Why police verification of tenant is important & how it’s done?

Sep 11,2019 / By Prahalad Singh / No Comment

Why police verification is so important?

Renting out a property sounds a profitable choice for many of us. The high demand for rental homes from the migrating population in cities makes it an attractive journey for homeowners. However, the landlord must be careful while choosing tenants. Since the benefits of your investments depend solely on the kind of tenant you have chosen for your rental property. Police verification of your tenants is an essential component of this safeguarding process which must be properly followed for your own security. In case you are renting out your property without going through this safeguarding process, it is possible that trouble may strike you in the future.

The law makes it compulsory for landlords to fulfill police verification of their tenants. Under Section-188 of the Indian Penal Code (IPC) which concerns the violation of order rightfully declared by a public servant, a convict may be “punished with simple imprisonment for a term which may extend to one month or a monetary penalty of Rs 200”.

Since the monetary penalty is insignificant, proper attention is not taken usually to follow the laws. By the look of it, the tenant seems fine to the landlord and the difficulty to follow the method could well step aside. Does a landlord think that what harm could the tenant cause him or the system? Even if everything is fine, a landlord could still be accused or charged.

It is often seen that the landlord ignore the importance of tenant verification and rent out their property without performing legal due diligence. This is not only risky for the property but at the same time well-being as a landlord. If your tenant is involved in any criminal act, You can be held responsible for this negligence.

To make sure that you are renting out your property to an honest tenant, it is necessary to follow up these simple steps:

Police Verification:

You can get Police Verification Form online for tenant verification. Every landlord should download this form and give it to the tenants for verification before handing over the house or flat keys. The tenant should fill his original name with father name, permanent address, and other essential information in the given form. It verifies a tenant and makes it easy for the landlord to involve the police in case of a dispute.

Background Check:

A background check is a first and most important step in tenant verification. If your tenant has a history of averting rent or destroying rented property, in this situation, you may be able to find out through a background check.

Contact Your Tenant’s Previous Landlord:

If the tenant has lived in the same locality/city, then you can do a check with his previous landlords. You can also ask for the previous employer’s contact number and address. You can ask all relevant questions to make sure the person is reliable for you to rent out your property.

Ask for the personal references:

The landlord can also ask for 1-2 personal references whom the landlord can call and ask about the person and verify his details. Family and friends are a good source to verify the tenant. If the person has no unlawful records he won’t hesitate to share a few references but it is not always necessary that you will get all the information as some tenants may not be comfortable sharing their parent’s contact numbers. In this situation, it is better to ask for friends’ numbers or colleague’s details just to keep them as a record.

How does police Verification help?

Police verification can help in below-mentioned ways:

Unlawful practices on-premises:

It is often seen that college students, bachelor, and even young working professionals live alone or want privacy. They enjoy parties, consume drugs, drinking on their premises. Some live-in with partners. When police verification is completed, tenants do not resort to such activities in the premises as the fear of getting arrested.

It helps in tracking crime:

It is very easy to track the absconding culprit and those who connive a heinous crime in the rented apartment/flat. Once the tenant submitted his identity proof, the fear of a police trial ensures that there are very few chances of committing a crime.

It helps in tracking terror activities:

Many terrorists rent places to stay in the city from where they carry out plans of attacks in the city. A police verification can easily find out these monsters with fake identities.

It helps in tracking foreigners identification:

Many foreigners overstay after the expiry of the contracts and disappear into the smaller cities. With the help of police verification, these unauthorized citizens can easily find out in case they rent out a place to stay.

It helps a landlord if he lives abroad or out of town:

It is often seen that landlords rent out the property and stays out of the town or country. If he has done the police verification, he is relieved that his property is let out to a decent person with a good background.

It creates fear of law for the tenants:

After police verification, tenants always fear of police action and being hauled up and put behind the bars. If a tenant has submitted his official details, he fears that police can reach the workplace and he will lose his jobs and he will not get another place to stay.

It helps in better maintenance and safety of the premises:

Tenants take good care of the rented property and pay rent on time when there is a police verification completed. He does not mess around with the structure and does not cause any damage to it. He is aware that his documentation lies with the police and his record gets blackened if the landlord registers any complaints with the police.

The FAQ on Police Verification:

How do I get police verification for tenants?

To perform that, you can visit the nearby police station in your area and ask for tenant verification forms. The correctly filled documents that would have all the details of you and your tenants should be submitted with the police. You could download the form, on the website of police stations.

What is a tenant verification form?

The tenant verification form is a document utilized by a landlord when verifying the past rental information of an aspirant for tenancy. The landlord must send the form to the applicant’s current or past landlord in order to get all the details linked to the tenancy of the individual.

Is police verification of tenants mandatory?

Police verification of your tenants is an essential part of this screening process which must be properly understood for your own safety. The law declares it necessary for landlords to perform police verification of their tenants. Any negligence in this concern may invite a jail term or a monetary penalty.

What is a rental verification form?

A rental verification form is a permission form that a tenant applicant will sign to give permission to the landlord to do a background check. This also involves the ability to call the current employer, previous landlord, and current landlord.

What is the method for an online tenant police verification?

There are several methods to be followed:
Download the Tenant Police Verification Form online first.
Complete the form with both tenant and landlord details.
Affix the current photo of your tenant.
Sign at the bottom of the form confirming that the information stated in the form is true and you are agreeing to it.
Submit the filled form to your nearest police station.
Collect your acknowledgment receipt and keep it as a reference.

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Key Information on Hyderabad Metro

Sep 10,2019 / By Prahalad Singh / No Comment

About Hyderabad Metro:

Metros and MRTS (Mass Rapid Transport System) are coming to light as a major area for infrastructure development in primary cities that have high population density. In August 2003, the State Government and the South Central Railway together started the Multi-Modal Transport System (MMTS) to reply to the growing public transport demands and reduce heavy road traffic in the twin cities of Hyderabad and Secunderabad.

In 2003, the Union Ministry of Urban Development 2019 has approved the plan of the Hyderabad Metro Rail Project presiding over the Delhi Metro Rail Corporation (DMRC) to convey a survey of the suggested lines.

In 2007, the Central Government has approved the monetary aid of Rs 1,639 crores under the Viability Gap Funding (VGF) scheme.

On 26th March 2018, Telangana Government publicized that it would establish a Special Purpose Vehicle (SPV) “Hyderabad Airport Metro Limited (HAML)” jointly supported by Hyderabad Metro Rail Limited (HMRL) and Hyderabad Metro Development Authority (HMDA) to spread out the Blue Line from Raidurg to Rajiv Gandhi International Airport, Shamshabad under Phase-2 after the successful achievement of Phase-1 in 2019.

Hyderabad Metro Rail has commenced the services for the public on November 29th after initiated by the Prime Minister of India Sri Narendra Modi on 28th November. Two extensions of 2-corridors from Miyapur to Ameerpet and Nagole to Ameerpet are running successfully.

Corridors:

The Hyderabad Metro Rail Network will cover a total distance of around 72 km across 3-corridors.

Corridor-1: Miyapur to LB Nagar
Corridor-2: JBS to Falaknuma
Corridor-3: Nagole to Shilparamam

The project will be combined with existing railway stations, suburban railway network (MMTS), and bus stops to assure a flawless and comfortable journey.

Bidding Process:

In July 2008, the bidding process was happened and awarded to Maytas which disappointed to reach the financial end for the project as per schedule by March 2009. As a result, the state government canceled the contract and invited for fresh bidding in July 2009.

In July 2010, the re-bidding process begun and L&T came up as the most economical bidder for the Rs.12132 crores project. L&T picks up the work for about Rs.1458 crores as Viability Gap Funding as against the approved Rs 4853 crore.

Project Cost:

The first official approximated cost of the 72 km long Metro project set at Rs 14,132 crore. The Central Government assured to carry 10% of it, while L&T was to carry the remaining 90% of the cost. The construction work which was asserted to start on 3 March 2011, started in 2012. In March 2012, the cost of the project was updated higher to Rs 15,957 crore. This has been further updated higher to Rs 18,800 crore (as of November 2017).

Mascot:

The mascot of Hyderabad Metro Rail is Niz. Niz was derived from the word “Nizam”.

Award and Nominations:

Hyderabad Metro Rail Project was demonstrated as one of the top 100 key global infrastructure projects at the Global Infrastructure Leadership Forum that was fascinated in New York throughout Feb-March 2013.
L&T Metro Rail Hyderabad Limited (LTMRHL) has been awarded the SAP ACE Award 2015 in the ‘Strategic HR and Talent Management category.
In 2018, Rasoolpura, Paradise and Prakash Nagar metro stations were awarded Indian Green Building Council’s (IGBC) Green MRTS Platinum Award.
Hyderabad Metro Rail was awarded as the Best Urban Mass Transit Project by the Government of India on November 2018.

Construction History:

Hyderabad Metro Rail is the 2nd longest operational metro network in India after the Delhi Metro (250 stations) with 48 stations. Its lines are arranged in a straight line that intersects a curve at two or more points.
L&T Metro Rail Hyderabad Ltd (L&TMRHL) was established by the construction company L&T to expend the Hyderabad Metro Rail project under the Public-Private Partnership (PPP) model. A 30 kilometers stretch from Miyapur to Nagole with 24 stations. It is estimated to cost Rs18,800 crores. Approximately 300,000 people use the Metro per day as of August 2019. A ladies coach was also included on all the trains from 7 May 2018.
On 26th April 2012, Bhoomi Puja for the project was organized. L&T initiated the pillar construction work on the same day for the stage-1 and on 6th June 2012 for the stage-2.
The construction of the entire 71.16 km has been split into 6 stages with the first stage originally scheduled to be completed by March 2015.
In November 2013, L&T Hyderabad Metro Limited started laying of rails on the metro bridge, a stretch of 8 km between Nagole and Mettuguda.
In the 3rd week of May 2014, the first highly sophisticated train of the Hyderabad Metro Rail came from Korea.
From June 2014 till February 2015, the stringent trial runs commenced.
In October 2015, the trial runs started on Miyapur to Sanjeeva Reddy Nagar stretch.
On 9th and 10th August 2016, the Commissioner of Railway Safety (CMRS) inspection for Stage-2 was done.
In August 2017, the steel bridge of the Hyderabad Metro Rail (HMR) was successfully placed over the Oliphant Bridge.
Commissioner of Railway Safety (CMRS) acknowledged safety approval in November 2017 for a 12 km stretch from Miyapur to SR Nagar, a 10 km stretch from SR Nagar to Mettuguda and an 8 km stretch from Nagole to Mettuguda.
Ameerpet-LB Nagar Metro stretch (16 km) was opened for commercial operations from 24 September 2018.
On 20th March 2019, the Ameerpet-LB Nagar Metro stretch was opened on a conditional basis.
On 19th May 2019, the construction of all the 2,599 pillars for the 66-km Hyderabad Metro Rail (except the 6-km stretch in the old city) was completed.
On 20th August 2019, the reversal facility after HITEC City metro station was started.

Construction Phases:

The success story of Phase-1:

The Phase-1 of the Hyderabad Metro Rail Project includes three corridors – the Green Line from JBS to Falaknuma (15 km), the Blue Line from Nagole to Raidurg (28 km), and the Red Line from Miyapur to LB Nagar (29 km). At present, 45 km is operational out of the projected 72 km.

Services between MGBS and Jubilee Bus Station (9.66 km) on the Green Line will begin from mid-2019, while on the Blue Line, a metro link between Ameerpet to HI-TEC City (9.43 km) is likely to start by 2019-end.

Line 1 – Red Line – Miyapur – LB Nagar – 29 km (18 mi) – 27 stations
Line 2 – Green Line – JBS – Falaknuma 15 km (9.3 mi) – 15 stations
Line 3 – Blue Line – Nagole – Raidurg – 28 km (17 mi) – 24 stations

The Success story of Phase-2:

The construction of Phase-2 had taken up solely by the state government of Telangana, instead of the Public-Private Partnership (PPP) mode in Phase-1. Delhi Metro Rail Corporation (DMRC) was entrusted to give a detailed project report (DPR) for Phase-2. Hyderabad Metro Rail Phase-2 expansion plan is for about 85 km, which includes providing a link to Shamshabad RGI Airport. The proposed routes are as following:

Line-1 Extension – Red – Miyapur – BHEL – Patancheru – 15 km (9.3 mi)
Line-1 Extension – Red – LB Nagar – Hayath Nagar – 7 km (4.3 mi)
Line-2 Extension – Green – JBS-Alwal – 8 km (5.0 mi)
Line-3 Extension – Blue – Nagole-LB Nagar-Falaknuma-Shamshabad RGI Airport – 28km (17mi)
Line-4 – Raidurg – Gachibowli – Shamshabad RGI Airport – 30 km (19 mi)
Line-5 – Miyapur – Gachibowli – Tolichowki – Lakdi ka pul – 20 km (12 mi)
Line-6 – Tarnaka–ECIL ‘X’ Roads – 7 km (4.3 mi)

Depots:

Hyderabad Metro currently has 3 operational depots:

Hyderabad Metro Rail Depots
Line No	Line Name	No of Depots	Location	Opening Date
1	Red Line	2	Miyapur Depot, Near Kalvari Temple, Nadigada Tanda, Miyapur, Hyderabad, Telangana	28th November 2017
1	Red Line	2	LB Nagar Depot	28th September 2018
2	Blue Line	1	Uppal Metro Depot, Nagole Rd, Laxmi Narayan Nagar Colony, Uppal, Hyderabad, Telangana	28th November 2017
3	Green Line	1	Falaknuma	TBD

Ticketing & Recharge:

The L&T Hyderabad project has an electronic ticketing system with features like contactless smart card-based ticketing, slim automatic gates, payment by cash and debit/credit card, passenger operated ticket vending machine and arrangement of the common ticketing system. It also has a provision of NFC-based technology to permit usage of mobile phones as fare media and high-performance machine to avoid long queues.

Slab	Distance	Fare
1	0-2	10
2	2-4	15
3	4-6	25
4	6-8	30
5	8-10	35
6	10-14	40
7	14-18	45
8	18-22	50
9	22-26	55
10	>26	60

Recent News and Updates:

In August 2019, the work on Hyderabad Metro Airport Express from Raheja Mindspace to Shamshabad RGI Airport will start soon said Telangana Rashtra Samithi (TRS) Working President K. T. Rama Rao. The 31 km long Hyderabad Metro Airport Express link will cost nearly Rs 5,000 crores. The Airport Express Metro Corridor (31-km) is proposed to have 27-km elevated, 1 km on the ground and a 2.5-km underground section to connect to the airport terminal. The airport route will have 9 elevated stations and one underground station.

On 28th June 2019, L&T Metro Rail Hyderabad seeks to expedite work on Corridor-2.

Hyderabad Metro and its impact on the realty market of Hyderabad:

Once Hyderabad Metro Rail becomes operational, it will be the world’s largest elevated metro rail. It is a Public-Private Partnership project based on DBFOT (Design, Build, Finance, Operate and Transfer) basis. It is expected that Hyderabad Metro Rail will be offering its service to 15 lakh passengers, after the commencement of its full operations. Covering a distance of 72 kilometers, Hyderabad Metro Rail is positioned to rename the city’s transportation. It is not just a metro, it is an urban revival and redesign effort that will change Hyderabad into a commuter-friendly, modern and green city.

With the amalgamation of the LB Nagar stretch last month, Hyderabad Metro has strengthened the connectivity between Nagole and LB Nagar via the Inner Ring Road, which has no doubt reduced the travel time for passengers on Nagole – apartments Ameerpet route.

Today, nearly two lakh passengers are benefiting the metro on a daily basis to reach their destinations across Hyderabad quickly and safely.

In cities where Metro is operative for a few years, it has helped improving areas near to the stations and the terminal stations with better connectivity as well as last-mile connectivity by auto-rickshaws, buses, motorcycles, etc.

The signs are clear that this is going to happen in Hyderabad also. Now that the connectivity with office areas like the Financial District is better with fringe areas of Hyderabad, there is a clear shift to pick in pretty lower-cost areas. This has started to increase real estate development in the areas close to the Metro and the trend will continue with the inclusion of areas like HITEC City in the Metro network shortly.

Is Hyderabad Metro a successful project?

As per a survey by Keolis International, the Hyderabad Metro tops in passenger satisfaction at 98.5%. The passenger satisfaction rate of Hyderabad Metro exceeds Melbourne Metro, London Metro, and many others.

Who and how much owns Hyderabad Metro?

Government of Telangana owns – 10% while Larsen & Toubro – 90%

How to avail facilities of Smart Cards and tokens:

Hyderabad Metro rail has introduced smart cards for hassle-free travel in metro trains. These cards are available in all metro stations, In the beginning, you have to buy the card for Rs 200, in which Rs 100 is the security deposit and remaining Rs 100 you can use for your travel. If you are traveling with friends or family then you have to go to the ticket counter or ATVM and buy the coins based on your journey. Later we can recharge the smart cards at ticket counters or Automatic ticket vending machines or you can recharge your smart card online using Paytm also. The validity of this smart card is for one year only.

How Can One Recharge Hyderabad Metro Rail Smart Card using Paytm?

You can recharge our smart card online through Paytm following the below steps.

Go to paytm.com
Click on Metro image on top
Select Metro as “Hyderabad Metro”
Enter the unique card number which is the backside of your smart card
Click on Get Card Balance button, it will show the balance amount and validity of the card.
Enter the amount minimum 100 rupees, click on proceed to pay and follow the instructions. For the first time recharge using Paytm Rs 20 cashback offer is also there.
After two hours of the recharge tap at automatic gates at metro stations, the card will be recharged.

Image Sources: Google
Data Sources: Wikipedia

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All you need to know about Patna Metro Rail Project

Sep 6,2019 / By Prahalad Singh / No Comment

About Patna Metro Rail Project:

Soon state capital Patna is set to change as the Bihar Cabinet on Tuesday approved the allotment of Patna Metro Rail Project work to the Delhi Metro Rail Corporation (DMRC) on the nomination basis.

Patna Metro Rail Project is a state-approved rapid transit system for the city of Patna in Bihar and it would be owned and operated by state-run Patna Metro Rail Corporation (PMRC). It is going to be built on Public-Private Partnership (PPP) model. It is estimated to cost Rs 13411.77 crore. The Centre would spend 20% of the cost as Viability Gap Fund while the state government would spend a similar amount depending upon the final estimate of the project. The rest of the amount would be supported by the private company involved in the construction of the Metro Rail.

Cost and Timeline:

To be built at an estimated cost of Rs 13411.77 crore and expected to run on two corridors by 2024.

Corridor’s Detail:

Under Phase-1

Route 1 stations: Danapur – Shatabdi Smarak (Saguna More) – Rupaspur – Rukanpura – Raja Bazar – Golf Club – Patna Zoo – Visvesvarayan Bhawan – Vidyut Bhawan – Patna Junction – Mithapur Bus Stand.

Route 2 Stations: Patna Junction – Aakashwani – Gandhi Maidan – PMCH(Patna Medical College and Hospital) – Patna University – Premchand Rangshala – Rajendranagar Terminal – NMCH – Kumharar – Gandhi Setu – Zero Mile – ISBT.

Under Phase-2

Route 3 Stations: Mithapur Chowk – Lohia Nagar – Kankarbagh – Income Tax Colony – Zero Mile – Choti Pahari – Ranipur – Ranipur Chak – Check Post – Guru Ka Bagh.

Under Phase-3

Route 4 Stations: Bypass Chowk – Jay Prakash Nagar – Dasratha – Setu Nagar – Chitkohra – Patna Secretariat – Anishabad – Haroon Nagar(khoja Imli) – Patna Airport – Phulwari Sharif – Hadaspura – Nosha – AIIMS Patna – Kurji.

The Patna Metro Rail is expected to run on 2-corridors by 2024. In the first phase – the east-west corridor and the north-south corridor will be constructed i.e. Danapur to Mithapur Bus Stand and Patna Railway Station to ISBT. There will be a 15.38 km elevated track and 15.75 km underground track will come under Phase-1. In phase-2, the service will be provided between Bypass Chowk Mithapur to Deedarganj via Transport Nagar along with NH30 Bypass (13 km). And phase-3 will come between Bypass Chowk Mithapur to Phulwari Shariff AIIMS via Anisabad along NH30 Bypass (11 km). The phase-4 will develop from Didargunj to Fatuha Junction.

Patna Metro Rail Project Status Updates:

The Planning Commission of India has given its approval on 14th September 2011.
The Bihar cabinet approved the proposal to prepare a detailed project report (DPR) for Metro train service in Patna on 11 June 2013. Rail India Technical and Economic Service (RITES) has been decided for the plan.
The Bihar Government has signed an MoU with the consultant Rail India Technical and Economic Service RITES for feasibility study and Detailed Project Report preparation on 18 June 2013 for the Patna Metro railway project.
The planned Patna Metro project received the green light on 17 June 2014. With approval, it was planned to set up the Patna Metro Train Corporation before 15 August 2014.
Detailed Project Report (DPR) for the project submitted in May 2015.
The Bihar cabinet approved the Detailed Project Report (DPR) prepared by RITES in February 2016.
In May 2016, The Patna Metro Rail project has got a fresh boost when Union Urban Development Minister M Venkaiah Naidu reportedly assured.
Bihar Chief Secretary Deepak Kumar approved the proposed Patna Metro Rails revised DPR on 3rd July 2018, for putting it up before the state cabinet, with the revised estimated cost of the project at Rs 19500 crore, including land acquisition cost.
RITES has submitted the revised DPR to the Urban Development and Housing Department on September 20th, 2018.
On 25th September 2018, the Bihar Cabinet has approved the framework of “Patna Metro Rail Corporation Limited” under Special Purpose Vehicle (SPV) for the successful implementation of the Patna Metro Rail project.
The Public Finance Committee has approved the DPR on 28th September 2018 of the Patna Metro Rail Project.
The Detailed Project Report for the Patna Metro Rail project has approved by Bihar Cabinet on 9th October 2018.
On 20th November 2018, the Central Government has approved DPR for Patna Metro Rail Project.
Patna Metro Rail Project got its approval from the Public Investment Board (PIB) on 6th February 2019.
Union Cabinet has approved the Patna Metro Rail Project on 13th February 2019 consisting of 2-corridors.
On 17th February 2019, Prime Minister Narendra Modi had laid the foundation stone for Patna’s 1st metro corridor.
On 4th March 2019, the Patna Metro Rail Corporation Limited has opened its office at Indira Bhavan.
On 25th July 2019, the state govt has declared Patna Metro Rail’s work will begin in 3-months.
On 23rd August 2019, the Drone Survey started and is scheduled to end by 15th October.

Impact of Patna Metro Rail On Real Estate:

According to state govt data, it is expected that the Patna Metro Rail Project will directly or indirectly benefit over 26.23 lakh people. Kumhrar, Kankarbagh, Patna City, Gardanibagh, Shekhpura, Rajendra Nagar, Phulwari Shariff, Pakri, Akauna, Pipra, Jalalpur, Bhusaula Danapur Chak, Asopur, Dhibra, Mobarakpur, Meethapur, Rukunpura, Raja Bazar, Sagunamod, Rupaspur, Danapur, and ISBT are the nearby areas situated close to Patna Metro Rail Project sites. As soon as the Patna Metro Rail gets operational, the value of property in these areas would increase. At the same time, the value of plots, property, and rental value would also increase. Landowners whose lands would be acquired for the project would be able to get higher prices than the market rate in Patna. Landlords will also be able to earn better rental income for their investment properties.

Recent Updates:

Bihar Cabinet on Tuesday approved the allotment of Patna Metro Rail Project work with the help of Delhi Metro Rail Corporation (DMRC) on the nomination basis which will complete the work on the “Deposit Work Method” at a project cost of Rs 482.87 crore said, Principal Secretary Sanjay Kumar. It is expected that the construction work will begin by the end of this year. The entire metro project in Phase-1 will be completed within 5 years.

DMRC will begin its works by the end of this month which will cover initial planning work as the survey of routes, outsourcing of contract, and the land acquisition process.

Image Credit : Google

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Key Information About Home Insurance

Sep 4,2019 / By Prahalad Singh / No Comment

What is Home Insurance or Home Loan Insurance

Home Insurance, also known as Home Loan Protection Plan (HLPP) is a plan given by almost every financial institution in which the lender will square off the outstanding or balance home loan amount of the borrower with the lender or bank, if there is a condition of sudden incidents that may include death of the borrower. In simple terms, it is known as an insurance plan under which the insurance company squares off the balance amount of home loan with banks, NDFCs or Housing Finance Companies, in the case of the death of loan borrowers. The Home Loan Insurance term is normally the same as the Home Loan term. By taking the Home Loan Insurance the borrower is reassured that even after his/her death, his/her family members will not be forced to repay the home loan or vacate the premises because of the non-payment of the home loan amount.

What are the benefits of Home Loan Insurance?

Home loan insurance gives lump sum amount compensation which can be further utilized to repay the outstanding home loan.
Under Section 80C & 80D, the borrower receives the tax benefit from the home loan.
By paying an extra premium, medical conditions like disability and critical diseases can also be covered in the home loan insurance plan.
Under a joint home loan insurance, single home loan insurance can cover all the borrowers.
The borrower has the flexibility to reimburse the premium which is single/whole payment premium or insurance amount can be settled in the total loan amount and can be paid on a yearly basis.
Borrowers have the choice of switching insurance premium into the amount that can be added to the home loan EMIs.

Is Home Insurance Mandatory For Home Loans?

Home loan borrowers are often misled by their bankers or moneylender and are communicated into buying home loan insurance policy. Some of the finance companies name these products or policies as mandatory and often push their buyers or customers to pay extra for the premium. However, It is not mandatory to buy home loan protection plans. Neither the law nor the regulatory authorities such as the Reserve Bank Of India (RBI) or Insurance Regulatory and Development Authority of India (IRDAI) have made it compulsory under the home loan protection plan with a loan. Buying an insurance policy is the one and only responsibility of the buyer and borrowers cannot be forced to buy such plans. It only gives extra safety to your property but it is not compulsory.

How Does Home Loan Insurance Work?

Home loan insurance is a plan or policy that covers a borrower’s outstanding loan liability to protect the risk of loss in case he/she dies during the loan repayment term. These policies give a covering that reduces every year, as the loan amount reduces. In the case of the death of the borrower during the loan regime, the insurance company will clear up the outstanding loan with the lender bank. A home loan insurance policy could end up on the full repayment of the loan, or after the death of the borrower.

What One Should Need To Know About Home Insurance?

You must know that what is protected under the home loan insurance policy.
Like any other insurance policy, a premium will have to be paid on the insurance you have taken.
Home Loan Insurance Policy does not include suicide or death under natural death.
The insurance premium broadly depends on four conditions:
Age: The age is basically considered as the older you are, the higher your premium for the loan.
Amount: If you are availing Rs.50 lakh as a home loan, the premium will be higher.
Tenure: If you are taking the home loan for a period of 20 years, you have to pay the higher premium.
Borrower’s health record: The borrower, who is availing the home loan insurance should be medically fit. The better your health, the lower your premium.

What Is The Home Insurance Policy Eligibility?

Home loan insurance eligibility differs according to service providers. The minimum age is 18 years while the maximum age of the borrower while getting the home loan insurance is normally 50-60 years.

What Is The Process To Claim Your Home Insurance?

The insurance plan is held in the name of the borrower of the home loan. In the case of the death of the borrower, the family members of the beneficiary required to file and receive the claim amount. Once the claim is approved, the amount is directly paid to the lender or to a family member of the beneficiary. In the case of all term insurance policies, if the borrower is existing beyond the term of the policy, he does not recover the premium paid.

What Is Covered In A Basic Home Insurance Policy?

Only personal property is covered under a basic home loan insurance policy.

What Are Good Homeowners Insurance Policy?

Before availing home loan insurance policy, you must contact at least three banks or housing loan finance companies to compare coverage.

Your mortgage lender can, and perhaps will need you to have homeowners insurance. You are not appropriate to buy from a particular insurance company or bank. Rather than, compare coverage, price and customer reviews. Be sure that you are getting the right type of insurance plan and the right amount of coverage.

How Does Home Insurance Help Homeowners?

A basic homeowner’s insurance policies cover the cost of repair or reconstruction due to damage affected by disasters like fire, windstorms, hail, lightning, theft, or vandalism.

What Will Be The Premium For Home Insurance?

Premiums of Home Loan Insurance depend on three main categories that include the age of the borrower, loan tenure, loan amount and health record of the borrower.

Does home insurance get tax benefits?

Yes, if in case the premium is paid by the borrower himself/herself, then he/she is eligible for tax deduction under Sec 80C and Sec 10(10D). Under Sec 80C of the Income Tax Act, the maximum amount that can be claimed is up to Rs. 1.5 lakhs.

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Impact of the Statue of Unity on Real Estate in Gujarat

Sep 3,2019 / By Prahalad Singh / No Comment

About Statue of Unity:

Sardar Vallabhbhai Patel’s statue is also known as the Statue of Unity. It is situated in the Indian state of Gujarat. Sardar Vallabhai Patel (1875–1950), who was the first Home Minister of India. After completion of the construction work, his statue is the world’s tallest statue standing at a height of 182 meters.

The project was first announced in 2010 and the construction of the statue began in October 2013 by Larsen & Toubro, who received the contract for Rs 2,989 crore from the Govt of Gujarat. The sculptor was designed by Indian sculptor Ram V. Sutar.

The statue is located at the shore of the Narmada River facing the Sardar Sarovar Dam. The statue was inaugurated by Prime Minister Narendra Modi on October 31, 2018, on the 143rd birth anniversary of Sardar Vallabhbhai Patel.

To support the construction of the statue, the Statue of Unity movement was started to support the construction of the statue. This movement helped a lot to collect the iron needed for the statue. By asking farmers to donate their scrap farming instruments. It is heard that by 2016, a total of 135 metric tonnes of scrap iron had been gathered. Out of 135 metric tonnes, about 109 metric tonnes of it were utilized to make the foundation of the statue after processing.

On 15th December 2013, a marathon entitled “Run For Unity” was held in Surat and Vadodara to support the project.

The world’s tallest “Statue of Unity” is a pride of India and a decent honor to the fearless who undivided and integrated India, our precious Sardar Vallabhbhai Patel. He was highly respected for his leadership in uniting the 552 states of India to form the single Union of Indian.

Real Estate market of Gujarat:

Gujarat is known for its rich culture and has a population mix of professional and business class. It is well-known for the industrialized state. It is home to many prominent cities including Ahmedabad, Jamnagar, Mandvi, Gandhinagar, Surat, etc. The city of Gujarat has made rapid progress in real estate developments.

The transformation of Gujarat has been slow and steady but today anyone who is visiting the state can see skyscrapers buildings and malls in place of old aged residential and commercial buildings.

Day by day growing employee demand is pushing up the rental markets in Gujarat as well as real estate capital values in the city. Rentals at famous locations such as Ahmedabad or Jamnagar can range from Rs.8,000 to Rs.15, 000 per month for 2/3 bed-room units, while purchase prices for the same can range in between Rs.17 to 30 lakhs onward.

At the same time, real estate developers betting big on affordable homes in Gujarat. As per Gujarat Real Estate Regulatory Authority (GujRERA), 1/3rd of all the realty projects registered with GujRERA fall under the affordable housing category. Among 2000 affordable housing projects, 880 are only residential and 820 are mixed-use with residential and commercial units.

The Statue of Unity and its Impact on Real Estate Market of Gujarat

Impact of the Statue of Unity on the Tourism Industry:

The government’s plan to set a large tourism center on the routes of the Kutch. The winter festival near the statue will boost tourism in the region. This tourism center will offer adventure activities and water sports to the tourists such as world-class light and sound show with musical fountains. In the first place, basic infrastructure such as a tent city near Sadhu Bet will come into view with 250 tents that will remain operative during the year. The site will attract foreign tourists and holds the potential to be developed as an eco-tourism site. The Statue of Unity is fair to draw numbers of foreign tourists along with domestic visitors across India and is creating huge revenue for the country The Gujarat government has made every effort to develop the entire neighborhood as a world-class tourist center.

Infrastructure development:

The government’s decision to construct basic tourist infrastructure at different destinations in the State such as the Narmada district. It will surely boost their attractiveness index. It will not only spark commercial real estate growth in the region, but it will also offer an endless chance to add to social development and stability, all-around economic growth and heritage conservation.
The development of transport modes to reach the location will gradually propel both commercial and residential growth in the nearby areas.

Employment Creation:

It’s not just about India’s pride in building the tallest statue but it’s about creating employment and revenue for the country. At the same time, it will create new business opportunities for the people living in nearby areas.

An increase in tourism and other related sectors will create huge employment opportunities for the locals and tribals living nearby the Narmada district. As of now, it has been decided by the state govt that the tent city will employ at least 15% locals. Going forward, training is also being provided to guides to face the increased tourist traffic that is hopefully to be generated after the inauguration of the statue of Unity. On the other hand, to flourish tourism center, the employment of qualified and skilled manpower is required which will be a serious task for the government.

Growth of allied sectors:

In the last few years, it has seen that the tourism and hospitality sector attracting investments worth Rs 11,000 crore. Increased tourism activities due to the newly-inaugurated Statue of Unity will create a way for establishing new industries in the associated sectors such as hospitality, transportation, and handicrafts. A 3-star Shrestha Bharat Bhavan hotel has already been built near the statue.

Conclusion:

As of now, there are several projects in the card to assure that this place turns out to be a popular tourist point. A world-class zoo will be developed across 1,300 acres over seven levels by the name Sardar Patel Zoological Park near the statue. Moreover, there is a plan to start boating activities near the statue as a jetty is being constructed in the Narmada. Local businesses have been seen in lots of progress. Earlier nearby restaurants used to remain profitable only during monsoon while dam overflowing. An increase in transport, restaurants, accommodation, and other service sectors will turnaround and will improve the economy of India.
Navagam, Gora Colony, Vasantpura, Thevadia, Nana Thavadia, and Mokhadi are nearby localities to the Statue of Unity. The Gujarat government has made every effort to develop the entire neighborhood as a world-class tourist center. Once these projects will be in place, will change the outlook of Gujarat real estate market.

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