Sir, I have 36 lac of personal loan (70k/ month) and 30 lac of personal loan (30k/ month EMI) . My salary is 1.30 lac and I have MF 9 lac Please advise

Ans: Present Situation Overview

You shared clear numbers. Thank you for transparency.

Two personal loans equal Rs 66 lakh total.

Monthly EMIs sum to Rs 1 lakh.

Net salary is Rs 1.30 lakh each month.

Liquid mutual funds stand at Rs 9 lakh.

Disposable income after EMIs is near Rs 30,000.

High debt takes big salary share.

Cash?flow stress looks serious yet manageable with discipline.

Cash Flow Stress Test

Work out detailed monthly budget right now.

Track every rupee for three months.

Split costs into must?have and good?to?have.

Must?have list: rent, food, utilities, medicines, premiums.

Good?to?have list: eating out, new gadgets, holidays, gifting.

Aim to cap non?essential spends below Rs 5,000 monthly.

Redirect saved cash toward emergency fund first.

Bring family on board early.

Use free budgeting apps or simple notebooks.

Review progress each Sunday night.

Risk Protection Shield

Check life cover against outstanding loans.

Term insurance cover should beat loan size plus goals.

If not sufficient, buy extra term cover today.

Premium small versus peace of mind.

Maintain existing health insurance without lapses.

Add personal accident cover if missing.

Insurance cost fits inside essential budget.

Protection first; growth later.

Emergency Reserve Strategy

Absence of cushion forces costly borrowings.

Target four months expense buffer soon.

Your expense means Rs 1.6 lakh reserve.

Use liquid or ultra?short debt funds for reserve.

Fund reserve by channeling yearly bonus, gifts, tax refunds.

Pause new risky investments until buffer ready.

Keep reserve only for true emergencies.

Refill reserve quickly after use.

Debt Reduction Roadmap

Personal loans carry high rates, often 13%–20%.

Reducing them gives guaranteed risk?free return.

Step one: speak with banks on rate reduction.

Check if balance transfer offers lower rates.

Consolidate both loans into one secured loan if possible.

Use salary overdraft or top?up mortgage if existing property.

Negotiate longer tenure to cut EMI pressure initially.

Target paying extra principal once cash flow eases.

Any cashback, bonus, side income should attack principal.

Do not stop EMIs under any condition.

Automate EMI payments to avoid penalties.

Avoid additional consumer loans until debts clear.

Mutual Fund Portfolio Review

Rs 9 lakh can support debt strategy.

First, confirm fund type and exit load terms.

Check if gains exist above Rs 1.25 lakh limit yearly.

Equity fund LTCG above this attracts 12.5% tax.

Short?term equity gains taxed flat 20%.

Debt fund gains taxed by your slab.

Redemption may still save money if loan rate high.

Consider partial redemption keeping emergency fund intact.

Keep at least Rs 1.6 lakh reserve after redemption.

Shift remaining MF to goal?based SIPs later.

Avoid abrupt full exit; plan phased redemption.

Income Enhancement Ideas

Explore upskilling for salary hike.

Short courses in data, cloud, or AI pay quickly.

Check freelancing platforms for weekend gigs.

Turn hobbies into small income streams online.

Negotiate yearly appraisal with documented achievements.

Seek relocation allowance or hardship allowance if applicable.

Check employee tax?free benefits like meal cards.

Use company stock purchase plans wisely.

Side income can go straight toward loan prepayment.

Expense Management Tactics

Audit subscriptions: music, OTT, gym, apps.

Cancel unused ones now.

Cook meals weekdays; limit restaurants to birthdays.

Share rides or use metro for daily travel.

Shop groceries online under discount codes.

Buy generic medicines when doctor allows.

Plan yearly festivals with set budget envelopes.

Gift handmade items, saving cash and adding warmth.

Delay phone upgrades until loans finish.

Review electricity plan; choose lower slab tariff.

Tax Efficiency Plan

Max out EPF and VPF contributions if employer allows.

Use Section 80C with term insurance premium, EPF, PPF.

Avoid locking money in high?cost insurance?investment mixes.

Use Section 80D for health insurance premium deduction.

Claim house rent allowance by collecting rent receipts.

Submit tax proofs timely to payroll team.

Adjust VPF rate depending on liquidity needs.

Maintain digital file of all tax papers.

Any tax refund should reduce loan principal immediately.

Stay aware of future tax rule changes yearly.

Behavioural Guardrails

Build monthly habit of paying yourself first.

Automate transfer to reserve on salary day.

Avoid comparing lifestyle with peers on social media.

Celebrate small wins, like first extra Rs 50,000 principal paid.

Use visual tracker on fridge for loan balance.

Practice gratitude to keep spending urges low.

Revisit goals sheet each quarter with partner.

Keep meeting with Certified Financial Planner yearly.

Family Goal Alignment

Discuss goals openly with spouse or parents.

Explain debt burden and needed sacrifices.

Assign responsibilities: spouse tracks groceries; you track utilities.

Set family No?Spend weekend challenge each month.

Involve children in saving games if applicable.

Celebrate debt milestones with simple home treats.

Family unity speeds journey and lowers stress.

Monitoring and Review Schedule

End of each month: compare budget versus actual.

End of each quarter: calculate outstanding loan balances.

Mid?year: review insurance adequacy.

Year?end: plan tax saving for next year early.

Annual meeting with Certified Financial Planner.

Adjust plan for salary raises or life events.

Update emergency fund target for inflation yearly.

Keep all financial documents scanned and cloud?stored.

Career Continuity Planning

Life uncertainty can harm loan servicing badly.

Build professional network actively on LinkedIn.

Attend industry events or webinars each quarter.

Keep updated resume ready always.

Learn new tools relevant to your field yearly.

Consider alternate career path if automation threatens role.

Secure corporate medical cover for family even when job switches.

Seek roles offering pay plus variable bonus.

Variable bonus can accelerate debt payoff.

Credit Score Maintenance

Timely EMI boosts credit score each month.

Keep credit card utilisation under 30% limit.

Pay credit card bill in full before due date.

Check credit report twice a year for errors.

Dispute any wrong entry immediately online.

Good score reduces future loan interest burden.

Long Term Investment Re?Start

Once loans fall below Rs 20 lakh, restart SIP.

Begin with Rs 5,000 monthly into diversified equity funds.

Increase SIP 10% yearly with raises.

Avoid sector funds or thematic fads.

Choose regular plans through MFD with CFP qualification.

MFD service fee covers hand?holding and paperwork.

Regular plan cost is small versus guidance benefits.

Direct funds lack timely alerts and emotional support.

MFD can assist with tax?optimal redemption scheduling.

Keep SIP aligned with specific future goals.

Goal Setting Framework

Short term goal: build Rs 1.6 lakh reserve in six months.

Medium term goal: clear smaller loan in three years.

Long term goal: clear second loan in five years.

Post debt goal: build retirement corpus steadily.

Write goals on paper and review monthly.

Attach target date and reason beside each goal.

Strong reasons push consistent actions.

Psychological Well?being

Debt can cause anxiety and sleep issues.

Practise daily 10?minute meditation morning and night.

Exercise thrice a week for endorphin boost.

Talk with spouse or friend when stress peaks.

Avoid splitting personal relationships due to money strain.

Seek professional counsellor if anxiety persists.

Child Education Preparation

If you have kids, open Sukanya or PPF early.

Small monthly deposits suffice now.

Larger funding resumes after loans settle.

Keep separate account name for each child.

Do not dip into child fund for adult expenses.

Possible Windfall Handling

You may receive arrears, incentives, or inheritance.

Allocate 50% of windfall to loan prepayment.

Allocate 30% to emergency fund top?up.

Allocate 20% for small family celebration.

This keeps morale high without harming plan.

Digital Safety Steps

Use strong passwords and two?factor login for bank apps.

Never share OTPs on calls.

Update phone security patches regularly.

Phishing loss now hurts loan plan severely.

Checklist for Immediate Action

Prepare complete household budget this weekend.

Organise insurance papers and nominee details.

Contact loan officers Monday seeking rate reduction.

Evaluate partial MF redemption for debt cut.

Start separate emergency fund account now.

Schedule Certified Financial Planner meeting within two weeks.

Set calendar reminders for review dates yearly.

Finally

You already took brave step by seeking help.

High debt looks heavy but not unstoppable.

Discipline, planning, and family support can win.

Build protection and reserve before tackling principal.

Prepay loans with every extra rupee earned.

Revive investments after debt burden eases.

Stay focus on goals, review, and adapt.

Your future self will enjoy debt?free mornings soon.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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