FAQ

Mutual Funds

How does Cube pick which Mutual Funds to list?
Wealthfirst, Cube's mutual fund advisor has shortlisted a small set of funds from among the more than 8000 available based on the following attributes:

  • How well the fund has done in the last 1, 3 and 5 years
  • How much risk the fund manager has taken
  • How stable these returns have been,
  • How large the fund is
  • How long the Fund manager has been in charge

Cube has then grouped these by the risk level you choose to take on. There are also a couple of international funds in addition.

Does Cube hold my Mutual Funds?
No. The mutual funds are always held in your name with the fund house. Even if you stop using Cube, your funds remain unchanged. Cube makes it super-easy for you to choose proven performers, buy/sell and track your mutual fund investments.

Can I invest in funds other than the ones listed? Can I track my existing Mutual Fund portfolio inside Cube?
Not at the moment. Cube's goal is to take away the overhead of managing money and wealth from you.This is why we have done the hard work of picking funds that perform best in the isk level you choose, so that you don't need to!

Can I pick more than one risk category to invest in?
Yes! You can even invest in all categories at once as well. In your Mutual Fund preferences, set the percentages you want to allocate to each risk category (and the international funds). The next time you deposit money, Cube will automatically divide it that proportion between different funds.

Can I move money between different risk categories?
Not directly from within Cube. This isn't allowed by SEBI, the regulator for mutual funds. You can of course withdraw money (fully or partially) from any fund into your bank account, and deposit into a new one.

What if a fund does badly after I've invested in it?
Mutual Fund investments are of course subject to market risks, so the value will rise and fall on a day to day basis. Building wealth is a long term proposition, Cube strongly encourages you to give it time - a minimum of six months; ideally 2-3 years.

I just bought a fund through Cube and have changed my mind and want to sell immediately.
Cube places no restrictions on when you can buy and sell your funds - you have complete control. However, when you buy a fund it takes up to three business days for the fund house to actually allot mutual fund units to you. Until then, your money will show as 'under process' on the Cube Magic dashboard and won't be available for withdrawal. This is true of all mutual fund investments; not just specific to Cube.

I've sold my fund, either fully or partially, but I don't see the money in my bank account.
Just like with deposits, withdrawals (or 'redemptions') take between 2 and 3 business days to reach your bank account. These funds will also show as 'under process' on the Cube Magic dashboard. You'll receive an email/sms from your bank and the fund house when the money is credited into your bank account.

What do the mutual fund category names indicate?
The category names indicate the risk level of the mutual funds. Super Safe funds are liquid funds, which invest funds in very conservative instruments whose returns are broadly stable. Boring funds are debt funds, which have historically also provided stable returns. They are slightly more volatile than liquid funds and offer correspondingly slightly higher returns. Balanced Diet and Roller Coaster category funds are equity funds, the latter are both typically higher risk and offer higher returns than the former. Made in China and Americano offer exposure to the Chinese and US markets respectively and should be treated as high risk-high returns funds.

Gold

What is SafeGold?
SafeGold is an organised and transparent method of buying 24 carat gold in compliance with all applicable laws and regulations. SafeGold is neither a financial product nor a deposit but a method of purchasing gold as a personal investment.

Who is SafeGold?
SafeGold is a product of Digital Gold India Private Limited, which is in turn institutionally owned by InVent Capital with the World Gold Council as a minority investor (through World Gold Council (India) Private Limited).

What is the Purity of Gold offered by SafeGold?
Safegold offers 24 Karat Gold of 995 fineness (99.5% pure).

How does this differ from a gold ETF that I can buy on a stock exchange?
With Safegold, the gold exists in physical form in your name with a trustee (in this case IDBI) and secured in a vault with a storage provider (Brink's). What you see in Cube is the digital representation of this holding. This means you can order physical delivery of gold anytime and on as many occasions as you want, in multiples of 1 gram. When you buy, gold in grams up to 4 decimal places is credited to your Safegold account, which is what your gold portfolio in Cube shows.

If it's physical gold, why should I buy gold via Safegold instead of owning jewelry?
Buying and selling gold is vastly faster, simpler and more transparent with Safegold through the Cube app. If you're buying gold as an investment instead of wearing it as jewelry, there's no point to paying making charges as you would with a jeweler - instead, you'll pay a nominal minting charge _only_ when you ask for gold to be delivered to you.

What is the minimum & maximum amount for buying gold through Cube?
If you're a new customer, the initial investment in gold through Cube is INR 15,000. The minimum subsequent investment is INR 50.

How does Safegold keep my gold investment safe?
One, SafeGold has entered into a relationship with IDBI Trusteeship Services Limited to act as a Security Trustee for all our customers. The Security Trustee is entitled to act on your behalf and ensure that your interests are protected. The Security Trustee will have a charge on the gold associated with accumulations held by you.

Second, the secure storage provider (Brink's) has a comprehensive, global insurance policy that includes the insurance cover on your gold stored in their vaults. In addition, SafeGold has an additional insurance policy to cover gold in transit.

What happens if Safegold goes out of business?
The gold in your Safegold account is separate from the other assets of the SafeGold. The title of the gold clearly rests with you. The gold is held in trust by IDBI Trusteeship for and on your behalf. Any adverse event happening to Safegold will not affect the gold associated with the accumulations in your account.

At what price is gold sold/bought from customers?
The buy and sell prices you see for gold within Cube are derived by Safegold from the wholesale bullion market plus a commission to cover operating costs. The actual purchase price paid by you will always be transparently published so that you have a chance to compare with all other sources before entering into a transaction.

How do I sell my gold through Cube?
Tap 'Sell' on the bottom of your Gold portfolio under Settings -> Wealth -> Gold. You can choose to sell any amount starting with a minimum of Re. 1 to a maximum of the amount of gold that you own. You'll see the sell price on the scree. The sell quote may be temporarily unavailable in the unlikely event of a disruption in the bullion market.

Where can I find the invoice for the gold I buy and sell?
Safegold sends you an SMS on the mobile number registered with Cube, with a link to the PDF invoice after every buy or sell transaction.

What is the maximum period of time for which my gold can be stored with SafeGold?
You can store your gold with SafeGold for a period of 7 years from the date of purchase. The custody shall be without charge for the first 24 months, and thereafter, will continue to be stored by SafeGold for a nominal fee to cover storage costs. You will be intimated in advance of being charged the fee, and will have the option to sell or request delivery of your gold at all times.

What is the eligibility/criteria to purchase SafeGold through Cube?
Any Indian resident can invest in Gold through Cube.

Is there any lock-in period for this plan?
No, there is no lock-in period from the date of purchase.

Can I have a joint account for this plan?
No, you cannot have a joint account for SafeGold.

What happens to my gold investment in the event of my death?
In the event of your death, if specifically allowed by SafeGold subject to the required due diligence, the title to your Gold lying in the vault and your account shall transfer to your legal heir.

Equity Advisory

Do I transfer to Cube all the money that I plan to invest?
No. Purnartha, Cube's Advisory partner, issues recommendations that you act upon using your existing brokerage. There is no transfer of funds other than the actual fees you pay to Purnartha.

Why should I trust either Purnartha or Cube with such a large amount?
You should trust Purnartha's track record. They have over INR 4500 crore under advisory for over 3000 Indian investors globally. Over 9 years, their annualised returns have been over 44%. They are also wealth advisors for Cube's own senior management - we've literally put our money where our mouth is.

How does Cube keep my portfolio updated if I act on my recommendations from outside of it?
At the end of any day during which you make equity buys and sells, your brokerage sends you contract notes (also known as trade notes or similar). You forward those contract notes to wealth@bankoncube.com. Your portfolio will be updated within 24 hours.

How quickly should I act on the equity recommendations?
Purnartha, like Cube, builds wealth over the long term and picks only those equities that deliver consistent growth. In other words, the recommendations are infrequent, and are not time sensitive. You do not have to act upon them immediately. However, we do recommend you act as soon as you can, since in the short term the market can fluctuate.

What if I buy more or less stock than recommended?
Purnartha ignores excess stock that you purchase. In case you buy less than recommended, Purnartha calculates your performance fee based on what you actually buy. However it's in your interest to buy stock in the quantity Purnartha recommends, since you have already determined the amount under advisory when you signed up.

Do I pay the entire management fee up front for a 1 or 3 year SIP, or every month?
The management fee is paid up front. You pay it either via a cheque or an NEFT transfer. Message Cube for payee/bank account details.

How do I add to the amount of money that is already under advisory?
You fill out a new form for the excess amount, which also means new management fees. Tap the 'Add Money' button under your portfolio in Cube and follow the wizard. However, if you have cash on a regular basis to invest, consider a SIP plan.

Peer To Peer Lending

How does P2P lending work?

  • P2P lending is an asset class where you loan money to people. Cube has a partnership with Faircent (www.faircent.com), a RBI licensed P2P NBFC (Non Banking Financial Company). Faircent is a marketplace that brings together investors such as yourself, and pre-vetted borrowers who wish to apply for a loan.
  • Based on your preferences, the money that you invest in Faircent is disbursed to borrowers. In return you receive monthly loan repayments over the tenure of the loan. The returns i.e. the interest rate on the loan depends on how risky Faircent evaluates the borrower to be (higher the returns, the risk).
  • A non-refundable 1% transaction fee from retail investors and 2% from institutional investors is charged on the loan amount disbursed. This is deducted from the first EMI.
  • P2P is an attractive asset class with returns between 12-28% depending on the borrower risk you choose. Making a loan also means you receive EMI repayments from your borrowers every month for the entire duration of the loan! Of course it also means that your investment is locked-in for the period of the loan, which is typically between 12-36 months.

Are P2P lending and Faircent regulated?
Yes, Peer to Peer lending in India is backed by the RBI’s robust regulatory guidelines from October 2017. These guidelines recognise P2P lending platforms as a new class of NBFCs ("NBFC - P2P") and define the scope of permitted activities, minimum capital requirements and other key operational parameters. Faircent was the first P2P entity to receive its license from the RBI.

What returns can I expect?
Returns are typically in the range of 12% to 28%. However, these depend entirely on the risk profile of the borrower. Borrowers with higher interest rates are also higher.

What are Faircent’s fees?
Faircent earns only when you start earning.

  • A non-refundable 1% transaction fee from retail investors and 2% from institutional investors is charged on the loan amount disbursed. This is deducted from the first EMI.
  • There are no additional fees to invest in P2P lending through Cube.

I am already an investor/lender with Faircent. Do I need to sign up again?
No! You’ll see your entire Faircent portfolio within Cube, including investment you had made prior to Cube. You will though need to make an additional investment of INR 750 to activate your Faircent account in Cube (this is a Faircent requirement). This investment is then lent to borrowers just like your other investments in Faircent.

Who makes the decision to lend?
Your P2P portfolio is created based on the risk category you select. Cube automates this for you by (1) asking for and setting your risk preferences, and then (2) making it super simple to invest in P2P lending regularly along with your other asset classes. Faircent assign the borrowers to your portfolio that match the risk category you have selected after they have completed their vetting process. This is what makes investing in P2P via Cube so simple because you don’t have to do all of the borrower selection yourself to have a diversified portfolio created.

What does Faircent verify before listing a loan in the marketplace?
Faircent has a strict listing criteria for evaluating each and every borrower before they are allowed to be listed on the P2P platform. Faircent physically checks their office and residential addresses, it verifies their income statements, payment capabilities, past performance in order to understand their ability, stability and intent. Faircent evaluates each borrower on more than 120 criteria across 400 data points which includes Financial, Professional, Social and educational background, loan records, etc. to cherry pick only the most eligible borrowers for Lender’s perusal. All such information about each borrower is shared on the borrower listing page so that an informed decision can be taken by Lenders if you wish to view it.

What is the minimum amount I can lend?
You’ll invest INR 30,000 or more to get started with P2P. We enforce diversification across a large group of borrowers to reduce your risk. Once you are up and running you can invest amounts as little as INR 5,000. The EMIs you receive are also auto-invested however you can change this on the Faircent website at any time.

What are the risks I should know about? How does Faircent address them?
Once the screening of borrowers is done, every loan application received is given a Faircent risk rating. The risk category you choose for P2P lending in Cube are based on this rating. The risk rating is based on:

  • Stability: Stability is understood basis the nature of borrower’s residence i.e. rented/self-owned, length of stay at the same address, length of employment in the same organization etc.
  • Ability: Ability is evaluated by studying the borrower’s income & expenditure behavior. For example, a healthy percentage of income saved reflects better ability of borrower to repay his/her financial liabilities.
  • Intention: Intention is understood by analyzing the past repayment behavior of the borrower towards their financial liabilities. Delayed repayments in past financial transactions reduce the chances of loan approval. For this purpose, bureau reports are procured (with prior consent from the borrower) and evaluated.
  • Banking Habit: A bank statement helps to judge banking habits of a borrower. Several parameters like average monthly balance, cheque bounce and unaccounted transactions, if any, are taken into consideration for assessment of a borrower’s credit worth.
  • Verification at different levels: Other than telephonic verification to get first-hand information from the borrowers, Faircent also undertakes physical verification at both the residence & office address. All documents submitted by the borrower are also verified for forgery using state-of-the-art technology.
  • Faircent Rule engine: This is an in-house algorithm that assigns different weightages to all the above factors to compute a score that helps determine the interest rate, loan tenure and amount at which the Borrower’s loan request can be listed on the platform to secure funding from the lenders.

How can I be certain that Faircent uses my funds only for lending to borrowers?
All your investments into Faircent are sent to your escrow account before being disbursed to borrowers. The funds in the escrow account are in your name, managed by an independent administrator, IDBI Trusteeship Services Limited (ITSL). Specifically:

  • Faircent has no right to intervene or option to withdraw monies for its own use from this account.
  • Lenders give instruction through Faircent to ITSL (IDBI Trusteeship Services Ltd.) who in turn will forward these instructions to ICICI for execution.
  • Faircent cannot do any transactions, only view the transactions done through this account.The trustee will independently audit the operations of this account on a regular basis.
  • A lender can withdraw money from the Escrow account anytime by simply writing to us and the money will be transferred to his bank account within 24 banking hours.

What is an escrow account? Why does Cube move money to my Faircent escrow account instead of just lending it to borrowers?
The amount you invest in Faircent is spread out over multiple borrowers in such a way as to match the risk profile that you have selected and create a diversified P2P portfolio for you. Therefore, they are disbursed as and when a borrower match is found, and when that borrower’s loan amount is fully funded by you and other lenders. This means your funds need a holding area during the time it takes to complete disbursement - that is your escrow account. Your loan repayments are also credited to your escrow account.

Do I earn interest on my escrow account?
No. You don’t earn interest on the money that’s in your escrow account or during the period that you have committed money to a loan but it has not been completely funded by other investors yet. However, because you have set Faircent to auto-invest your money it spends as little time as possible in escrow.

When do I start earning interest on my loans?
You begin earning interest when your loan is disbursed to the borrower. That is, when the loan amount is completely funded by you and other investors.

How long does it take for my funds in escrow to be lent to borrowers?
It takes between 3 and 7 working days, but it depends heavily on the risk bucket you have chosen, the size of your investment and the set of borrowers available at the time.

Where do I find my loan repayments?
Your loan repayments are all credited to your Faircent escrow account. As and when borrower profiles match your auto-invest preferences, the funds in your escrow account will be disbursed as fresh loans. However, you can withdraw the money that is in your escrow account at any time. You can also change your auto-invest settings on Faircent.com at any time.

How can I withdraw the money in my escrow account?
You can find the option to Withdraw at the bottom of your Faircent Portfolio screen in the Cube app.

What happens if a borrower delays a payment?

  • After the loan is disbursed, the Lender will receive EMIs on or before the 15th of every month. If a borrower fails to pay an EMI within a stipulated time, a penalty is levied on the borrower which is payable to the lender.
  • The first EMI is payable by cheque. Thereafter, repayments– EMI and pre-closure – are made through an online, automated procedure. Every month the entire EMI amount is collected directly (through auto-debit) from the borrower’s account to the Escrow account, from where it gets reflected in respective lenders virtual account.

What happens if Faircent shuts down?
Faircent has appointed an independent administrator, IDBI Trusteeship Services Limited (ITSL) to manage your (and other customers’) escrow account. In the event of Faircent’s assets being harmed or the company going into liquidation, this will not affect your money. This still belongs to you. For money that has been lent, ITSL will continue to receive re-payments from borrowers and distribute the collected payments to the lenders.

Can I interact with my Faircent investments only through the Cube app?
Not at all - you can continue to access the full-featured Faircent experience at their website regardless of whether you use Cube or not. For example even though you’ve automated your Faircent P2P lending investments through Cube, you can log into your account on Faircent website and manually make a loan or withdrawal there.

Goals

Where does Cube store the money I contribute towards goals?
All goal contributions are held in Reliance Liquid Fund in your name. The fund earns about 6.5% annually, compared to typically 3-4% in a bank account.

This month I have less money to contribute than the total EMIs for all my goals.
No problem. By default Cube will allocate money towards EMIs for the goals that are most recently due. In that case the goals that are farthest away won't see an EMI contribution for that month. Or with a single tap you can customise how you want to distribute your money among your goals. In either case, Cube will auto-adjust the EMIs accordingly.

What happens to my money if I delete a goal that I have already contributed to?
The money stays in the liquid fund. The next time you run Manage My Money, Cube will re-allocate that towards other goals. Of course you can also withdraw that money into your bank account under Sell Mutual Funds.

What happens to my money when a goal is complete?
Cube will notify you. You have the following options: (a) let the money remain in Cube in a liquid fund (continuing to earn about 6.5%) (b) keep the money in Cube but stop tracking the goal. That frees up the money for other goals (c) move the money back to your bank account.

What happens when I change a goal?
You can change both the amount and the due date of the goal. Cube updates the % complete and the EMI appropriately so that you continue to be able to reach the goal in time.

What happens if I reduce the goal amount to a number less than what I already have saved for? For example, I have saved INR 2 lakh already but I reduce the amount to INR 1.5 lakh.
The balance (INR 50,000 in this example) becomes available for other goals. You can also withdrawal it to your bank account from Sell Mutual Funds.

Expenses

I don't see my biller in the list
Let us know! Message us on the WhatsaApp group we set up for you when you joined. Cube can get into the Bharat Bill Payment Service, so there is a good chance we can find your biller.

Do I need to pay each expense individually when it's due?
Nope. Tap Manage my Money on the Cube home screen. Any expenses that are due in the next ten days show up in the list. Verify or edit the amount against each expense and transfer the total amount into Cube. Cube will make sure it is paid to each biller or bank account.

Do I need to enter the amount for each expense?
Cube can fetch the due amount for most utility bills so you pay the exact amount. Most staff salaries and fee amounts won't change month to month. Simply update your credit card due amount.

I've already paid an expense outside of Cube. How do I skip it in Cube?
On the Manage My Money screen, tap the expense and on the next dialog tap the 'Skip this expense' button. You'll only see it the next time it's due. If you just want to delay it by a week, tap the 'Remind me next time' button.

How do I know when my domestic staff salaries have been credited into their account?
They'll be notified by their bank. This is a regular NEFT bank transfer.

How long does it take for my credit card bill to be paid after I send Cube the money?
It takes a maximum of three working days for the money to to reach your credit card provider. Set your due date within Cube taking this into account.

How do I see a history of my expenses paid?
Under Cube Settings, tap Move and then History.

On any given day, how do I know what expenses are due?
Simply tap the Manage My Money button on the home screen. On the screen, tap 'Expenses' for a list of all bills due in the next ten days.

What happens if I don't have enough money in my bank account to pay my expenses that week?
You use your Cube Emergency Fund. When you started using expenses, Cube recommended that you leave at least two months' worth of expenses in this Fund. This money is stored in a liquid fund in your name. If you don't have enough money in your bank account to pay the bills due, Cube will liquidate the shortfall from the Emergency Fund. When the money is credited to your bank account, you'll now have enough to pay your expenses. Cube will also help you remember to replenish your Emergency Fund the next time you run Manage My Money.

Liquiloans - P2P direct via brand merchants

What is P2P direct via brand merchants?
P2P direct via brand merchants is providing 0% Consumer loans to Prime Salaried Individuals with a high credit rating (Avg. 725 CIBIL sore) for consuming Non-Fatal Discretionary Healthcare and Up-skilling Education Programmes. These are offered through reputable healthcare and education partners that typically run over 4-12 months.
Prime Retail Debt Lending is offered via Liquiloans and was founded by the highly credible and experienced Rentamojo team. They are financially backed by Matrix Partners.

How does P2P direct via brand merchants work?
Borrowers are provided an option to take a 0% subvention loan (government subsidies the interest rate) when purchasing their discretionary healthcare or education programs from an approved provider. The provider allows them to make their payments in parts over time. A Borrower Agreement is signed and a bank mandate is set up to automate the monthly EMI payment.

What are the Liquiloans fees?
There are no fee’s paid to Liquiloans. Liquiloans only make a profit once the Lender has received their 12% rate of return.

How are the borrowers vetted?
Borrowers are vetted through a proprietary algorithm which checks some or all of the following:

  • The borrower’s Credit profile (CIBIL Score & Re-payment track record)
  • Social (Location, Age, Current Job Designation)
  • Banking

This information is used to assess the suitability of the borrower before a loan is offered.

What risks are involved? What happens if a borrower defaults?
There is a risk that a Borrower may default. In case where a Borrower defaults, their treatment or programme is stopped. The Borrower Agreement is a legally binding document. A collections process is evoked to recover funds which will impact the borrowers high credit rating. In event a Borrower ends up defaulting even after the recovery process, LiquiLoans bears that default to the extent of its fees which reduces the risk to investors.

What returns should I expect? How long is this rate guaranteed?
Investors (Lenders) can anticipate a 12% return per annum for their investment. Rates are reviewed quarterly by LiquiLoans and are subject to evaluation in April 2019. Any change in expected return will be communicated well in advance.

Where does my money go when I invest? What is an escrow account?
The amount you invest is spread out over multiple borrowers in such a way as to match the risk profile that you have selected. Loans are disbursed as and when a borrower match is found. The borrower’s loan amount is fully funded by you and other Lenders. This means your funds need a holding area during the time it takes to complete disbursement - that is your escrow account. Your loan repayments are also credited to your escrow account.

What is the Lender's Agreement? Why do I need to sign over Power of Attorney?
A Lenders Agreement is a document which is signed by the Lender and Liquiloans agreeing to participate on the P2P platform subject to conditions and compliances required by the RBI. A Special Power Of Attorney is taken to reduce the Lender’s work and enables Liquiloans to assess borrowers, carry out requisite due diligence, sign the agreements with approved borrowers and disburse monies granularly to multiple borrowers.

How is P2P direct via brand merchants different to P2P direct to borrower lending?
P2P direct via brand merchants is essentially providing 0% consumer loans and the returns are made from the subvention. In P2P direct to borrower (traditional P2P) lending there is no subvention.

How much can I loan?
As per the RBI, a Lender can loan out a maximum of INR 10 Lakh per PAN Card across multiple P2P platforms. Delete this This is subject to review by RBI at the end of January 2019.

How much can I reinvest?
The minimum amount you can reinvest after your first investment is INR 10,000.

Is there a lock in period and how long does it take to access my funds?
Full or all funds can be accessed in 2 business days.

What happens if Liquiloans shuts down?
As per RBI regulations, a trustee would be appointed to manage the open loans. The trustee has access to all points have the original borrowers agreement and NACH mandates that allow them to recover the funds on behalf of Lenders.

TradeCred - Receivables Financing

What is TradeCred Receivables Financing? How does it work?
TradeCred is a Trade Credit platform which enables cash flow for working capital needs of Businesses. Receivables Financing fills a gap for small businesses that are waiting for funds to settle on banking transactions (via credit/debit/ATM cards) made the day before.

  • Card based transactions in India (Credit/Debit/ATM) are “settled’ after a day, meaning that when a consumer withdraws money or swipes their card, money is deducted from their account on the same day. However, the receiver/payee/merchant gets the money on the next day.
  • This creates a perpetual working capital gap, which affects cash flows of the business.
  • TradeCred works with a registered payment intermediary/ aggregator who gives real time receivables to merchants/ATMs post which the the money is received by TradeCred in an escrow account the following day.

What risks are involved?
Like any trade transaction, there are following risks involved:

  • Counterparty risk involved – Counterparties in this case being banks whose card has being used.
  • Fraud risk – The transaction may be fraudulently originated.

In terms of actual empirical data on risks, TradeCred has facilitated over 350 crores of Receivables Financing till date with ZERO default and ZERO delays.
To mitigate the these risks:

  • TradeCred does not fund any transaction more than INR 10,000.
  • TradeCred funds only maximum 90% of the total transaction volumes. Just to get a sense, overall fraud risk in the card payments system in India is less than 0.10%.

How is TradeCred regulated?
TradeCred is a platform, and not the beneficiary of the funds nor the owner of funds.

Are merchants vetted before being loaned this money?
The payment aggregator who is registered with RBL Bank, who has been selected for Cube investors is:

  • 1. An Aadhar ATM operator
  • 2. Has PCI DSS certification
  • 3. Has undergone extensive Due Diligence by Audit Firm EY
  • 4. Has clean CIBIL score and track record
  • 5. Has tied up with 36,000+ sub agents
  • 6. Has seen transaction mismatch/failure rate of less than 0.10% since the last 12 months

Why don’t merchant’s borrow this money from the banks?
Banks fund working capital by calculating something called as Drawing Power. A lot of banks have stopped funding working capital below 15 days and more than 90 days. Receivables Financing is a perpetual 1 day working capital instrument.

What returns can I expect? How long is this rate guaranteed?
Currently, the returns are 13.0% on an annualised basis. If you in invest 100 today, you will earn 113 at the end of the year. The expected returns will not change for the next 12 months.

How much can I invest?
There is no limit. Minimum is INR 50,000.

Is there a lock-in period and how long does it take to access my funds?
There is no lock-in. You can access the funds at a 3 day notice. Example: If you click on the ‘redeem’ button on the 46th day by 4 pm, you will get the funds back in your account on the 48th day by 12 pm. Returns will be calculated till the 47th day.

What are the TradeCred fees?
All escrow charges, legal costs, TradeCred fees, GST on the above etc are deducted already. 13.0% will be the net cash flow return after deducting everything.

What happens if a merchant defaults?
TradeCred is not affected. The aggregator guarantees this amount on behalf of the merchant. This means you will receive the amount you invested as well as the returns promised.

Where does my money go when I invest?
Your money is transferred from your bank account to an escrow account that TradeCred opens in your name with ICICI Bank. From there, it is transferred to the payment aggregator who is registered as a Business Correspondent or Payment Intermediary with a Bank. The payment aggregator then transfers it to thousands of merchants/agents.

What is an escrow account?
An escrow account secures the interest of the parties by creating a framework and taking cash flow away from the unilateral control of one party. This helps in mitigating the risk for the party whose money is at stake. TradeCred escrow bank is ICICI Bank.

What documents do I need to sign?
A standard investor agreement is sent by TradeCred for you to sign that outlines the responsibility of each party.

What happens if TradeCred shuts down?
The funds will be immediately returned back on the next day to all investors as the same will be immediately stopped from deployment. Without TradeCred process of transaction authentication on daily basis by 12.30 pm, the funds will not go back to the payment aggregators and will be given back to investors.

Ambit Capital Portfolio Management Services (PMS)

Do you have a model portfolio approach?
Yes. We use a model portfolio to make investments.

Are there any deviations in the portfolio construction?
Generally, no. However, if a client cannot invest in one or more of our portfolio stocks due to constraints, we do provide an alternative replacement for that stock.

How soon upon new fund infusion, the monies are invested in full in line with the model portfolio?
As soon as the client account is activated in the fund database.

Do you take cash calls? What is the likely range of cash in the portfolio?
A specified range of cash (less than 5% of investment/portfolio amount) is usually kept as buffer for transaction fees, operational and other costs. Beyond that range the cash is invested in the portfolio. Cash calls will be taken in extreme circumstances (for e.g. if a current portfolio stock does not perform well and we may exit the position. In that case, a cash call would be taken only if a new replacement company stock is not available).

What is the current sector-wise allocation?
As of December 2018,

  • Home Building Materials: 34%
  • Consumer Discretionary: 29%
  • Financials: 19%
  • Consumer Staples: 18%

What was the maximum drawdown in the portfolio in the last 5 years?
The maximum monthly drawdown has been -9.1%. The maximum overall drawdown has been -12.7% post fees, while for NIFTY it was -11.1% for the same period, ie Aug 2018 to Oct 2018.

Number of stocks that you intend to invest in?
Between 10 and 15 stocks.

What is the size of the investment team?
1 portfolio manager and 2 research analysts.

What is the benchmark of the fund?
NIFTY 50.

What has been the portfolio churn until now?
Till now the portfolio has had zero churn (no stocks exited since inception date).

What is the intended churn of the portfolio?
We aim to keep the churn to a minimum level (less than 10% of the portfolio).

What is the intended holding period of stocks?
We aim to invest for a period of 8 to 10 years.

What are the fees and charges apart from management and performance fees?

  • Auditor’s fees: INR 1500 per annum
  • Brokerage: 0.1% per transaction
  • Demat charges: INR 600 per annum

Gyandhan Education Loan

What is GyanDhan?
GyanDhan is a startup with a personal mission to ensure that financial obstacles never stand in the way of someone’s education dream. By leveraging data science, they provide awesome education loan options to students pursuing higher studies. Launched in April 2016, they have already received a phenomenal response with 1000s of beneficiaries.

How does it work?
After GyanDhan receive your request, a dedicated education loan counsellor (ELC) will get in touch with the student to understand the profile & requirements. Based on the conversation, their ELC will recommend an education loan product with one of our partners.

Once you are ready to proceed, GyanDhan share a digital application form and a customized list of documents. Note that the exact list of documents depends on several factors. Depending on the lending partner, you’ll either submit the documents online or a GyanDhan executive will visit your home to pick up the documents.

Post documentation, GyanDhan will follow up with lender to ensure a speedy approval.

What are the fees?
GyanDhan services are completely free. Please note the lender may have their own processing charges which are directly payable to them and will be shared with the borrowers upfront.

I have the requisite funds, why should I look at an education loan?
Education loans are rather unique in that all the interest paid on your / your dependent's education loan is tax deductible (per section 80 E of IT Act). Note that this is over and above the limits set in section 80 C. So, for individuals in the 30% marginal tax bracket, a 10% interest rate effectively becomes 7% post-tax.

What type of student loans do you offer?
GyanDhan offer student loans both with and without collateral. The upper limits are 1.5 crore for loans with collateral and 50 Lakhs for loans without collateral.

How will I know this is the best student loan option for me?
GyanDhan have chosen their lending partners so that they have the best deal available for every student loan situation. To compare with any other option you’re considering, use their EMI calculator

How long does it take for new loan to be issued?
3-5 days without collateral, and 12-15 days with collateral

Is there any support provided?
Yes, a dedicated counselor will be assigned to you. In addition to the loan services, GyanDhan also offer tailored guidance and tools to help you prepare for higher education abroad.

How do I know if this is suitable for me?
GyanDhan have helped 1,000s of students with education loans already. Students love them on Facebook and Google, where they are rated higher than 4.8/5. Some of the biggest study abroad consultants in the country trust them with their students. In the Global Entrepreneurship Summit 2017, GyanDhan won the FinTech category and were awarded by the US State Department. These are just a few points of validation to assure you that they will secure the best education loan deal for you, with no hassle whatsoever.

What are the loan repayment terms?
The repayment is divided into two parts:

  • 1. During study: If taken from public sector banks (PSBs) you don’t have to pay anything. If not taken from PSBs, then interest / partial interest needs to be repaid on monthly basis.
  • 2. After study: Based on the number of years you have taken loan for, you will have to serve EMIs. You can always prepay and close the loan, without any penalty.

SwitchMe Home loans - Rate comparison

What is SwitchMe?
SwitchMe is India’s first mortgage platform simplifying home loans for people with a home loan. Its an Artificial Intelligence (AI) based underwriting and execution engine, helps to identify the best suited home loan and cuts down processing time by 60%. A doorstep service which helps you arrange documents, submissions, tracking your application status and to the final disbursements

How does it work?
When you express interest in switching your loan,the home loan advisor from SwitchMe connects with you as per your convenience. They’ll work with you to understand what your requirements are, capture some information from you and then research the best home loan options available to you. You get to select the loan product that suits you most with the loan coordinator helping you understand it all. The loan coordinator will let you know exactly what documents you need and help you with the paperwork right up until final disbursal (cheque handover). You also get to track it online.

What are the fees?
The fees include:
In case of private banks: Application process: % of loan value
PSU banks - processing fee and documentation charges
SwitchMe charges: INR 500

How much can I expect to save if I switch to a new home loan?
An individual could save anywhere from Rs 50,000 to Rs 70-80 lakhs but it would all depend upon what is the current outstanding balance, the remaining tenure and the existing ROI.
For example, if you had an outstanding of INR 10,00,000 for a period of 18 years at 9%, you could end up saving approximately Rs 70,000 with a new tenure of 16.5 months at 8.75%
On other hand, if say outstanding was Rs 1 crore, with same tenure at the same ROI, on switching one could save approximately Rs 10 lacs, reduce the tenure to 15 years and ROI to 8.65%.
The ROI varies from bank to bank and the loan slab you are in.

What is the application process? What paperwork do I have to do?
Application process varies from lender to lender however typically include

  • KYC
  • Income documents - iTR, salary slips etc
  • Property ownership documents - proof of registration, registration certificate

Will it cost me money to exit my existing home loan agreement?
RBI and NHB both have banned prepayment penalty on floating rates across the board. However there are a few people who have home loans at fixed rates for a certain period. They need to wait for that period to get over and then only can they do the prepayment and exit the home loan

How long does it take for the new loan to be issued?
The time taken for new loan to be issued varies from lender to lender. Application process could be as short as a week to as long as two weeks. In a switching case, time may go in collecting the documents from the bank. If the applicant already has the documents, then the time may come down to 2 weeks

What will be the terms of my new home loan?
Terms would be very similar to the current home loan. You choose the tenure and the ROI and the rest would virtually the same.