A Dad's Dilemma: 87% in B.Sc, 3 Years of UPSC Prep, Should She Take the Plunge Again?

Ans: Hi, Kratika,
We still have time to receive the results from the NTA. Based on your prediction of 504 (SC), reasonable changes are there in KGMU and UP GMC under state quota.
BEST WISHES.
POOCHO. LIFE CHANGE KARO!

Ans: If your daughter is career-focused and wants maximum exposure to the tech industry, BIT Bangalore is generally considered the better option for CSE, especially due to its location, placement record, and academic rigor. However, if she values campus life, a broader peer group, and a more relaxed academic environment, SRM KTR is also an excellent choice. Both colleges offer good opportunities, but BIT Bangalore has a slight edge for CSE due to its strong industry connections and reputation in the tech sector. All the best for your daughter's admission and a bright future!

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Ans: 01. Always receive Rent from Tenants through banking channels, which would be proof of actual rent received by you during the year. Still better, if you can get LEASE DEED from your tenants, for the period of their occupancy of your flats.
02. Claim VACANCY ALLOWANCE (for the period when your Flats remain vacant), under the head "Income from House Property", while filing your ITR.
Hope this will serve your purpose.
Most welcome for any further clarifications. Thanks.

Ans: Hi Akshaya,
We still have time to receive the results from the NTA. Based on your prediction of 351-368, it is difficult to achieve, so you must stay alert for notifications from the government regarding private medical college admissions.

BEST WISHES.
POOCHO. LIIFE CHANGE KARO!

Ans: Hi Shyam,
We still have time to receive the results from the NTA. Based on your prediction of 300, it is difficult to achieve, so you must stay alert for notifications from the government regarding private medical college admissions.
BEST WISHES.
POOCHO. LIFE CHANGE KARO!

Ans: There should not be any problem in accepting a cheque for return of Advance Paid to your landlord, at the time of vacating the house. Ask him or get an assurance from him about the time within which, you would deposit the cheque for clearing.
Most welcome for any further clarifications. Thanks.

Ans: Hi Mrunalini,
it is available. Google it.
best wishes.
POOCHO. LIFE CHANGE KARO!

Ans: You and your wife are already doing a good job by taking joint financial responsibility. Your EMI is currently manageable. The drop in repo rates gives a good window to restructure the strategy for early loan closure.

Let us now build a 360-degree strategy to help you close this home loan earlier than planned.

Present Financial Setup
Your home loan is Rs. 90 lakh.

Rs. 68.85 lakh is disbursed, and Rs. 21.15 lakh is yet to be released.

Your joint monthly income is Rs. 1.35 lakh.

EMI is Rs. 55,000 per month for now.

The interest rate has slightly reduced recently due to repo rate drop.

Your EMI burden has reduced a little, which helps.

Strategy 1: Prioritise Partial Prepayments
Any bonus, gift, or extra income can be used to prepay the loan.

Even a small prepayment once in 6 months reduces interest in the long run.

Prepay only from surplus, not from your emergency fund.

It helps to request the bank that all prepayments should reduce tenure, not EMI.

Strategy 2: Increase EMI Every Year
Every year, your income might rise slightly.

Use part of that rise to increase EMI voluntarily.

A 5% annual increase in EMI can save many years of tenure.

Even Rs. 2,000 more in EMI monthly can create strong impact.

Strategy 3: Build Prepayment Fund Separately
Open a recurring deposit or a debt mutual fund.

Deposit a fixed amount monthly.

Once in 12 or 18 months, withdraw and use for prepayment.

This is useful if you cannot prepay every month.

Strategy 4: Use Tax Refunds and Yearly Increments
Every year, you may get tax refund.

Instead of spending it, use it for loan prepayment.

Year-end salary increments should partly go towards EMI increase.

Avoid lifestyle inflation during raise in salary.

Strategy 5: Target Rs. 1 Lakh Prepayment Per Year
If both of you manage Rs. 50,000 each in a year, target is done.

Rs. 1 lakh annual prepayment cuts both tenure and total interest.

Consistency is more important than amount.

Strategy 6: Protect Emergency Fund
Maintain 6 to 9 months of expenses as emergency fund.

Do not touch this for prepayments.

It gives financial peace and avoids stress during job loss.

Strategy 7: Do Not Increase EMI Burden Too Much
Total EMI should not cross 40% of combined income.

Don’t stretch finances too tight for prepayment.

Balance is more important than aggression.

Strategy 8: Do Not Go for Higher Tenure Again
If interest rate drops, do not extend loan tenure again.

Ask bank to reduce EMI or keep EMI same but reduce tenure.

Tenure reduction saves maximum interest.

Strategy 9: Avoid Unnecessary Loans
Avoid buying car or electronics on EMI during this period.

More loans will delay your goal of early closure.

Strategy 10: Invest Only After Building Stability
Prepay loan first before going for long-term investments.

You can start SIPs and other goals once EMI is under control.

But keep PF, insurance, and child education savings intact.

Strategy 11: Avoid Interest Rate Shock in Future
If possible, shift to fixed rate after 3 to 5 years.

That will protect you from rate increase cycles.

Discuss with your bank when most of disbursal is done.

Strategy 12: Track and Stay Focused
Keep a simple Excel sheet to track balance and prepayments.

Visual tracking helps stay motivated.

Reward yourself after every prepayment milestone.

Finally
Early loan closure is fully possible with your current income level.

You and your wife are already doing well by maintaining a balance between EMI and lifestyle.

Using surplus income for prepayment, increasing EMI step by step, and avoiding unnecessary expenses can reduce your 30-year loan to 12-15 years.

Loan closure should be done with balance and planning, not stress or over-commitment.

You don’t need to be aggressive. You need to be consistent.

Focus on liquidity, stability, and controlled prepayments.

You are on the right path. Just stay focused and structured.

Once the home loan is cleared, your long-term wealth building journey will be very strong.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: He has shown good discipline by investing Rs. 13 lakh in mutual funds, now valued at Rs. 19 lakh. However, using the entire mutual fund corpus to buy a Rs. 55 lakh apartment may not be the best decision. Let’s explore this further.

Current Financial Snapshot
Combined monthly income: Rs. 1.10 lakh

Mutual fund corpus: Rs. 19 lakh (initial investment: Rs. 13 lakh)

Proposed apartment cost: Rs. 55 lakh

Proposed home loan: Rs. 36 lakh

Dependent: 3-month-old daughter

Assessing the Home Loan Affordability
With a combined income of Rs. 1.10 lakh, a Rs. 36 lakh loan over 20 years would result in an EMI of approximately Rs. 30,000.

This EMI would consume about 27% of their monthly income, which is within the generally recommended limit of 30-40%.

Evaluating the Decision to Liquidate Mutual Funds
Selling the entire mutual fund corpus would eliminate their emergency fund and long-term investment growth potential.

They would also incur a long-term capital gains tax of 12.5% on gains exceeding Rs. 1.25 lakh.

Alternative Strategies
Partial Liquidation: Consider selling a portion of the mutual funds to reduce the loan amount, while retaining some investments for future growth and emergencies.

Emergency Fund: Maintain at least 6 months' worth of expenses in a liquid form to cover unforeseen circumstances.

Child's Future: Start a separate investment plan for the child's education and other future needs.

Final Insights
While purchasing a home is a significant milestone, it's essential to balance this with financial stability.

Retaining some mutual fund investments can provide financial security and growth.

It's advisable to consult with a Certified Financial Planner to tailor a plan that aligns with their financial goals and responsibilities.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment