Refinance India

Refinance is the method to replace or adjust the terms of existing debt obligation like loan, mortgage or credit note. While taking a credit, you take the loan or mortgage at a certain rate of interest. Through refinance, you can renegotiate the terms of your debt obligations like interest rates of your borrowed amount, length of agreement, amount of loan etc. There can be various types of refinance, the most common of which is surely the home mortgage.

Why Go for Refinance in India?

There can be various reasons why people go for refinancing. A loan or mortgage may last for long term and a lot can happen during the time span. One may pay off the large part of his/her finance agreement; equity in the asset (like home, car etc.) may also have built up. One can make the most of the equity stake by going for refinancing. Through refinance, one can borrow more money on the asset. For example, one may have several loans, which he/she can pay off with a new loan. The new loan would offer more favorable rate of interest comparing to the previous loans.

Advantages of Refinance

There can be several advantages of refinancing. People opt for refinance to reduce the rate of interest on the existing loan amount. One can also opt for refinance to extend the repayment time, reduce or alter risk, to pay a dividend, to bring up cash for investment consumption, or to reduce periodic payment obligations etc.

Refinance has the following advantages:

• Refinance may result in bringing down the monthly payment amount by changing the rate of interest.
• It may also change the maturity term of the loan.
• Refinance can also improve the overall cash flow.
• It reduces the risk on existing loan.
• Refinancing can be used to pay off high-interest debt like credit card debt with a low-interest one.
• Monthly recurring bills on the existing loan can also be paid off through refinance.

 

Types of Refinance in India

Refinance can be of the following types:

No-Closing Cost

In no-closing cost refinance, one get new mortgage loan after paying some upfront fees. This refinance type is suitable for you if the current market rate is lower than your existing interest rate at least by 1.5 percentage points. However, one needs to pay Yield Spread Premium (YSP) to the mortgage company for that.

Cash-Out

Cash-out is suitable for home improvement as well as credit card and other debt consolidation. Here you can refinance larger amount than your existing mortgage. You can keep the cash difference with you.

IL FS Investmart

IL&FS Investmart (IIL) was established in 1997 by Infrastructure Leasing & Financial Services. IL&FS Investmart Ltd. is a leading organization in financial services in India. The company provides corporates and individuals with customized solutions in financial management.

The objective behind the setting up of the Company IL&FS Investmart was that it should become the leading brokerage house in India with expertise in technology which is web- based and also to have strength in distribution. The IL&FS Investmart Company has more than 200 outlets in 90 cities all over India.

The various divisions in the IL&FS Investmart are:

• Division for Debt Broking
• Division for Project Syndication
• Division for Merchant Banking
• Division for Retail Business
• Division for Business in Institutional Equity

The debt division of the IL&FS Investmart Company has in the primary and secondary placement debt markets an active presence. This division deals in many services such as treasury bills, commercial papers, government securities, bonds, and debentures. The IL&FS Investmart's division for project syndications services includes structured syndication of debt, loan syndication for projects, and restructuring of debt. This division's business has grown due to the fact that it has built good relationships with financial institutions and banks.

The Company IL&FS Investmart's division for merchant banking offers services such as rights issues, open offers, offers for buy back, and IPOs management. The IL&FS Investmart Ltd.'s division for retail business offers services like derivatives trading, equity trading, IPO investments, commodity trading, and investments in mutual fund.

The IL&FS Investmart Ltd plans to expand by setting up branches overseas in London, Dubai, Singapore, New York, and Hong Kong.

IL&FS Investmart has come a long way since its establishment and the company's equity owners are some of the biggest organizations in the world.

Dewan Housing Finance Corp

Dewan Housing Finance Corp. (DHFL) was established in 1984 by Rajesh Kumar Wadhawan as a financial company for providing loans for the purpose of construction of houses.

The mission of the Dewan Housing Finance Corp. is to provide housing loans to consumers at reasonable terms and affordable rates. DHFL provides an easy access to housing loans for the middle and the lower income group of people in India. In the beginning, the company gave out the loans from its equity capital and the rate of return on equity was 8% when the interest rate was 18%.

Vision of the Dewan Housing Finance Corp:

To change the living standard of the Indian households by providing the access to the ownership of homes

Mission of the Dewan Housing Finance Corp:

• To provide easy access to all the Indian for the ownership of a home
• To understand the consumer's needs
• Improve the credit policies on a continuous basis to provide the maximum number of people with the loans
• To formulate methods to help the customers in difficult times
• To have an extensive network by spreading it all over the country
• To respond all of the queries and questions of the customers

Products offered by the Dewan Housing Finance Corp:

• Mortgage Loan
• Home Loan
• Home Loans for NRI's
• Home Improvement Loan
• Home Extension Loan
• Non Residential Property
• Plot Loans
• Reverse Mortgage
• Home Loan Linked Insurance Plan
• Sampoorna Rakshak
• Amar Chhaya

The Management body of the Dewan Housing Finance Corp:

• Shri Rakesh Kumar Wadhawan, Chairman
• Shri Kapil Wadhawan, Vice Chairman & Managing Director
• Shri Sarang Wadhawan, Director
• Shri R.P. Khosla, Director
• Shri Waryam Singh, Director
• Shri R.S. Hugar, Director
• Shri G.P. Kohli, Director
• Shri Ashok Kumar Gupta, Director
• Mr. Bikrum Sen CEO, DHFL
• Mr. Rajeev Sathe COO, DHFL

Awards won by the Dewan Housing Finance Corp:

• SRS Real Estate & Infrastructure Award for National Excellence in 2007
• Award of Appreciation by the Maharashtra Chamber Of Housing Industry 2007
• Best Customer Service HFI's Property at the 5th Housing And Real Estate Exhibition

SREI Infrastructure Finance

SREI Infrastructure Finance was established as a non-banking institution in 1989 at Kolkata. It is the first NBFI from India to get enlisted on the London Stock Exchange. SREI is the first one to have set up offices at Russia and Germany as well.

SREI has an extensive network of 37 offices. It has its name listed on the National Stock Exchange, Bombay Stock Exchange, and Calcutta Stock Exchange. SREI Infrastructure is among the largest markets for infrastructure equipment financing. The Stakeholders of SREI include; FMO-Netherlands, IFC-Washington, BIO-Belgium, KfW & DEG-Germany, and other European and American institutions.

The chief areas of SREI services are:

• Roads
• Power
• Ports
• Construction
• Mining
• Oil
• Gas
• Power

The institution has excelled in providing outstanding services and innovative solutions to its customers. Principal services of SREI Infrastructure finance are given below:

• Infrastructure Projects Finance: SREI finances major projects such as bypasses and roads; independent power projects; port equipments; private berths and container handling jetties and more.
• Infrastructure Equipment Finance: For equipments like excavators, compressors, compactors, heavy dumpers, dozers, cranes, mechanical and sensor pavers.
• Renewable Energy Product Finance: Financing for street lighting, lantern lighting, water pumps, water heating systems, traffic booths, etc.

SREI Infrastructure Finance has been laying great emphasis on ethics such as integrity, mutual trust, employee empowerment, and high quality standards. It has a wide range of others services such as capital market, Forex, fixed deposit, asset management, and asset financing services.

SREI Infrastructure finance has excelled to a great extent in delivering its credentials in the infrastructure finance market and has definitely, laid a strong foundation for advancing towards its vision of becoming the most inspiring global infrastructure financial institution.

Geojit BNP Paribas Financial Services Limited

Geojit BNP Paribas Financial Services Limited, in collaboration with its associates, offers stock and share trading facilities in India. The company provides buying and selling of equity and derivatives, entailing index and stock predictions and alternatives. It also offers offline and online buying and selling facilities along with dial facilities. In addition, the firm also provides buying and selling subsidized services to offline patrons; finances for goods trading and credit against security of stocks.

A tie-up with Al Saud Group, Geojit BNP Paribas was initiated in 1987 in Kochi, India with a sole objective of offering buying and selling facilities to its NRI patrons. Geojit's other financial services incorporates allocation facilities for different fiscal tools such as life insurance schemes, FDs and mutual funds; banking services and commodity performance trading.

List of Financial Services offered by Geojit BNP Paribas

Equity

An associate of NSE and BSE, Geojit BNP Paribas, has a set-up of more than 500 sub-divisions in India as well as overseas. Through its branches, the group aim to deliver quality equity buying and selling facilities and providing computerized online trading facilities.

The retail outlets of the group spread across India satisfy individual requirements of the investors and assist them through easy and interesting SMS alerts, magazine research accounts, stock suggestions and economic indicators.

The brokerage format of Geojit BNP Paribas, which is valid to Ordinary Resident account only, makes online vending all the more interesting with 0.03% for day business and 0.30% for deliverance.

Mutual Funds

Geojit BNP Paribas offers around 700 mutual fund schemes which cater to individual need of the customers, offered by 33 diverse Asset Management firms. It updates its customers with exclusive information derived from various researches making buying and recovery of mutual funds easier.

Insurance

Geojit BNP Paribas offers Home, life, medical, health, automobile and family insurance. Customers can purchase any of these schemes just by visiting its wide network of 500 offices dispersed all across the nation. It represents different insurance firms which guarantee the perfect investment solution as per individual requirements. Moreover, the firm's delegate assesses the schemes to guarantee that the customer is covered by the right policy.

Exchange Futures

The facility is available to all the Resident Indians to provide them an opportunity to branch out their investment portfolio dealing in Exchange Derivatives. It is the foremost stock adviser to provide online facilities in Equity.

Geojit's proficiency, effective management and competitive charges guarantees easier online exchange derivatives trading. With valuable supervision and with reasonable commissions, the clients are being able to trade competently.

Portfolio Management

Registered under SEBI Portfolio Manager (INP000003203), Geojit BNP Paribas offers flexible portfolio management facilities assisted by a professional team who administers investment assessments on the basis of buyer's requirements. The lowest investment limits for resident Indians is Rs 10 lakhs and Rs 25 lakhs for NRIs. The basic aim of the Portfolio Management team is to ensure long term capital expansion by locating underestimated stocks and analyzing the growth prospective of the short listed stocks.

It offers two alternatives under its PMS charges:

Alternative 1: 3% on annual basis levied @0.75% at the end of each fiscal quarter Alternative 2: 1% on annual basis levied @0.25% at the end of each fiscal quarter and performance cost

Company growth in FY 2009-10

In the FY 2009-10, Geojit BNP Paribas registered revenues worth INR 781.2 million against previous fiscal year's INR 446.2 million. This indicates that the firm reported a growth of 75% within a span of 12 months. After incurring a trivial INR 10 million loss in the FY 2008-09, the firm's earnings expanded to INR 123.9 million in FY 2009-10. From the previous INR 3.3 million, the company witnessed a massive increase in its Profit Before Tax (PAT) which stood at INR 204.7 million.

The combined earnings of the firm increased by 64% from INR 1.42 billion of the corresponding period of the previous FY to INR 2.35 billion in 2009-10. Combined BPT surged by 201% from INR 212.1 million to INR 637.5 million, while combined net income was registered at INR 387 million as compared to the previous FY's INR 109.6 million.

Corporate Office

Address: 5th Floor Finance Towers

Kaloor
Kochi – 682017

India
Phone: 91 48 4240 5501

Fax: 91 48 4240 5618

Website: www.geojitbnpparibas.com