November 2016 – Investment Locker

RETIREMENT PLANNING

WHAT IS THE NEED TO HAVE RETIREMENT INSURANCE?

Regular income

The basic need for retirement planning is to secure regular monthly income during retirement. As every human being wants that the source of income should continue until the person or person’s dependents are alive. Retirement Planning is important so in the old age, the standard of living is well maintained . Also, it gives him mentalpiece that he will continue to live with dignity after retirement.

Meet immediate financial needs on retirement and thereafter–

Even though the primary need is regular income. But, there are instances that immediately at retirement people need lump sum money; to meet any of the following needs:

Repayment of debt if any
If the person does not possess a house till retirement than he might be willing to buy one
If the person possesses house than meeting furnishing requirement etc
Or, for the hospitalisation for any illness

Even if above mentioned conditions does not arise then also some liquid cash to be kept for emergency.

Take care of Inflation-

We have to consider the fact that the amount of money required by us at present will not be sufficient in future. As inflation will increase over a period of time. Thus, the person should well plan in advance so with increasing inflation the basic requirements should not suffer.

Take care of Medical Emergency–

The another reason due to which it is important to get the Retirement planning done is meeting Medical emergency needs. Cost of medical expenses is one of the biggest problems faced in retirement planning. To overcome medical emergency one needs physical support and financial support. And the cost of health care services is increasing day by day. Thus, a good retirement planning should also aim at providing regular income as well as lump sum money requirements to deal with medical emergency.

IDEAL RETIREMENT PLANNING IS DIVIDED INTO FOLLOWING PARTS-

Retirement Planning is very crucial aspect and quite a vast topic. Thus, for ideal retirement planning it is divided into the following parts:

Analysis of the personal information–

For ideal retirement planning it is necessary to be aware of the following income factors in advance:

What kind of living standard is to be maintained after retirement?
Is there any other responsibility to be fulfilled in terms of family and dependents?
What is your capacity to save from regular income towards retirement planning?
What is the estimated life expectancy after retirement? As with improved medical facilities Life expectancy ratio has improved. Also, it will continue to keep on improving with time.
Is there any provision for medical emergencies like hospitalisation, accident etc. for retirement?

Based on the answers of the above questions you will get the actual picture and will be able to plan better.

Existing resources available–

For Retirement needs calculation you are also required to know list the resources that are available to client. Such as:

Is there any pension benefit that you will receive?
What will be the amount of gratuity and Provident fund due?
Is there any personal saving till date?
What is the amount of Life Insurance policy and annuity, if any?
Is there any other source of retirement income? Like rental income, sale of Property etc.

Such information is quite crucial for retirement planning.

Product option available for Pre-retirement & Post-Retirement-

The following Product options are available for you to choose from. Based on the type of risk the person is take and the time that is left for the individual to plan for retirement. Product types are as follows:

Pre-Retirement Products-

These products help in accumulating of wealth till the time you are working.

EPF
Gratuity
Leave Encashment
NPS
Mutual Funds
Pension Plans from Life Insurance Companies
Government Bonds
Fixed Deposits
Postal Schemes
Equity shares
Gold funds
Real Estate

Post-Retirement Products-

Monthly Income Schemes
Senior Citizen Saving Schemes
Annuity Plans
Liquid & Debt Funds with monthly dividend option
Rental Income from Real Estate

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Diabetes Insurance

There are so many insurance companies in the market that offer insurance to healthy people. But, when it comes to people having diabetes then very few companies are available that offer medical cover to diabetic patients. Type 1 & Type 2 Diabetes Insurance is a kind of Insurance policy which provides medical cover to people already suffering from Type 1 & Type 2 diabetes. People suffering from Type 2 diabetes are covered under this policy. And, incase of hospitalisation the insurance company is liable to bear the entire cost of hospitalisation up to sum assured.

HOW DIABETIC INSURANCE IS DIFFERENT FROM NORMAL HEALTH INSURANCE?

POINT OF DIFFERENCE	DIABETIC INSURANCE	NORMAL HEATH INSURANCE
COVERAGE	Covers Type 1 & Type 2 Diabetes from Day 1	Does not cover diabetes from day 1
SUM ASSURED	Starts from 2Lac and goes up to 10Lac	Starts from 1Lac & goes up to 1Crore
MEDICAL CHECK-UP	Compulsory for all age groups	Compulsory after 45years
HYPERTENSION	It is also at times covered	Not covered
PREMIUM	High	Low
CO-PAYMENT OPTION AVAILABLE	Yes	No
NO CLAIM BONUS (NCB)	No, but companies like Apollo give Reward point facility for maintaining good health	Yes

WHAT ARE THE BENEFITS OF TAKING Type 1 & type 2 DIABETIC INSURANCE?

Before buying the Diabetic insurance one should go through following key features:

It covers Type 1 & Type 2 Diabetes from Day 1, few companies cover hypertension as well

Premium for Type 1 & Type 2 Diabetic Insurance is at least 25% higher as compared to normal plan

Day care procedures include those diseases for which 24 hours of hospitalisation are not required, due to technological advancement. Example cataract, dialysis etc.

Domiciliary Treatment cost is also covered by Insurance Company

Domiciliary treatment is that in which the patient is treated at home. As the patient is in critical situation and cannot be shifted to hospital/ if the hospital states that no beds are available

Pre & Post hospitalisation medical expenses are also covered up to a certain limit. Number of days vary company to company

If situation occurs for any organ donation then apart from the insured, donor expenses are also borne by the company

Diabetic plans come with an option of Co-payment. In this individual will bear a fixed percentage of hospitalisation cost and rest will be paid by Insurance company. Example 20%, 30% or higher. Benefit of taking co-payment option is that higher the percentage borne by client less will be the premium cost

Emergency ambulance cover is provided by Insurance up to a specific amount. Example up to INR 2000

Portability option is available but only to Type 1 & Type 2 diabetic plan. One cannot port diabetic policy into a comprehensive health insurance plan and vice-versa.

WHAT IS THE TAX BENEFIT OF TAKING MEDICAL INSURANCE?

Tax benefit is provided under Section 80(d). Limit for tax benefit is as follows:

If individual takes Insurance policy for self then the amount paid as premium will be treated as saving up to INR 25000, but if you are a senior citizen then the rebate is INR 30000
Also, if you take this policy for your parents then you can take rebate of INR 25000. However, if your parents are senior citizen then limit of the rebate is INR 30000 separately

However, if the policy is taken for yourself and your parents who are senior citizens then total maximum rebate available under this section is INR 55000.

WHAT IS THE ELIGIBILITY CRITERIA FOR TAKING?

Type 1 & Type 2 Diabetic Insurance can be taken between 18-65 years. For Company like “Star health care” age limit is 25- 65 years

Type 1 & Type 2 Diabetic Insurance Covers Type 1 & Type 2 diabetes only

Type 1 & Type 2 Diabetic Insurance can be taken for sum assured of INR 1 Lac and goes up to 10 Lac

Medical test is mandatory

WHAT ARE THE EXCLUSIONS?

Waiting period of 30 days except any accidental injury. Although there is company like Max health insurance which provides medical cover from day 1

Any Pre-existing diseases/conditions (EXCEPT DIABETES OR HYPERTENSION) will not be covered from day 1. Those diseases can be covered if the company has some waiting period clause

2 years exclusion for specific diseases like cataract, hernia, hysterectomy, joint replacement etc.

HIV or AIDS

Non-allopathic treatment

Mental disorder

Cosmetic surgery or weight control treatments

LIST COMPANIES AND SOME ACCEPT IT ON TEST BASIS WITH EXCLUSION

Apollo Munich Health insurance

Star Health insurance

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TAX Free Bonds

WHAT ARE TAX-FREE BONDS? As the name suggests Tax Free Bonds are those bonds that help you get taxation benefits. Nowadays tax free bonds are quite popular as they give an option to the general public to get taxation benefits. Government-backed entities issue tax-free bonds also the interest rate earned from tax-free bonds is tax free under Section 10 (15) (iv) (h) of the Income Tax Act, 1961. Tax free bonds also help these government-backed entities to raise fund from public and in return they offer them assured rate of return which is tax free. However, to have a clear understanding on Tax Free Bonds one needs to know what Bonds are. Bonds are a kind of Investment option offered by companies, banks, government securities. The tenure of these bonds vary. People invest in bonds to earn the rate of interest.

WHAT ARE THE OTHER KEY FEATURES OF TAX-FREE BONDS?

People who invest in tax free bonds have the option to choose from tenure of 10 years, 15years & 20 years
Tax-Free bonds are listed on NSE / BSE
The money invested in these bonds has lock-in period but can be traded on listed exchange
Tax free bonds are Safe investment option
For investing in tax free bonds individual must have PAN Card as it is mandatory proof

WHAT ARE THE ADVANTAGES OF TAX-FREE BONDS?

These bonds result in Tax Free Income
Rate of return on tax free bonds is not only comparatively higher but also tax-free

Risk involved in these bonds is low, as the companies have a better credit rating
Since tax free bonds are listed on exchange thus they provide liquidity aswell
It easier for the investor to handle investment
These bonds are an ideal option for Individuals who comes under high tax bracket. As post-tax return compared to FD are attractive as well as guaranteed

HOW TO INVEST IN TAX-FREE BONDS?

Investing in a tax-free bond is quite simple. The Investor has to simply get the application form of the tax-free bond and submit it after duly signing it along with the mandatory documents required.
The investor also has an option to either apply in Demator Physical Mode, with required documents.

WHO CAN INVEST IN TAX-FREE BONDS?

Retail Individual Investors (RIIs)
High Net worth Individuals (HNIs)
Corporates/Trusts
Qualified Institutional Buyers (QIBs)

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DERIVATIVES

DERIVATIVES Derivatives are considered as instruments whose value is derived from an underlying security that could be any of the following: debt instrument, shares, commodity and currency.

In a normal scenario, Suppose SBI share is of INR 250/share. Then,to buy 1000 shares you will have to pay INR 250000. And you will get the benefit only if the share price will go up.

On the other hand, in derivatives you can get the position for INR 250000 by paying almost 20% or more of the amount (called as margin money) varying stock to stock. Future & Option are two types of Derivatives which provides you flexibility to earn on the same stock on downside or upside movement.

Before moving to Future and Option one should have an understanding of the following common terms used in Future and Option.

FUTURE

As discussed above it is a part of derivative where a buyer and seller agreed on a particular underlying asset like the stock, commodity, currency etc.

A future contract buyer is bullish (expecting to go up) on the market and future contract seller is bearish (expecting to go downwards) on market.

Hence, the buyer makes money on the upside movement of the price and loss of the downside movement of the price. On the other hand, seller makes money on the downside movement of the price and loss on the upside movement of price. Here, Profit & Losses are unlimited.

This means by paying a certain percentage (at times only 20%) of the stock value you can take advantage of complete stock value.

Every future contract has an Expiry on last Thursday of every month. So you can buy “future contract” of the current month, next month and next to next month. The more the expiry date is far the premium is charged over and above on the current price of an asset.

For a buyer of “future contract”, he has to pay the premium on underlying asset of the stock price. And, for the seller of “future contract” that premium is gain (if the stock does not move till expiry)

Future buyer or seller can book their profit or losses before expiry otherwise it will get booked automatically on expiry. If you have chosen the expiry of current month you can roll over it to next month by paying an extra premium in case your target has not been achieved.

Hence, it is a kind of leverage you are taking which can work well if the direction is on your side. Otherwise, the adverse impact of future is sometimes unmanageable. Thus, you have to manage the trade with stop loss. Some smart traders also use Options strategies with future to minimise the risk.

OPTIONS

“Option” is the second type of derivative which has more choices than futures. But, it is also more complicated than futures. Options are kind of contract where buyer and seller make an agreement by paying the premium. But, here Options are divided into two categories:

Call Option
Put Option

Call Option

These are contracts where a buyer of “call option” is bullish (expecting to rise) on market and seller of “call option” is bearish (expecting to go downwards) on the market.

Put option

These are contracts where buyer of “put option” is bearish on market and seller of “put option” is bullish on the market Unlike Future contract for a buyer of Call & Put Option loss is limited to the premium whereas chances of making profit are unlimited But, for a seller of Call and Put Option, profit making is limited to premium whereas chances of making loss are unlimited.

Option contract

It expires on the last Thursday of the month chosen. Like futures the more time is left in expiry of contract more premium will be required to pay. You also have the choice to book the profit or loss from these contracts at any time.

Option Pricing

Here option pricing or premium for buyer or seller of contract is below-mentioned factors:

Strike Price

It is a price which has been decided by exchange in advance to trade. Example: In the case of SBI share trading at INR 248/share Strike price are on a difference of INR 5. Like INR 230, 235, 240, 245, 250 and so on. To understand this better we have also have to understand following terms:

In the money
At the Money
Out of the Money

In the money

It is the position where the current price is higher than strike price that means you have already achieved that strike price. Example: Current price of SBI is INR 248 and strike price chosen is INR 240. It means the premium of this option will be expensive.

At the money

It is a position where the current price is equal to strike price. Example: Current price of SBI is INR 240 and strike price chosen is INR 240. It means the premium of this option will be cheaper than the money option.

Out of the money

It is the position where the current price is lower than strike price Example: Current price of SBI is INR 230 and strike price chosen is INR 240. It means the premium of this option will be cheapest. Hence, for a buyer of Call & Put Option he has to pay less in out of money and at the money option but profits is unlimited. For a seller of Call & Put option in the money, option is more profitable if the direction is as per the investor. Options can also be used with Future & stocks to minimise the risk in a bigger portfolio which are meant for a longer duration. It can give you a recurring income where you are holding a future and stock for the long term but you want to earn on both side of the portfolio.

There are various Option strategies available in the market which can be tweaked to make profits with minimum risk. Strategies are as follows:

Long call
Short
Synthetic long
Long put
Short put
Covered call
Long combo
Protective call
Covered put
Long straddle
Short straddle
Long strangle
Short strangle
Collar
Bull call spread strategy
Bull put spread strategy
Bear call spread
Bear put spread strategy
Long call butterfly
Short call butterfly
Long call condor
Short call condor

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ANNUITY

HOW ANNUITIES WORK? It is an investment product popular for retirement planning. It is provided by Life insurance Companies and is popularly sold by insurance agents. It keeps on accumulating interest without making you to pay taxed till 59.5 years of age. And at this stage the principal and the interest earned is paid back in form of regular payments as per the term chosen (5 years, 10 years or lifetime)

WHAT ARE THE TYPES OF ANNUITY?

• Fixed Annuity As the name suggests it guarantees a fixed amount that is paid considering the balance of your amount. But, the interest rate is lower as compared to others because the investments are not linked with market based products • Variable Annuity Interest rate is high and so is the risk involved. In this kind of annuity you have to choose from a list of mutual funds that would be considered your personal “subaccount”. Therefore, the retirement payment is entirely based on the performance of your sub account. • Indexed Annuity It is considered as a mid-way out of the other two types of annuity options. The interest rate is slightly higher than the fixed annuity but lower than the variable annuity. You will receive a minimum guaranteed pay out but a part of your investment is linked with the performance of market.

HOW DIFFERENT TYPES OF ANNUITIES BEHAVE DURING RECESSION & GOOD ECONOMIC TIMES?

As discussed above different kind of annuities have different behaviour in different situations:

FIXED ANNUITY INDEXED ANNUITY VARIABLE ANNUITY RETURNS EARNED DURING RECESSION

Comparatively Lowest Moderate Risk Highest Risk involved

LINKED WITH MARKET BASED PRODUCTS

No Link A part of investment is linked with market Entirely market based

RETURNS DURING GOOD ECONOMIC TIMES

Returns earned is guaranteed but you may feel that it has Underperformed as compared to other two options as A part of returns is fixed and rest is linked with market thus it leads to better performance as compared to Fixed Annuity Investor is rewarded by aggressively better returns for bearing high risk

WHAT ARE THE REASONS DUE TO WHICH PEOPLE AVOID TAKING THE OPTION OF VARIABLE AND INDEXED ANNUITIES?

• These options are quite complex in nature • Buying fee of these annuities is high • Surrender charges need to be paid if you are willing to withdraw the money during the first few years of making contract

WHAT ARE THE ADVANTAGES OF ANNUITY?

• Regular Income Guaranteed It helps you in guaranteeing a regular source of income during retirement. • Account for Inflation There are annuity options available in market that considers the inflation part which means the value of money increases as per the inflation. This helps you plan in a better way for your retirement • Tax Benefit It is tax deferred which means you do not have to pay the tax at the time of earning that capital rather you pay at the end. Thus, it helps you to accumulate cash in the beginning and earn interest without paying tax also the money keeps on compounding

WHAT ARE THE DISADVANTAGES OF ANNUITY?

• Irreversible Decision It is a one-time decision that cannot be reversed thus making right choice is of high importance. Once you have signed the contract and have started receiving income it is not possible to change the provider unlike other saving options. • Hidden fee Most of the annuity plans we come across sounds quite fascinating and profitable but one should read the fine print carefully to know about the hidden fee clause as it can cut down your profits earned • Surrender Charges In Most of the annuity plans if the investor wants to withdraw the money during the early years of making the payment then they will have to bear the surrender charges. The surrender charges slightly differ for different companies • No support to the Family In case a person invests the entire pension amount in annuity then after your death the left over money will belong to annuity provider and not the deceased’ family.

WHAT ARE THE FACTORS ON WHICH TYPES OF ANNUITY PLANS DEPENDS?

It broadly depends on below mentioned two factors: • Targeted Retirement Income • Whether you want that your spouse should receive annuity after your death

WHAT ARE DIFFERENT KINDS OF ANNUITY PLANS AVAILABLE IN MARKET?

• Plans that provide fixed annuity at the interval chosen throughout the life time • Plans that provide annuity for a fixed duration, in this plan high annuity amount is paid for the fixed period. And after the fixed duration is over less amount of annuity will be paid until the death • Return of Premium annuity plan- Fixed annuity is provided until death and after the death nominee receives the premium paid either lump sum or in parts. Though fixed annuity amount is quite low in this plan • Increasing rate Annuity- This plan is considered ideal to people who consider the inflation part and believe that the cost of living increases with time.Annuity amount keeps on increasing yearly as per the plan. • Joint annuity- This is a kind of plan taken by the buyer and his spouse. In this plan buyer gets pension amount throughout his life and after his death the spouse receives same amount until the death

ANNUITY PLAN TAX BENEFITS

The annuity payment made up to INR 150000 can get deducted from your taxable income. Although the income received through annuity is entirely taxable. Example: In case your taxable income is ₹ 800,000 and annuity premium paid by you is of ₹ 100,000 every year, than the taxable income will be ₹ 700,000. However, if you start receiving annuity of ₹ 50,000 every month on retirement, this amount will be fully taxable.]]>

What is AADHAAR?

AADHAAR Aadhaar is a free service launched to provide 12 digits unique identification to Indian residents based on their biometrics i.e. thumb impression and retina scan. Objective of Aadhaar is to keep the biometric and demographic data of residents in a centralised location Other features about Aadhaar are as follows:

The unique number is provided without any bias of caste, creed & religion.
It serves as official Identity and address proof for Government and non-government official requirements
MNREGA workers can receive their wages directly in bank accounts
It can even facilitate the passport procedure
AAdhaar has a provision that it can be easily linked with Voter ID, Bank account and Cooking gas connection, Pension account, pension account
Aadhaar details can be updated online and offline

WHAT ARE THE MISCONCEPTIONS ABOUT AADHAAR?

Aadhaar can be applied online
One can have more than one Aadhaar
UIDAI information is accessible to others

It is mandatory to have Aadhaar
Aadhaar can replace other identity proofs
It is costly to get Aadhar

HOW TO APPLY FOR AADHAAR OFFLINE?

You need to identify the Aadhaarcenter near you (To identify the nearest center you can check online https://appointments.uidai.gov.in/easearch.aspx)
Visit the centre along with photograph, identity and address proof
Application form can be taken from the centre or it can be downloaded online
Application needs to be filled and submitted
The person responsible will enter the details and take your thumb impression and retina scan
After data entry you will be asked to cross check the details entered in the system
If the information entered is correct the person will submit the same and will hand over the enrolment slip. This slip contains complete information and the same can be used to track the status of your application that whether it has been dispatched or not
The information provided will be verified before the aadhaar is generated and dispatched
Till the time aadhaar is not mailed to your contact address you can check the status of your application online

HOW TO DOWNLOAD E-AADHAAR CARD?

Visit https://eaadhaar.uidai.gov.in/
Enter all the details required like enrolment number as mentioned on Acknowledgement slip, full name, Pin code etc.
After filling all the boxes Click on “Get One Time Password”
OTP will be received on registered mobile Number
OTP needs to be entered in the box and click on “Validate and Download”
Open it using the password and then take the print of the aadhaar card

HOW TO UPDATE YOUR AADHAAR DATA?

In case of change in any of the following “Name, Date of Birth, Address and Mobile Number”; individual has an option to update the same online and through post using below mentioned step: Updating information Online:

Visit https://ssup.uidai.gov.in/web/guest/ssup-home or https://ssup.uidai.gov.in/web/guest/update
Enter the details asked and click on “Get OTP”
Enter the text in the image and enter OTP
New webpage will open
Enter the details that need to be updated
Depending on the nature of change upload the supporting documents as accepted
You need to select the BPO Service Provide and submit yourrequest. Also, download /Print Update Request copy.

Note: You should have access to previously registered mobile number as OTP will be sent to that number. In case you have lost that number then you need to visit the nearest centre for the same. Updating information through Post:

You need to download the Aadhaar Update/Correction Form from http://uidai.gov.in/images/application_form_11102012.pdf
Update the fields you need to get updated and fill the complete form along with your signature/Thumbprint.

Note: It is mandatory to write Mobile Number

Depending on the nature of change you need to attach self-attested supporting documents
In case of a child whose age is less than 5 years, parent/guardian can sign document copies
You need to make sure that AADHAAR number is clearly mentioned on all the copies of documents attached
Put the complete form along with supporting documents in an envelope and mention “Aadhaar Update/Correction” on top of it
Post the envelope to mailing address- UIDAI Regional Office, KhanijaBhavan, No. 49, 3rd Floor, South Wing, Race Course Road, Bangalore–01
Once the data is successfully validated by UIDAI the communication will be done to you and you will receive updated Aadhaar card

WHAT ARE THE LIST OF DOCUMENTS REQUIRED FOR AADHAAR ?

As we are aware in order to get the Aadhaar you need to submit proof of identity and proof of address. Thus, there is a list defined for document that serves as “Proof of Identity” and “Proof of address”. It is mandatory for each individual to carry one “Proof of Identity” and one “Proof of address” at the Aadhaar centre. However, in case of minor all you need to submit is parent’s “Proof of Identity and address” along with it proof of relation. Below mentioned is the list of “Proof of Identity” accepted:

Passport
Voter ID Card
Arms License
Ration/ PDS Photo Card
NREGS Job Card
Photo ID issued by Recognized Educational Institution
Address Card having Name and Photo issued by Department of Posts
Driving License
Government Photo ID Cards/ service photo identity card issued by PSU
Photo Bank ATM Card
Pensioner Photo Card
CGHS / ECHS Photo Card
PAN Card
Photo Credit Card
Kissan Photo Passbook
Freedom Fighter Photo Card
Certificate of Identity having photo issued by Gazetted Officer or Tehsildar on letterhead 18. Disability ID Card/handicapped medical certificate issued by the respective State/UT Governments/Administrations.

Below mentioned is the list of “Proof of Address” accepted:

Passport
Voter ID Card
Ration Card
Electricity Bill (not older than 3 months)
Water bill (not older than 3 months)
Property Tax Receipt (not older than 3 months)
Telephone Landline Bill (not older than 3 months)
Government Photo ID cards/ service photo identity card issued by PSU
Insurance Policy
Passport of Spouse
Signed Letter having Photo issued by Recognized Educational Instruction on letterhead 17. NREGS Job Card
Arms License
Pensioner Card
Credit Card Statement (not older than 3 months)
Signed Letter having Photo issued by registered Company on letterhead
Fighter Card
CGHS / ECHS Card
Income Tax Assessment Order
Signed Letter having Photo from Bank on letterhead
Certificate of Address having photo issued by MP or MLA or Gazetted Officer or Tehsildar on letterhead
Certificate of Address issued by Village Panchayat head or its equivalent authority (for rural areas)
Address Card having Photo issued by Department of Posts
Vehicle Registration Certificate
Caste and Domicile Certificate having Photo issued by State Govt.
Registered Sale / Lease / Rent Agreement
Kissan Passbook
Gas Connection Bill (not older than 3 months)
Passport of Parents (in case of Minor)
Disability ID Card/handicapped medical certificate issued by the respective State/UT Governments/Administrations
Driving License
Bank Statement/ Passbook
Post Office Account Statement/Passbook

Below mentioned is the list of supported Proof Of Relationship (POR)

PDS Card
MNREGA Job Card
CGHS/State Government/ECHS/ESIC Medical card
Pension Card
Valid Passport
Army Canteen Card
Birth Certificate issued by Registrar of Birth, Municipal Corporation and other notified local government bodies like Taluk, Tehsil etc.
Any other Central/State government issued family entitlement document

Below mentioned is the list of Proof of Date of Birth (DoB):

Passport
Birth Certificate
Certificate of Date of Birth issued by Group A Gazetted Officer on letterhead
SSLC Book/Certificate

HOW TO LINK YOUR AADHAR WITH OTHER DOCUMENTS?

Aadhaar can be linked with following: Bank Account

Aadhaarcan be linked through Net banking. However, it is not mandatory that all the banks provide this service
Aadhaar can be linked using SMS service. For this you need to send the aadhaar number to a number. Format and number is decided by bank and you need to ask bank for the same
Aadhaar can be linked offline. For this you need to visit the branch and ask them for the form to update the aadhaar number with your bank account

Voter ID

You need to visit http://www.electoralsearch.in/
Search by using Name & other details or by using EPIC Number mentioned on Voter ID
After pressing View Details button you can check whether details entered are correct or not
After detail confirmation click on “Feed Aadhaar Number” Button
Now desired information needs to be filled and submit is to be pressed
Success message will be received and your Aahaar will be linked to your Voter ID

LPG Connection Aadhaar can be linked using LPG Subsidy form

You need to complete the LPG Subsidy form and deposit it to the distributor
Aadhaarnumber and Bank account details need to be filled
Distributor will link the Aadhaar number with your LPG connection

Aadhaar can be linked using by sending SMS SMS needs to be sent on the number provided by the LPG Company Distributor can help you with the number Aadhaar can be linked through Phone Call You can dial Toll free number 1800 2 333 555 to get the Aadhaar linked with LPG connection Aadhaar can be linked Online

Visit https://rasf.uidai.gov.in/seeding/User/ResidentSelfSeedingpds.aspx
Fill the complete details on “Resident Self Service” using drop down
Information to be provided is State, District. Benefit type, Scheme Name, Distributor Name, Consumer Number (This is mentioned on the LPG booklet), Mobile number and e-mail address
Press Submit button

Aadhaar can be linked using Company’s website You can also directly visit the company website to get Aadhaar linked:

Indane Gas (IOCL) https://www.indane.co.in/
Bharat Gas (BPCL) http://www.ebharatgas.com/ebharat/forHome/home.html

HP Gas (HPCL) http://www.hindustanpetroleum.com/LPGHome#overlay-context=aboutus]]>

CIBIL

CIBIL stands for Credit Information Bureau Limited. It is the first company established in India for providing Credit Information for individuals & non-individuals. Basically, they collect information about credit cards and loans from banks periodically (on monthly basis) and thus determine the Credit Information Report and Credit Score.They maintain those records and then on the request by any bank or lending agencies they provides that information to them.

WHAT IS CREDIT INFORMATION REPORT?

Credit Information Report (CIR) is a detailed report generated by the company. The report basically contains the CIBIL Score, Personal information, Contact Information, Employment Information, Account Information, and Enquiry Information along with Consumer Dispute Remarks.

WHAT IS CREDIT SCORE?

CIBIL Score is a three-digit number assigned to the individual or non-individual based on the credit information example loans taken and repayment of those loans, Payment of timely credit card dues, how well the person is maintaining mix of secured and unsecured loans Generally, this information is useful to lending agencies and bank to analyse and ascertain whether to approve the loan or not of that individual or non-individual.

WHAT ARE THE FACTORS THAT AFFECT THE CIBIL SCORE?

All the past repayments of loan are done or not
Repayments are done within due date or not
Previous loans writing offs

Maintaining mix of secured loans (Auto & Home loan) and unsecured loan (Personal loan &Credit Card)
How many loans have been taken in past

WHAT IS THE IMPORTANCE OF MAINTAINING GOOD CIBIL SCORE?

It serves as the first thing that is considered by the banks when a person applies for the loan. In other words, if your Score is high then you are likely to get you are likely to get your loan application approved as compared to people with low Score
Not only good Score helps in getting the loan approved. It can also help you in getting better interest rates as well.

WHAT ARE THE WAYS AVAILABLE TO IMPROVE YOUR CIBIL SCORE?

All the past repayments of loan are done
Repayments are done within due date
There should be no writing off of the loans
Maintaining mix of secured loans (such as Auto, Home loan) and unsecured loan (such as Personal loan, Credit Card)
Fewer Loans have been taken in the past

WHAT ARE THE MYTHS THAT ARE RELATED TO CIBIL SCORE?

CIBIL scores is only factor considered for getting loan application approved/rejected

One of the most common myths we come across is this. But we need to understand that CIR & CIBIL Score is the primary thing taken to consideration by banks. Apart from that, there are several factors that are considered example the income of the borrower, other underwriting policies etc. Thus, there can be instances that even after maintain good Score the loan application might get rejected because of some other factor.

Ideal Scenario is having Zero credit history

Some believe that if the person has not taken any loan/credit card in the past it will be considered ideal. But, this is not true as ideal credit history is one in which person has taken loan or credit card and has made timely payments.

Unable to get loans or credit card throughout life because of Low CIBIL score

This thinking is wrong as there different banks have different credit policies. Also, CIBIL Score & CIR is the primary criteria, not the only criteria. Thus, if your application got rejected in one bank it might get approved in another bank. But the interest rates could be high for low CIBIL Score individuals.

Low CIBIL scores ruin one’s credit reputation forever

Low CIBIL Score does not mean your credit reputation is ruined for life as CIBIL score improves if your credit history is improving. Also, the banks ask for fresh CIR & CIBIL report for fresh loan applications. Thus they get the updated information.

Record maintenance of defaulters by CIBIL

CIBIL does not maintain records of the defaulters rather it collates the credit history of the individuals. It provides this information to the Banks or financial institutions and they evaluate the CIR & CIBIL Score accordingly.

Supporting banks and financial institutions is sole purpose of CIBIL

CIR & CIBIL score not only helps banks or financial institution in analysing and approving loan applications but it also serves as the information providers to individuals about their finances. By having a look at CIR & CIBIL score they come to know about their Credit worthiness and thus can also improve it if required.

Making correction in credit reports is allowed to CIBIL

Making any kind of change in the CIR is not at all authorised CIBIL unless the change has been approved by the bank or financial institution.

WHAT ARE THE REASONS DUE TO WHICH THE LOAN APPLICATION CAN GET REJECTED EVEN AFTER MAINTAINING GOOD CREDIT HISTORY?

Guarantor of a defaulter

If the person has given guarantee for friend/family for any loan, and the person defaults the loan then this will have an impact on the guarantor’s CIR & CIBIL Score. Thus, it is important to sign the loan guarantee only if you feel the person will not end up being a loan defaulter.

CIBIL Report comments

Most of us only read the Score and ignore the comments mentioned in CIR. Those comments hold great significance while approving the loan. As bank read the comments/remarks mentioned by the previous lenders. At times when a person defaults loan then the banks ask them to pay less amount. Once the amount has been paid the account gets closed but this incident is reported in the remarks section as “SETTLED”. This remark gives negative impact to the current loan application.

Tax History

People paying regular tax are more trusted by banks.

Identity mistook with a defaulter

In most of the cases if the house owned by you was previously of a defaulter then there are chances that your personal information might get mistaken of a defaulter. This might result in getting the loan application rejected, even when you possess a good Score. In such a scenario, you need to inform the same to the bank and reapply.

Limited History

If the person has not taken any loan/credit card in the past then there are chances of loan application getting rejected. As the banks will not be able to analyse that person will be able to repay the loan or not.

High Credit Utilisation

At times CIR reveals that the person is in habit of taking loans though the person is repaying the loans on time. Then also the banks check the credit utilisation ratio. The more close a person is of utilising maximum credit limit less will be the CIBIL Score.

WHAT IS CIBIL SCORE RANGE?

CIBIL SCORE	REASONS
NA or NH (No History)	If the person has no credit history in the past 24 months or is new to credit system
1-2	If the credit history about a person is less than 6 months
350 – 550	Payment defaulting
550-650	Being fairly regular with payments
650-750	Better credit history then individual with score of 550-650
750-900	Extremely regular with credit payments and having an excellent credit history

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