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What is 5nance.com?
What can I do at 5nance.com?
How is this platform different from others?
How does 5nance.com make money?
Does it recommend me where should I invest?
How can I initiate investing with you?
Is it safe to invest through 5nance.com?
What is 5nance.com?
What can I do at 5nance.com?
How is this platform different from others?
How does 5nance.com make money?
Does it recommend me where should I invest?
How can I initiate investing with you?
Is it safe to invest through 5nance.com?
Account Opening
Linking/Opening Broker Account
Product/Portfolio
Rebalancing Updates
Order Execution – Success/Failure
SIP
Fees
Portfolio Tracking/Monitoring
Communication
Renewal
Report
How can I open an account with All Rounder?
What if my phone number is not linked to the Aadhaar Card?
What documents are required for account opening
Complete the KYC process using your PAN Card & Aadhaar Number.
How do I e-sign?
Once the payment is successful, activate the account by e-signing
How can I change my risk profile?
You cannot change it. The risk profiling window will open after 6 months. It’s regulatory in nature as the advisory gets aligned to the risk profile.
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.
What documents are required to open a Trading/Demat account?
The following documents are needed to open a Trading/demat account
How can I proceed when my broker is not available on 5nance?
Steps to open a broker account via 5nance:
How will I add funds? Where will I add my funds?
You cannot add funds through the 5nance platform. You need to add funds into your brokers trading/demat account via UPI apps, Net banking, IMPS, NEFT or RTGS & via a cheque.
What is a TOTP w.r.t Zerodha? What is the process?
TOTP means a Time-Based OTP. It’s a one-time task that adds security to your demat account. It is a two-factor authentication process for your demat account.
What do I do when I don’t have a Trading/Demat account?
What is TPIN? How to generate CDSL TPIN?
TPIN will be generated by broker (zerodha). You would have received the CDSL TPIN to your registered mobile number and email address with CDSL ). You have to use the CDSL TPIN instead of your Kite PIN, and authorize the stocks to be debited from your demat account before placing a delivery/CNC (including GTT) sell order on Kite.
What is POA?
When you sell shares during market hours, the shares are debited from your (seller’s) account to deliver to the buyer. The broker needs the Power of Attorney (POA) to debit these shares from your demat account.
Is 5nance.com a stock broker?
Do I need to have a demat and trading account to subscribe to the services offered by 5nance?
What is the difference between an advisory and a managed portfolio?
Advisory Portfolio |
Managed Portfolio |
Self - Driven |
Automated Control |
Do It Yourself |
1-Click Auto Execution |
Manual Portfolio Tracking |
Automated Portfolio Tracking |
Single-Trade Execution |
Basket Order Execution |
Rebalancing Updates |
Automated Rebalancing |
Why should I opt for a managed portfolio?
A managed portfolio works with a single-click consent when rebalancing is scheduled. Hence, it reduces your effort while also improving accuracy to provide better results. Moreover, the trading process is hassle-free.
Can I add one more stocks to my All Rounder Portfolio?
Yes. The control & ownership lies with the investor. We provide our advisory basis the entire portfolio. So for proper Portfolio execution, tracking & management, it’s recommended to add only 5nance’s suggested stocks to your All Rounder Portfolio. 5nance will track & review only its recommended stocks in your All Rounder Portfolio.
Can I skip buying one recommended stock in the overall All Rounder Portfolio?
Always. It is the investor's discretion whether they want to act or not. We provide our advisory basis the entire portfolio. Often, a particular stock or ETF might not look lucrative on its own but is very relevant in context of the entire portfolio.
How will I get over 30% annual returns?
The objective is to more than double the capital within a 3-year time frame. This translates to a CAGR of 30%. An AI-driven, dynamic asset allocation saves the capital from the downside when equities fall. AI-driven price action defines the tactical allocation and security weights too. Also, the portfolio is curated with high-quality securities that are in a favorable position to generate alpha over the frontal indices across various cycles.
Will I get the returns monthly?
Although returns are tracked daily, it’s best to track your portfolio’s performance over a quarterly basis. Our experts recommend that you stay invested for at least 3 yrs. to ensure your portfolio’s optimal performance
What is Cash Allocation in my Portfolio?
Cash allocation is just to create a buffer to account for the changes in price and other expenses like demat charges, brokerage, CDSL charges etc.
Can I get a review done for all my stocks that are not a part of All Rounder?
You’ll get reviews only on the stocks that are a part of your All Rounder portfolio.
Can I execute a partial order?
Yes. It’s always the investor's discretion whether they want to go ahead with the recommended stocks or not. We provide our advisory basis the entire portfolio. Often, a particular stock or ETF might not look lucrative on its own. But it is very relevant in context of the entire portfolio.
What is Risk-Off Allocation?
These assets are negatively correlated with equities. They protect the downside when the equity markets fall.
Is there any lock-in period for this product?
No. There is no lock-in period. All Rounder is long-term investment Product.
So to get ~2x returns, we suggest staying invested in All Rounder for atleast 3 yrs.
How is Artificial Intelligence used?
Artificial intelligence is used to define asset allocation, stock weights and to identify the price action for a large set of securities. There are regular checks as well to review the AI's output.
Is All Rounder a tax-saving investment?
No. All Rounder is not a tax-saving investment. Usually, the holding period is more than a year. Therefore, a 10% long-term capital gains tax is applicable. Only in a few cases will a short-term capital gains of 15% require to be paid.
How can we assure 100% capital preservation during a correction?
The product is designed to protect your investment during market downturns. This is achieved by investing in high-caliber securities and prompt asset allocation for a sophisticated hedged portfolio.
What is the investment philosophy of 5nance?
What parameters are used to create the model?
What is minimum and maximum Investment amount?
Tenure of the structure?
What happens in case of underperformance?
How much minimum returns I can expect from this product?
What happens when markets are negative?
Tax implication of this product?
Key features of this product?
Where you will invest?
Can I carry out transactions, other than the ones recommended by 5nance, on the Upstox/Zerodha Platform?
Will a robot manage my investments/advisory? Or there is a human interference.
Why you should invest?
Do you guarantee a return on my investment?
Can I choose not to act on a notification if I have a different view on the stock?
Can I make changes to my portfolio if I have a different view on a stock?
It will deliver negative return?
Can I exit before 3 years?
How it works?
Can I transfer my existing folio in this structure?
AR Investment v/s PMS
How much do I need to invest?
How often will my portfolio be reviewed?
How can I sell my portfolio in case I need the money ?
How will the Risk Management System be executed / implemented on my portfolio?
What is the frequency of getting rebalancing updates in a month?
On an average, rebalancing is done once in a month. Rebalancing could be done 2-3 times in a single month. There could be no rebalancing done for 2 months at a stretch. It totally depends on the market conditions and stocks in your portfolio.
What if I missed rebalancing update?
We providing multiple reminders via app notifications, SMS, emailers & WhatsApp messages. As it is not trades but investments, price fluctuations every few days can have little impact on a portfolio with an investment horizon of 3 years.
Will I get to know the reason/rationale behind rebalancing?
Yes. For securities that need to be bought afresh or sold completely, there will be a rationale for same.
My order failed, how will I execute it?
In case your initial order is failed, kindly check the reason of failure in your broker account and take corrective action. The order will be available again at 5nance site in next 30 minutes for execution.
Haven’t received any update on my order?
On execution of order, the same will reflects within 5 minutes in the 5nance App under your dashboard. In case the order is failed or rejected, the same will be available again in 5nance site in next 30 minutes for execution.
Can I put after-market hours through 5nance?
No, the aftermarket hours' order can not input through 5nance.
My order was executed. But was it executed as a partial order?
The order is normally placed as a market order. 99% of the time, it gets fully executed.Although, it may happen that order gets executed partially. In such a case, a differential quantity will be available for execution in the next 30 minutes on the platform.
What happens if I still am not able to execute the transaction?
What will be the min. SIP amount?
You can start an SIP in All Rounder with a minimum amount of Rs. 10,000/- per month.
Can I choose/change my SIP date?
No. You cannot change your All Rounder SIP date. The SIP date for each month is the same as the date of your first month’s subscription.
What is the min and max amount of SIP?
Start a SIP in All Rounder with a minimum amount of Rs. 10,000/- per month. You can add amount in multiples of Rs. 1,000/-.
Portfolio recommendations will be sent as per your chosen SIP amount.
How will I get my SIP portfolio updates?
We are providing multiple reminders via app notifications, SMS, emailers & WhatsApp messages. You can also check them on your All Rounder Dashboard.
What are the fees charged for Advisory-Lumpsum/SIP?
We’re charging a flat fee of Rs.2999/- + 18%* GST on irrespective of the amount for Advisory services - Lumpsum and SIP.
What is the Fee structure for a Managed Portfolio (Lumpsum/SIP)?
Monthly SIP amount in Rs. |
Fee Structure in Rs. |
10,000 – 12,000 |
2999 + 18%* GST |
13,000 & onwards |
2% of the total portfolio amount + 18%* GST |
What are the charges for Top-up?
Rule 1:
Minimum fees on Lumpsum & SIP amounts will be INR 100.
Rule 2:
Fees will be charged for a minimum of 2 months throughout the year of the execution services availed by the client. The exception is Rule 3.
Rule 3:
No top-up will be allowed in the last month of the service period.
Here ‘Service period’ or ‘Service’ means 1 year from the date of availing the execution services.
We’ll charge fees of 2% per annum as and when the above-mentioned 3 rules are fulfilled.
The calculation will be done for the remaining period divided by 2. The fees shall be charged for the 2 months’ rounded off.
Remaining months |
To be charged for (Months) |
12 |
12 |
11 |
12 |
10 |
10 |
9 |
10 |
8 |
8 |
7 |
8 |
6 |
6 |
5 |
6 |
4 |
4 |
3 |
4 |
2 |
2 |
1 |
0 |
No fees to be charged in the last month. The fees will be charged on a pro-rata basis.
How much brokerage is charged on the trades?
We do not charge customers any brokerage or commission for execution of transactions. Any brokerage/commission levied to the customer will be as per his arrangement with the broker that he is executing the trades with.
Agreement says - Fees charged is only for 6 months, remaining is as complimentary services, in that case will this be the same for every consecutive year or it is only for the Initial year and it will keep on changing year on year?
This is complimentary offer only for first year and the fee charges may vary year on year.
Are there any hidden charges or charges over & above advisory fees?
This product has no hidden fees. We only charge advisory fee as per your plan and investment amount for All Rounder product, apart from same, there is absolutely no charges from 5nance.
Why does 5nance charge an advisory fee?
It is a fee based investment?
Is there any extra/ hidden cost in this?
Is there a schedule to pay the monthly subscription fees?
How can I track my portfolio performance?
Our platforms available on web and app. Additionally we shall be sharing the performance update with you each month.
What does 5nance team exactly help me with?
Who manages advisory?
How will I get any communication on Rebalancing or updates?
We providing multiple reminders via app notifications, SMS, emailers & WhatsApp messages.
Will I receive any report on my portfolio?
There will be a performance report shared on a monthly/quarterly basis
What happens if I miss the mail or the notification?
Will the funds be re-deployed post triggering of Stop-Loss or Position Sizing?
Will I be getting daily trading calls?
Will I get regular update of my investment?
How do I access the transaction details?
Will my subscription get automatically renewed?
You will get subscription renewal notification with renewal link via email, WhatsApp and in app notification. You need to click that link and need to pay the fees as per the portfolio selected.
Do I have pay any additional fee for renewing the services?
No, you do not have to pay any additional fee for renewing the services. You have to pay only the subscription amount as per the portfolio selection.
Can I get a discount on renewal fee If I pay in advance?
There is no any discount or offer on advance renewal fee. You need to pay complete subscription charges as per the selected portfolio.
Can I continue the structure after 3 years?
Will I get my P&L Statement?
P/L statement is issued by the brokers. We have the provision to see the entire trade book.
What about my capital gains, is there a report?
There will be a provisional report from us on the capital gains. Actual capital gain report needs to be collected only where the shares are held i.e. from the stock broker
How can I view my Holdings?
Account Opening
How can I open an account with All Rounder?
What if my phone number is not linked to the Aadhaar Card?
What documents are required for account opening
Complete the KYC process using your PAN Card & Aadhaar Number.
How do I e-sign?
Once the payment is successful, activate the account by e-signing
How can I change my risk profile?
You cannot change it. The risk profiling window will open after 6 months. It’s regulatory in nature as the advisory gets aligned to the risk profile.
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.
Linking/Opening Broker Account
What documents are required to open a Trading/Demat account?
The following documents are needed to open a Trading/demat account
How can I proceed when my broker is not available on 5nance?
Steps to open a broker account via 5nance:
How will I add funds? Where will I add my funds?
You cannot add funds through the 5nance platform. You need to add funds into your brokers trading/demat account via UPI apps, Net banking, IMPS, NEFT or RTGS & via a cheque.
What is a TOTP w.r.t Zerodha? What is the process?
TOTP means a Time-Based OTP. It’s a one-time task that adds security to your demat account. It is a two-factor authentication process for your demat account.
What do I do when I don’t have a Trading/Demat account?
What is TPIN? How to generate CDSL TPIN?
TPIN will be generated by broker (zerodha). You would have received the CDSL TPIN to your registered mobile number and email address with CDSL ). You have to use the CDSL TPIN instead of your Kite PIN, and authorize the stocks to be debited from your demat account before placing a delivery/CNC (including GTT) sell order on Kite.
What is POA?
When you sell shares during market hours, the shares are debited from your (seller’s) account to deliver to the buyer. The broker needs the Power of Attorney (POA) to debit these shares from your demat account.
Is 5nance.com a stock broker?
Do I need to have a demat and trading account to subscribe to the services offered by 5nance?
Product/Portfolio
What is the difference between an advisory and a managed portfolio?
Advisory Portfolio |
Managed Portfolio |
Self - Driven |
Automated Control |
Do It Yourself |
1-Click Auto Execution |
Manual Portfolio Tracking |
Automated Portfolio Tracking |
Single-Trade Execution |
Basket Order Execution |
Rebalancing Updates |
Automated Rebalancing |
Why should I opt for a managed portfolio?
A managed portfolio works with a single-click consent when rebalancing is scheduled. Hence, it reduces your effort while also improving accuracy to provide better results. Moreover, the trading process is hassle-free.
Can I add one more stocks to my All Rounder Portfolio?
Yes. The control & ownership lies with the investor. We provide our advisory basis the entire portfolio. So for proper Portfolio execution, tracking & management, it’s recommended to add only 5nance’s suggested stocks to your All Rounder Portfolio. 5nance will track & review only its recommended stocks in your All Rounder Portfolio.
Can I skip buying one recommended stock in the overall All Rounder Portfolio?
Always. It is the investor's discretion whether they want to act or not. We provide our advisory basis the entire portfolio. Often, a particular stock or ETF might not look lucrative on its own but is very relevant in context of the entire portfolio.
How will I get over 30% annual returns?
The objective is to more than double the capital within a 3-year time frame. This translates to a CAGR of 30%. An AI-driven, dynamic asset allocation saves the capital from the downside when equities fall. AI-driven price action defines the tactical allocation and security weights too. Also, the portfolio is curated with high-quality securities that are in a favorable position to generate alpha over the frontal indices across various cycles.
Will I get the returns monthly?
Although returns are tracked daily, it’s best to track your portfolio’s performance over a quarterly basis. Our experts recommend that you stay invested for at least 3 yrs. to ensure your portfolio’s optimal performance
What is Cash Allocation in my Portfolio?
Cash allocation is just to create a buffer to account for the changes in price and other expenses like demat charges, brokerage, CDSL charges etc.
Can I get a review done for all my stocks that are not a part of All Rounder?
You’ll get reviews only on the stocks that are a part of your All Rounder portfolio.
Can I execute a partial order?
Yes. It’s always the investor's discretion whether they want to go ahead with the recommended stocks or not. We provide our advisory basis the entire portfolio. Often, a particular stock or ETF might not look lucrative on its own. But it is very relevant in context of the entire portfolio.
What is Risk-Off Allocation?
These assets are negatively correlated with equities. They protect the downside when the equity markets fall.
Is there any lock-in period for this product?
No. There is no lock-in period. All Rounder is long-term investment Product.
So to get ~2x returns, we suggest staying invested in All Rounder for atleast 3 yrs.
How is Artificial Intelligence used?
Artificial intelligence is used to define asset allocation, stock weights and to identify the price action for a large set of securities. There are regular checks as well to review the AI's output.
Is All Rounder a tax-saving investment?
No. All Rounder is not a tax-saving investment. Usually, the holding period is more than a year. Therefore, a 10% long-term capital gains tax is applicable. Only in a few cases will a short-term capital gains of 15% require to be paid.
How can we assure 100% capital preservation during a correction?
The product is designed to protect your investment during market downturns. This is achieved by investing in high-caliber securities and prompt asset allocation for a sophisticated hedged portfolio.
What is the investment philosophy of 5nance?
What parameters are used to create the model?
What is minimum and maximum Investment amount?
Tenure of the structure?
What happens in case of underperformance?
How much minimum returns I can expect from this product?
What happens when markets are negative?
Tax implication of this product?
Key features of this product?
Where you will invest?
Can I carry out transactions, other than the ones recommended by 5nance, on the Upstox/Zerodha Platform?
Will a robot manage my investments/advisory? Or there is a human interference.
Why you should invest?
Do you guarantee a return on my investment?
Can I choose not to act on a notification if I have a different view on the stock?
Can I make changes to my portfolio if I have a different view on a stock?
It will deliver negative return?
Can I exit before 3 years?
How it works?
Can I transfer my existing folio in this structure?
AR Investment v/s PMS
How much do I need to invest?
How often will my portfolio be reviewed?
How can I sell my portfolio in case I need the money ?
How will the Risk Management System be executed / implemented on my portfolio?
Rebalancing Updates
What is the frequency of getting rebalancing updates in a month?
On an average, rebalancing is done once in a month. Rebalancing could be done 2-3 times in a single month. There could be no rebalancing done for 2 months at a stretch. It totally depends on the market conditions and stocks in your portfolio.
What if I missed rebalancing update?
We providing multiple reminders via app notifications, SMS, emailers & WhatsApp messages. As it is not trades but investments, price fluctuations every few days can have little impact on a portfolio with an investment horizon of 3 years.
Will I get to know the reason/rationale behind rebalancing?
Yes. For securities that need to be bought afresh or sold completely, there will be a rationale for same.
Order Execution – Success/Failure
My order failed, how will I execute it?
In case your initial order is failed, kindly check the reason of failure in your broker account and take corrective action. The order will be available again at 5nance site in next 30 minutes for execution.
Haven’t received any update on my order?
On execution of order, the same will reflects within 5 minutes in the 5nance App under your dashboard. In case the order is failed or rejected, the same will be available again in 5nance site in next 30 minutes for execution.
Can I put after-market hours through 5nance?
No, the aftermarket hours' order can not input through 5nance.
My order was executed. But was it executed as a partial order?
The order is normally placed as a market order. 99% of the time, it gets fully executed.Although, it may happen that order gets executed partially. In such a case, a differential quantity will be available for execution in the next 30 minutes on the platform.
What happens if I still am not able to execute the transaction?
SIP
What will be the min. SIP amount?
You can start an SIP in All Rounder with a minimum amount of Rs. 10,000/- per month.
Can I choose/change my SIP date?
No. You cannot change your All Rounder SIP date. The SIP date for each month is the same as the date of your first month’s subscription.
What is the min and max amount of SIP?
Start a SIP in All Rounder with a minimum amount of Rs. 10,000/- per month. You can add amount in multiples of Rs. 1,000/-.
Portfolio recommendations will be sent as per your chosen SIP amount.
How will I get my SIP portfolio updates?
We are providing multiple reminders via app notifications, SMS, emailers & WhatsApp messages. You can also check them on your All Rounder Dashboard.
Fees
What are the fees charged for Advisory-Lumpsum/SIP?
We’re charging a flat fee of Rs.2999/- + 18%* GST on irrespective of the amount for Advisory services - Lumpsum and SIP.
What is the Fee structure for a Managed Portfolio (Lumpsum/SIP)?
Monthly SIP amount in Rs. |
Fee Structure in Rs. |
10,000 – 12,000 |
2999 + 18%* GST |
13,000 & onwards |
2% of the total portfolio amount + 18%* GST |
What are the charges for Top-up?
Rule 1:
Minimum fees on Lumpsum & SIP amounts will be INR 100.
Rule 2:
Fees will be charged for a minimum of 2 months throughout the year of the execution services availed by the client. The exception is Rule 3.
Rule 3:
No top-up will be allowed in the last month of the service period.
Here ‘Service period’ or ‘Service’ means 1 year from the date of availing the execution services.
We’ll charge fees of 2% per annum as and when the above-mentioned 3 rules are fulfilled.
The calculation will be done for the remaining period divided by 2. The fees shall be charged for the 2 months’ rounded off.
Remaining months |
To be charged for (Months) |
12 |
12 |
11 |
12 |
10 |
10 |
9 |
10 |
8 |
8 |
7 |
8 |
6 |
6 |
5 |
6 |
4 |
4 |
3 |
4 |
2 |
2 |
1 |
0 |
No fees to be charged in the last month. The fees will be charged on a pro-rata basis.
How much brokerage is charged on the trades?
We do not charge customers any brokerage or commission for execution of transactions. Any brokerage/commission levied to the customer will be as per his arrangement with the broker that he is executing the trades with.
Agreement says - Fees charged is only for 6 months, remaining is as complimentary services, in that case will this be the same for every consecutive year or it is only for the Initial year and it will keep on changing year on year?
This is complimentary offer only for first year and the fee charges may vary year on year.
Are there any hidden charges or charges over & above advisory fees?
This product has no hidden fees. We only charge advisory fee as per your plan and investment amount for All Rounder product, apart from same, there is absolutely no charges from 5nance.
Why does 5nance charge an advisory fee?
It is a fee based investment?
Is there any extra/ hidden cost in this?
Is there a schedule to pay the monthly subscription fees?
Portfolio Tracking/Monitoring
How can I track my portfolio performance?
Our platforms available on web and app. Additionally we shall be sharing the performance update with you each month.
What does 5nance team exactly help me with?
Who manages advisory?
Communication
How will I get any communication on Rebalancing or updates?
We providing multiple reminders via app notifications, SMS, emailers & WhatsApp messages.
Will I receive any report on my portfolio?
There will be a performance report shared on a monthly/quarterly basis
What happens if I miss the mail or the notification?
Will the funds be re-deployed post triggering of Stop-Loss or Position Sizing?
Will I be getting daily trading calls?
Will I get regular update of my investment?
How do I access the transaction details?
Renewal
Will my subscription get automatically renewed?
You will get subscription renewal notification with renewal link via email, WhatsApp and in app notification. You need to click that link and need to pay the fees as per the portfolio selected.
Do I have pay any additional fee for renewing the services?
No, you do not have to pay any additional fee for renewing the services. You have to pay only the subscription amount as per the portfolio selection.
Can I get a discount on renewal fee If I pay in advance?
There is no any discount or offer on advance renewal fee. You need to pay complete subscription charges as per the selected portfolio.
Can I continue the structure after 3 years?
Report
Will I get my P&L Statement?
P/L statement is issued by the brokers. We have the provision to see the entire trade book.
What about my capital gains, is there a report?
There will be a provisional report from us on the capital gains. Actual capital gain report needs to be collected only where the shares are held i.e. from the stock broker
How can I view my Holdings?
What is the research methodology that you use?
What is the research methodology that you use?
How do I make a payment for the transaction that I initiate?
What if my account is debited but have received the mail for failure of transaction
How do I make a payment for the transaction that I initiate?
What if my account is debited but have received the mail for failure of transaction
How can I register myself on 5nance.com?
How is the KYC process taken care of?
What is the cost attached to be a registered member of this site?
Do I need a registration to invest through you?
How can I register myself on 5nance.com?
How is the KYC process taken care of?
What is the cost attached to be a registered member of this site?
Do I need a registration to invest through you?
How will the site help me on a pro-active basis?
Are there any pre-defined alerts?
Can I use only selected features on the site?
What is the best way I can use this site?
How will the site help me on a pro-active basis?
Are there any pre-defined alerts?
Can I use only selected features on the site?
What is the best way I can use this site?
What are the advantages of investing in a mutual fund?
What are the perks of investing in a SIP?
What are the benefits of making a lumpsum investment?
How profitable* are mutual funds?
How safe is it to Invest in mutual funds?
How much does a KYC update cost?
How much brokerage does a mutual fund distributor charge you?
How to invest in mutual funds?
Can you invest in mutual funds at any time?
Is KYC necessary to invest in mutual funds?
Do you have to update your KYC before investing in mutual funds?
Is there any way I could get higher returns?
Which are the mutual fund partners that’re associated with 5nance?
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.
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.
As investment is made in varied asset classes, the overall risk on your investment is reduced and your returns can multiply.
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!
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.
The entire KYC process can be done for free either online or offline and usually takes only 10 minutes of your time.
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.
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.
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.
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.
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.
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 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?
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 Health Insurance?
What are the forms of Health Insurance available?
What is cashless facility?
What are the tax benefits I get if I opt for Health Insurance?
What are the factors that affect Health Insurance premium?
What does a Health Insurance policy not cover?
What if my policy is not renewed in time before expiry date, will my renewal be denied?
What happens to the policy coverage after a claim is filed?
What is the maximum number of claims allowed over a year?
What is ‘health check’ facility?
What do you mean by Family Floater Policy?
Why is Health Insurance important?
How to buy insurance?
Is there any Waiting Period for claims under a policy?
Can I transfer my policy from one insurance company to another without losing the renewal benefits?
Which are the insurance companies that’re associated with 5nance?
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.
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:
Disbursement of a fixed benefit on occurrence of an illness
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.
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.
Several factors affect your Health Insurance premium. Some key factors are as follows:
Premium rates may also vary depending upon factors like your marital status, choice of profession, place of residence, and prevailing taxes/GST.
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:
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.
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.
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.
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.
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.
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.
Insurance providers:
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:
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:
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:
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?
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?
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?
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?
Insurance providers:
What Motor Insurance cover should I buy? Should I buy Comprehensive Insurance or Liability Policy only?
What coverage limit meets my needs?
What is the period of the policy?
What is ‘No Claim Bonus’?
What if I want to change my insurance company? Will my No Claim Bonus get migrated?
What is deductible?
What is the procedure for recording any changes in the policy?
What is a Certificate of Insurance under Motor Vehicle Act?
What are the documents to be kept in the vehicle while plying in public places?
What are the documents that need to be submitted for a Motor Insurance claim?
How is the premium determined?
How to get your vehicle insured
Are there any discounts that will lower my premium?
Is Service Tax applicable and how much is it?
If I am using the car in a particular city, what premium rate is applied?
Is it necessary to inform the Insurance Company if I fit CNG or LPG kit in my vehicle?
Can I transfer my insurance to the purchaser of my vehicle?
Can I continue the insurance in the name of the previous owner even after the vehicle is transferred in RTO records in my name?
I have lost the insurance policy. Can I get a duplicate one?
Which are the motor insurance partners that’re associated with 5nance?
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.
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.
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.
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.
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.
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.
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:
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.
If you want to record any changes, you can do so by getting an endorsement on your insurance policy. The changes may include:
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.
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.
You must always carry the following documents while plying in public places:
You are required to submit the following documents when making a Motor Insurance claim:
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.
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:
In case of break in insurance, vehicle inspection is required and extra charges may be incurred for the same.
Insurance companies in India offer discounts on motor insurance premium for the following:
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.
Yes. Service Tax is applicable on all motor insurance policies. It is as per the prevailing rule of law.at any given time.
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.
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.
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.
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.
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.
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.
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:
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:
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:
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:
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:
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
Are there any discounts that will lower my premium?
Insurance companies in India offer discounts on motor insurance premium for the following:
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?
What can I use a personal loan for?
What is the eligibility criteria that’s required to apply for a personal loan?
What is the tenure of the personal loan?
What are the essential documents required when applying for a personal loan?
What are the critical stages in the loan approval process?
What is the prevailing interest rate on a personal loan?
Is there any minimum amount of personal loan that I can borrow?
Can I apply for a personal loan jointly with my spouse?
Which bank/ institution should you take your personal loan from?
Is it smarter to select the loan provider with the lowest EMI?
Am I required to pay any extra charges while applying for a personal loan?
Is the Balance Transfer facility available on my personal loan? What are the benefits of this balance transfer?
Which are the personal loan companies that’re associated with 5nance?
How is the maximum loan amount that I can take calculated?
How is the maximum personal loan amount that I’ll get calculated by the lenders?
How is a personal loan disbursed?
How to apply for a loan?
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.
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.
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.
The documents differ as per the lender. However, the most important documents you need to submit while applying for a personal loan are:
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.
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.
Yes, it varies from one lender to another. Most of the lending institutions offer personal loans for principal amounts as low as 30,000.
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.
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.
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.
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.
Loan partners:
Your maximum personal loan eligibility level depends on various factors. They are as follows:
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.
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.
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.
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 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:
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?
Which are the personal loan companies that’re associated with 5nance?
Loan partners:
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 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?
What is the duration of a home loan?
What is the Eligibility Criteria for a Home Loan?
What do banks consider when granting a home loan?
What is floating rate home loan?
What is a fixed rate home loan?
What is the maximum number of joint borrowers for a home loan?
What are the key charges associated with a home loan process?
What documents do I need to submit with my home loan application?
What is a top-up loan?
What if I have low credit score? Can I still apply for a home loan?
What is the margin on a home loan?
What costs are not covered by a home loan?
What are the different types of home loan?
Can I apply for a joint loan with my friend?
Who can be joint borrowers in case of a home loan?
Can I switch from a floating rate home loan to a fixed rate?
Is prepayment of a home loan allowed?
Is there any tax benefit available on home loans?
Can I have a co-applicant when I sign up for a home loan?
Is having a good credit record important in case of a home loan?
Which are the home loan partners that’re associated with 5nance?
How is the MCLR method going to affect my current home loan?
How do I repay my home loan?
How to get your home loan in quick, easy steps?
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.
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.
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.
Your repayment capacity is the first factor that determines your eligibility to apply for home loan. Besides this, lenders also consider the following factors:
Status of existing loans
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.
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.
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.
Processing fee, pre-payment charges, and others are the main charges associated with a home loan.
Miscellaneous Charges- These are the charges for documentation, stamp duty, credit bureau report issuance and consultation.
The list of documents required for submission may vary from one lender to the other. However, some necessary documents required by all lenders include:
Allotment letter of housing board/ NOC from the society/Builder along with other land use certificates
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.
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.
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.
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:
Transfer Charges
There are various types of home loans depending upon your specific requirement.
NRI Home Loans: Apply for this loan if you are a Non-Resident Indian and want to purchase a house in India.
No. Lenders permit only immediate family members to apply for a joint home loan. So your friend isn’t eligible.
Your parents, spouse and/or children and Immediate family members are eligible to be joint borrowers.
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.
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.
Yes. Tax benefit is available on home loans. The tax benefit on home loan is divided into two sections-
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.
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.
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.
There are several ways to pay off your home loan. The most common methods include:
Issuing standard instructions to the lender for ECS (Electronic Clearing System), wherein EMI is automatically deducted from your bank every month.
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 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:
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.
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:
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:
Transfer Charges
What are the different types of home loan?
There are various types of home loans depending upon your specific requirement.
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-
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?
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 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