Infrastructure and real estate are two crucial sectors that underpin the sustained economic growth and development of a nation. They have critical importance for a country’s advancement both on economic and social parameters. However, these two sectors need significant stimulus from the Government, perhaps more than others, for sustained growth and orderly development.

The dynamic regulatory regime, introduced after the commencement of the economic liberalization process in the year 1991, has been a cause for the continued growth of the Indian economy, even amid a global financial crisis. The introduction of the InvITs is proof of this regime. Its arrival could not be better when there is an increased focus on infrastructure and real estate development.

Historically, the responsibility of financing this sector has fallen on the banks and financial institutions. However, the situation has changed since InvITs have been attracting private funding through private equity investments.

InvITs provide an opportunity to participate in infrastructure and real estate financing through a stable and liquid instrument. It also promotes a more efficient governance structure. It allows smaller and non-institutional investors to participate in infrastructure and real estate financing. Investors also reap the benefits of growth in these sectors through a marketable instrument, which is less prone to the volatility inherent in equity investments.

With the introduction of the InvITs, Indian Capital Markets have overcome the global competitive disadvantage. It has provided Indian companies with a much needed additional avenue for financing. The Government has provided a mostly favorable tax regime and liberalized the ability to invest in InvITs, making these products more attractive to investors.

BACKGROUND

What’s an InvIT?
An Infrastructure Investment Trust is a trust under the Trusts Act. The registration of InvIT is under the Registration Act. Under the Trusts Act, Trust is an obligation attached to the ownership of property. The author creates the obligation, accepted by the property owner, and owed to the beneficiaries identified by the Trust Deed. In InvITs, Sponsor establishes a trust, The Trustee owns the property, and the beneficiaries are the Unitholders of the InvIT.

For the InvIT Regulations, “Infrastructure” includes all the infrastructure sub-sectors specified in the Harmonized Master List of Infrastructure Sub Sectors issued by the Ministry of Finance. Such infrastructure sub-sectors include:

 Roads and Bridges;

 Ports;

 Airports;

 Metros;

 Electricity Generation, Transmission or Distribution;

 Telecommunication Services;

 Telecommunication Towers;

 Capital Stock of Hospitals and Educational Institutions;

 Hotels and Convention Centers and

Features of an InvIT:
 The value of the infrastructure projects and other assets owned by an InvIT shall be at least 500 crore rupees.

 InvITs are allowed to borrow up to 49% of their underlying assets.

 InvITs that propose to invest at least 80% of the value of their underlying assets in the completed Infrastructure projects shall raise funds only through public issue of funds.

 They shall have at least 20 investors and a minimum 25% public float. They shall distribute not less than 90% of the total cash earnings to the investors.

 InvITs that seek to invest more than 10% of the value of their assets in under construction infrastructure projects can raise funds only through private placement from Qualified Institutional Buyers or Body Corporate.

 They shall have a minimum of 5 investors, with each holding not more than 25% of the units. They shall distribute not less than 90% of their total earnings to the investors.

 Listing is mandatory for both publicly offered and privately placed InvITs.

LEGISLATION

The Key laws applicable to InvITs include the InvIT Regulations, the InvIT Guidelines, the Trusts Act, the Registrations Act, the FEMA, and the Income Tax Act, 1961.

ELIGIBILITY:

According to the regulations, investors can comprise insurance and pension funds, domestic institutional investors (like mutual funds or banks), foreign institutional investors, HUFs, and Individuals with a high income. The IPO has a minimum application size of Rs 10 Lacs, and the minimum trading lot is Rs 10 Lacs post listing of the units of the InvIT.

PROCEDURE:

Unitholders are investors who purchase the Units of the InvIT. They invest in the primary market at the Initial Public Offering or by purchasing Units from the second-hand marketplace.

Each InvIT comprises of a trustee who is a SEBI registered debenture trustee. The Trustee holds the InvIT Assets in Trust for the Unitholders’ benefit and ensures that the fund’s investment policies comply with the regulations.

PARTIES INVOLVED IN THE ESTABLISHMENT OF AN InvIT

The parties involved in establishing an InvIT are the Sponsor, the Trustee, the Investment Manager, and the Project Manager, each with distinct duties, roles, and responsibilities.

Sponsor: An InvIT, being a trust, the Sponsor of an InvIT is the author of the Trust required to transfer the initial portfolio of assets to InvIT.
A sponsor may be a company, an LLP, or a body corporate. Regarding the Public-Private Partnership (PPP), the Sponsor is an infrastructure developer or a Special Purpose Vehicle (SPV) holding a concession agreement. If the Sponsor is a body corporate, its net worth should not be less than 100 Crore Rupees.

A Sponsor has to hold at least 25% in the InvIT for at least three years except for the cases where a regulatory requirement or concession agreement requires the Sponsor to hold a certain minimum percentage in the underlying SPV. In such cases, the consolidated value of such Sponsor Holding the underlying SPV and in the InvIT cannot be less than 25% of the value of units of InvIT on a post-issue basis.

Trustee: The Trustee is the owner of the InvIT Assets, which he holds in a trust. The Trustee’s required eligibility includes: The Trustee should be a registered trustee under the SEBI Debentures Trustee Regulations, and the Trustee should not be an associate of the Sponsor, the Investment Manager, or the Project Manager.
Investment Manager: The Investment Manager undertakes the investment decisions for the InvIT, manages the Assets of the Trust, and initiates activities related to the general corporate aspects of an InvIT. The Investment Manager may be a company, an LLP, or a body corporate. If the Investment Manager is a body corporate or a company, its net worth should not be less than 10 Crore Rupees.
Project Manager: The Project manager is the entity responsible for executing infrastructure projects and the achieiving project milestones under the concession agreement or other relevant project documents.
BENEFITS OF INVESTING IN InvITs:

Diversification: With the multiple underlying assets of an InvIT, investors get an opportunity to diversify their investment portfolios. For instance, an InvIT has to distribute 90% of its total net cash flow to its investors. Such an option ensures risk minimization and allows investors to generate stable dividend payments in the long run.
Generates a fixed income: Redistribution of risk and generation of a steady income acts as a healthy alternative for accruing regular returns, especially for retirees. Having such an investment in the portfolio would help investors who intend to plan retirement effectively.
Liquidity: The liquidity aspect of an infrastructure investment trust is primarily enhanced because, generally, it is easy to enter or exit from them. Although, small investors may find it tedious to sell off a high-priced asset in a short period.
Management of Assets: Generally, the underlying assets of an InvIT are managed by professionals with a long-standing history of portfolio management. Such prior experience provides an opportunity for investors to ensure effective management and allocation of resources.
The benefit to the Promoters: By investing in InvITs, promoters would significantly minimize the burden by the sale of an asset. The proceeds of the sale can fund other projects. There are several infrastructure companies whose funds are locked up in completed infrastructure projects. As a result, they cannot be used to promote growth in the country’s infrastructure sector. InvITs enable the refinance of these developments. Such instruments create an attractive opportunity for smaller investors to benefit from the development of these projects.
InvITs further promote the flow of foreign investment and finance directly into the Indian infrastructure sector.
NOTE: When evaluating an infrastructure investment trust, it is imperative to study its underlying assets and holdings before investing. Likewise, it is crucial to understand the Trust’s intrinsic value by using various valuation techniques. Just like InvITS, if you would like to invest in stock market & mutual funds, want to know how to do it and which broker you should select, then visit Select by Finology.

DRAWBACKS:

Although InvITs provides a good investment option with long term steady gains over time, there are inevitable setbacks in operating. A few of them are listed below:

There is a lack of transparency.
The underlying asset’s failure risk because of a plethora of inherent equity-associated risks gets transferred to the investors.
The investors have no easy way to understand the risk since all the speculations of cash flow are merely that – speculations. If the projections for the upcoming years prove false, the Uniholders’ dividend payment structure will be a catastrophe.
The investors do not have real knowledge of the underlying assets’ net worth. The initial Valuation Report that suggests that the project will generate a certain amount of returns over the period cannot be relied solely upon as real estate projects are subject to numerous changes over the long periods. So, the longer the term of the project, the greater the risk. For instance, the construction of a metro project will minimize the highways’ traffic and affect the payment of toll. Such a model subsequently affects the revenue of the infrastructure company, and the returns on the project take a big hit. If a road project becomes unviable, the investors in InvIT will lose money if the tolls received fall.
CONCLUSION

To sum it up, the InvIT market is relatively nascent in India. It is in an evolving phase, with only a handful of InvITs registered currently. However, with the Government’s appropriate stimulus in the infrastructure segment and a boost in the economy over the period, InvIT can prove a suitable investment option for several investors.

In the backdrop of India’s massive infrastructure financing needs, it is suggestible that more number of InvITs get registered throughout the future.

If you have ever got into a situation of rejected loans or credit cards due to bad credit scores, then you need a credit repair company for getting it fixed. It becomes embarrassing when you need a certain amount of loans at some reasonable rates, but you can’t access it due to the credit score.

But we recommend that you not sign a contract with a credit repair service provider unless you thoroughly understand how the company and system works and what credit repair companies can and cannot do to fix the problem.

If you have already decided about hiring a credit repair company and accessing their services, then you need to be crystal clear about companies that:

· Demands an upfront payment: CROA bans this type of payment; thus, you don’t need to make an upfront payment.

· Don’t provide a contract: Companies must have to provide a written contract to the customer, including the consumer’s cancellation rights.

· Promise a quick and simple fix: Don’t get into the talks of companies offering a quick fix to your problem as it is impossible. It’s a lengthy procedure and takes a specific amount of time. As per the law, the credit bureau has a time of 30 days to respond to a challenge related to your credit report.

· Guarantee who says to raise the score or fix an error: If a company says they will raise your credit score upto a certain level and fix the error from your credit report before actually going through your problem, say no. You don’t need to give a second thought to it.

· Have complaints against them: If a company already has complaints from the consumers about not providing satisfactory results, don’t go for them. You can go through company reviews online and can check the Consumer Financial Protection Bureau complaint database. You will have access to all the required information that will be enough to decide to say yes or no to a company.

Things To Do Before Actually Getting In Touch With a Credit Repair Service:

When you have decided that you will need a credit repair service for getting out of your credit problem, perform a thorough study on your credit report. You can have access to a free credit report every year from the credit bureau.

You can choose any of the three available credit reporting bureaus, I.e., Equifax, Experian, and TransUnion. Visit AnnualCreditReport.com and get your annual credit report. Perform a check on your credit reports on all three of them as your report may vary on all three of them.

While reviewing your credit report, you must check the derogatory marks such as missed payments and errors. When you hire a credit repair company for accessing the repair services, you will be going through each credit report provided by the company’s representative. They will provide you with documentation supporting the dispute like paid invoices and court records. You should be all set to answer all such questions related to your credit history.

First introduced in 2020, the term is gaining momentum and becoming popular as the prime use case of digital currencies today.

Will DeFi ever rule the world? Why it’s becoming so popular term?

Where many people still call Decentralized Finance a passing fad, companies across the globe have been starting to implement technologies such as Blockchain in the financial part.

As Decentralized Finance is set to mark its presence in the industry, there are many who don’t really know what DeFi is. If you find yourself among them, we got your back.

What is DeFi?
Let’s understand this by discussing Bitcoin.

Bitcoin is a digital form of money that isn’t controlled by any central authority or government. The cryptocurrency can be transferred to anyone sitting in any part of the world without the need for a bank or any financial institution playing their part.

And that’s what make it decentralized money.

Yes, Bitcoin is decentralized money that can be used to store, exchange and make payments.

However, transferring money is just the first of several building blocks in a financial system. Apart from sending money to one another, there’s an assortment of services we use today. For instance, stock markets, insurance, saving plans, and loans are all services built around money and together create our financial system.

At present, our financial system and all its services are centralized. Banks, insurance companies, stock markets and other financial institutions all have someone in-charge having control of the domain.

Such centralized financial systems come with their own risk of mismanagement, corruption, fraud, to name a few.

What if we could decentralize this financial system entirely in the same way as Bitcoin decentralized money? That’s what DeFi is all about.

What’s There for DeFi in 2021?
There’s no doubt that DeFi or Decentralized Finance could achieve the spotlight last year, which was visible in the prices of DeFi tokens multiplying throughout the year.

According to the reports, people locked up millions of dollars’ worth of their crypto holdings on smart contracts via DeFi sites. Where is DeFi heading in 2021?

Having a fully covered emergency fund (three to six months of your living expenses) is vital to your financial health. Most people downplay the role an emergency fund plays as an essential personal finance tool. You can’t foresee an accident, but you can choose to be proactive by building an emergency fund for whatever life throws at you e.g. COVID-19. If you’re thinking of building your emergency fund, the next question would be, “where do I put it”?

Ideally, the best places to store your funds are in instruments that offer liquidity. This is the most crucial feature to consider when making your decision. OVERWOOD offers liquidity and flexible withdrawal windows even though its products are designed for long-term investments, not short-term savings. A traditional savings account might be your first choice, but other liquid instruments can keep your funds safe while you earn interest. By earning interest on your savings, you’re balancing out the probable effect of inflation on your funds. In foresight, the funds earmarked for emergencies should be housed differently from your periodic savings.

Money market account
Saving your emergency fund in a money market account will earn you more interest than conventional savings or current account. Some MMAs in Nigeria offer you the opportunity to earn an increased yield on short term investments. With the added benefit of a debit card and check-writing ability, your funds can always be easily accessed. Before deciding if this account meets your savings needs, you should do your research and consider all possible fees.

High-yield savings account
A high-yield savings account differs from your traditional savings account because of the interest rate. While you might not get rich using this account, you can earn some extra cash on your emergency fund. Most high-yield savings accounts are found at online banks. Research on options with competitive interest rates, and consider other factors like the minimum balance requirements and account fees when making your decision.

Certificates of deposits (CDs)
The best way to save your money is to put it where it can earn interest. To earn even more returns, you can consider Certificates of deposits. It’s essentially an agreement with the bank to use your money for a fixed period in exchange for interest. The maturity for CDs in Nigeria ranges from 30 days to 5 years. While you get to choose a tenor that best works for you, the drawback is the penalty that may be incurred as a result of early withdrawal.

Treasury bills
Treasury bills are another option for your emergency fund, and they are the most liquid securities. They are government-guaranteed debt securities that mature within a year. With treasury bills, you are loaning the government your funds in exchange for an interest. The maturity date varies, and the longer the maturity date, the higher the interest rate. Thinking long term, it can put extra money in your pocket.

The end of 2020 was one of the most awaited and anticipated part of the year. Now that we can finally bid goodbye to 2020, we welcome 2021 with new hopes and in regards that it will be a better year. With the onset of a new year, we will all set our resolutions. New Year resolutions can vary from joining a gym, spending more time with loved ones, or travel more often. However, if you want to buy a new car, setting new year resolutions related to your goal will help you in making the right choice.

Car Buying in 2021: New Year Resolutions to get the Right Deal

The following resolutions will help you pick the right car deal in no time.

1. Pick Cars over Mass Transit Options

A self-owned car has proved to be much more convenient and safer in the past year. Many regular commuters have discarded the option of riding on a subway or a train. A car is a safe mode to commute to work, school, or run errands daily. Additionally, cab-hailing services such as Uber are also not a preferred option during the pandemic. Moreover, you should road-trip in your car with loved ones instead of flying for the trip because it is the safer option. In conclusion, your resolution for 2021 should include a self-owned car for safe travels.

2. Reliable and Feature-Rich Car for Young Ones

Many countries all over the world are preparing to launch a vaccine in the year 2021. Post the release of a vaccine and the reopening of colleges and schools, look into purchasing a car for your younger one. Focus on finding a vehicle that is reliable, safe, and beginner-friendly. The Honda CR-V 2021 has gained applause for being a spacious, compact SUV with safety features such as road departure warning, collision mitigation brake system, and traffic sign recognition. You can even check other options before you make the purchase.

3. Maintain your Car & Credit Score

Just as changing the oil of your car is a necessity, so is maintaining your credit score. Regularly look at your credit reports and correct any fallacies that may have gone unnoticed in the past year.

Additionally, pay off your previous debts before you apply for an auto loan. Be consistent with your payments. Work on improving your debt-to-income ratio before you set out to purchase your next car. In the end, make it a resolution to maintain your car and credit score for a robust financial future.

Resolutions for Better Car Deals and Improved Driving Skills

Just thinking of buying a new car will not help you to achieve your goal. Research for the kind of car you want to buy; and focus on improving your credit score to enjoy a better deal.

Additionally, get working on your resolutions to improve your driving habits. Resolve to become a courteous driver and ditch road rage. Make distracted driving and using phones while driving a thing of the past. Let us enter 2021 with an evolved sense of driving!

Real Estate Business in India is changing fast. Both as a business and also as a market for innovation in the product range.

With the coming of the foreign investments in India the demand for office space has seen phenomenal growth. The leasing of space by co working operators in India has seen a continuous upward trend since 2018. The reasons for this trend are many folds.

Rising prices of real estate

The main reason for this trend has been the rising prices in the real estate in urban India. Land is getting scarce and the building trend has changed to building vertically instead of horizontally. More and more firms are choosing to expand vertically in high rise buildings instead of horizontally. The prices of land are going up every year as the pressure of the population and the expanding economy on land resources is increasing. Corporate houses are now realizing the need to save on fixed assets in the form of land and buildings and concentrate more on using their funds on marketing and human resource management. The innovation in technology has made it possible for businesses to work from limited spaces with limited human resources. Work which was previously labor intensive has become more technology dependent.

What so co working spaces offer

The co working spaces are offering a number of facilities which are attracting more and more corporates to go in for these spaces:

A common Reception desk for the whole building or office complex means that you save on a function in the business which would normally cost you money in the form of a setting up front office with a staff to take care of it. A receptionist with furniture and office equipment which normally can be better utilized in productive purposes.

Common conference facilities and conference rooms. Normally a conference room is used very seldom in case of an important meeting. That means that the space is lying vacant most of the time. Common conference facility means you pay for the space only if you need it not for it laying vacant.

Common pantry. A common pantry or a coffee shop saves money on the need to buy all the consumables which normally become a source of wastage and misuse in the office. It has been noticed that the cost of common Pantry reduces the cost for the tea and entertainment expenses in an office by at least 30 to 50 percent.

Maintenance costs. Another major saving in the costs for a shared co working space are the maintenance costs of co working space compared to self-owned space. It is a known fact that the maintenance costs for self-owned space are at least double of what the costs of shared space are.

Effects of Covid 19

The current pandemic has further strengthened this trend as the pandemic has forced the corporates to promote the work from home culture and in India at least it has been proven that working from home is possible and can successfully be undertaken. This has cut down on the need for large offices and has forced many offices to work from limited spaces and this new trend is likely to continue for a long time in the future.

There has now been a surge already in most of the metro cities of construction of and creation of more co working business spaces. Delhi, Bengaluru, Mumbai are three cities with large corporate populations and these are definitely on the forefront of this revolution.

A Demat Account is necessary when you wish to invest in Equity, Mutual Funds, Non-Convertible Debentures (NCDs), Government Bonds and the likes! First things first, what is a Demat Account?

Demat Account/Dematerialized Account acts like an online vault for the securities you have purchased. Your Demat Account is managed by a Depository. There are two in India – National Securities Depository Ltd (NSDL) and Central Depositories Services India Ltd (CDSL). However, it is important to mention that you cannot directly open a Demat Account with the Depository, you have to do so with a Depository Participant. A Depository Participant or a DP could be a Broker, Financial Institution, Bank, etc.

In this article, we’ll focus on the things you need to consider when opening a Demat Account with a Broker. Why Brokers? Because given the nature of the Demat, a Brokerage firm offers a plethora of associated services, as compared to a bank or any other financial institution.

Let’s get down to the factors you need to take into account when choosing a broker to open a Demat Account online.

The Type Of Broker Yes, the ‘broker type’ is important and there are two kinds that you can open a Demat Account with. A Full-Service Broker and a Discount Broker.

A Full-Services Broker provides you with a set of integrated services that facilitate a seamless investing or trading experience across the capital markets.
A Discount Broker, on the other hand, provides you with a trading platform and a flat brokerage charge.
Ideally, a Full-Service Broker is well-suited to both a beginner and an expert in the stock market, since they provide additional services like Research Calls, Relationship Managers, Call and Trade Facility, and Trading Platforms, in addition to many others.

What Are The Charges?

There is the Custodian Fee, Demat AMC Charge, Account Opening Fee; which are naming the standard few. These charges may vary from broker to broker and are nominal in most cases. A thorough comparison is advisable before you commit to opening a Demat Account with a broker. Another fee is the Brokerage, which is levied on your trade transactions. When you look at it, normally a discount Broker will charge less as compared to a full-service broker. This is so because the Full-Service Broker also provides you with a full set of comprehensive services to make your investing journey more convenient. Have a go at the services offered by the Full-Service Stock broker before you decide to call the shots on whether it is well worth it or not based on brokerage.

Are They Supportive? Yes, it is an important criteria. When it comes to matters of money, no one likes to be kept hanging. A good support team is crucial when choosing a broker to ensure that at any time when nuisance strikes, you are backed up and well at that. Apart from looking at the support team ratings and feedback, have a look at what mediums the support is provided on. Phone, chat and email sound good; but a local office, a dedicated relationship manager or a back end support team takes top place. It may be just the right answer to your woes.

Is The Trading Platform Feature-Rich?

Check if the broker provides you with a trading platform that is compatible with the device of your choice. No one likes hiccups in the middle of a mindful trade. The second thing to check off your list is the features. Innovation is necessary, and you must look at the features that enable you to have a simple or convenient trading experience, rather than unnecessarily complicate stuff. UI is extremely important, check to see if it is clean and easily navigable. Does it have hands-on features that keep you updated about your portfolio, price and orders at all times? Does it make the whole experience easier? Does it provide the necessary data that may help you make informed decisions on one platform? Asking yourself these questions is important, before you take the first step to open a Demat Account.

Mortgage means to place collateral. Therefore, mortgage loan in home loan industry is the loan taken against the property pledged as collateral. The mortgage loan is beneficial in comparison to other instant loans such as personal loan and business loan because of its rate of interest, processing fees, foreclosure charges & closure conditions, etc. Also referred to as Loan Against Property, a mortgage loan is taken to meet the personal fund requirements such as children education, child marriage, medical treatment, business expansion, etc. The mortgage loan by lender Bank/NBFC/HFC is provided only to those borrowers who has a regular flow of legal income and is within the maximum retirement age 60 years. As a result, the senior citizens were excluded from taking the mortgage loan. Hence with the view of extending the benefits of mortgage loan to the elderly the Union Government of India introduced the concept of Reverse Mortgage allowing them to borrow the funds through property mortgage, to meet their financials requirements of day-to-day expenses and increasing cost of medical treatments.

Difference between Mortgage Loan & Reverse Mortgage Loan

Sr. No.

Mortgage Loan

Reverse Mortgage Loan

1

Meaning

A mortgage is a type of secured loan as it is secured against the collateral provided. The collateral means pledging of property to obtain the loan.

Loan for senior citizen above 60 years to avail regular/periodical payments from Banks/ NBFC against the mortgage of their house while still retaining the ownership of the house and occupying the same.

2

Who Can Apply

Salaried and self employed individuals.

Retired, senior citizens above 60 years.

3

Purpose

Can be used for children education, child marriage, business expansion.

Can be used only meeting the livelihood expenses and medical expenses.

Can be used for purchasing another property.

Cannot be used for any investment or purchasing property.

4

Property Type

Ownership residential as well as commercial property can be mortgaged.

Only ownership residential property can be mortgaged.

No commercial property is allowed.

5

Property Ownership

Ownership transferred on ancestral property as well as property with gift deeds can be considered.

Ancestral property is not considered. Senior citizen must possess a self acquired and self owned or jointly owned property with the spouse.

6

Residential Life Of The Property

5 years – 50 years. Above 50 years structural audit report is mandatory.

Should not be less than 20 years.

7

Providers

All banks and NBFCs.

Only selective nationalized banks and few private banks.

8

Age Limit

Salaried – up-to 60 years

Self-employed – up-to 65 years

Senior citizen above age of 60 years.

9

Eligibility

Must have regular monthly income flow.

Does not require any Income.

10

CIBIL

CIBIL score of minimum 750 and above is required.

Does not require any credit score requirement.

11

Loan Tenure

Maximum 15 years.

Minimum 10 years till lifetime of the borrower’s age.

12

Loan Disbursement

Full Disbursement of loan amount. No partial Disbursement.

The loan can be provided through monthly, quarterly, half yearly or annual disbursements or as a lump-sum or as a committed line of credit or as a combination of the three.

13

Loan Limit

No capping on the loan amount.

Maximum loan limit has been capped to 50 Lakhs – 1 Crore.

14

Processing Fees

0.40% – 1.5% of the loan amount.

0.50% of the loan amount.

15

Interest

Interest is charged on the total principal and is paid up-front with the principal in equated monthly instalments.

Interest is charged only on the principal amount taken and the interest is rolled to the principal amount, which is payable on loan closure.

16

Rate On Interest

Base rate + 1% – 2%.

Base rate + 2.75 % – 3%

17

EMI

Consists of Principal + interest amount.

There are no such EMI.

18

Repayment

Repayments are made via EMI throughout the loan tenor OR when borrower willingly pre-closes the loan.

Loan + interest become payable only when the borrower sells the house or moves away permanently or when the last surviving borrower dies OR when borrower willingly pre-closes the loan.

19

Foreclosure Charges

No pre & part payment charges on floating rate of interest.

Closure charges of 2% – 4% on the loan amount for fixed interest rates.

No pre-payment charges.

20

Tax Benefits

Tax exemptions is applicable only on interest paid:

a) End-use is for business purpose- interest can be claimed as business expenses under section 37 (1).
b) End-use for purchasing house or home renovation or repairs interest can be claimed under section 24(b).
c) End-use for personal reasons, education, marriage, etc – no interest exemption.

Note: Important documents must be maintained to authenticate and justify the end-use of the loan, in order to claim the income tax exemption on interest.

All payments under reverse mortgage is exempt from Income Tax, under section 10(43).

If the bank sells the property, borrower become liable to pay the income tax on the capital gain derived on selling the property.

Also, the annuity income in the hands of the borrower is taxable.

You may have heard before that only 2% of Indians are there who are investing and trading lovers and actually invest in the stock market. But, this percentage seems to be boosting day by day as the whole system of trading is switching to the online platforms. The ease and solace of online trading has led a huge number of Indians to somewhere rely on their earnings from such investment activities.

One of the trading platforms of India which is swiftly increasing it’s customer base day by day is none other than growing apps. Have you heard of the grow app?

Well, Groww is an online investment platform based in India that mostly targets first-time investors and millennials. The headquarters of the groww app are in Bangalore, it enables investors to open an account electronically and transact in mutual funds and stocks online. As in June 2018, Groww had partnered itself with the 34 mutual fund houses and around 5000 mutual funds were accessible on the platform. As of Sep 2020, with 8 million users, the company had raised $59 million in venture capital.

But as mentioned, most of the users of the grow app are none other than the new learners, therefore they face a hell lot of difficulty in using the platform, though it is an easy one. They face this difficulty mostly because they don’t understand those typical technical terms. So, to obviate this dilemma , we came up with this article that covers the problems like how to buy shares in the grows app. So, lets begin!!

How can one open a demat account on the grow app?

Firstly, you are required to open a demat account with groww app, if you want to buy the shares from the platform. Follow the below mentioned steps for the same.

Step 1- Log in to the Groww app. Below the ‘Stocks’ tab, click on the ‘ complete setup’.

Step 2- Click on the ‘Open Stocks Account‘ to continue. The account opening charges on Groww are zero. Great right? Now, For other charges please click on the‘See all charges’. Once you go through all the charges and decide to pay the applicable charges, click on the ‘open Stocks Account’.

Step 3- now, Enter details about your occupation, income, mother’s as well as father’s name to complete the KYC process. Then, Verify the correctness of the details and click on the ‘Next’ to proceed.

Step4- Enter your trading experience from the drop-down list and then simply click on ‘Next’ once done. To proceed.

Step 5- the next is uploading your signature. Take a picture of your signature on a plane white sheet from the option in the app. If you are satisfied with the picture of you signature then click on ‘looks good’ and proceed. It is an important step.

Step 6- This step includes Aadhaar based e-sign. In this process, you have to submit your Aadhaar number to the e-sign service and will receive an OTP on the registered mobile number linked to your Aadhaar. To e-sign, click on ‘E-SIGN AOF’. (AOF) will be sent to the registered email ID. Print the form, read the details carefully, sign at the mandatory places and courier the form to the address mentioned on the screen. Upon verification of the form, you will be informed and your account will be activated then.

Step 7- If your given mobile number is linked to Aadhaar, then enter the OTP/security code sent to your given mobile no. and click on ‘Submit’.

Step 8- Now you just have to Read the Demat account opening form carefully and click on ‘Sign Now’ to proceed further.

Step 9- You will be supervised to NSDL electronic signature service. Just enter your Aadhaar number or Aadhaar virtual ID in the space provided, and therefore click on the ‘Send OTP’ button. Enter the OTP to finalize the e-sign process.

Now you have signed in successfully and now you can start investing.

How to buy shares on groww app?

For buying a share, on the home screen ( under the stocks tab), all the necessary information such as Nifty and Sensex live updates, filters like top gainers and top losers of the day will be available. . Companies are also categorized according to the market cap and sectors on the landing page clearly. There you will get a search or navigation bar where you could simply enter the name of the stock you are hoping to invest in.

Once you click on the stock of your choice, you will be supervised to it’s product page. On Groww platform, investors can view all information and Data of a stock and the business on a single screen. This encompasses historic achievement of a stock, opening and closing price for a day , the amount of buy/sell orders, company statistics and financial ratios, company information, financial statements, shareholding pattern, and peer comparison. The app also enables investors to place a market or limit order as well as assess the bid/offer spread of the stock. All the vitals of a company are illustrated in a tabular or graphical setup for your clarity.

You can check how the stock has performed over a period of time to assess it’s growth pattern. You can also toggle to candlestick charts if you are an intraday trader.

Once you check all the fundamentals and company details, you can simply place your market or limit order for delivery or intraday in the order card that is shown on the right hand side. You could also place a stop loss order for some of your trades by going to ‘ Advanced Options’.

Now, You will be able to see your order summary and order status. Once the shares are credited to your Demat account, you would then be able to trace their performance on the dashboard. You would get a clear view of your investments.

Note: You can read more about Groww Review which is based on Honest Opinion.

Conclusion

As mentioned above, India is swiftly moving in the direction of becoming a great financially literate country. This has been possible due to the introduction of such online trading platforms only. There are many trading platforms in India, and groww app Is just one among them.

Groww app mainly focuses on those individuals who are new into the market and want to learn a lot about the working mechanism of the stock market.

Surely, groww app is the platform of the future. It shows us how stock trading would work in the future.

If you are also an enthusiastic beginner in the investment world, then this is the time to make your demat account and start trading by today itself.

Upstox is a trading platform that offers discount broker facilities. It provides trading services in Currency derivatives, Equity, Commodity, etc. Moreover, trading services are available at MCX, NSE, and BSE. Upstox has two types of trading platforms: one desktop-based and one web-based. Upstox app is free of cost and the broker is safe. In addition to that, it is a registered member of BSE, NSE, MCX, CDSL, and SEBI. As the exchanges audit Upstox regularly it is a safe and secure platform to trade from.

Upstox is one of the top discount brokers in India with high-graded technology at a very low cost. Moreover, some investors that have backed Upstox are GVK Davix, Ratan Tata, and Kalaari Capital. Upstox platform provides facilities for analysis, charting, trading with ample features. You can also trade in Equity Intra-day, F&O, and much more. There are two types of trading accounts under Upstox: Upstox Basic Plan and Upstox Priority Pack.

Upstox Basic Plan: Free equity delivery, Trade for cost as low as Rs.20 for Equity F&O, Commodity, and Currency. All the basic trading features are present in the mobile app and website platform. There is 20 times leverage offered by Upstox basic plan on the Cash segment.
Upstox Priority Pack: Upstox Priority plan provides free delivery brokerage and Rs.30 for Equity F&O, Currency, and commodity per trade. There is up to 25 times leverage offered on the Cash segment by the Upstox Priority plan.
Upstox Account Opening Process
Trading Account helps for easy trading and execution of a trade by the traders in order to participate in the stock market. The trading account can be opened with the Upstox and you can do that online while sitting at your home.
Read More about Upstox account opening Process

Trading Account Opening process
First, you need to know if you have excess cash that you can use for investing rather than taking money on a loan. Moreover, you should not invest all of it no matter how tempting it will be, save for your needs and expenses. You should decide what is type of investment you will be going for like intra-day or long-term investment. Additionally, there is zero brokerage charged on delivery trades and Rs.20 on intraday.

Here are the tips that you need to follow for opening a trading account with Upstox in two different methods:

Aadhar-based e-KYC method

The new and high-tech Aadhar based registration requires no paperwork and is easy. In this method, you will provide your Aadhar card details for completion of the entire process of registration online. Additionally, you need to have an authentic/valid number that is linked to your Aadhar card. You will also require scanned copies of documents like Aadhar Card, PAN card, and a cancelled cheque on the device. As you will require to upload all these mentioned personal documents while the registration process will be going on after the Aadhar card is linked.

Traditional paper Registration

Here’s what you’ve got to do for Traditional paper registration of Trading Account:

Decide which account you want to open (F&O, Currency, Equity, or all). The required documents include both types of forms that are KYC forms and Account opening Forms.
Print the forms and fill them according to the requirements.
You will need 2 passport size self-attested photos to paste on the form.
Your signature will be required on the few places on the form
You need to attach self-attested personal documents like PAN Card, Address proof, and ID proof.
You also need to attach a cancelled cheque in order to link your bank account with this account.
Now after you complete these steps you need to send the form to the address mentioned below:

Upstox/RKSV Securities India Private Limited,
Salasar Business Park, Off 150 Feet Flyover Road,
Bhayandar West, Thane -401101, Maharashtra

Demat Account Opening Method
Online Account Opening Method

Here are the steps to open a Demat Account with Upstox in the Online method:

You need to first visit the online Demat account opening page
Enter the details and sign up
Scanned copies of Aadhar, Cancelled cheque, latest bank statement, and PAN will be required in the process so you need to keep that with you.
Enter Aadhar details and you will receive an OTP to link your mobile number and verify your identity.

Trading Account Charges
There are three main charges that brokers levy on trading accounts. Those are:

Trading Account Opening Fees: This is the amount of fees that you will be charged once you open your account with the brokerage firm. It is a mandatory fee and you need to pay it in order to confirm your account opening.
Annual Maintenance Fees: It is a type of fee that is charged and needs to be paid in advance. Annual Maintenance Fees are taken by the brokerage firm in order to keep your account working and it also ensures proper service delivery. Many firms also try to merge this fee to Demat account fees to simplify the process.
Transaction Fees: Transaction fees are charged by brokerage fees based on the number of transactions conducted. It will be based on the number of stocks or the value of the stock. The number of stock and transaction fees are directly related. As the number of stocks increases the transaction fees increase. The transaction fee of Upstox is as low as 0.00325% which can help you increase your gains as the more you save the more you gain.

Wrapping Up
You can even go for a demat account and trading account both at once. Moreover, you should explore what are the services provided by the broker and find the one that suits you the most. If you go for an online method for both trading and Demat accounts then you can do the whole procedure sitting at home. But if you are not so well versed with the technology and would rather prefer the traditional method you can do that too by the steps given above. Additionally, know the choices and chose right for your needs.