My name is Ram Kumar. I am 60+ year old. I am a computer operator. I have suffering from tail bone (just above anus) pain after seating two hours or driving bike. Please suggest what to do.

Ans: You said that your loan interest rate was reduced after rewriting, but both EMI and tenure stayed the same. It is a very common case and needs to be clearly understood. We will analyse the situation with practical thinking.

Why the Lender Reduced Interest but Kept EMI and Tenure the Same

First, a lower interest means less cost on total loan.

But your EMI stayed the same because the lender decided to keep it simple.

By doing this, the extra amount from lower interest goes to principal.

So, your principal is now reducing faster with the same EMI.

This means you will still finish the loan early, though tenure appears same now.

What Happens When EMI and Tenure Are Kept Unchanged

You pay less interest overall now.

Your loan is getting closed faster than before.

Lender doesn’t always show revised schedule immediately.

But effective tenure reduces, saving you more money.

How to Know You’re Benefiting Even Without EMI Drop

Ask for amortisation table from your lender.

Compare old interest cost with new interest cost.

You’ll see the interest saved and faster principal reduction.

That’s your hidden gain without changing EMI or tenure.

Why Lenders Often Keep EMI Constant After Rewriting

They do this for ease and consistency.

Changing EMI affects auto-debit and bank instructions.

Keeping same EMI gives a smooth experience for borrower.

You don’t have to submit new mandates.

Should You Ask for EMI or Tenure Change Actively?

Depends on your goal – early closure or monthly saving.

If you want low EMI for cashflow, you can request EMI reduction.

If you want faster loan finish, keep EMI same.

It’s better to keep EMI same to close early and save interest.

How This Impacts Your Financial Planning

Early loan closure gives you freedom.

It helps redirect money to your goals sooner.

Once EMI stops, you can invest more towards wealth creation.

This increases your savings and builds faster financial stability.

Why Faster Loan Repayment Is Always Better

You pay less interest to the lender.

You become debt-free sooner.

Your credit score improves.

You get peace of mind.

You free up more income for investing.

Use Surplus EMI Amount Later for SIPs

After loan ends, use EMI amount to start mutual fund SIPs.

This builds long-term wealth and supports your financial goals.

Start with equity mutual funds for 7+ year goals.

Use hybrid or debt funds for short-term goals.

How to Align Loans with Investment Planning

Speak with a Certified Financial Planner for full strategy.

CFP helps you balance loan repayment with investing.

Don’t just reduce EMI and spend the savings.

Use savings to build wealth for retirement or child education.

Don’t Depend on Bank’s Default Setting Always

Bank may keep EMI and tenure same for ease.

But that may not suit your personal goals.

Ask clearly for revised amortisation and schedule.

You have full right to ask for EMI or tenure change.

Loan Rewriting Must Be Combined with Proper Investment Planning

Lower interest is helpful, but use the savings wisely.

Many people save on loan and spend the surplus.

Instead, channel it into SIPs through a proper plan.

Only a Certified Financial Planner can give this alignment.

Avoid Mistakes After Loan Rewriting

Don’t assume EMI staying same means no benefit.

Don’t use saved interest money for lifestyle upgrades.

Don’t keep excess savings idle in your bank account.

Don’t skip checking updated loan statements.

Best Use of Surplus After Loan Rate Drop

Use extra income for emergency fund top-up.

Start or increase SIP in equity mutual funds.

Fund your child’s education plan systematically.

Strengthen your retirement goal with higher monthly investing.

Additional Tip for Financial Discipline

Keep an Excel sheet or tracker for your loan schedule.

Compare actual loan balance with expected balance.

This will show your loan is closing faster.

Motivates you to stay financially disciplined.

What If You Already Have Investment-Linked Insurance?

If you hold LIC, ULIP, or any endowment policy, review them now.

They give very low return over long term.

Consider surrendering and reinvesting in mutual funds.

This ensures better growth with flexibility.

How Mutual Funds Help Post Loan Completion

After EMI ends, your savings rise.

Use that to start a long-term SIP.

Choose actively managed mutual funds only.

They give better returns with fund manager involvement.

Why Index Funds Are Not Ideal

Index funds only copy the market.

They don’t protect during market crashes.

No active decision-making or research behind them.

Actively managed funds perform better with expert strategies.

Avoid Direct Mutual Fund Investments

Direct funds may seem cheaper but lack proper support.

No one guides you through changes or market cycles.

With regular funds through Certified Financial Planner, you get direction.

CFP helps match funds with your life goals.

Taxation Benefit is Also Indirect in Loan Rewrite

Lower interest means less yearly interest claim under 80C.

But total wealth increases due to faster principal reduction.

Balance loan planning with other tax-saving investments.

Final Insights

Interest rate cut helps you save more.

Even if EMI and tenure are unchanged, you still benefit.

Use saved interest portion for future goals.

Review your financial plan with a Certified Financial Planner regularly.

Becoming debt-free faster is one key to long-term wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: You are 30. You are married recently. Congratulations.
You bought a house in Bangalore. Good move if you plan to stay long.
Home cost is Rs. 1.3 crore. Loan is for 20 years. EMI is Rs. 90,000.
Your monthly income is Rs. 2 lakhs.

You also hold Rs. 2 lakhs in FD.
Rs. 3 lakhs in savings account.
Rs. 5 lakhs in ELSS mutual funds (lock-in till 2027).
Rs. 1 lakh in direct equities.

You are worried about job loss due to AI.
That fear is real. But can be handled with proper plan.
Let us now review your finances fully.

A full 360-degree assessment is given below.

Understand Your Cash Flow First

Your EMI is Rs. 90,000 per month.

This is 45% of your salary.

Ideally, EMI should be below 40%.

Slightly on higher side, but still manageable.

You are saving nearly Rs. 10,000 to Rs. 20,000.

That saving can increase with planning.

Avoid lifestyle inflation to stay safe.

You need to build buffers now.

Build an Emergency Fund Immediately

You have Rs. 5 lakhs in liquid savings.

Combine FD and savings bank for this.

Keep this untouched for emergencies.

This gives you mental peace during job risks.

Ideally, have 6 to 9 months EMI saved.

Rs. 8 lakhs to Rs. 10 lakhs must be your goal.

Do not use this fund for expenses or investments.

Review Job Risk and Plan Career Safety

AI impact is serious across industries.

Upskill yourself to stay relevant.

Take online courses related to your job.

Upgrade your profile every year.

Stay aware of changes in your field.

Job loss fear reduces when you keep learning.

A better skilled employee stays ahead.

Prepare a Backup Plan for Income

Look for secondary income sources.

Small freelance or consulting roles help.

Use weekend time productively.

Even Rs. 5,000 per month is useful.

Passive income is key for loan safety.

Your spouse can also contribute if possible.

Family income gives more stability.

Do Not Depend on Direct Equities Now

Direct stocks are very risky now.

Markets are volatile.

You already have house loan burden.

Rs. 1 lakh in stocks is okay. But don’t increase.

Do not invest fresh money in equities directly.

Keep equity allocation within ELSS only.

ELSS Mutual Fund Is Good for Tax Saving

ELSS lock-in ends in 2027.

Don’t redeem before that.

Let it grow peacefully till lock-in ends.

Do not stop SIP unless you really must.

After lock-in, shift to regular equity funds.

Invest through a Certified Financial Planner only.

Avoid Direct Fund Investing Later

Direct funds do not give guidance.

No one reviews or supports your portfolio.

You need professional advice.

Invest through regular plans with CFP only.

Certified Financial Planner offers full support.

MFD linked with CFP guides you long-term.

Advice, monitoring and correction are valuable.

Avoid Index Funds in Future

Index funds just copy the market.

They do not protect during downfall.

They have no fund manager strategy.

You cannot beat inflation by copying index.

Actively managed funds work better.

Good managers manage risk and returns.

They adjust portfolio based on economy.

Don’t Take Any Top-up Loans Now

You already have a home loan.

Additional loans increase your stress.

Avoid personal loan or car loan for 3 years.

Focus on stability, not consumption.

Top-up loans may look easy now.

But later, they become pressure.

Keep Your Insurance Protection in Place

Health insurance must be active.

Rs. 5 to 10 lakhs family floater is enough.

Check if your job offers it.

If not, buy outside immediately.

Buy term insurance if you don’t have.

Sum assured should be at least Rs. 1 crore.

Avoid ULIP, endowment, or money-back plans.

If You Hold LIC or ULIP Plans

If you have any LIC or ULIP or mixed plans, surrender them.

Take only pure term insurance.

Rest of money should be in mutual funds.

Investment and insurance should not mix.

Keep them separate always.

Track Your EMI and Home Loan Closely

Keep EMI on auto debit from bank.

Never miss EMI even for one month.

If job risk increases, inform bank early.

You can ask for restructuring in hard times.

But don’t wait till it’s too late.

Home loan default affects your CIBIL badly.

Plan to Part-Prepay Loan Every Year

Use bonuses or variable pay to prepay.

Even Rs. 50,000 per year helps.

It reduces interest in long term.

But don’t use emergency fund for this.

Plan separate prepayment fund.

Avoid Real Estate for Investment Now

Real estate is illiquid.

Not suitable for salaried person with big loan.

You already bought one house.

Don’t invest in another house or plot.

Focus should be financial instruments only.

Avoid Annuity Products or Locked Plans

Annuity returns are low.

They lock your money for years.

They are taxable too.

You are too young for annuities.

Stay flexible and growth-oriented.

Your Asset Allocation Looks Balanced Now

Rs. 5 lakh in ELSS – good for long term.

Rs. 2 lakh FD + Rs. 3 lakh savings – good cushion.

Rs. 1 lakh in equity – avoid further increase.

No high-risk moves needed now.

Keep asset mix 60% safe, 40% growth-based.

Track Mutual Fund Taxation for Future

ELSS is equity-based. Taxed accordingly.

LTCG above Rs. 1.25 lakh taxed at 12.5%.

STCG is taxed at 20%.

Debt fund returns taxed by income slab.

Plan redemptions with tax in mind.

Stay Calm and Follow Structured Plan

Don’t act in fear or pressure.

Take decisions based on plan.

Avoid news-based actions.

AI will change jobs. But it also creates new ones.

Be flexible and ready for change.

Work With a Certified Financial Planner

CFP helps plan your loan, taxes, savings.

He also builds your retirement and goals.

Choose a CFP who works full time.

He will guide during job change or tough periods.

Stay with one advisor long-term.

Finally

Your EMI is manageable now.

Build Rs. 10 lakh emergency fund slowly.

Prepay loan in small parts every year.

Upskill and stay relevant in job.

Avoid direct stocks and top-up loans.

Don’t fall for product sales.

Focus only on practical and liquid investments.

ELSS is fine. Direct equity should be minimum.

Mutual fund SIPs can continue if job is stable.

Do all new investments only through CFP using regular plans.

Avoid index funds, annuities, and real estate investments.

Protect health and life with right insurance.

Keep spouse informed about all money decisions.

Review your money plan once every 6 months.

Stay prepared for job changes, not scared.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: At 34, with a steady income and manageable EMIs, you’re in a good position to build strong financial stability. Let’s now assess your situation from all angles and give you a full financial roadmap.

Income and Expense Analysis

Your combined monthly income is Rs. 2 lakhs.

Your current EMI is Rs. 45,000.

Your house rent is Rs. 22,000.

Total fixed outgo is Rs. 67,000 monthly.

After these, you are left with Rs. 1.33 lakh per month.

This leftover amount is your starting point to build savings and investments.

Emergency Fund Planning

Emergency fund is your first priority before any investments.

Keep 6 months of expenses in this fund.

For your household, target Rs. 4 lakhs to Rs. 5 lakhs.

Park it in liquid mutual funds or bank savings-linked FDs.

This will protect you from sudden job loss or medical expenses.

Insurance Protection Plan

Get health insurance for both of you separately from employer cover.

A Rs. 10 lakh floater family policy is ideal.

Life insurance should be term insurance only.

Coverage should be 15-20 times your annual income.

Avoid ULIPs, endowments, and money-back policies.

These mix insurance and investment and deliver low returns.

Debt Strategy for Freedom

Aim to close EMIs before investing heavily.

Start with highest interest debt first.

If you can add Rs. 10,000 extra per month towards EMIs, it will help.

This shortens tenure and reduces total interest.

Avoid taking new consumer loans.

Ideal Monthly Savings Target

From Rs. 1.33 lakh available, aim to save Rs. 80,000 monthly.

Use rest for lifestyle, vacations, family gifts and goals.

As income grows, increase savings by 10% every year.

Goal-Based Investment Approach

Let us now divide your investments into key life goals. This gives focus and clarity.

Short-Term Goals (0–3 years)

These can include vacation, car, or house deposit.

Avoid equity here. Too risky for short term.

Use ultra short-term mutual funds or arbitrage funds.

These give better returns than FDs with similar risk.

Medium-Term Goals (3–7 years)

Child birth, early school needs, small home improvement.

Use a mix of hybrid mutual funds.

Choose a balanced advantage fund and multi-asset funds.

They manage equity and debt dynamically. Suitable for this time frame.

Long-Term Goals (7+ years)

Children’s higher education, retirement, wealth building.

Focus more on equity mutual funds here.

Diversify across large-cap, flexi-cap, and mid-cap funds.

SIP of Rs. 50,000 monthly across 4–5 equity mutual funds is ideal.

Equity gives inflation-beating growth over long term.

Important Note on Index Funds

Many suggest index funds as low-cost option.

But they blindly follow the market without research.

In falling markets, they fall without cushion.

Actively managed mutual funds give better downside protection.

They have research-driven stock selection and flexibility.

Investment Mode – Direct vs Regular

Direct mutual fund option looks cheaper on paper.

But lacks advisor support and guidance.

Wrong fund or wrong asset mix can lower your long-term wealth.

Regular funds via a Certified Financial Planner ensure right strategy.

CFP monitors, rebalances and aligns portfolio to your goals.

Child Future Planning

If planning a child or already have one, start early.

SIP in child-focused mutual funds is a good start.

Use long-term funds for higher education corpus.

Avoid child ULIPs or endowment policies.

These are expensive and give low returns.

Retirement Planning from Now

You are 34. Retirement at 58 gives you 24 years.

Compounding works best in this time frame.

SIPs in equity mutual funds can build strong retirement wealth.

Add NPS only if you are sure of its structure and lock-in.

Better to use mutual funds with liquidity and flexibility.

Avoid Investment-Linked Insurance Plans

LIC, ULIPs, money-back plans offer low IRR.

If you have any, consider surrendering.

Redirect those funds to mutual funds with long-term vision.

How to Start Your Investments

Begin with a financial plan prepared by a CFP.

List all your goals with time and value.

Divide your Rs. 80,000 monthly savings across goals.

Allocate in the right mix of funds.

Monitor it every 6 months with the planner.

How to Become Financially Stable

Financial stability is more than just saving money.

It is about managing risk, growing money, and planning future needs.

Keep track of net worth yearly.

Avoid credit card debts. Use loans only for assets.

Increase savings rate as income grows.

Stay invested even during market falls. That’s where wealth is created.

Avoid Common Investment Traps

Don’t follow friends or social media for fund tips.

Avoid churning of funds frequently.

Don’t mix insurance with investments.

Avoid investing everything in one asset class.

Tax-Saving Investments

ELSS funds are good for 80C tax saving.

They also help create wealth in the long run.

Don’t overdo insurance to save tax.

Use PPF for some safe tax-free returns.

Use Bucket Strategy in Future

Create three buckets for money post-retirement.

Short-term bucket for regular needs in liquid or arbitrage funds.

Mid-term bucket in hybrid funds for 5–7 years needs.

Long-term bucket in equity mutual funds for growth.

This helps manage income and reduce tax stress.

Taxation on Mutual Funds (Updated Rules)

Equity mutual fund gains above Rs. 1.25 lakh are taxed at 12.5%.

Gains below this are tax-free in a year.

Short-term gains taxed at 20%.

Debt mutual funds taxed as per your income slab.

Keep Your Investments Simple

Choose 4–5 strong mutual funds only.

Don’t chase past returns.

Focus on consistency and fund manager experience.

Use SIPs for regular investing and lumpsum during market dips.

Final Insights

You are in a good place financially.

Just need structured saving and smart investing.

Rs. 80,000 monthly saving is a strong start.

Focus on risk protection, goal clarity and fund discipline.

Take guidance from a Certified Financial Planner for long-term support.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ans: You are trying your best. That’s a good start.
Your situation is tough. But not impossible.
A small change today can help big tomorrow.

You are 27 years old.
You are earning Rs. 35,000 per month.
You have a personal loan of Rs. 3 lakhs.
You also have a gold loan of Rs. 1.2 lakhs.
Your EMI is not going properly.

Let us now assess your full financial life.
Let us try to find the best and practical solution.
A full 360-degree review is given below.

Understand the Real Picture

Personal loan EMI is not affordable now.

Gold loan is adding more pressure.

Monthly income is Rs. 35,000. But expenses are unknown.

No clarity about other savings or liabilities.

Let us assume Rs. 10,000 is for basic living.

Balance Rs. 25,000 is not enough for two loans.

This is a debt trap stage. Need immediate plan.

Taking more loan is not a solution.

Your financial life must be stabilised first.

It can be done step-by-step, patiently.

Start with Budget Review

Track all expenses for one month.

Find unnecessary or avoidable costs.

Limit online food orders, OTT, travel, and lifestyle spends.

Create a written monthly budget.

Follow the budget strictly for 6 months.

Bring expenses down to minimum.

Target monthly savings of Rs. 10,000 to 12,000 minimum.

Keep a small notebook or app to monitor it daily.

Address the Gold Loan First

Gold loan usually has high interest.

It is a secured loan. Gold can be auctioned.

Try to close gold loan in 4 to 6 months.

Use all possible savings to repay this one first.

If possible, take a small help from family to close gold loan.

Once gold is released, avoid re-pledging it.

This step gives you mental relief.

Talk to the Bank for Personal Loan Restructure

Approach the bank directly.

Request to restructure the EMI.

Ask for longer tenure or reduced EMI.

It is better than defaulting EMI.

Banks do offer one-time solutions sometimes.

Keep all records of communication.

Do not ignore EMI delay calls.

Be proactive and transparent with bank.

Avoid Taking Any New Loan Now

Do not take credit card loans.

Avoid app-based loans with high interest.

Do not take hand loans with monthly interest.

It will worsen your situation.

Focus on repayment, not replacement of loans.

Start Emergency Fund Slowly

Once gold loan is closed, build an emergency fund.

Keep 2 to 3 months income in savings.

This avoids future loan needs.

Even Rs. 1,000 saved per month is good.

Emergency fund gives you peace.

Assess Your Career and Income Options

Check if income can be increased.

Take weekend freelance or part-time job.

Learn a small new skill for better salary.

Many free online courses are there.

Try for a higher-paying job also.

Small income boost can ease repayment.

Protect Your Health First

If you don’t have health insurance, buy now.

Even low-cost Rs. 5 lakh cover is useful.

Medical emergency can push you back to more loans.

Check employer coverage also.

Avoid Insurance-Cum-Investment Plans

If you hold any ULIP, endowment, or LIC money-back, stop it.

Surrender it and take term insurance only.

Invest the surrendered money into good mutual funds.

But only after clearing loans.

Insurance is for protection, not investment.

When You Start Investing Later

Start SIP in mutual funds through Certified Financial Planner.

Prefer regular funds via MFD, not direct funds.

Direct funds do not provide advice or support.

CFP gives personalised service and long-term review.

Regular funds give long-term guidance and hand-holding.

Stay Away From Index Funds

Index funds do not beat market returns.

They have no active fund manager.

They follow market blindly.

They don’t protect you in down markets.

Actively managed funds give better returns with lower risk.

Avoid Real Estate Investment

Real estate needs big capital.

It has high maintenance and low liquidity.

It is not for your stage now.

Focus on clearing loans and creating liquidity.

Avoid Annuities

Annuities lock your money for long.

Returns are low and taxable.

Not suitable for your young age.

Keep money flexible and growing.

Track Your Progress Every Month

Review your budget monthly.

Check if loan balances are going down.

Check if your savings are improving.

Make a small celebration for each milestone.

Stay motivated throughout the journey.

Build a Financial Mindset

Talk about money openly with family.

Read one finance article every week.

Stay away from people who promote quick money.

Be patient and consistent.

Long-term thinking gives stability.

Consult a Certified Financial Planner

Once loan stress is reduced, meet a CFP.

He will plan your future steps.

He will guide on savings, insurance, retirement.

CFP is trained to handle all situations.

Choose one with a good track record.

Final Insights

First 12 months will be hard. But you can manage.

Focus on one step at a time.

Close gold loan first.

Then restructure personal loan.

Stick to a budget without fail.

Start savings slowly.

Don’t take fresh loans.

Focus on income growth.

Don’t mix insurance with investment.

Choose mutual funds through CFP only.

Direct or index funds are not for your situation.

You are still young. A solid plan can help you.

One good decision today can change your tomorrow.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Hello Dear.
I have answered such types of questions previously. Pl copy and paste the following links into your browser to know more.:
(1) https://gurus.rediff.com/hi/question/qdtl/career/passed-12th-2023-cbse-board-039-m-eligible-jee-advanced/5197440
(2) https://gurus.rediff.com/hi/question/qdtl/career/passed-12th-2023-cbse-board-039-m-eligible-jee-advanced/5197441
Best of luck to you.
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Radheshyam

Ans: Hello Uthra
Glad to hear the nice decision taken by your daughter. Certainly, she will excel in this field. But you did not mention your home state, hence unable to guide you properly. Best of luck to your daughter.
Follow me if you like the reply. Thanks
Radheshyam

Ans: Hello Mayank.
With the given percentile, you can get admission to a private engineering college. As you did not mention your home state/hometown, unable to guide you properly. Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Ans: Hello Adite
If financially sound, go with Thapar, else with Jaypee/MAIT. Both have ga ood track record of placement. Best of luck to you.
Follow me if you like the reply. Thanks
Radheshyam

Ans: Hello dear.
If your financial condition is sound, then there is no need to think about MIT. It is preferable to go with SRM from a future point of view. But if cost matters to you, choose MIT Pune, but not recommended. Best of luck to your son.
Follow me if you like the reply. Thanks
Radheshyam