PSU Banker, 37: Loan cut my SIP. Can I still hit 10Cr?

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Ans: You are 38 years old and managing a lot. You have two kids aged 9 and 5. You are already making some smart moves. You invested in land and are growing Areca nut. You are also investing in mutual funds and ELSS. This shows you are thinking ahead. That is a great habit.

Let’s now look at your complete financial picture. I will give you a 360-degree analysis. We will see where you are, what you need to change, and how to move forward. I will explain in simple words and with short sentences.

Income and Expense Analysis
Your gross monthly salary is Rs. 1,20,000.
Let us understand how this income is used:

Household expenses: Rs. 10,000

House rent: Rs. 8,000

Children education: Rs. 10,000

Mutual fund (ELSS): Rs. 5,000

Health insurance: Rs. 3,380

KGID (Life insurance saving): Rs. 10,000

Term insurance: Rs. 3,000

Income Tax: Rs. 10,000

Personal loan EMI (for Rs. 25 lakh): likely Rs. 45,000–50,000

You are spending about Rs. 1,09,000 monthly. That leaves very little surplus. This is a tight budget. But it can be improved. Let us look at your plan deeply.

Understanding Your Debt Burden
You took Rs. 25 lakh personal loan for buying land.
Personal loan has high interest. It is not meant for assets like land.
Also, this land will give income only after two years.

This means for the next two years, EMI is pure outflow.
There is no income to match it yet. This creates cash flow pressure.
That is why savings are getting reduced.

What you can do:

Try to prepay part of the loan if possible

Use any bonus or extra income to reduce this loan

Once Areca nut income starts, use it only for this loan

Do not take another loan for the land or plants

Try to close this loan early. That will free up your cash. Then you can save more.

Household and Lifestyle Expenses
Your household expenses are moderate. That is good.
House rent is also low. Education cost is manageable.
You are living within your means. That is a big plus.

What can improve?

Track every expense every month

Keep a budget for groceries and utilities

Avoid any new EMIs for next 3 years

Try to keep Rs. 3,000–5,000 monthly as buffer savings

Small discipline here gives you better control.

Existing Investments
You are investing Rs. 5,000 monthly in ELSS.
That is a good habit. ELSS gives tax benefit.
But this should not be the only investment.
You also have KGID at Rs. 10,000 per month.

Let us assess this properly.

Problems with KGID:

It is not pure insurance

It gives very low return (around 4–5%)

It locks your money for many years

You are paying Rs. 1.2 lakh per year into it

This amount can grow better in mutual funds

KGID is like LIC endowment. It mixes insurance and savings.
This does not help your goals. It blocks cash flow.
You already have term insurance. That is enough.

Action point:

Check if you can surrender KGID

Stop future premiums if possible

Shift this amount into mutual funds every month

You will get better returns and better control

This one change can free up Rs. 10,000 every month.
That is very helpful.

Mutual Fund Investment Review
Your monthly mutual fund investment is Rs. 5,000 in ELSS.
That is a good start. But not enough for long-term goals.
Once you reduce loan burden and stop KGID, increase MF amount.

Why choose mutual funds?

They beat inflation

They build long-term wealth

They are managed by professionals

They give liquidity when needed

But please invest only through Certified Financial Planner (CFP).
They guide you with a goal-based plan.
They help you choose the right funds.

Avoid direct mutual funds.
They look cheaper, but have no advice.
They lack portfolio strategy and monitoring.
Without guidance, mistakes will happen.
Regular plans through CFP are better.
You get reviews, rebalancing, goal setting.

Also, avoid index funds.
They follow the market.
They don’t protect in falling markets.
They don’t adjust to opportunities.
Actively managed funds do better over time.
That’s why stay with active mutual funds.

Insurance Planning
You are paying Rs. 3,000 for term insurance.
That is a good choice. Continue that.
You are paying Rs. 3,380 for health insurance.
That is also good.

Make sure your health cover is at least Rs. 10 lakh.
Include your wife and kids in the same plan.
If your current cover is low, consider increasing.
Medical cost is rising every year.

Do not depend only on employer’s insurance.
Have a personal family floater plan.

Emergency Fund Planning
You don’t have a clear emergency fund.
This is very risky. Life is uncertain.
Health issues, job change or crop failure can hurt.

Create an emergency fund of Rs. 1.5 lakh at least.
Keep this in liquid fund or savings account.
Build this over 6–8 months.
Put Rs. 2,000–3,000 every month into this fund.
Do not use this for daily use.

Child Education Planning
Your son is 9 and daughter is 5.
You need money in next 7–10 years.
School fees now is Rs. 10,000 monthly.
College education can cost Rs. 20–25 lakh per child.
You have to plan early.

Start separate SIPs for both children.
Put Rs. 5,000 monthly in each child’s goal.
Use child-oriented mutual funds or balanced funds.
Keep the SIP running for 10–12 years.
This will create a large fund for education.

Do not depend on loans for education.
Education loans add burden later.
Use investments to create funds peacefully.

Areca Nut Land Planning
You planted Areca nut 3 years ago.
You expect income in 2 more years.
That is a good initiative.
This will become passive income later.

Till that income starts, do not count on it.
Once income starts, use that income to:

Close your personal loan

Increase mutual fund investments

Add to emergency fund

Save for kids and retirement

Do not reinvest into land again.
Keep focus on financial assets like mutual funds.
They give better liquidity and less risk.

Retirement Planning
You are 38 now. You have 22 years to retire.
You need to plan from now.
Right now, no money is going for retirement.
After loan is cleared, start a separate SIP for retirement.

Put Rs. 10,000 monthly in a balanced or flexi-cap fund.
Increase it every year.
Use this fund only after 60.
This will create Rs. 1–1.5 crore easily.
Do not delay this plan.

Your Areca nut land income can also help later.
But don’t depend only on that.
Keep investing monthly for steady retirement wealth.

Tax Planning
You are paying Rs. 10,000 as tax.
ELSS gives you Rs. 1.5 lakh deduction.
Term insurance premium also helps.
KGID gives some tax benefit, but low returns.

Do not invest just to save tax.
Always see return and goal first.
After removing KGID, use ELSS, PPF or NPS for tax saving.
These are better options for long term.

What to Do Every Year
Review budget every 6 months

Review mutual funds with a CFP yearly

Increase SIPs as income increases

Track loan repayment and close early

Avoid new debt or credit card spending

Add Rs. 1 lakh every year in kids’ plans

Do yearly health checkup and insurance check

Keep all documents in one file

Write a WILL once assets are stable

Finally
You are doing well by being disciplined.
You have planted seeds for future income.
You are investing in ELSS and insurance properly.
But your cash flow is tight now.
Loan and KGID are blocking your savings.
Fix these two things first.

After two years, when Areca income starts, your situation will improve.
Till then, manage cash carefully.
Avoid any new loans.
Focus on increasing savings slowly.

Once loan is closed, shift that EMI into mutual funds.
That alone can create wealth.
Also build emergency fund.
And increase investment for kids and retirement.

Use mutual funds through a CFP.
They give better guidance.
Do not use direct funds or index funds.
They don’t suit personal goals.
Stay with active funds and regular advice.

Your financial future can be strong.
Just keep discipline, patience, and clarity.
Small steps every month give big results over time.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Bidhan Chandra Krishi Viswavidyalaya (BCKV), established in 1974, is a UGC-approved and ICAR-accredited State Agricultural University offering a four-year BSc (Hons) Agriculture through its Faculty of Agriculture encompassing sixteen specialized departments overseen by experienced, research-active faculty engaged in over 21 ICAR-funded AICRP/AINP projects, three regional research stations and five Krishi Vigyan Kendras facilitating location-specific crop improvement and technology dissemination to farmers. The rural Mohanpur campus provides advanced agronomy, soil science, horticulture, seed technology and biotechnology laboratories, instructional farms, and the RAWE (Rural Agricultural Work Experience) program to imbue students with practical field skills. A dedicated placement cell collaborates with agribusiness giants—Syngenta, Bayer, UPL and Tata—for campus recruitment drives and internships, securing sector-related positions for approximately 20–50% of graduates, while others pursue government exams or higher studies in agriculture. Comprehensive accreditation, research and extension integration, learning infrastructure, industry linkages, and placement outcomes underscore BCKV’s capacity to facilitate future employability in agriculture.

Recommendation: Pursue BSc (Hons) Agriculture at BCKV for its robust ICAR accreditation, research-driven faculty, immersive RAWE field training, cutting-edge agro-labs and proactive Krishi Vigyan Kendra extension services; actively collaborate with the placement cell and agribusiness recruiters, hone career-focused competencies through internships and sector networking to maximize future employability in agriculture. All the BEST for the Admission & a Prosperous Future!

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Ans: Manipal Institute of Technology’s Chemical Engineering is one of India’s oldest, NAAC-accredited departments, with a strong legacy, modern labs (Aspen Plus, MATLAB, AutoCAD), and consistent placement opportunities in core sectors like oil, petrochemicals, biochemicals, and renewables. The department emphasizes industry-oriented projects, research, and minor specializations (Petroleum, Pollution Control, Renewable Energy), with 82% placement in 2023 and a median salary of ?8.9 LPA. SRM Kattankulathur’s ECE (Data Analytics) is NBA, ABET, and EAC-accredited, with a curriculum blending electronics fundamentals and data science, industry-relevant labs, and faculty with strong research credentials. The program boasts 92% placement in 2024, top recruiters like Samsung, Qualcomm, Amazon, and a curriculum designed for both core and IT/data roles. SRM’s infrastructure is expansive, with active student chapters (IEEE, IETE), and a focus on industry internships and global standards.

recommendation: If your son is interested in emerging tech, data analytics, and broader placement opportunities in both electronics and IT sectors, SRM ECE (Data Analytics) offers superior industry integration and future-ready skills; choose Manipal Chemical only if he is passionate about core engineering and long-term chemical sector careers. All the BEST for the Admission & a Prosperous Future!

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Ans: CET of Which State?

Ans: Jagadish Sir, Parala Maharaja Engineering College (PMEC), Brahmapur, is a government autonomous institution under BPUT, Odisha, offering eight B.Tech branches: CSE, ECE, Electrical, Mechanical, Civil, Chemical, Automobile, and Metallurgy & Materials Engineering. The college is NBA-accredited, has well-qualified faculty (many with IIT/IISc backgrounds), and maintains strong infrastructure with advanced labs, digital and print libraries, hostels, and sports facilities. Placement rates in recent years have ranged from 54% to 66%, with CSE and ECE consistently achieving the highest placement percentages (CSE: 83% in 2023–24, ECE: 57% in 2023–24), and a significant share of software roles in CSE/ECE. Mechanical and Civil branches offer robust labs and broad career options in core sectors but have lower placement rates and are more dependent on government/public sector recruitment. The curriculum is industry-aligned, and the placement cell actively engages with recruiters, though most high-value placements are in CSE and ECE.

Recommendation: For a JEE rank of 10 lakhs, prioritize Computer Science Engineering or Electronics & Telecommunication Engineering at PMEC, as these branches consistently achieve the highest placement rates (up to 83% for CSE) and offer the best prospects for both IT/software and core sector roles; consider Mechanical or Civil only if strongly interested in core engineering, as placements are more variable. IMPORTANT: Given your son's JEE rank, he will need to invest significant effort to succeed in engineering studies. Alternatively, he may consider enrolling in a three-year degree program that aligns with his interests and future career goals. All the BEST for the Admission & a Prosperous Future!

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Ans: Mohammed, you yourself have mentioned that above 60% is required for placements & you are already having 64% right? Your CGPA / Skill Upgradation / Other Skills also play important roles for campus placements (not only of your Board Performance). All the BEST for the Admission & a Prosperous Future!

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Ans: In M.E. Computer Science and Engineering at Thapar University, the two-year program holds NAAC A+ accreditation and a NIRF #29 engineering rank. Its department comprises PhD-qualified, research-active faculty managing government and industry-funded projects that enhance teaching and research. Students utilize 27 teaching labs, 15 research labs, and a high-performance data centre. MoUs with Infosys, Cisco, and CSIO enable internships and live projects. Graduates achieve about 90% placement and near-100% for CS branches over three years.
Recommendation: M.Tech CSE at Thapar University combines top accreditation, research-led faculty, cutting-edge labs, industry partnerships, and 90%+ placements, making it a compelling choice for engineers. All the BEST for the Admission & a Prosperous Future!

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Ans: Galgotias College of Engineering and Technology (GCET) is AICTE-approved and NBA-accredited, with modern computing and electronics labs, 580+ on-campus recruiters, and an 86% placement rate in 2022. Its low fees free time for competitive-exam self-study while offering core degree credibility. BML Munjal University’s CSE is UGC-recognized and NAAC-accredited, featuring IoT, digital and Hero training labs, PhD-qualified faculty, industry collaborations (Siemens, IBM) and an 87% placement rate over the last three years with Deloitte, Google and KPMG among recruiters. Scaler Academy delivers an online, mentored software curriculum, boasts partnerships with 900+ companies, and reports an average package of 21.6 LPA for its professional cohorts, but issues no formal degree. Newton School of Technology (ADYPU) is UGC-recognized and NAAC A+-accredited, provides dedicated AI/ML labs, achieves a 98% placement rate through tech giants like Google and Amazon, and integrates mandated internships, yet functions as a post-graduate professional program rather than a traditional university degree. Only GCET and BMU confer recognized B.Tech degrees enabling government-job eligibility; Scaler and Newton drive private-sector entry with high salary potential but lack formal degree status.

recommendation: For dual preparation—government exams and strong corporate placements—opt for BML Munjal University CSE for its accredited degree, modern labs, industry tie-ups, and consistent ~87% placements, while leveraging peer-led government-exam clubs; choose Galgotias CSE if you prioritize affordability and more self-study time; pursue Scaler or Newton after graduation for specialized software upskilling and private-sector roles. All the BEST for the Admission & a Prosperous Future!

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