self-employed
What are the critical stages in the loan approval process?
Your personal loan approval depends on the lender. The loan sanctioning officer makes this decision depending on the eligibility criteria that’s specified by the lending institution. The approval process takes 48 hours at the least and a maximum of two weeks. After submitting the required documents and completing the verification process, the loan is disbursed in seven working days, if sanctioned. Keep all the relevant documents ready including the signed ECS forms and post-dated checks to avoid delays in processing and disbursement.
What is the prevailing interest rate on a personal loan?
A personal loan is an unsecured loan. So it attracts a higher rate of interest as compared to the secured ones like home or car loans. Today, many leading banks and NBFCs offer personal loans at interest rates as little as 11.49%. But it also depends on many factors like your credit score, loan amount, income levels, and prevailing relationships with the lender.
Is there any minimum amount of personal loan that I can borrow?
Yes, it varies from one lender to another. Most of the lending institutions offer personal loans for principal amounts as low as 30,000.
Can I apply for a personal loan jointly with my spouse?
You can apply for a personal loan by yourself or jointly with a co-applicant. The co-applicant has to be a family member like your spouse or parents. The advantage is that the lenders consider the income of the co-applicant too while determining your eligibility. Under such circumstances, you can be eligible for a higher loan amount. But if you or your co-applicant has a poor credit history, it greatly affects your loan application.
Which bank/ institution should you take your personal loan from?
Compare what’s offered by individual banks before deciding on a specific loan provider. A personal loan EMI calculator or loan eligibility calculator help in selecting your best-suited suitable loan. Evaluate important factors like loan durations, interest rates and processing fees, etc.
Is it smarter to select the loan provider with the lowest EMI?
A low EMI is likely due to a low interest rate or an extended repayment period or possibly both. So you might have to pay a higher interest amount if you choose the lower EMI option. A personal loan EMI calculator available online helps in calculating your interest payout over the loan’s duration. Explore your repayment capacity before finalizing your decision.
Am I required to pay any extra charges while applying for a personal loan?
Yes, you have to pay a non-refundable processing fee when applying for a personal loan. This processing fee ranges between 1% and 2% of the loan amount. It takes care of the paperwork that is a part of the personal loan application process. If you have a long-term relationship with your lender, payment of the processing fees could get waived off.
Is the Balance Transfer facility available on my personal loan? What are the benefits of this balance transfer?
- Subject to specific conditions, the lenders allow you to transfer the current personal loan balance to a new lender. Under these circumstances, the new lender pays off the balance amount to the existing lender. So you now owe payments on the personal loan amount along with the applicable interest to the new lender.
- The benefit of a balance transfer is that you enjoy a lower interest rate that’s offered by the new lender. But this process incurs varied charges like balance transfer fees, pre-payment charges, and so on as applicable to the procedure.
Which are the personal loan companies that’re associated with 5nance?
- Bajaj Finance
- IndusInd Bank
- Small Business FinCredit India
How is the maximum loan amount that I can take calculated?
Your maximum personal loan eligibility level depends on various factors. They are as follows:
- The personal loan EMI should not exceed 30% to 40% of your take-home salary.
- All existing loans serviced by you are taken into account while calculating the maximum permissible personal loan amount
The loan value depends on the amount of profit your business generates if you are self-employed. Your latest Profit and Loss statements and liabilities (existing loans for business) are considered.
How is the maximum personal loan amount that I’ll get calculated by the lenders?
The lending criteria varies for every bank. Your credit score, existing liabilities, current income level define your personal loan eligibility. A high credit score (closer to 900) is preferred. It displays that you have a credible track record of repaying your loans and credit card dues. This automatically qualifies you for a higher loan amount. Your repayment capacity is impacted by your income level and liabilities. So if you are in a lower income bracket or have greater liabilities, your eligibility is lesser compared to someone with a higher income and fewer liabilities.
How is a personal loan disbursed?
Once your personal loan is passed, the money might get deposited into your savings account via electronic means. Sometimes, the loan’s disbursed through an A/c payee check or draft that’s equal to the desired loan amount.
How to apply for a loan?
1. Check your eligibility instantly by entering basic personal details
2. Choose the best-suited interest rate from multiple short-term & personal loan options
3. Upload recent salary slips, bank statements, etc.
What is a Home Loan?
A Home loan is disbursed by a financial institution (lender) or bank to an individual for buying a residential property. Typically, the lender holds the title of property until the loan is completely paid back along with the interest.
What is the duration of a home loan?
Home loans are long-term borrowing instruments with a minimum period of 5 years and a maximum one of 30 years. The duration depends on the loan amount that’s granted to you by the lender along with multiple factors. These include your age, repayment capacity as per income, and the purpose behind your purchase.
What is the Eligibility Criteria for a Home Loan?
Anyone who is between 21 to 65 years of age can apply for a home loan, regardless of the source of income (self-employed/salaried). This is the generic home loan eligibility criteria. The minimum income level, minimum and maximum age limit, etc. may differ as per the lender.
What do banks consider when granting a home loan?
Your repayment capacity is the first factor that determines your eligibility to apply for home loan. Besides this, lenders also consider the following factors:
- Your Income level
- Qualification (stability and occupation continuity)
- Resident status (maximum loan limit varies for Indian and NRIs)
- Spouse’s income (household income is considered in case of a co-applicant)
- No. of dependents (to measure repayment capacity)
- Credit history and score (past repayment track record)
Status of existing loans
What is floating rate home loan?
When the interest rate on your home loan varies periodically over the loan tenure, it’s called a floating rate. Typically, every lender has a fixed base rate that determines the rate of interest that’s charged on a home loan. However, the EMI amount payable may increase or decrease as the banks revise their base rates from time to time as per directions from the RBI and other factors.
What is a fixed rate home loan?
Fixed rate home loans mean you have to pay a predetermined interest rate during the entire loan tenure, irrespective of market conditions. This can be beneficial as it offers cover against market volatility. For example, if you have a fixed rate home loan, your payable interest rate will remain unaffected by the increase or decrease in the market interest rates as determined by the RBI. However, these type of loans have become less popular due to lack of flexibility.
What is the maximum number of joint borrowers for a home loan?
The maximum number of joint borrowers a home loan allows is 6. But in India, only immediate family like parents, siblings and/or spouse can be co-borrowers. Having a co-borrower with strong credit history is preferred over multiple co-borrowers with poor credit history.
What are the key charges associated with a home loan process?
Processing fee, pre-payment charges, and others are the main charges associated with a home loan.
- Processing Fee- is the fee paid to the lender on loan application. The paid amount could either be a percentage of the loan amount or a fixed amount that is paid in exchange of carrying out the loan sanction formalities.
- Pre-payment Charge- This is the penalty paid if the entire loan amount is paid off before you complete the loan tenure. The penalty amount, also called foreclosure/pre-payment charges, could be a maximum of 5% of the loan amount that is paid off before the completion of the duration.
Miscellaneous Charges- These are the charges for documentation, stamp duty, credit bureau report issuance and consultation.
What documents do I need to submit with my home loan application?
The list of documents required for submission may vary from one lender to the other. However, some necessary documents required by all lenders include:
- Completed loan application form
- Passport-sized photographs
- Identity proof (PAN card/Passport/ DL/ Voters ID)
- Residence proof (Telephone or electricity bill/ passport/ voter ID / property tax receipt)
- Bank statement for the last 6 months
- Salary certificate/ latest acknowledged ITR
- Copy of approved plan for the proposed construction/extension
- Cost estimation/ valuation report from a surveyor/evaluator authorized by the lending bank or finance company.
Allotment letter of housing board/ NOC from the society/Builder along with other land use certificates
What is a top-up loan?
A top-up loan means an extra loan equal to the amount that you have paid off on your existing home loan. Get the option of applying for a top-up loan only if you have made timely repayments towards your current home loan. The interest rates on a top-up loan are less than a personal loan. Additionally, it requires minimal or no paperwork to process this loan and you can use the money for a range of expenses.
What if I have low credit score? Can I still apply for a home loan?
It will be difficult for you to get a home loan if you have poor credit score. However, you can improve your chances by getting a co-borrower with a good credit history and regular source of income. He/she should be an immediate family member like your spouse or parents.
What is the margin on a home loan?
The margin on a home loan is the percentage of the cost of the home that’s not covered by your lender. Lenders implement a 20% margin on home loans on an average. This means the home loan amount sanctioned to you will be only 80% of the actual cost of the property. You have to bear the remaining 20% of the home loan on your own.
Although 20% margin is the industry average, it differs from lender to lender. So, do check with your lender.
What costs are not covered by a home loan?
Home loans typically cover only a specified limit of the actual cost of the property. For example, if your lender implements 20% margin during loan sanction, you will get only 80% of the actual cost as loan amount. You will have to bear the rest 20% on your own.
Other important expenses that are not covered by a home loan include:
- Initial Down Payment
- Stamp Duty Costs
- Registration Costs
What are the different types of home loan?
There are various types of home loans depending upon your specific requirement.
- Land purchase loan: Apply for this loan if you want to purchase a land with intention to build a house on it
- Home purchase loan: Apply for this loan if you want to purchase an apartment.
- Home construction loan: Apply for this loan if you want to construct a house on a plot land that you already own.
- Home Expansion/Extension Loan: Apply for this loan if you want to expand your home to include a new construction like an extra floor, room, bathroom, etc.
- Home Improvement Loan: Apply for this loan due to lack of sufficient funds to renovate your existing home with a new paint job, electrical wiring, water proofing, etc.
- Home conversion loans: This loan is available only to existing home owners. Apply for this loan and add to your existing home loan if you want to purchase another house.
NRI Home Loans: Apply for this loan if you are a Non-Resident Indian and want to purchase a house in India.
Can I apply for a joint loan with my friend?
No. Lenders permit only immediate family members to apply for a joint home loan. So your friend isn’t eligible.
Who can be joint borrowers in case of a home loan?
Your parents, spouse and/or children and Immediate family members are eligible to be joint borrowers.
Can I switch from a floating rate home loan to a fixed rate?
Yes. You can switch from a floating rate home loan to a fixed rate home loan, and vice versa, typically for a small extra fee. However, not all lenders permit conversion. Get in touch with your lender to get details regarding the possibility, procedure and requirements.
Is prepayment of a home loan allowed?
Yes. Prepayment of home loan is possible. You can repay the loan amount before completion of the scheduled tenure by making a lumpsum payment. However, you may have to pay penalty in the range of 2-3% of the principal amount outstanding to your bank. Some banks and NMFCs (non-banking financial companies) do not charge any penalty on making prepayment of a home loan. Do consult with your bank regarding the same.
Is there any tax benefit available on home loans?
Yes. Tax benefit is available on home loans. The tax benefit on home loan is divided into two sections-
- Tax exemption under section 80C: Avail a maximum annual tax deduction of INR 150,000 on repayment of your home loan principal.
- Tax benefit under section 24: Get tax exemption on the amount of interest paid on your home loan to the maximum limit of INR. 2 lakh for a self-occupied property.
- Tax benefit for Joint Borrowers: For joint home loans, each co-borrower is eligible to receive a total of INR.3.5 lakh as tax exemption (INR 1.5 lakh under section 80C and 2 lakh under section 24. A married couple for instance could co-sign a home loan, they can claim a total tax exemption of INR.7 lakh on the home loan.
Can I have a co-applicant when I sign up for a home loan?
Yes. You can have an immediate family member like your spouse or your parents co-sign with you when you apply for a home loan. Besides, having a co-applicant enhances your chances of approval for a larger home loan amount. A co-signor is especially recommended if you (the primary applicant) have a low credit score or have had problems when applying/paying off a loan.
Is having a good credit record important in case of a home loan?
Yes. Having a good credit record is critical.
A home loan is a long-term loan, typically with a tenure ranging between 5 to 30 years. So, lenders want to ensure that they will get their money back. Checking your credit history permits them to verify your risk profile. If you have a good credit history, you will be considered as low-risk borrower. This means you may be able to get preferred (low) interest rates and waivers on various bank fees.
Which are the home loan partners that’re associated with 5nance?
- Kotak Mahindra Bank
- Punjab National Bank
How is the MCLR method going to affect my current home loan?
Every bank is required to use MCLR (Marginal cost of lending rate) method to determine your interest rate on home loans as per the recently RBI regulations. This introduction of the new MCLR regime has led to a reduction in applicable home loan interest rates. As a general rule of thumb, you can expect your interest rate to change yearly or half-yearly in case of a floating rate home loan. In case you have a fixed rate home loan, check with your bank for the possible conversion of your fixed rate home loan to the new MCLR-based floating interest rate. It is advisable to get in touch with your bank to clarify the details in both the cases.
How do I repay my home loan?
There are several ways to pay off your home loan. The most common methods include:
- Issuing post-dated cheques for the tenure of the home loan
- Getting the amount deducted automatically from your salary
Issuing standard instructions to the lender for ECS (Electronic Clearing System), wherein EMI is automatically deducted from your bank every month.
How to get your home loan in quick, easy steps?
1) Apply for a Home Loan
2) Evaluate Repayment Capacity
3) Sanction/Approval of the Home Loan
4) Legal Verification
5) Property Valuation
6) Submit any additional docs if required
7) Sign the Agreement, Disbursal
What are the advantages of investing in a mutual fund?
Mutual fund schemes offer a lower individual risk and higher returns with pooled investments and financial experts at work. There are no additional fees or transaction charges to be paid. You get a personalized list of investment options to choose from on our platform. With a hassle-free process that is easy to understand and convenient, this investment avenue saves you a lot of time.
What are the perks of investing in a SIP?
You can invest with convenience and ease in top-performing SIPs. As you invest during market highs and lows, market volatility doesn’t impact your investment harshly. Another advantage is that you get less units when the markets are high and more units when the markets are low. This averages out the purchase cost of your mutual fund units. You’re even free from timing the market and can always reinvest the returns that you earn. To see the expected returns on a year-on-year basis, just use our SIP calculator.
What are the benefits of making a lumpsum investment?
As investment is made in varied asset classes, the overall risk on your investment is reduced and your returns can multiply.
How profitable* are mutual funds?
Mutual funds can be great investment options as they have something for everyone! It doesn’t matter if your motive is saving up, looking for a tax-saving investment, or wealth generation, mutual funds have it all covered. If you are looking to park your surplus money or for tax benefits, mutual funds might be the right pick for you!
How safe is it to Invest in mutual funds?
Generally subject to market risks, not all mutual funds are exposed to the equity market. So, not all of them are risky! If you are looking to gain safety along with stable returns, then you can choose to invest in debt funds. Note that even a long-term investment in equity funds could be safe while providing you greater returns.
How much does a KYC update cost?
The entire KYC process can be done for free either online or offline and usually takes only 10 minutes of your time.
How much brokerage does a mutual fund distributor charge you?
Approaching an advisor/distributor is a great option if you are investing in mutual funds for the first time. We at 5nance can act as one for you! This could be a smart and cost-efficient choice as we do not charge you any fee for our services.
How to invest in mutual funds?
- Compare funds via past returns, ratings, etc.
- Select the best mutual funds
- Verify your KYC. Get a seamless KYC experience by permitting your mobile’s camera to upload your pic
- Make quick, easy payments via Debit Card, Net Banking or UPI
- Begin your monthly SIP or one-time investment
Can you invest in mutual funds at any time?
You can invest in open-ended mutual funds at any time. In fact, they also allow you to invest a lumpsum amount at any time if you do not have a regular income or as SIPs to save regularly.
Is KYC necessary to invest in mutual funds?
Yes, SEBI (Securities and Exchange Board of India) has mandated all applicants to be KYC-compliant. You can get your KYC done either online or offline.
Do you have to update your KYC before investing in mutual funds?
If the KYC process has been completed with the correct information once, you can invest in any number of mutual funds without having to update your KYC.
Is there any way I could get higher returns?
When you want better returns along with the safety of your money, choose our algorithmic product offering - Algrow. It increases the possibility of higher returns while the money you’ve invested stays safe. This feat is achieved by intuitively switching between equity and debt funds as per market fluctuations. The funds that comprise this product come from reputed fund houses like HDFC, Aditya Birla Sun Life, Canara Robeco etc. Try FIT-SIP, our unique investment product too that could get you boosted returns of upto 20%*. The selected funds are well-researched and extensively back-tested. So you can achieve a specific target in your desired time-frame.
Which are the mutual fund partners that’re associated with 5nance?
Top AMCs offering hassle-free SIPs
a) Reliance Mutual Fund
b) Aditya Birla Sun Life Mutual Fund
c) Franklin Templeton Mutual Fund
d) Tata Mutual Fund
e) Mirae Asset Mutual Fund
f) Axis Mutual Fund and counting.
What is Critical Illness?
Critical illness is an insurance which pays which pays you a Lumpsum amount on diagnosis of listed critical illnesses such as Cancer, Stroke, etc.
What is the tenure availability?
The plan is available for tenure selection ranging from 1, 2, & 3 years as per the selected Insurer. There is a long-term discount of around 7.5% and 10% available for 2 & 3 year plans respectively.
What does survival period refer to as per the Critical Illness policy?
This means that the insured has to survive a minimum of 15-30 days (depending on the Insurer), after the diagnosis of illnesses that’re listed under the policy to become eligible for the claim.
What is the eligibility criteria?
A critical Illness policy covers persons belonging to the age group of 5 years to 65 years. Some insurers consider the annual income of the proposer as a barometer too.
What are the documents required?
The best part of this policy is that you do not require to submit any documentation. Simply fill the details online and make payment via multiple secured payment modes. In case of a pre-existing disease, you might have to submit relevant medical documents.
Do individuals that already have health insurance need Critical illness?
Yes, a health insurance policy will cover your hospitalization expenses and other related medical expenditure, however in case of a critical illness you may need much more than that. The treatment can be long and ongoing which may need more financial support. The Lumpsum amount that a critical illness cover provides shields the insured individual against a hefty financial burden.
Is there a waiting period? And for how long?
There is a waiting period for the first 90 Days since the Policy’s Inception. Certain major surgeries might be covered after 180 days.
Is there a cashless facility available for making claims under a Critical Illness policy?
There is no cashless facility as lumpsum payment is made right upto the sum insured. This lumpsum amount can be used for hospitalization/additional expenses.
Is medical examination compulsory?
No pre-policy medical checkup is required for individual’s upto 45 years.
Is it possible to renew a Critical Illness policy?
Yes. Critical Illness insurance provides the benefit of Lifelong Renewability. So, after enrollment, the insured person can keep availing the offered benefits throughout his/her life. (Applicable only when the policy is renewed via timely payments of all premiums).
Is there any tax benefit?
You can avail upto Rs.50000 as tax benefit under 'Section 80 D’.
Who do I contact in case of the claim?
Contact the Insurer on the helpline numbers available in the policy. On receipt of the claim intimation, the insurer would register the claim and assign you a unique claim reference number which may be used for all future correspondence.
Which are the partners that’re associated with 5nance?
- HDFC Ergo
- Aditya Birla Capital
How to apply for Critical Illness Insurance on 5nance?
- Log onto 5nance.com
- Get quotes for Critical Illness Insurance
- Select the product, you need
- Pay at the Insurer Payment Gateway
- Fill the Proposal Form, make the payment
- Your Policy gets issued
Short Term Loan
What is the eligibility criteria for a short-term loan?
Any salaried individual with a monthly income that’s more than Rs. 15,000 can apply for a short-term loan online. Just provide the basic details required to check eligibility instantly.
The final loan amount to be sanctioned is decided on the basis of social score, alternate data and factors.
What documents are required for a short-term loan?
These are the documents that’re needed.
- PAN Card
- Current Address Proof
- Pay slip for the last 3 months
- Bank statement of salary account for the last 6 months
Please note that additional documents might be requested if necessary during credit checks.
What is the minimum salary required?
The minimum salary is approximately Rs. 15,000. In certain cases, it could increase to about Rs. 18,000.
What is the maximum tenure to repay a short-term loan?
Ideally, repayment towards a short-term loan can be done within 1 to 6 months’ time depending on the provider.
Are short-term loans good for your credit score?
Yes, because a short-term loan can be used to improve a borrower’s credit score. Social score, alternate factors along with credit score are considered for a short-term loan. These include habits that determine a borrower’s credibility across social platforms like LinkedIn, Facebook, customer’s spending patterns, financial behavior, address, demographics etc.
Can a short-term loan be taken with a lesser credit score?
Yes. A Credit Score is one of the factors that is used to determine your eligibility. A less-than-perfect credit score could work for a borrower as there are other factors that’re considered. These comprise the customer’s social score and alternate data. Weightage given to these in considering short-term loan eligibility is much higher.
Which are the Short-Term loan partners that’re associated with 5nance?
- Home Credit
How to apply for a Short-Term loan?
- Enter basic details
Check your eligibility instantly by entering personal details.
- Select offer
Select the best-suited offer from multiple short-term loan options that that are available.
To apply, upload recent salary slips, bank statements, and other documents.
- Enter basic details
Who should invest?
- All Rounder is designed to any investors as profiling determines the suitability in accordance to the investors' risk taking ability. It is an all-weather portfolio which is designed to reduce volatility thereby achieving stable returns on an annual basis. This is the timeframe which FD investors usually invest for. At the same time stocks in the portfolio take care of the growth required to effectively tackle inflation.
Is 5nance.com a stock broker?
- 5nance is an wealth advisory platform and going forward we will be an Associated Partner with a global broker.
What does 5nance team exactly help me with?
- 5nance helps with curated advisory which is driven by an AI based system which is continuously evolving with practical intelligence. The intention of this advice is to maxmise investment returns to achieve about 30% per annum with minimal non-leveraged risk.
Do I need to have a demat and trading account to subscribe to the services offered by 5nance?
- To execute the advice provided it is essential to invest into stocks and ETFs which can be bought and held in a demat account.
Why does 5nance charge an advisory fee?
- The advisory fee is charged so that the built systems and technology can be made more robust and future proof so that 5nance can continue to provide optimised services to achieve high performance.
Who manages advisory?
- The research team works very closely with the technology team to build and maintain systems to optimise and improve investment portfolio performance.
What is the investment philosophy of 5nance?
- The investment philosophy is an ever-evolving philosophy focussed on future growth. Being a technology company ourselves, our ethos is also driven by investing into the future be it for investor portfolios or even when it is for our team and processes.
What parameters are used to create the model?
- The model begins with early warning signals which takes in consideration a whole host of global and India specific macro-economic parameters. When securities are chosen, parameters like sustainability, management quality, unit economic analysis and many others are quantified to bring to the fore high caliber securities. These are again analysed with the price action theory. The above parameters are also under continuous incremental transition and evolution.
What is minimum and maximum Investment amount?
- There is no such requirement. Though for execution services a minimum investment of Rs. 200,000 is required which is also ideal.
It is a fee based investment?
- There is a flat fee of Rs.2999 per annum to introduce it to a large investor base. Going forward 2% per annum will be charged on the investment amount.
Tenure of the structure?
- There is no lock-in period. We recommend to stay invested for 3 years to get optimal results.
What happens in case of underperformance?
- There could be periods when All Rounder underperforms important indexes. That is when we track, take stock and course correct. In recent years there has been an underperformance of a maximum of 3 consecutive months.
How much minimum returns I can expect from this product?
- Over the investment period of 3 years you can expect 20% annual returns on the lower side.
What happens when markets are negative?
- The product is designed to protect during market downturns. This is achieved by investment in high calibre securities and prompt shifts in asset allocation to have a sophisticated hedged portfolio.
Is there any extra/ hidden cost in this?
- This product has no hidden fees.
Tax implication of this product?
- Usually the holding period is more than a year. Therefore a 10% long term capital gains tax is applicable. Only in a few cases short term capital gains tax of 15% will have to be paid.
Key features of this product?
- It is an absolute return product and the two main features of the product's core are:
- 1. High caliber stocks to be invested into. Hence even in difficult phases for equities, these stocks are still protected.
- 2. Accurate asset allocation in context to the systemic conditions to protect during tough phases while taking advantage of asset.
Where you will invest?
- There are stocks and ETFs that can be bought and held in the demat account. For risk-off investments ETFs can be held while stocks can cover the growth requirements.
Can I carry out transactions, other than the ones recommended by 5nance, on the Upstox/Zerodha Platform?
- Yes, it can be executed with any broker. Once we begin execution with our associated broker this leg will become even more seamless.
Will a robot manage my investments/advisory? Or there is a human interference.
- The research carried out to provide advisory is automated to a large extent and so is the entire process that follows. Though every now and then, a human touch is required to only improve the experience and performance.
Why you should invest?
- Markets will stay volatile and investors have a rationale requirement of safeguarding the money and flexibility when the markets are low and gaining higher returns when the markets are high. Our algorithm does this accurately to ensure that you gain positive returns irrespective of the market conditions.
Do you guarantee a return on my investment?
- No investment can have guarantees, not even government bonds. Though the portfolio is well diversified with multiple asset classes, the risk is prudently managed.
Can I choose not to act on a notification if I have a different view on the stock?
- Always it is the investor's discretion whether they want to act or not. We provide our advisory basis the entire portfolio, hence many a times a particular stock or ETF might not look lucrative on its own but is very relevant in context of the entire portfolio.
Can I make changes to my portfolio if I have a different view on a stock?
- Yes like said previously, the control and ownership lies with the investor.
What happens if I miss the mail or the notification?
- We provide multiple reminders and because it is not trades but investments, price fluctuations in a few days can have little impact on a portfolio investment horizon of 3 years.
What happens if I still am not able to execute the transaction?
- It will be rebalanced in the next advisory. Besides our individual securities are of very high calibre and less often are impacted by timing.
Will the funds be re-deployed post triggering of Stop-Loss or Position Sizing?
- Not applicable, as we are not a trading based advisory platform.
It will deliver negative return?
- On a yearly basis it has never delivered negative returns, not even in tough years. It is designed to optimally allocate to assets considering the overall portfolio situation. Though there can be times that all assets classes are in a downward spiral and the product does not deliver for a year.
Can I exit before 3 years?
- Yes. These investments have no lock-in period, though advisory and execution to stay ahead will be stopped.
Will I be getting daily trading calls?
- All Rounder is an offering with an investment mindset to enable growth generation with little risk. Therefore it is not a run of the mill trading advisory with targets and stop loss. Rather it is a portfolio management which has intentions to build wealth. It takes care of the growth required for financial independence.
Is there a schedule to pay the monthly subscription fees?
- The advisory fee is charged on an annual basis.
How it works?
- We have sophisticated systems and processes to build an all-weather portfolio. These portfolio suggestions need to be followed and approved to achieve the best results. The portfolio holdings include risk-off assets and stocks to achieve the growth factor. The objective is to achieve annual returns of more than 25%.
Can I transfer my existing folio in this structure?
- No an existing folio cannot be incorporated.
Can I continue the structure after 3 years?
- Yes you can.
Will I get regular update of my investment?
- Yes the update will be on a monthly basis.
AR Investment v/s PMS
- All Rounder is more DIY and also the investments are held in the investor's own demat account rather than a pool account. In PMS the advantage is that after the funds are transferred the investor can just sit back but the that also means that an investor has very little control.
How much do I need to invest?
- It is advised that atleast a lakh of rupees can be set aside for investment to have a meaningful portfolio.
How do I access the transaction details?
- Each day when transactions take place, a contract note will be emailed after which transactions in the demat account will also be sent across.
How can I view my Holdings?
- All trading and broking accounts have a section which mentions the Holdings. Besides consolidated Holdings statements are also provided by the depositories.
How often will my portfolio be reviewed?
- The portfolio is reviewed on a weekly basis but it not necessarily mean that action needs to be taken that often. Our experience has been that action on individual securrities need to be taken twice a month.
How can I sell my portfolio in case I need the money ?
- As the control, ownership and access lies with the investor. One only needs to see their holdings and put sell orders to get access to funds in 2 days.
How will the Risk Management System be executed / implemented on my portfolio?
- The RMS is ingrained by a well diversified portfolio with high calibre securities. Also the agility of systems enables prompt shifts in asset allocation. Both of the above are administered by a 3-layer analytical system with a strong tracking mechanism.
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