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Harsh

Harsh Roongta  | Answer  |Ask -

Answered on Dec 24, 2019

Harish Question by Harish on Dec 24, 2019Hindi
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I have couple of questions regarding home loan.

I took home loan at 9.6 per cent fixed interest for five years from LIC Housing Finance. Is it possible to convert it to the current interest rate which is less? It's around 3 years completed now.

If we make a prepayment amount like Rs 10 lakh, will we get an option to reduce the EMI?

Ans: There will be no pre-payment charge on the partial pre-payment of Rs 10 lakh being made to LIC Housing Finance as it is not being made by transferring the loan to another lender. Yes, you can request LIC Housing Finance to change the fixed rate to the current floating rate but there can be some charges for such conversion.

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

Ramalingam Kalirajan  |8285 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 18, 2024

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Hi, I am having Outstanding Home loan amount for my first purchased flat as 9 Lacs.(EMI 21500) Recently I constructed bungalow by taking Home loan for land and constructions as 25 Lacs and 45 Lacs respectively (EMI 23000 and 32000). Thus my current outstanding for both the properties is 79 Lacs. I rented my first flat and living in new constructed bungalow. The rent amount is equal to flat EMI. Is it advisable to sell the flat (Selling price 50 Lacs) to clear the debt and continue the Outstanding loan of 29 Lacs (79Lacs - 50 Lacs) ? Or continue the existing loans and clear the debt early by prepayment's?
Ans: Your current debt of Rs 79 lakh is significant. Selling your first flat could reduce your loan burden by Rs 50 lakh, leaving Rs 29 lakh outstanding. However, decisions should align with long-term goals, affordability, and potential returns.

Here’s a breakdown to help you decide:

Option 1: Sell the Flat and Reduce Debt
Advantages:
Lower Debt Burden: Reduces loans to Rs 29 lakh, significantly decreasing EMI obligations.
Better Cash Flow: Frees up monthly cash for other financial goals or investments.
Reduced Interest Cost: Paying off Rs 50 lakh immediately lowers overall interest payments, saving a substantial amount.
Disadvantages:
Loss of Asset Growth Potential: Real estate prices may appreciate over the years. Selling might mean losing future capital appreciation.
No Rental Income: Selling eliminates the passive income that currently covers your flat’s EMI.
Option 2: Retain Both Properties and Focus on Prepayments
Advantages:
Asset Appreciation: You retain ownership of both properties, benefiting from potential price appreciation over time.
Rental Income: Ongoing rental income can contribute to paying off the flat’s EMI, keeping cash flow stable.
Disadvantages:
High Debt Pressure: Managing a Rs 79 lakh loan requires disciplined budgeting and significant prepayments to reduce interest costs.
Interest Accumulation: Continuing with high debt over the long term increases total interest paid.
Recommended Approach
Selling the Flat May Be Better If:
You prioritise reducing stress from high debt.
You don’t foresee substantial appreciation in the flat’s value.
Clearing a large portion of your debt aligns with your financial comfort.
Retaining the Flat May Be Better If:
You can afford current EMIs and have surplus funds for regular prepayments.
The flat is in a location with strong appreciation potential.
Passive rental income is a key component of your financial plan.
Practical Advice
Evaluate Loan Interest Rates: Check the interest rates for both loans. Prioritise prepaying the one with the highest rate.
Review Budget: Assess whether prepayments are feasible without compromising financial security.
Consider Property Market Trends: Evaluate the appreciation potential of your flat before deciding to sell.
Seek Professional Guidance: A Certified Financial Planner can assess your risk tolerance, long-term goals, and cash flow needs to offer tailored advice.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

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Sushil Sukhwani  |594 Answers  |Ask -

Study Abroad Expert - Answered on Apr 24, 2025

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Hello Sir. My Son has got offer from follwing University.. 1)University of Padua - Italy (BSC - Information Technology) - 3 years Course 2)University Of Strathclyde - UK (BSC - HON Computer Science) - 4 yrs 3)Caledonian University of Glassgow - UK (Bsc Hons Computing). 4 yrs 4) National College of Ireland (BSC - HON Computer Science Engg) - 4 yrs We are confused to select the university / country
Ans: Hello ASAD,

First and foremost, thank you for getting in touch with us. I am glad to know that your son has received offers from the above mentioned universities. As an answer to your query, I would like to tell you that a prestigious and budget-friendly education in a lively Italian environment, along with a reputable academic standing and lower living expenses is offered at the University of Padua; its 3-year BSC - Information Technology may also provide a quicker path to higher education or jobs. Coming to the University of Strathclyde, top-ranked in the UK for Computer Science, this university is renowned for its linkages with industry, research possibilities, as well as outstanding student services, offering robust employment opportunities. Next, situated in a student-centric city with budget-friendly costs in comparison to other cities in the UK, Glasgow Caledonian University focuses on hands-on, industry-focused learning with impressive graduate employment rates. The National College of Ireland provides a small, contemporary campus in Dublin with robust ties with the technology sector, internships, and employment prospects in one of Europe’s key technology hotspots.

Lastly, deciding which university and country to select depends on your son’s professional objectives, ideal learning atmosphere, budget, as well as plans for the future- whether he prefers a shorter course term, robust industrial connections, global exposure, or residing in a specific nation.

For more information, you can visit our website: www.edwiseinternational.com

You can also follow us on our Instagram page: edwiseint

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Nayagam P

Nayagam P P  |4455 Answers  |Ask -

Career Counsellor - Answered on Apr 24, 2025

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EWS category rank female 30065 suitable NIT IIIT GFTI admission getting sir 2025
Ans: Rajeswari, Here is, How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.

Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, preparation strategies, and engineering career options, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your admissions!

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