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Sunil Lala  |193 Answers  |Ask -

Financial Planner - Answered on Jun 06, 2024

Sunil Lala founded SL Wealth, a company that offers life and non-life insurance, mutual fund and asset allocation advice, in 2005. A certified financial planner, he has three decades of domain experience. His expertise includes designing goal-specific financial plans and creating investment awareness. He has been a registered member of the Financial Planning Standards Board since 2009.... more
Asked by Anonymous - Jun 06, 2024Hindi

i am56 years old. my annual income is 5 lakh .i have loans of20 lakhs(agriculture loan).i want to clear the loan in 2to3 years. is it possible

Ans: What is your expense on self and family and at what rate is the loan taken and the period of loan
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Ramalingam Kalirajan  |4625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 14, 2024Hindi
Sir I am just 27 year old & My Salary is 15k per month But sir my loan is 2.5 lakh for your suggection how to clear this amount in 4 month
Ans: Tackling Your Loan Repayment Challenge
Understanding Your Financial Situation
Ajay, being 27 and managing your finances well is commendable. Clearing a ?2.5 lakh loan with a ?15,000 monthly salary in four months is ambitious but achievable with strategic planning.

Compliments on Your Determination
Your determination to clear your loan quickly is admirable. It shows your commitment to financial freedom and responsible money management.

Evaluating Your Current Financial Position
Income vs. Loan:

Monthly salary: ?15,000.
Total loan: ?2.5 lakh.
Goal: Repay within four months.
Savings and Resources:

Assess any existing savings or liquid assets.
Identify any additional income sources.
Current Expenses:

Track monthly expenses.
Identify areas to cut costs temporarily.
Strategies for Rapid Loan Repayment
Create a Detailed Budget:

List all monthly income and expenses.
Prioritize loan repayment over non-essential spending.
Cut Unnecessary Expenses:

Limit discretionary spending.
Focus on necessities to free up funds for loan repayment.
Increase Income:

Seek additional part-time or freelance work.
Consider selling unused items for extra cash.
Negotiate with Lender:

Discuss possible payment plans with your lender.
Explore options for lower interest rates or extended terms.
Utilize Savings:

Use any available savings to make lump-sum payments.
Prioritize paying off high-interest portions first.
Practical Steps to Implement
Budgeting and Expense Management:

Use a budgeting app or spreadsheet.
Allocate maximum possible funds towards loan repayment.
Increase Monthly Payments:

Aim to pay more than the minimum required.
Consider making bi-weekly payments to reduce interest.
Temporary Lifestyle Adjustments:

Reduce entertainment and dining out expenses.
Focus on free or low-cost activities.
Emergency Fund Consideration:

Ensure you retain a small emergency fund.
Avoid depleting all savings to prevent future debt.
Example Plan
Monthly Income:

?15,000 salary.
Additional Income:

Aim for at least ?10,000 from part-time work or selling items.
Total Monthly Income:

?25,000 (?15,000 salary + ?10,000 additional income).
Loan Repayment Allocation:

Allocate ?60,000 per month towards the loan.
Repayment Timeline:

?2.5 lakh / ?60,000 per month = approximately 4.17 months.
Monitoring and Adjusting the Plan
Track Progress:

Regularly review your budget and expenses.
Adjust strategies as needed to stay on track.
Stay Motivated:

Keep your goal in sight.
Celebrate small milestones to maintain motivation.
Seek Support:

Discuss your plan with family or friends.
Consider professional advice for personalized strategies.
Clearing a ?2.5 lakh loan in four months with a ?15,000 monthly salary is challenging but possible. By cutting expenses, increasing income, and staying disciplined, you can achieve your goal. Remember, this is a temporary phase, and your efforts will lead to financial freedom.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more


Ramalingam Kalirajan  |4625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 20, 2024

Asked by Anonymous - May 20, 2024Hindi
Hi sir, Iam 28years old working in IT sector. My salary is 25k per month and i have 10Lac rupees of personal loan. How to clear the loan ASAP. Please help me.
Ans: Creating a Plan to Clear Personal Loan Debt
Navigating through debt can be challenging, but with the right strategy, you can overcome it and achieve financial freedom.

Acknowledging Your Situation
Genuine Compliments: It's commendable that you're seeking guidance to tackle your personal loan debt at such a young age.

Empathy and Understanding: I understand that managing a personal loan while working in the IT sector can be daunting, but with a structured plan, you can eliminate the debt burden.

Assessing Your Financial Situation
Income Evaluation: Analyze your monthly income and expenses to determine how much you can allocate towards repaying the loan.

Debt Repayment Priority: Given the high interest associated with personal loans, prioritizing its repayment is crucial to minimize interest costs.

Disadvantages of Direct Funds: Directing funds towards investments while carrying a high-interest personal loan may not be the most prudent approach.

Benefits of Regular Funds Investing through MFD with CFP Credential: By focusing on debt repayment first, you can free up more resources for future investments with the guidance of a Certified Financial Planner (CFP).

Developing a Repayment Strategy
Budgeting: Create a detailed budget to identify areas where you can cut back on expenses and redirect those savings towards loan repayment.

Debt Snowball or Avalanche Method: Choose between these popular debt repayment strategies based on your preference and financial situation to accelerate loan clearance.

Additional Income: Explore opportunities to increase your income, such as freelancing or part-time work, to expedite debt repayment.

By prioritizing debt repayment and working with a Certified Financial Planner to optimize your financial resources, you can clear your personal loan debt swiftly and embark on a path towards financial stability.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


..Read more

Latest Questions

Ramalingam Kalirajan  |4625 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 13, 2024

Asked by Anonymous - Jun 04, 2024Hindi
My son is 48 yrs old we have invested some crores in FD and some crores in Mutual Funds kindly advise on how many years he he can get 100 crores ready to invest 20 lacs annually
Ans: First, it’s heartening to see your dedication towards securing your son’s financial future. You've already taken significant steps by investing in Fixed Deposits (FDs) and Mutual Funds. Understanding the nuances of these investments and strategically planning for the future will help you achieve your goal of building a Rs. 100 crore corpus.

Current Investment Overview
You have invested several crores in FDs and Mutual Funds. Each of these investment types has distinct characteristics, benefits, and drawbacks. Let’s explore these in detail.

Fixed Deposits (FDs)
FDs offer a guaranteed return, which is beneficial for capital protection. However, the interest rates on FDs are relatively low compared to other investment options. The current rates are often lower than inflation, which can erode the purchasing power of your returns over time.

Advantages of FDs:

Capital safety
Predictable returns
Disadvantages of FDs:

Low returns
Poor inflation hedge
Mutual Funds
Mutual Funds provide a diversified investment option and have the potential to offer higher returns compared to FDs. They come in various types such as equity, debt, and hybrid funds, each catering to different risk appetites and investment horizons.

Advantages of Mutual Funds:

Potential for higher returns
Professional management
Disadvantages of Mutual Funds:

Market risk
Requires careful selection
Evaluating Your Investment Strategy
To accumulate Rs. 100 crores, a strategic approach leveraging the strengths of Mutual Funds while mitigating risks is crucial. Let's evaluate how this can be done.

Setting a Time Frame
You mentioned your son is 48 years old. Assuming a retirement age of 60-65, we have approximately 12-17 years to reach the goal. This time frame is reasonable for a well-planned investment strategy focusing on higher returns.

Enhancing Your Investment Strategy
Here’s a detailed plan to enhance your investment strategy and work towards accumulating Rs. 100 crores.

Increase Equity Exposure
Equity mutual funds have historically provided higher returns compared to other asset classes. Given the long-term horizon, increasing your allocation towards equity funds can be beneficial. This includes:

Large-Cap Funds: These funds invest in well-established companies with a stable growth history. They are less volatile and offer steady returns.

Mid-Cap and Small-Cap Funds: These funds invest in smaller companies with higher growth potential. They are riskier but can provide substantial returns over the long term.

Flexi-Cap Funds: These funds invest in companies across market capitalizations, providing a balanced risk-return profile.

Avoid Index Funds
Index funds track a specific market index and offer average market returns. They lack active management, which can limit their potential in volatile markets. Actively managed funds, guided by experienced fund managers, can outperform indices by making strategic investment decisions.

Disadvantages of Index Funds:

Average returns
No active management
Limited in volatile markets
Benefits of Actively Managed Funds:

Potential for higher returns
Strategic adjustments
Experienced management
Regular vs. Direct Mutual Funds
Direct funds have lower expense ratios as they do not involve intermediaries. However, this also means you don’t get professional advice, which can be critical in making informed decisions. Regular funds, on the other hand, are managed by Mutual Fund Distributors (MFDs) and Certified Financial Planners (CFPs), who provide valuable insights and strategies tailored to your goals.

Disadvantages of Direct Funds:

Lack of professional guidance
Requires extensive market knowledge
Benefits of Regular Funds:

Expert advice
Tailored strategies
Comprehensive planning
Systematic Investment Planning
You plan to invest Rs. 20 lakhs annually. A Systematic Investment Plan (SIP) is an excellent method to invest in mutual funds regularly. SIPs help in averaging the cost of investment and reduce the impact of market volatility.

Benefits of SIPs:
Rupee Cost Averaging: Investing a fixed amount regularly averages out the purchase cost, mitigating market volatility.

Disciplined Investment: SIPs instill a habit of regular investing, which is essential for long-term wealth creation.

Power of Compounding: Regular investments over a long period benefit from compounding, significantly boosting your corpus.

Rebalancing Your Portfolio
Regularly reviewing and rebalancing your portfolio ensures it remains aligned with your financial goals. This involves adjusting your asset allocation based on market conditions and your risk tolerance.

Monitoring and Adjusting
Continuous monitoring and timely adjustments are crucial. Market conditions and personal circumstances change, necessitating tweaks in your strategy.

Risk Management
Managing risk is vital in any investment strategy. Diversifying your investments across various asset classes, sectors, and geographies reduces risk. Additionally, maintaining an emergency fund and adequate insurance protects your investments from unforeseen events.

Leveraging Tax Benefits
Utilizing tax-efficient investment options can enhance your returns. Equity Linked Savings Scheme (ELSS) mutual funds offer tax benefits under Section 80C of the Income Tax Act. Also, long-term capital gains from equity funds are taxed at a favorable rate.

Professional Guidance
Engaging a Certified Financial Planner (CFP) can provide you with personalized advice and strategies. A CFP helps in:

Comprehensive Planning: Crafting a detailed financial plan considering all aspects of your finances.
Objective Advice: Providing unbiased recommendations based on your goals.
Regular Review: Periodic reviews and adjustments to keep your investments on track.
Final Insights
Accumulating Rs. 100 crores is an ambitious goal, but with a well-thought-out plan, it is achievable. Your existing investments provide a strong foundation. By enhancing your strategy with increased equity exposure, regular investments, and professional guidance, you can work towards this target. Continuous monitoring, risk management, and leveraging tax benefits will further strengthen your financial journey.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.


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