Credit Adira

We make your life easy

Vision
Transforming clients desire in to specific Goals to achieve their
Financially Independency
Mission Statement
Financial liberation is for one and all
Credit market in India
• India is home to around 17% population of the world and the Literacy rate is of 74% according to
ICAI only 24% of population is financially literate

• Home loan grew by 39% in FY 2018-19

• 37% millennia customer resorted to borrowing – Economic survey 2019-20

• Retails loan to double to Rs 96 Trillion in next 5 years- ICICI Bank and CRISIL report

• Unsecured loans -- personal loans and credit cards - to more than double to Rs 13.8 lakh crore in
FY24

• Government initiative to push for Atmanirbhar bharat and Make in India

What Credit Adira can offer to its customers

Credit Repair Debt Planning Loans Insurance

Planning

Investment Estate Planning TAX Planning

Planning
How Financial institutes lends money

Borrower Borrower FI does the If borrowers Wherein client

approaches provides the necessary checks application fits receives the
Financial necessary Income source the criteria of borrowed
institutions or documents lending decided amount by
Obligation

Disbursal
Marketing phase

Login phase

Underwriting

Sanction
vice versa Income by FI, FI issues means of
proof/KYC/Additi Risk involved in Sanction letter payment in
onal documents lending and loan account
if any agreement for
Financial perusal
institution access If client agrees to
the application terms ad
condition of the
negotiation then
the agreement is
enforced
Challenges in Lending and how FI come over it
Imposter (Impersonating • Verifying the identity of the borrower by doing field
someone) investigation

• Verifying the income with creditor, whether the borrower

Fake income documents work in a company

• Speaking to the customer through personal discussion and

Intent of the borrower to repay Understanding the pattern or behaviour of credit repayment

Debt servicing ability of the • Calculating debt burden ratio and debt service ratio
borrower
• Verifying the legitimacy of the end use in personal discussion
End use of the borrowing money or investigating the usage of money
What is Credit?
Credit is the ability to borrow money or access goods or services with the understanding of paying it
later with or without additional amount.

What are the deciding factor while lending money

End use of
Capacity Character Collateral Benefit Tenor
money
• Income • Who is the • Assets kept as • What is the • What are the • What is the
• Income borrower collateral. purpose of benefit of time period
stability • Past credit borrowing lender wherein the
behaviour money borrower will
• Relationship • Legitimacy of pay out the
the borrowed
transaction amount
Why the needs of Credit Bureau and how it
works
• Finding a defaulter who has not repaid the borrowed money is difficult due to financial
information is a part of confidentiality and borrower can easily hide the information of such
sensitivity to get the new credit.
• Lender usually used to depend on self disclosure by the borrower or the personal relationship,
These relations were predatory in nature
• Credit Bureau is an agency which collects the data from financial institutes and researches on
individuals credit information and evaluate for the risk and provides reports to its member or FI
for the risk assessment purpose.
• Credit Score is Numerical expression on a level analysis of a person's credit information, to
represent the creditworthiness of an individual.
History of Credit Bureaus
The first credit bureau was started in 1864 by mercantile company called Retail credit
company later named as Equifax situated in Atlanta

Credit Bureaus in India

• CIBIL was the first bureau founded in the year 2000 by Reserve bank of India and later
partnered with chicago based TransUnion international inc.
• Credit information companies act of 2005 was passed to register Bureau under this ACT
• In Nov 2007, CIBIL Score was introduced to Banks, Retro scores and micro reports were launched
in India.
• 2010, Equifax, Experian and CRIF Highmark had registered and launched their consumer
bureau in the same year.
• 2015 Insurance and Telecom companies started using credit score for underwriting, RBI
Mandates Financial institution to be members of all credit bureaus
Credit Score
Engineer Bill Fair and mathematician Earl Isaac developed the first credit scoring system in 1956.
Most of the Credit bureaus having similar algorithm

Credit Score ranges and Indication

300 - 650 Very Poor score
650 - 700 Poor score
700 - 750 Average score
750 - 800 Good score
800 - 900 Excellent score
(CIBIL provides a score with a range of 1–5 to all those who are new to credit and have credit history
spanning less than 6 months).
Financial institution has their own risk taking appetite hence based on which their Credit policy may
vary thus it is in our best of interest to keep the credit score as high as possible.
How the Credit Score gets populated

Payment
History –
35%

Credit
New Credits
Utilization–
– 10%

Credit
30%

Score

Types of
Age of
Credits –
Credit- 15%
10%
Payment History
Payment behaviour of an individual towards the repayment schedule of the loan, In case of Active
Trade line account needs to be regularized and in case of No active trade line needs to create positive
trade line.

Payment Scale Total On-time Payments

= 100%
Total Payments

Bad, <50%, <50-90, < 91-99%, 100% Good

Credit Utilization
Credit card utilization needs to be under 30% incase of no active cc, Client to be advised to take the
secure credit card utilize and repay in timely manner.

Credit Utilisation Rank Calculation Total Card Balance

= 0%
Total Credit Limit

Good Na, 0-30, 30-49, 50-79, 80% Bad

Age of Credit
Ask the customer to use the active tradeline effectively more the history better the score and not to
take too many short term loans.
Bad NA - <3yrs, 3-5, 5-7, 7+ yrs Good

No of accounts
Increase the number of account in the gap of 6 months to increase the score effectively.
Bad NA, 1-2, 3-5, 6+ Good

Credit Mix
Ratio of types of Credit, Unsecure vs Secure credit line has to in 3:2 ratio respectively
Elements impacting Credit scoring and
Credit profile
Credit Report Errors
• Identity theft, inaccuracy in reporting credit information to the bureau, Data lookup or synthesis
error may results in to error which may impact the ability of getting Credit

Negative Flags (Delinquent account)

While the Credit score does not depend on the Negative flags , It indicates non payment issue in
the borrowers account.
Various types of Negative flags
• Settlement
• Written off
• Post written of settlement
• Restructure of loan
• Suit filed
• Wilful default
• Bankrupt/Insolvent
Credit Report Errors
While accessing the credit report you may find the errors in report as a result of incorrect reporting by
the financial institutes, Data synthesis error at bureaus end, Incorrect mapping of details
Classification based on impact on credit report it can be classified in to Major error or Minor error

Major Error Minor Error

It is the Error where the impact is visible It is common typing error where the
on the Report substantially. These are Impact is negligible in-terms of Credit
mostly account related issues. score build up, These are mostly Personal
• Account not belonging to the customer. details related issue.
• Error in Reporting Pan card. • Salary wrongly updated/Not updated.
• Error in reporting Account status. • Gender wrongly updated/Not updated.
• Ownership issue. • Email Id wrongly updated/Not updated.
• Address wrongly updated/Not updated.
• Date of Birth wrongly updated/Not
updated.
Negative Flags
1) Settlement: When both the customer and the lender agrees up-on a partial amount to be paid on
an overdue account & in-return the Lender furnishes the customer with a settlement letter as a
proof. This process is called Settlement. As the customer has made the partial payment lender
write off the remaining amount and closes the loan by making outstanding balance as “0”

2) Written Off: When a borrower does not make payments on loans for more than 180 days and in
credit cards for more then 90 days, the lender is required to write-off the amount in question, As
the customer has not made the any payment to lender, Lender write-off the entire amount and
closes the Loan account however does not make outstanding balance as “0” hence it impacts the
credit score more severely.

3) Post (WO) Settled: The lender and the borrower agree to have settlement on written off loan is
called as Post (WO)Settled (This settlement amount is lower than the actual amount due).
Negative Flags
4) Restructured Loan: A loan for which the parties have agreed to alter the terms, usually to make
them more favourable to the borrower by either extending the tenure or lowering the interest. For
example, the borrower may restructure a loan to receive a lower interest rate or monthly payment.
Restructured loans are most common if the borrower states that he/she can no longer afford
payments under the old terms. For example, a borrower may have to accept a new job with less
income, forcing a tighter budget.

5) Suit-Filed: It’s when the lender takes a legal action against the borrower for not paying the
amount overdue.

6) Wilful-default: When a borrower intentionally defaults on a payment, the lender updates the
bureau report of borrower as wilful defaulter.
Negative Flags
7) Bankrupt/ Insolvent: If the borrower has huge debt to be paid to the financial institutions
and has no money or asset with him or even after dissolving all the assets debt can not be
fully paid in such scenario customer can declare himself as bankrupt in the court of law.
Once the borrower is declared as bankrupt, no institution can reach out to borrower for
the next 10 years for repayment of his debt. Also, the borrower is not entitled to avail any
loans or funds with any of the institution.
Asset classification in Bureau reports by FI
• Lender's can report the DPD (Days past due) in to two format either in Account status ie Number of
days delayed in payment or Asset status.

• STD (Standard): Where the delay is from 0 to 90 days period.

• SUB (Sub Standard): Where the delay is more then 90 days.

• SMA (Special Mentioned Account) : Where the delay is more then 90 days and approaching towards
180 days.

• DBT (Doubtful): Where the Asset is doubtful.

• LSS (Loss) : Where the Asset is marked as loss (Marked as NPA)

New Frontier in Credit Scoring.
Social Credit Score
A large number of individuals have an online life and increasingly more and more people are
joining online social media networks. The social credit score assesses an individual based on the
data available on various online platforms and applications like Facebook, LinkedIn and other social
media. The assessment of the credit worthiness of an individual is based on a variety of factors
such as the depth of the individual’s network and the quality and quantity of social interactions.

Score on Mobile Usage

There are over 1 billion mobile users globally who do not feature on the credit bureaus. While they
may have jobs, there is no credit history for them. The usage patterns of their mobile phones could
prove to be a vast source of information about the users’ ability to repay debts and use credit
responsibly.
Types of Credit
• Secured Revolving based:
• This type of Credit Mix allows the borrower to use part or full credit limit and pay as per the use
and after which the credit limit gets restored as it is backed by collateral it is called as Secure
revolving line of Credit. For example, a Secured Credit Card which is taken against a Fixed
Deposit where a borrower uses the FD amount as the credit and pays a revolving instalment as
per the use. The advantage of the secured card for an individual with negative or no credit
history is that most companies report regularly to the major credit bureaus. This allows building
a positive credit history.
• Secured Instalment Based:
• The loan where customer has to pay the Principle and Interest in instalment is called as
instalment loan. When it is backed by collateral is called as Secure instalment Loan. For example,
Gold loan, Home loan, Auto loan etc.
Types of Credit
• Unsecured Revolving Based:
• This type of Credit Mix allows the Borrower to use part or full credit limit and pay as per the use
and once paid the credit Limit gets restored as it is not backed by collateral it is called as
Unsecure revolving line of Credit. For example, Credit card.
• Unsecured instalment Based:
• The loan where customer has to pay the Principle and Interest in instalment is called as
instalment loan. When it is not backed by collateral is called as Unsecure instalment Loan. It is
given broadly on Credit worthiness of the customer. For example, Personal Loan.
Credit Mix Matrix

Types of Credit Revolving Based Installment Based

Gold Loan
Home Loan
Secured Credit Secured Credit Card
Auto Loan
Loan Against Property
Personal Loan
Unsecured Credit Unsecured Credit Card
Business Loan
Home Loan - Valuation
Home loan is availed when an individual buys the following:
New House – ready possession or Under-construction property
Re-sale property.
Construction of an individual house / Bunglow.

Market Value:
Market value is the estimated amount for which an asset or liability should exchange on the valuation
date between a willing buyer and a willing seller. The value is decided by the government competent
authorities as per Land Acquisition Act.
Agreement Value:
When a agreement is made between buyer and seller and registration happens the quote is called as
Loan agreement value.
Home Loan – Interest Calculation
Fixed interest:
Interest which agreed upon during the loan agreement remains the same through out the tenure of the
loan. This means that the consumer is immune to market risk or the possible upward movement in the
interest rates. Hence, fixed rate is a good option when the home loan interest rates are expected to
move up in the future.

Floating rate loan:

consumer is exposed to market risk and his gain or loss depends on the interest rate condition
prevailing in the market. Floating rate is beneficial if the interest rate falls in the future. A floating rate is
considered non-transparent and is also known as 'adjustable rate.'
Home Loan – Funding by FI
Pre-approved Property:
Preapproved property means that the concerned financial institute has verified all legal and technical
documents of the project and has found them in order. So any buyer, who applies for a home loan for
this property, need not get the legal verification done again.
The lender funds on Market value however customer also has to contribute towards the purchase of
property which is also called as Own contribution

Loan funding by Financial Institution.

• Upto 30 Lacs of property Institute can fund 90% of Property Value.
• Property above 30 Lacs to 75 Lacs Institute can Fund 80% of Property Value.
• Property above 75 Lacs Institute can fund upto 75% of Property Value.
Home Loan - Disbursement
Full disbursement:
A full disbursement means the entire amount is paid in one go. The lender handovers the entire
payment to seller on buyers behalf.

Partial disbursement:
A partial disbursement means that the payment to seller is made in stages. If buyers are buying an
under construction property, then the lender will disburse payments as the construction progresses.
For example, after completion of 20% of the project, 20% of the payment will be made and so on.

Advance Disbursement:
An advanced disbursement means that the entire payment is made before the completion of project.
This is done only if the buyer request the bank to do so, or is convinced that the builder will complete
construction on time. However, its not a common practice.
Home Loan – Basic Eligibility check

Minimum Income Salaried : INR 20,000/- GROSS;

Self employed : INR 300000/- ITR.
Minimum Loan Amount : INR 5,00,000/-
No delinquent accounts and the CIBIL Score : 750+ (700 with good track record)
Loan Tenure is 15 – 25 Years.
Employment Track Record : 3 Years of Total Experience and 1 Year in same Organization.
Age of Applicant : 25 to 60.
Probing Question.
Income/ Nature of Business/Company Name.
Property Identified/Ready Possession/Property Location/Project Name.
Pradhan Mantri awas yojna and Tax Benefit
PMAY benefits: Housing for All by 2022 credit link subsidy scheme (CLSS)
Maximum quantum of subsidy for EWS and LIG is ₹ 6 Lakh
Maximum quantum of subsidy for MIG I and MIG II is ₹ 9 Lakh
Annual Income Range
Economic Section Eligible Subsidy (%)

Up to 3 Lakh
EWS 6.5

Between ₹ 3 Lakhs to 6 Lakhs

LIG 6.5

Between ₹ 6 Lakhs to 12 Lakhs

MIG I 4

Between ₹ 12 Lakhs to 18 Lakhs

MIG II 3

Tax Benefits
Section 80C Deduction up to 1.5 Lakh on home loan principal repayment and Stamp duty, Registration
charges subjected to the maximum cap of 1.5 Lakh
Section 24B Deduction of up to ₹ 2 Lakh on interest repaid during the construction period
Section 80EEA Interest deduction up to 1.5 Lakh under affordable housing scheme announced by the
government for the period of 1st April 2019 to 31st March 2020
Loan against Property (LAP) – Mortgage loan

It is Secure loan based on the Collateral, wherein the customer has to keep property as collateral.

In order to mortgage the Property title has to be clear.

Tenure is 7 years to 15 Years.

LAP is taken mostly for business or to buy second home, construction of another property, Renovation
of house etc.
Min Loan value is 500000/- maximum depend on the Property value LTV is 75% of Property Value.

Probing Question (Apart from basic profiling)

Property Location, Property Type, Whether the title is clear, Value of the Property.

End use of the money

Personal Loan

Hassles free loans No guarantor, No Collateral required.

Loan is given on the basis of Income and Risk involved(Credit Score).
End use : Purpose could be anything wherein the end use is legitimate.
Min Loan amount 50,000/-.
Max Loan amount 30,00,000/-
Tenure 1 yr to 5 yr.
Age : 25 yrs to 60 yrs.
Instant approval, quick disbursal.
Customized offer for corporate employees and women professional.
Credit score should be 750+ with No delinquency and DPD in unsecure loans.
Education Loan
What is the Education Loan?
Quality education is a must for a complete and successful life. For many, it is equivalent to graduating
from a top institution. The cost of education is, however, increasing rapidly. For the best possible
education, People invest their money in mutual funds (MFs), fixed deposits (FDs), unit-linked insurance
plans (ULIPs), etc., for the long term. But despite all this, one may still encounter a shortage of funds.
An education loan, therefore, plays a vital role in such a scenario by helping to bridge the gap between
the shortfall and the required amount.

What does an education loan cover?

It covers the basic course fee and other related expenses such as (college) accommodation, exam and
other miscellaneous charges.
Whom is the loan offered to?
It is offered to students who want to study in India or pursue higher education overseas. The maximum
amount offered for studies in India and overseas are different and varies from one bank to another.
Education Loan
Repayment
The loan is repaid by the student. Generally, the repayment starts when the course is completed. Some
banks even provide a relaxation period of 6 months after securing a job or a year after the completion
of studies for repayment.
The repayment period is generally between 5 and 7 years but can be extended beyond that as well.
Benefits under the Income-tax Act
Section 80E of the I-T Act allows for a deduction on the interest paid on the repayment. This deduction
is allowed only for the individuals paying interest on the loan for himself, spouse or children or for the
student to whom you're a legal guardian.
Things to note
The candidate must possess a good academic background
The aspirant must have secured admission to a recognized foreign university/institution/college.
The parents or legal guardian has to be the guarantor in loan with good credit repayment history .
Gold loan
The gold loan also referred to as a loan against gold, is a secured loan that a borrower takes from a
lender instead of gold ornaments such as gold jewellery. The loan amount sanctioned to you by lenders
is generally a certain percentage of the gold’s value You can repay it through monthly instalment after
which you get your gold articles back.
you take your gold articles to a lender along with the required set of documents. The lender evaluates
the gold articles and verifies the submitted documents. As per the evaluations, the lender sanctions the
loan amount.
Anyone who has gold can get a gold loan you don’t even need to have a good credit score to be eligible
for a gold loan. So if you have a low credit score, you still have a chance to get funds, provided you have
enough gold to pledge for it.
Gold loan Benefits
The minimal documentation-based documentation process
Lower interest rates, processing fees and waiver on loan foreclosure charges without worrying about
any prepayment penalties.
Flexible repayment tenures and Loan to Value ratio of 75% of the calculated weight of gold.
Different types of loan repayment schemes
Gold Loans may be repaid through different schemes.
• You can also choose to pay the interest upfront and pay the principal amount at the end of your tenure.
• If you choose bullet repayment option, you can repay the principal and interest after one year.
• You can also choose to repay using regular EMIs.
Factors resulting in Loan rejection.
• Poor Credit Score.
• Negative Profile.
Criminal, Police, Armed forces, Politician, Stock investor, Lawyer, Film makers, Actors, Actresses,
Builder, Professional athlete, Cabin crew .
• Insufficient Income.
Since the loan is nothing but leveraging own income, In-case of insufficient income borrower can
combine the income of immediate family member.
• Failed in Verification.
• Illegitimate End use.
• Out of geographical area.
• Negative area.
Debt Planning

Debt is nothing but some of money borrowed by one party

from another.
However too many debts can cause trouble;
Unmanageable debt can affect people's welfare,
particularly their mental health, and influence their
attitudes and how they make decisions
Early signs of Debt mountains are difficulty on paying the
bills/ Rentals on time, Spending more then the income, not
able to pay Credit card bills in full, Savings going to zero
and it may increase the urge of borrowing more money
however it becomes difficult with time due to increase risk
for the lender
Higher debts are like ticking time Bomb
Why the need of Debt planning
Debt management allows you to pay off your debts at a rate you can afford and having least impact on
the credit profile.

Debt planning is one of the important aspects of Financial planning it helps you to increase the saving
ratio in longer term

Steps involved in Debt planning

Understanding the debts.
Prioritizing the debts.
Finding extra money / Budgeting to close the debt at the earliest
Clearing the Bad debts via consolidation if possible
Slashing the Expenses and stop the usage of revolving credit like credit card
Above all Stay motivated and stick to reach the Goals
How CreditBoon helps you with Debt
management plan
Our expert helps you to identify and prepare the suitable DMP plan for you.
Solve your Debt through Avalanche strategy
• Rank the debt in order of Interest from higher to lower.
• Find extra money by following a strict budget and Repay the highest interest debt first and then
moved to next in the line-up.

Solve your debt through Snowball strategy

• This strategy focuses on the psychological aspects of too many debts.
• Rank the debts in order from minimum outstanding to highest outstanding.
• Find extra money by following a strict budget and repay the debt with the lowest outstanding
and then moved to next line up.
Debt Consolidation
• Consolidating all your debt to one debt to repay all the debts and avoid taking any new credit
and closing the revolving credits like credit card to avoid vicious cycle of increase debts.
What CreditBoon can offer to its customers

Insurance Planning Investment Planning

Insurance Planning
If there is the only thing is certain about life - It’s the uncertainty that life brings along.

Remember Insurance is not for YOU but its for THEM

Insurance Planning
Insurance planning is a critical component of a comprehensive financial plan that includes
evaluating risks and determining the proper insurance coverage to mitigate those risks.
Insurance is an instrument which means to protect the financial loss, it is primarily used to
hedge against the risk of contingent or uncertain loss due to perils surrounding it.
What is Insurance planning
It is the process of accessing the potential RISKS by evaluating the lifestyle and likelihood and drawing the
strategy to make sure your lifecycle planning be it Investment, Retirement or estate planning goes as
smooth as possible through having adequate insurance protection to cover all the perils.
Why you need Insurance planning
Unforced circumstances not only affect the physical and emotional aspects of life but it can also create
challenges in achieving the financial dreams and goals
At CreditBoon we help you to identify risk in your financial planning and lifecycle planning
which can be addressed with Insurance protection.
Types of Insurance
Based on the purpose of Insurance it is classified in to two basic category
Life Insurance
• Term plan
• Unit linked insurance plans (ULIPs)
• Endowment plans
• Money back policy
• Whole life insurance
• Child plan
• Retirement plan

Non Life Insurance (General Insurance)

• Health Insurance
• Travel Insurance
• Motor Insurance
• Marine Insurance
• Home Insurance
• Commercial Insurance
Life Insurance
• Term plan
• Unit linked insurance plans (ULIPs)
• Endowment plans
• Money back policy
• Whole life insurance
• Child plan
• Retirement plan
Life insurance
Term plan:
• It is the basic plan of life Insurance wherein the incase of the death of policy holder it provides
financial protection to its beneficiary's, in case of policy gets mature and policy holder survives
the term of insurance then the policy holder will not receive any financial benefit; However in
recent time term insurance is been involved and some of the pan do offers the return of
premium as benefit as terminal benefit to its policy holder.

Unit linked insurance plans (ULIPs):

• ULIP’s are insurance plan having benefit of life insurance as well as benefit of having mutual fund
in single product.
• Premium paid by the customer are invested in the funds chosen by the policy holder based on
their risk appetite and at the maturity policy holder receives the sum of fund value based on the
NAV, In case of death the nominee receives the sum assure or the fund the value whichever is
higher or both
• ULIP’s come with mandatory lock in period of 5 years
Types of Insurance
Endowment plans:
• Endowment plans also called as traditional plan; An endowment policy is an investment product
that you buy from a life assurance company. They are set up as regular savings plans and at the
end of a set period pay out a lump sum amount. The policy includes life assurance, along with
regular yearly bonus of investment, sum assured and terminal (Discretionary bonus)
Money back policy:
• It is a kind of traditional plan wherein policy holder received the some percentage of corpus
generated at regular interval instead of getting lump sum at the maturity, The money back plan
provide liquidity however at the same time it also reduces the corpus generation, Hence the
money back plan needs to be opt in if the policy holder necessarily require amount invested at
regular interval
Whole life insurance:
• The whole life insurance is a traditional plan wherein the plan covers till the age of 99 however
the premium paying term may vary
• It is expensive then the regular plan due to its prolonged coverage
Types of Insurance
• Child plan
• It is an insurance plan designed keeping in mind to aid the future of the kids of policy holder.
• It works like traditional plan however there are various benefit for example if the policy holder
dies in between the term period the beneficiary will receive the sum assured amount however
the policy does not get terminate it will continue to enforce till the maturity period and
providing double benefit to its beneficiary
• Retirement plan
• Retirement plans offered are bundled product of Insurance and Investment.
• The Retirement plans works in two phase accumulation phase and Annuity phase
• In accumulation phase premium paid towards the plan builds up the corpus and after certain
period (Wasting period) the annuity is purchase from the same corpus and the rate at which
annuity is purchased policy holder receives the same percentage of corpus as pension for life
time, In certain policy they do offer the joint life option as well as return of premium is paid
incase of death of policy holder.
How Credit Adira helps you for Insurance
planning
• At Credit Adira we would assign you an Insurance specialist
• Insurance specialist will access the Perils, Liability, Future goals to derive at Human
life value (HLV) calculation
• Based on HLV they will suggest you the most suitable insurance plan or combination
of plan which will help you to protect yours and your families future.
• They will periodically (within 5 years) review the Insurance coverage to ensure the
coverage is adequate through out the life cycle.
• Incase of unfortunate event your family can approach the insurance specialist or the
company to get assistance in claim procedure
Non Life Insurance (General Insurance)
• Health Insurance
• Travel Insurance
• Motor Insurance
• Marine Insurance
• Home Insurance
• Commercial Insurance
General Insurance
Health Insurance
• It is a type of insurance wherein coverage is for paying medical, surgical, consultation,
prescription drug and sometimes dental expenses incurred by the insured.
• Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay
the care provider directly (Cashless benefit)
• Health insurance also has another category of the plan called critical illness covering specific list
of disease like cancer, Angioplasty, certain types of tumour, heart valve surgery, chronic
lungs/liver diseases .. Etc

Why you need Health Insurance

• Health risks and uncertainties are a part of life and medical emergency can eat up your savings
sometimes it also create the debt on individual.
• Annual premium paid by the individual is far less then the medical expenses today
Feature come Benefits of Health Insurance

Cashless treatment Pre & post Ambulance expenses No Claim Bonus Medical Check-up
hospitalization cost
coverage

Alternative treatment Organ donor expenses Domiciliary treatment Daily hospital cash Less Deduction in
allowance Income Tax
General Insurance
• Travel Insurance
• You have a big trip coming up, and you’ve heard that travel insurance can help protect that trip.
• Most travel insurance plans cover medical emergencies, trip cancellation, trip interruption,
delays, medical evacuation, and lost, damaged, or stolen luggage.
• Depending on what plan you buy travel insurance can also cover rental-car damage, pre-existing
conditions, and trip cancellation for any reason.
• Uncovered things – or exclusions – can include: Extreme sports where the chance of death or
injury is high, Things you do while under the influence of controlled substances, Fear of traveling
to countries, such as those listed on the State Department’s Do Not Travel list, Learning to fly a
plane, Playing professional sports, Pregnancy, Medical travel and many more
General Insurance
• Motor Insurance
• Motor insurance is just like any other insurance policy, but unlike other insurances, it is
‘Mandatory by the government for your safety and the safety of others

• There are basically a two types of Motor insurance in India.

• Third-Party
Third-party insurance is one of the most common types of vehicle insurance; in which only
damages & losses caused to a third-party person, vehicle or property are covered.
• Comprehensive
Comprehensive insurance is one of the most valuable types of vehicle insurance that covers
both third-party liabilities and damages to your own vehicle as well
Some add ons in comprehensive cover may includes Zero Depreciation, Engine Protection
Cover, Roadside Assistance, Consumable Cover, Tyre Protect Cover
Typically comprehensive cover expensive then the Third - party liability cover
General Insurance
• Marine Insurance
• Marine Insurance is a type of insurance that covers cargo losses or damage caused to ships,
cargo vessels, terminals, and any transport in which goods are transferred or acquired between
different points of origin and their final destination.
• Home Insurance
• Marine Insurance is a type of insurance that covers cargo losses or damage caused to ships,
cargo vessels, terminals, and any transport in which goods are transferred or acquired between
different points of origin and their final destination.
• Home insurance does not cover cost of land or any liability attached to the property
• You’ve got the right amount of cover for your home and that you’re not underinsured. Your
insurance cover should always match the replacement cost of your property, plus any
supplementary costs and expenses.
• Commercial Insurance
• Commercial insurance is insurance that protects businesses. It covers businesses against losses,
arising from things like damage to property or injury to employees, and is a term commonly
used to label core business insurance covers like public liability and employers' liability.
Investment Planning
• Life is a Journey and at different juncture of life we have monumental events and these events are
expensive and to get the flow of adequate money we all should do a Investment planning
• Investment planning is about investments; financial planning is a lot more it includes Tax savings,
Insurance planning, Creating contingency fund

Steps involved in Investment/Financial Planning

• Assess the current financial situation
• Define your short term and long term goals
• Ensure Budgeting, Insurance cover and other perils are covered
• Determine the risk tolerance
• Decide what to invest and where to invest
• Monitor your investment to make sure the objectives are met
Life Cycle Expenses
House hold expenses = ₹ 20000*12*21 = ₹ 1,17,60,000

Primary Edu 7000*12*3 6 Lakh

Primary Edu 10000*12*10 10 Lakh Age 60-70
Medicine 5000*12*10 5 Lakh Age 50-60
• Retirement
period

Car 10 Lakhs 10 Lakh Age 52-55

• Marriage of
child

Home Loan 25 Lakh 3 Lakh Age 50-52

• Setting up
business or
12 Lakh Age 45-50
• MBA or
Specialization
career

2.5 Lakh Age 35-45

• College

2 Lakh Age 34-35

• Primary
Education
10 Lakh • Pre-primary Rupees with
Age 28-30 Expenses Rupees
school Inflation 3%
• First Child admission
Age 24 • Maternity
• Marriage expenses
House hold 1.17 CR 2.67 Cr
Age 21
• Career building Children expenses 60.5 Lakh 1.35 Cr
Miscellaneous 29.4 Lakh 66 Lakh
Car 10 Lakh 10 Lakh
Home Loan total payment 50 Lakh 82 Lakh
Total Expenses 2.66 Cr 5.6 Cr
Investment avenues
• Direct equity
• Equity/ Debt mutual funds
• National Pension System (NPS)
• Public Provident Fund (PPF)
• Bank fixed deposit (FD)
• Senior Citizens' Saving Scheme (SCSS)
• Real Estate
• Gold and Gold ETF
• Debenture and NCD
• Sukanya Samriddhi Account
• Government Bongs
What Credit Adira can offer to its customers

Estate Planning TAX Planning

Estate planning
• Financial planning is an endless task, even afterlife is over financial obligation can plague the entire family.
Without estate planning your property could end up with beneficiary you no longer want hence keep
updating the estate planning is a must.
• As per Indian law in case of absence of a will the distribution of asset is based on the personal law (Hindu
succession act 1956, Indian succession act 1925 for Christians/Parsis/Jews and Muslim personal law.
• We have seen families are spending years of the legal battle for the inheritance of the ancestor property
How to create an Estate Plan?
• Create the list of movable, immovable assets and all the debts if any
• Prepare a plan to distribute your assets and who should get how much?
• Find and nominate an executor who can execute your Will on behalf of you which will be acted as a
trustee governed under Indian Trust Act 1882
• Make sure the Will and Estate planning gets signed and notarized
• Review your Estate planning periodically especially at life-changing events like Marriage, Child Birth,
Divorce, Purchase and sale of properties, Death of family members who are part of Will
Tax Planning
• Tax planning can be used to ensure that funds from taxable sources are diverted to income-
generating plans. The main aim is to use productive investment planning to come up with the most
beneficial tax saving options. Reduction of tax liability and maximizing the ability to contribute to
retirement plans are crucial for success
You can also be benefited by
• Lowering the amount of taxable income.
• Reducing the tax rate.
• Allowing greater control of when taxes get paid.
• Maximizing tax relief/tax credits available.
Types of Tax Planning:
• Purposive Tax Planning: Planning taxes with a particular objective in mind.
• Permissive tax planning: Tax planning that is under the framework of the law.
• Long-range and Short-range tax planning: Planning done at the start and end of a fiscal year
respectively.
Rule of 72.
• The estimated time period to double = 72/ rate of return.
• For example, if you want to calculate, in how much time will Rs. 10,000 become Rs. 20,000 provided
that you invest at an interest rate of 8%.
• Then the answer would be, 72/8= 9 years.
• If you invest in something that gives 24% returns?
• 72/24 = 3 years only to double your investment
Rule of 70

• This is an excellent rule that helps you determine what your current wealth will be valued at 10 or 20
years down the line. Even if you do not spend a single penny from it (neither invest), it’s worth will be
much less than what it is today. The reason is inflation.

• To calculate this, take the number 70 and divide it by the current inflation rate. The number that you
arrive is the number of years your wealth will be worth half of what it is today.

• For example, let’s suppose you have Rs 50 lakh and the current inflation rate is 5 percent. So going by
the rule of 70, your Rs 50 lakh will be worth Rs 25 lakh in 14 years. For this, we simply divided the
number 70 by 5 to calculate the number.

• And now that you know how fast your money goes up and down, let’s look at some other rules that
help you in the investment process.
100 minus age rule:
• The 100 minus age rule is a great way to determine one’s asset allocation. That is, how much you
should allocate in equities and how much in debt.

• For this, subtract your age from 100, and the number that you arrive at is the percentage at which
you should invest in equities. The rest should be invested in debt.

• For example, if you are 25 years old and you want to invest Rs 10,000 every month. Here if you use
the 100 minus age rule, the percentage of your equity allocation would be 100 – 25 = 75 percent.
Then Rs 7,500 should go to equities and Rs 2,500 in debt. Similarly, if you are 35 years old and want
to invest Rs 10,000, then according to the 100 minus age rule the equity allocation would be 100 –
35 = 65 percent. That means, Rs 6,500 should go in equities and Rs 3,500 in debt.
The 4% withdrawal rule
• If you want your retirement fund to outlast you, then you should follow the 4 percent withdrawal
rule. As a retiree if you follow the 4 percent withdrawal rule, it will ensure that you have a steady
income stream. At the same time, you have enough bank balance on which you earn enough returns.

• For example, let’s suppose, you have a Rs 1 crore retirement corpus, and you should withdraw Rs 4
lakh from it every year, ie Rs 33,000 every month.

• Now some retirees follow this rule for the entire retirement years, but the rule also allows you to
increase the amount owing to inflation. For this you can increase the withdrawal rate by the inflation
rate declared by the reserve bank. Let’s understand this with an example.

• Suppose your retirement corpus is Rs 1 crore, and the inflation rate is 5 percent. So if you withdraw
Rs 4 lakh in the first year, you should withdraw Rs 4 lakh 20 thousand in the second year and Rs 4
lakh 41 thousand in the third year. That is every year you should increase the withdrawal amount by
another 5 percent (which is considered as the inflation rate).
Are you Wealthy enough
• Even to know whether you can be called wealthy, there is a simple mathematical formula.

• For this, multiply your age with your gross income and then divide it with 10.If your net worth is
equal or more than the remainder, then you can be called wealthy.

• In India, the experts say the divisor should be 20 instead of 10. So for example, if you are 30 years
old and your gross income is Rs 12 lakh, then your net worth should be at least Rs 18 lakh to be
called wealthy.