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RK Group: Revolutionizing Home Loans in India

Wonder Home Finance Limited
Wonder Home Finance Limited by the RK Group

Your home is the birthplace of your dreams and aspirations; it is the cocoon that keeps you safe during a crisis and is the place you celebrate the happiest moments of your life.

We associate many emotions with our homes; love, happiness and safety. With home loans, however, we tend to have a love-hate relationship. To be fair, the process is tedious, may come across as very complicated and can be frustrating because it takes too long to finalize. When RK Group announced the launch of Wonder Home Finance Limited, the question that naturally sprung to my mind was how is it different from other service providers in the market? Let’s find out together.

About the RK Group

The RK Group, is among the leading diversified business conglomerates in India and has its headquarters in Kishangarh, Ajmer, Rajasthan. The Group has been a pioneer in the field of Marble and Cement through the RK Marble and Wonder Cement brands. It also holds the India franchise of The Body Shop, an International cosmetics brand. With the launch of Wonder Home Finance Limited (WHFL), the RK Group announced its entry into the retail housing finance business. This marks a natural shift in the group’s business, which has made an indelible impression in the marble and cement business over many years.

What is the Wonder Home Finance Limited all about?

WHFL aims to deliver unified financial services to the people of India. It has a people-centric business model and service-oriented delivery mechanism, which helps to create an exceptional experience. It further enhances the group’s philosophy of perfection and reaching to the masses. Its vision is in alignment to the government’s vision of ‘Housing for all by 2022’, and is a step towards delivering last mile financial services to the people of this country. With this unique business proposition, WHFL is confident of being able to drive the RK group’s growth to the next level by leveraging the network built by it over the years. With 9 branches throughout Rajasthan, it is all set to open 20 more branches over the next one month. It aims to expand its ability to provide financial assistance to people across the state.

Here’s what Mr Sanjay Singh Rajawat, Co-founder, CEO & Director of WHFL said at the launch of WHFL, “At Wonder Home Finance Ltd, we aim to deliver the highest quality products & service to our customers through proven professionals, best-in-class technology customer-friendly processes. In the first year of operation, we are setting up 29 branches in Rajasthan, covering approximately 70% households in the state by recruiting over 400 people for this specific market and by the end of Financial Year 2018-19, we expect to begin our services across neighbouring states including Gujarat, Maharashtra & MP with an all India ambition in mind.”

What does Wonder Home Finance Limited give loans for?

WHFL offers loans for:

–       the purchase of property and construction of homes by offering end-to-end finance

–       the repair/renovation of homes.

–       the expansion of existing houses and for resale

–       personal and business related needs

How can I apply for a home loan with Wonder Home Finance Limited?

To acquire a loan from WHFL, a borrower needs to have a bank account with proof of its existence to be shown in the form of the bank statement for the last 6 months. The loan amount one can borrow ranges from Rs.5,00,000 to Rs.35,00,000. The maximum amount one can borrow is decided based upon the income and property valuation of the borrower. However, the loan repayment period is flexible and the borrower can choose between the range of 3 to 20 years. The interest rate ranges from 11% to 14% per annum.

The loan process has been simplified for the customer into 4 straightforward steps:

1: Submission of documents including Income certificates, property valuation, KYC and loan application form

2: Verification done via official visits, telephone calls and personal discussion

3: Sanctioning of loan after finishing all formalities related to income, property valuation

4: Submission of all other required documents to disburse money based on the loan type.

Why WHFL is better than other service providers?

This process of sharing and submitting documents is completely safe and total confidentiality of information is assured throughout. The process isn’t riddled with any hidden costs other than what is prescribed as fees and there is complete transparency. EMI options are available for as low as Rs. 5000/month. Loan approvals are made in as fast as 3 days time and borrowers do not have to face needless delays.

WHFL also offers borrowers an option to prepay their loan before the end of the loan period subject to terms and conditions set by NHB.

Final verdict

Wonder Home Finance Limited was incorporated with a view to provide finance through home loans and MSME business loans. It targets lower and middle-income families and has a committed team of professionals who provide help in the localized processing of proposals. They explain and detail on a wide range of financial products that are on offer for individuals. They prioritize the end user’s needs and desire to own their own home by offering highly competitive home loan interest rates that fit each individual’s unique profile. It has the provision to use the Pradhan Mantri Awas Yojana to provide finance to lower and middle-class segment of the society in semi-urban and rural areas. Applying for home loans can seem to be a daunting task but WHFL has done its best to simplify it by making the process customer friendly. This is what gives it the extra edge which will ensure long term success.

Please note: This is a sponsored post. You are advised to use your discretion before taking a loan. If you have any questions, please comment and I will be happy to answer them. 🙂

11 Factors that can affect your Home Loan Eligibility

The first step towards your dream home is getting to know the eligibility criteria of a home loan. Banks and financial institutions have several criteria on which they evaluate a prospective loan. We have come up with a comprehensive list of 11 factors that affect your home loan eligibility.

1. Age

The tenure for any home loans easily ranges from 10 to 30 years. This tenure is determined on the basis of your age. Your age helps a bank determine your ability to repay a loan as well as the time period that should be allocated to you. The younger you are, the easier it is to get a loan for a longer period of time.

2. Profession

If you are a salaried employee, it is advisable to have around 3 to 4 years of work experience when you apply for a home loan. If you are an entrepreneur, the bank may go through your company’s tax returns for the last few years to evaluate your revenues and profits.

3. Type of employment

Your type of employment along with the stability of your job or your business becomes an important criterion for banks. Frequent changes in employment or work is often a red flag for lending institutions.

4. Total income

The higher your income, the easier it is for you to access a home loan. Higher income also makes you eligible for a higher loan as banks for a greater confidence in your ability to repay the loan.

5. Dependents

Your dependents play an important role in determining the loan amount that you would be eligible for. The simple reason for this is that direct dependents mean higher expenditure, which reduces the overall income you have to repay your loan. Lenders calculate something called FOIR i.e. Fixed Obligation to Income ration while sanctioning a loan.

6. CIBIL Score and Report

This is one of the most important 11 factors that affect your home eligibility. CIBIL score is a 3-digit number that summarizes your credit history. The score depends on your payment history across different loans that you may have taken throughout the year. A score of 750 and above is important, as it is an indication that you have completed your loan repayments in a timely manner. If your credit score is lower, there are chances that you might have to pay a higher interest but you wouldn’t be denied of the loan completely.

7. Property title

The home that you are looking to invest in must not have any legal issues around it. Once you make the payment, you should be the sole, undisputed owner of the property. It is suggested that you consult a lawyer to ensure that there are no legal issues.

8. Location of your home

Your new home essentially is a collateral for the bank in case you are unable to repay the loan. The difference between the market value of your home today and the predicted value of the home depends upon its location. Banks evaluate the value of your home before sanctioning the money.

9. Your property’s age

Banks avoid lending money for older properties. Similarly, for properties under construction, the bank requires documents to evaluate the construction period and whether all legal documents are available.

10. Any other loans

DSCR or Debt Service Coverage Ratio indicates the pending loans that you might have in comparison to your total monthly income. If you have several existing loans, then the risk for any lending institution becomes high. You should consider using home loan EMI calculator that is available online to get a broad sense of what you would require to repay every month along with your current outstanding loans.

11. Down Payment

A bank will finance only 80% of the total value of your loan. The balance amount has to be raised by you to make the down payment. This down payment indicates that you have healthy savings and would be able to repay the loan.

These are the 11 Factors that can affect your Home Loan Eligibility in India. I hope you found the list helpful and that it will come in handy when you apply for your loan. Do write to me if you have any queries 🙂

The complete guide to Life Insurance Plans for you and your family

Life insurance plans ensure that a family leads a happy and secure future even if an individual earning member were to be affected by unforeseen circumstances leading to death. It thus ensures that they don’t face any financial problems. Over the past decade, an array of insurance schemes have entered the market. There was a time not too long ago when the idea of making a life insurance was considered to be unnecessary. There were few plans then and not many takers. But today, the idea has gained traction and life insurance plan are seen as being a vital part of a family’s long-term financial investment plan. Over the past decade, an array of insurance schemes have entered the market all promising to keep the insured person’s nominees secure. This had left many confused over which one to buy, whom to trust and what is best for their family.

Life insurance plans

Firstly, there are three main types of life insurance plans that you will find.

  1. Whole life insurance plan
  2. Term insurance plan
  3. Unit Linked Insurance Plan

A whole life insurance plan is a plan that offers lifelong coverage and is also known as permanent insurance. It also acts as a tool for investment in what is referred to as a cash value feature. This feature allows you to borrow money against the premium that has been collected over a period of time. However, this money needs to be returned failing which the benefits of the original insurance plan post death of the individual are severely curtailed. Such plans are active as long as the premiums are paid regularly on time. The death benefits are much higher and they ensure that your family has a secure back-up. Thus, it can be said that whole life insurance plans offer you financial support both before and after death. It must be noted that these plans are generally expensive. The initial premium that is expected to be paid is usually very high.

A Term life insurance plan comes with a set time period until which coverage is provided i.e. if you happen to die to due to any unforeseen circumstances during the term period of the insurance, the nominees to the policy receive all the benefits outlined in the scheme document. However, if you outlive the policy term period, no benefits are received either by the nominee or the insured. It does not include the element of investment observed in permanent insurance policies and is solely a protection plan to secure your family upon premature death. Although they do not offer any maturity benefits, they usually require very low premium amounts to be paid making them an attractive scheme.

A Unit Linked Insurance Plan, more commonly referred to as ULIP, are plans that offer you the twin benefits of having an insurance and an investment product combined into one. Typically, a part of the money one puts into the scheme is divided into two parts. One part is used as a premium for the insurance plan and the other part is invested across different equity, bond and debt funds. Thus, they can be a great investment cum insurance scheme to take up. Although it must be kept in mind that ULIPs are subject to market risks and aren’t as secure as term insurance plans.

Ultimately, it is your risk appetite that will determine which plan is best for you. A term insurance plan is best when taken for a period up to which you think your children are settled in life and your liabilities are reduced. Also, term insurance plans offer you the scope to transfer the premium amounts accumulated over the time period and convert it into a whole life insurance plan before the end of the policy term. ULIPS usually come with a minimum lock-in period of 3 years and up to 10 years. Thus, one must choose a ULIP only if one has a long-term investment horizon.

Life insurance plans

Aegon life with its various financial products ranging from term insurance plans, ULIPS, child plans, retirement plans and savings plans has been securing the future of many families since decades.

Aegon Life:

A joint venture between Aegon – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, Aegon Life Insurance launched its pan-India operations in July 2008. Armed with a vision to be the most recommended new age life insurance company, Aegon Life adopts the power of global expertise by leveraging digital platforms to bring transparent solutions, and to prioritize customer needs. Our financial planning and investment solutions include term life insurance plans, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.

Please note: This is a sponsored post. You are advised to use your discretion before investing. If you have any questions, please comment and I will be happy to answer them. 🙂

Edelweiss Mobile Trading App: The #BestTradingApp

Daily trading of stocks can be a highly rewarding profession for people interested in the workings of the market. However, given the volatilities of the market, it can be just as dangerous if handled with ineptness. One needs to possess the right skills and tools to understand and work around the mood of the market. Most importantly it requires patience, access to in-depth information and outstanding agility in making quick decisions. This becomes all the more important in India where the Bombay Stock Exchange with a median trade speed of 6 microseconds is reportedly the fastest in the world. The age of internet makes easier than ever before to access updated data relating to the market. Most of the time, this information comes at a price as it is monetised by firms. The Edelweiss Mobile Trader app is the game-changer. Available both on Android and IOS platforms users can track live market movements while on the move for free even without registration.

 

[Read more…] about Edelweiss Mobile Trading App: The #BestTradingApp

Bajaj Allianz Life Goal Assure: The ULIP for millenials

Bajaj Allianz Life Goal Assure
Bajaj Allianz Life Goal Assure: The ULIP for millenials

For someone who is 25 going on 26, life has just started. I am growing in my career, travelling, saving and investing. Mortality charges are possibly the last thing on my mind. I have many years to live and do I really need to be worried about death? This is one of the biggest problems that I have with Unit-Linked Insurance Plans (ULIPs). Don’t get me wrong; ULIPs have several key features; they are versatile, they have several tax benefits and are excellent in the long run. However, the mortality charges are a pain point for many youngsters. It is a catch 22-situation, right? You want your family to be covered in case something unforeseen happens, yet you dislike having to shell out a good amount of money towards it. I am glad to share that Bajaj Allianz Life Insurance has been listening to us customers and it has come up with a new age ULIP, Bajaj Allianz Life Goal Assure. Let’s dive straight in and get to know its features.

So, what does it do?

Described as a value-packed goal-based ULIP, Bajaj Allianz Life Goal Assure has investment benefits as well as life cover.

What makes it different from all the other ULIPs in the market?

The Unique Selling Proposition of Bajaj Allianz Life Goal Assure is:

i) ROMC feature i.e. Return on Mortality Charges where you will be refunded the total amount of mortality charges that are deducted throughout the policy term. This money will be then added either to your regular fund or top up fund as applicable. This ensures that you have the safety net of life insurance which makes you secure and at the same time you have some additional money to look forward to when your policy matures. Sounds like a win-win, right?

ii) Return Enhancer which means if you choose to receive the return in installments spread over five years, you will get an additional 0.5% in each installment. Further, your funds will continue to be invested through this time.

Is there more?

Yes, this is not where the features of Bajaj Allianz Life Goal Assure end.

This ULIP also has:

i) Fund Booster: You will receive an additional benefit on maturity of your policy

ii) Loyalty Additions: Bajaj Allianz loves their loyal customers, which is why you will get additional benefits for investing regularly when your annual premium is more than 5 lakhs and your policy terms is for 10 years or more.

iii) Unlimited Free Switches: I dislike additional charges that certain investment products levy when I move my funds – either withdraw them or invest them. It is not so here. You have free unlimited switching options with Bajaj Allianz Life Goal Assure.

iv) Tax benefits: Everybody loves tax benefit and under this ULIP, you will be exempted from taxes under sections 80C up to Rs. 1,50,000 at the time of investment as well as maturity.

Bajaj Allianz Life Goal Assure provides its customers with four portfolio strategies, which are designed keeping in mind the different types of risk appetites customers may have:

i) Investor Selectable Portfolio Strategy

ii) Wheel of Life Portfolio Strategy

iii) Trigger Based Portfolio Strategy

iv) Auto Transfer Portfolio Strategy

If you would like to know more about Bajaj Allianz Life Goal Assure, I would encourage you to visit www.bajajallianzlife.com to read up on the literature available. You’ll also have the option of a step-by-step guide towards investing for your Life Goals, while using tools like Returns Calculator and Risk Xplorer. The website helps to simplify your calculations and weigh the pros and cons of different plans.

As I always say, one must read the fine print carefully and think deeply before you invest with anybody. Please feel to write to me in case of any queries 🙂