Your Credit History Really Matters !!!

Hello Friends,

Hope all well and its been very long time, and all my friends were asking me to write something important on the financial repayments, so today lets discuss about your credit history, maintaining your credit history or to correct your credit history with banks or any financial institutions. Every institutions were ready to fund every individual but they were unable to find out the genuine clients or good repayment history. So then the company called CIBIL has come into existence.

CIBIL - Credit Information Bureau (India) Limited or CIBIL is a Credit Information Company (CIC) founded in August 2000. Loan providers manage their business or help consumers secure credit faster and at better terms which in turn helps financiers and consumers for their financial history.

CIBIL scores ranges from 300 to 900 but a descent score would be in the range of 720-780.

Major Factors affecting Credit Score :

• Payment History
• High utilization of credit limit
• Higher percentage of Personal Loan and Credit card or Unsecured Loans
• Many new accounts opened but not maintained minimum balances

You want to maintain good credit history ??? then follow these simple steps

• Pay your bills on time - Be it Mobile/Telephone/Credit card/ Personal Loans/Home Loans etc...
• Avoid more spending - Utilize your card as low as you can
• Apply loans or credit cards when needed, otherwise your history or scores go low
• Ensure if you are signing any financial documents which you are becoming guarantor/ co-applicant/ joint account holder their repayment is on time or else you will have to suffer
• Review your credit history once in a year.
• Ensure sufficient balance before issuing a cheque or ECS in your account
• Ensure you say no to even known people for getting loans from your financials, because you lose your eligibility and also in case you need for any emergency you may not get loans
• Ensure you are giving documents only to a particular bank which you are applying for or you can write For Ex : ONLY FOR HDFC BANK FOR PERSONAL LOAN
• Ensure you have mixture of loans like Home Loans, Personal Loans and Credit cards

I have been listening to people who says they don't have any loans or credit cards, not to worry now  there is a talks on with all utility bills, and mobile operators to track their credit history which in turn help them to show their credit history, in fact most of the mobile operators are fixing the credit limit based on the past history and the same will be shared with CIBIL, So ensure all your utility bills are paid on time.

 Mostly sabotaging or negligence is taking ride for your credit history, so be cautious and be attentive about your finance.

Your dream Your home - Part One

Hello Everyone,

Its been my privilege to serve you and I have been receiving many queries about the Home Loan and the prerequisite about the process and procedure.

Almost all banks use the same process and procedure, here is the document check list, eligibility criteria, calculation of eligibility and much more

"Home Loan : A loan advanced to a person to assist in buying a home or a flat"

Today's scenario most of the banks are offering Home Loans at attractive prices and its starts from 10.10% to 12.50% ( depends on banks and property which you finalize)

List of documentation to process Home Loan for Salaried :

1.      Age Proof

2.      Identification proof

3.      Address Proof (Residence)

4.      3 Months pay slip

5.      2 Year Form 16

6.      Form 26 AS For 2 years

7.      Loan Repayment track record

8.      Six months saving account statement where salary is credit

9.      Company I D Card Xerox

10.  Qualification Proof (Degree Certificate)

11.  One pass port size photo

12.  One P F cheque 5618/-for login fees balance at the time of disbursement.

Co-Applicant Documents

Note: If income is not considered only 1, 2, 3& 11 documents are required else all documents to be collected if income is considered for loan

Property Documents

Sale Agreement

Sale Deed

Mother Deed

Katha Certificate

Katha Extract

Latest Tax Paid receipt

E C for 13 Years (Encumbrance)

Building Plan & license for construction

Any other property related document 

Eligibility criteria - Basic calculation :

Every bank works on a different criteria which starts with 55% to 65% funding according to your salary income :

For Ex : If your salary is around 1 lakh (excluding your spouse income) and your eligibility is around 55 lakhs to 65 lakhs and if you include your spouse income then eligibility will increase according to her salary grid.

Process and procedure :

There are two types of initial verification happens :

1. Paper validation - Property papers will be checked by the legal authorities especially lawyers who has been appointed by the banks to verify property papers.
2. Technical team who does all technicalities of the property and valuation will also be done.

Note : Usually property will be undervalued by the valuators.

Eligibility Criteria :

Loan amount will be sanctioned according to your eligibility, but please don't consider that you are eligible for full loan amount, there are other parameters to get the actual loan amount sanctioned.

• If the property is getting registered and it is in composite loan (Site + Construction) then the bank may fund according to the client requirement which may be market value/ Govt value/ registration value then the amount will be restricted to only 50% to 60% (depends on bank to bank) - Site + Construction
• If the property is getting registered at the actual amount then bank will fund up to 80% ( depends on bank to bank) - Flat purchase
• If the property is under construction (Flat purchase) then the funding can be at market value and it can  be funded at 80% as well (depends on bank to bank)

Note : The above consideration will be including the registration fee as well.

Some more important information will be posted in next blog...

PUT YOUR BEST AND PREPARE FOR WORSE

Hello Everyone,

Hope all well and hope you have read my earlier blog by name "Health Really Matters". As everyone knows because of our lifestyle and the kind of stress we are going through, health is getting neglected on a daily basis. So thought of sharing some of small tips which improves your lifestyle and your health because I care for you :

• Make a habit of having minimum 3 -5 litres of water intake ( In case you are working out then 5 - 8 Litres is advisable)
• Eat smaller meals frequently at least 4 - 6 times
• Add more proteins like Egg, Chicken, Soy products, Ground nuts, Almonds, Paneer and Fish in your food intake
• More vegetables also gives you cutting down fats and also increases your immune system
• Instead of junk food add more fruits like Orange, Lemon, Grapes, Apple which reduces your belly fats
• Have more clean carbohydrates and stay away from processed foods

You can include some of the daily exercise which gives you more energy and boosts your day to day activities and it helps succeeding more in life :

• Morning or Evening walks - Brisk walk or Jogging increases your stamina, strengthens muscles, increases cardiovascular fitness, help maintain healthy weight, increase in strong bones
• Yoga - Gives you immense benefits which includes - Stress relief, weight loss, inner peace, immunity system, better flexibility and better posture
• Aerobics - Weight loss, Increase in immune systems, increase longevity, maximizes oxygen consumption, Lowers heart rate and blood pressure
• Spinning - Increase in muscle tone, burn calories, relieve stress, reduce risk of injury and increases cardio endurance 
• Zumba - Fun of Exercise, works on overall body, increases your cardiovascular and also your stamina
• Weight Training - Best way of over all body workout increases your strength, stamina, will power, each body will be concentrated
• Bootcamps - Group training pushes you more and you will work with your competition

Many more are available like kick boxing, swimming, karate, kungfu, skating and so...on. But my personal advice is to take any of these work out and  try atleast 4 days in a week which helps in improving your health and you can live long.

I also suggest take a health insurance product which is always advisable as everyone knows "PUT YOUR BEST AND PREPARE FOR WORSE". Currently more and more companies are around yesterday's product is late today, and there are new product has come, in that I chose a better product which is RELIGARE HEALTH INSURANCE - CARE which has the better feature compared to all.

So please take care of your health, because "ONLY YOU CAN TAKE CARE OF YOU AND NO BODY ELSE WILL CARE FOR IT"

Your Friend,

Umashankar.M

9538490099

Team Work Around

Hello Friends,

Most of us are all from the corporate world, quite often we hear a word called "TEAM WORK".

TEAM Dictionary Meaning - A group of players forming one side in a competitive game or sport.

Do you really agree your team work is on track then try this small workarounds :

• Goals - Hand over a sheet for all your team members and ask them to write down their goals or projects which they are handling now - Am sure you won't get a common answer - if they answer then you are lucky enough and be happy.
• Objective - They need to write the objective or the project details in short - I know they will write but cross check.
• Time Frame - Do they really know the time frame which needs to be delivered to client, then let them impress you on the paper.
• Connectivity or Co-ordination - Do you think they will write the names like whom to contact in case they need any help or to co-ordinate in this project.
• Appreciation - One name with appreciation on the sheet is must to know their team mates performance
• Performance - Are they aligned with the performance drumbeats.

These are very basics which I thought of sharing with you, would like to share more in sometime.

Your Friend,

Umashakar.M

Health Really Matters !

Hello Friends,

Today lets discuss about the best and mandatory product and I always give more priority in this section which is called Health Insurance – As all of us know “HEALTH IS WEALTH” but how many of us are caring about our health. 

What is Health Insurance ?

Health insurance is a type of insurance whereby the insurer pays the medical costs of the insured if the insured becomes sick or injured due to covered causes, or due to accidents. The insurer may be a private insurance company or a government agency. The insurance may pay for medicine, visits to the doctor, hospital stays, other medical expenses and loss of earnings, depending on the conditions covered and the benefits and choices of treatment available of the policy.

Why Health Insurance is needed ?

A medical emergency/ crisis can strike at anytime. It can be in nature of an accident or any disease/ illness. With present life style of stress, travelling, long working hours, irregular and unhealthy eating habits, makes us very susceptible to illnesses. Often such medical emergencies are unforeseen and may cause great financial crisis to you. Very often, existing savings, future family goals are compromised to arrange for such medical expenses. Taking an adequate medical and health insurance would help you cover your cost of treatment and hospitalization, other medical expenses and may reimburse you for your lost income during period of recovery. Health insurance is your safegurad against financial impace and stress that accompanies any illness or accident.

How much Health Insurance to take ?

This is very tough to answer it may vary, but always be insured as much as your pocket can withhold and consult your financial consultant.

Health insurance products available in the markets 

Individual Policies

Floater Policies

Group Policies (Company provided policies but recheck the policy)

But some information is mandatory to share: TOI Source

Ø  85% of the working population in India do not have Rs 5,00,000 as instant cash

Ø  14% have Rs 5,00,000/- instantly but will face a financial crunch

Ø  Only 1% can afford to pay Rs 5,00,000 instantly

Ø  99% of Indians will face a financial crunch in case of critical illness.

Let’s come back to the benefits of the Health Insurance:

•  Cashless Benefits
• Day Care facilities – In case any operations or medical coverage without admitting in hospital (less than 24hrs) is also claimable (subject to product offerings) For Ex –Cataract (Eye operation)
•  Pre Hospitalization benefits – Example in case doctor suggests some surgery for the claimant before surgery medication and consultation is also claimable(subject to 
        product offerings)
• Post Hospitalization benefits – Example post surgery medication and others medical expenses are also covered (subject to product offerings)
• Room Rent will be paid by the Insurance company (Subject to Sum Insured)
• ICU charges will be paid by the Insurance company (Subject to Sum Insured)
• Even critical illness will be covered (Subject to product offerings)
• Ambulance offer is also claimable
• In fact some of the companies are offering 50% of increase in Sum Insured in case you don’t claim for 1^st year
• Some companies may give you the benefits like Free medical check for every year (For adults only)
• Tax benefits under section 80C.

Note: Read the policy documents carefully before taking insurance plans.

Your Friend
Umashankar.M
9538490099

6 P's Formula in Financial Planning !

Hello Friends,

There is a formula called 6P's - "Proper Prior Planning Prevents Poor Performance" and it is very useful in all aspects be it in business, finance, travel or in life. 

Today I met one of my client's friend he was rushing with papers in mid of confusion, when asked he said 14th of Jan will be his last date for submission of Tax and he has some of good investments and something he was looking for in an urgency and one of his colleague suggested to go for some ULIPS and Long term Fixed Deposits which he was ready to do it. Spent couple of hours and explained about all investment alternatives but he still insisted to go ahead with the same of Long term FD as he wants to follow his friend.

 I would like to share some basic tips here before investing :

• Prepare checklist.
• Check whether it suits your specification of your investment objective.
• Choices of Asset Mix - Equity, Debt, Liquid funds, PPF, Pension/Health/Term/Life Insurance.
• Spend time reading the documents which you are investing in,"It is your money and your investments".
• Ensure you are taking all details of the product and do some research or consult the right person (Financial consultant or Professional)
• Avoid cheap products which has been promoted by banks. (Nothing against banks but understand the product before investing).
• Equity or Debt related products cannot be measured based on the past performance, it all depends of the asset mix from the fund and exposure in sectors.

Request you to kindly follow the basic tips and ensure you are on the right financial track.

Since its a Tax season one of the better options I would like to highlight here is ELSS Funds :

Courtesy : Economic Times :

Your Friend

Umashankar.M

9538490099  

Financial Goal Design for this New Year !

HI ,

Every New Year all of us think to have a resolution "Re-Solution" in all aspects be it in Health, Financial Independence, Be Happy and many more, we do act for couple of months - Like joining gyms, savings small amounts, Outings with family etc..., but post that we start lagging because of work pressure or something else. So I thought to share you some basic info on Financial Goal Design for this new year which can focus on your "BFF - Better Financial Future".

Don't Just Think it - INK IT

The weakest ink is stronger than the strongest mind. Unless you write down your goals, they are often lost in the shuffle and excitement of new problems, challenges and decisions.

SMART Goals :

This is the time we need to realign our financial goals to attain our dreams.

S - Specific - Specific means well defined, something that would be clear to anyone else. How much you need for you child's education, Pension, Health, Home purchase or even for your dream car to buy ? 

M - Measurable - This is where we quantify our objectives so that we can measure our achievements against them. When you measure your progress, you stay on track, reach your target daes, and experience the exhilaration of achievement. 

A - Attainable - This is the time to pull your head out of the clouds and put your feet back on the ground. Your goals need to stretch you, push you to go farther and faster than your ever thought possible.

R - Relevant -  This is one of the most important criteria to scrub against. Are the goals you set above in alignment with the core values you outlined in installment or Do they align with your mission and support the vision you have for your life ? You want to be sure the direction in which you focus your creative capacity is in the direction of what is truly most important to you, your life and the legacy you intend to leave. If not reconsider.

T - Time Sensitive - You think, act and react with the urgency and appropriate energy defined by the task. Most of us are busy in all aspects, instant answer we get is  "NET TIME - NO EXTRA TIME" but the fact is everyone can make time for sure if you are really committed, focused and time specific.

BELIEVE IN YOUR GOALS - ITS YOUR LIFE AND YOUR FINANCIAL GOALS :

Many people set goals that they think they "should" have, rather than what they truly want for themselves. Don't let your family's, colleagues or society's ideals or expectations dictate your ambitions. In fact, if your written goals are not from your true heart and inner ambition, your creative spirit will not work to produce them anyway. All it will do is frustrate you and give you the illusion that you are a failure and not capable, when in actuality you successfully avoided (didn't achieve) what your inner spirit didn't really want anyway.

I am sure this 2014 will be the best for you and your family to kick start your financial success with small and simple tips which I shared.

I wish you all Happy and Prosperous New Year.

Your Friend,

Umashankar.M

9538490099

Have a Splendid Year !