Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Can a 25-Year-Old Clear Rs. 15 Lakh Payday Debt? I'm Stuck in a Financial Mess!

Janak

Janak Patel  |57 Answers  |Ask -

MF, PF Expert - Answered on Feb 13, 2025

Janak Patel is a certified financial planner accredited by the Financial Planning Standards Board, India.
He is the CEO and founder of InfiniumWealth, a firm that specialises in designing goal-specific financial plans tailored to help clients achieve their life goals.
Janak holds an MBA degree in finance from the Welingkar Institute of Management Development and Research, Mumbai, and has over 15 years of experience in the field of personal finance. ... more
Jitu Question by Jitu on Feb 10, 2025Hindi
Money

In early 2018, I had faced some financial problems (monthly Rs. 10,000 deficit) as I was working with a public sector enterprise. At that time, I was searching for a loan and got an agency that can provide Rs. 10,000 as Payday loan (monthly basis maximum 35 days) and rate of interest was 1% per day. These loan products were from NBFCs. I took this loan and this was the starting point. Due to my financial problems, I started taking these type loans from various agencies and rate of interest 0.7%-1% per day. In 2022, I had almost 15 payday loans amounting Rs. 10 lakhs. After that, I have been applying for a loan from almost all banks and NBFCs to close these paydays, but nobody is able to provide a loan due all payday loans have been shown in CIBIL as well as few bounces of my personal loan I had already with Kotak Bank. Now the situation is like that I have more than 25 payday loans amounting to more than Rs. 15 lakhs. Last 2 years I have been applying for a personal loan to close these but no banks and NBFCs are not providing. Every month I am giving and taking payday loans and the interest amount is too high. I have a Tata AIA pension policy as well as PF, both cannot be surrendered at this moment. Now, the major issue is how to overcome this financial mess I did. I don't have any options left at this moment. So I would request you if anybody can provide me assistance through your sources / channels to solve my financial problem. I can return the amount on a monthly installment basis and give my Tata AIA pension policy as well as PF documents for security. I have been working in an engineering consultancy firm and monthly income is almost Rs. 2 lakhs

Ans: HI Jitu,

In summary, you have 15 lakhs loans at 1% per day interest (= 365% per annum). No options to borrow from any other organized sources like Bank/NBFC. So monthly Interest is 4.5 lakhs.
Monthly Income is 2 lakhs.

This is called a Debt Trap, where your income is less than your outflow (debt), so you are in a negative balance always and keep borrowing to fill the gap. No point in going into the history of the situation but I hope this has been a big life lesson for you.

Borrowing against you Pension policy can be considered but depends on the company and note that this will be at a high interest rate.
Borrowing from PF funds is only under certain situations (e.g. illness, education, marriage) and so even that is ruled out.
I assume you have already considered all/any asset you may own to repay.

The solution cannot be a very simple one. But I can recommend a couple of options which you can see if they help. You plan should simple -
1. Find a source of funds to repay your current loans
2. Stay with bare minimum requirement for next few years and repay maximum amount towards new loan
3. Do not take any new loans and stay on track for next few years, no matter what.

With a salary of 2 Lakhs, you should take a hard look at your living expenses and cut out all except the basic necessities. At least on paper come up with a number that you can discuss with prospective lenders mentioned below. Give them confidence of your ability to pay back every month with a realistic number e.g. over 1 lakh per month. Make this as high as you can make it. Make compromises everywhere possible and evaluate each expense to see what you can eliminate for the next couple of years, except food and absolutely basic needs, compromise on everything else. And ensure you make this work no matter what. You will have to be strong willed to achieve this and make it work.

Check with any close friends/family members/relatives who will trust you and provide you with some loan and provide you with time to repay. Offer to pay them interest which is higher than FD but reasonable for you and you can go as high as 20% per annum. At 20% you can pay back 55~60K per month for 3 years and payback the loan with interest.

Assuming you have a bank account for direct salary deposit, approach the bank and explain your situation truthfully to them and request an overdraft/loan and offer them to recover an agreed amount at an agreed interest rate from your account directly as soon as your salary is deposited. Again the interest rate will be high but if this works, you will be on your way to recovery. Even if they offer an interest rate of 30%~40% per annum and recover in 3 years, your EMI will be around 62K~70K per month.

Approach your employer and discuss if a loan can be provided to you at a reasonable rate of interest and recovered from your salary each month. If you have been employed with them for over a year or longer, and if they consider to extend a loan this may be the best solution you can get. You can offer to sign a contract for this (stay with employer for a period or until loan is paid up).

Is there any other source of funds you can approach with a similar proposal then do so, as long as you can get a chance to payoff your current set of loans and have a manageable EMI amount to pay back over the next few years, just take the best option and keep every desire aside and stay focused on getting back on track.

Please note that borrowing from an alternate source is not going to work if you take a loan and relax after that. You have already impacted your CIBIL score which makes lenders stay away. Now your top priority will be to find a source of funds at reasonably high interest rate between 20% to 40% resulting in an EMI of 55K to 70K for 3 years, and ensure you do not default the payments and clear this ASAP. If you can pay higher amount each month, then do that and get out of these loans as quickly as possible.

With honesty and sincerity if you continue to stay on track, you can eventually start coming back to normal life where you can plan your expenses and save and invest too. But do remember to live within your means and save as much as possible. Over time build back your CIBIL score for future requirements.

Hope this is helpful in some way.

Thanks & Regards
Janak Patel
Certified Financial Planner.
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.
Money

You may like to see similar questions and answers below

Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Nov 25, 2023

Asked by Anonymous - Nov 22, 2023Hindi
Listen
Money
Hi Sir, I lost job in 2017 and again I got a new job after 6 months. During this 6 months i lost all my savings including PF. So in last 5 yrs what ever I am earning it's not sufficient and my expenditure is more than salary. Meantime I started taking small small personal loans from app companies and my both my credit card is fully utilised This is my current situation. Salary is 1.66 lacs. Savings is 50,000. My loans are 1.2 lacs. Credit card Os is Rs 4 lacs. If I close personal loan then I am using credit card, if I pay credit card then I taking loan again. I don't know how to come out of this cycle. Pls suggest.
Ans: We can understand your current financial situation, you need to analysis you finance to break free from the debt cycle and regain control of your finances. Here are few steps you can use to get back on your track.

1. Assess Your Current Financial Situation
? Create a detailed list of all your debts, including the outstanding amounts, interest rates, and minimum payments.
? Track your income and expenses for a month to identify areas where you can cut back on spending.

2. Prioritize Debt Repayment:
? Make a budget that allocates more money towards debt repayment than the minimum payments. Consider using a budgeting app to track your income and expenses effectively.
? Explore debt consolidation options, such as a balance transfer with a lower interest rate or a personal loan with a lower interest rate than your current debts.

3. Reduce Expenses and Increase Income
? Identify unnecessary expenses and cut back on non-essential spending, such as dining out, entertainment, and impulse purchases.

4. Build an Emergency Fund
? Once you start making progress on your debt repayment, start building an emergency fund to cover unexpected expenses. Aim to save at least 3-6 months of living expenses so that the situation does not re-occur.

Please remember getting out of debt takes time, discipline, and commitment. Don't be discouraged by setbacks along the way. Stay focused on your goals, stick to your plan, and you will eventually achieve financial freedom.

..Read more

Ramalingam

Ramalingam Kalirajan  |9730 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 30, 2025

Asked by Anonymous - Jan 30, 2025Hindi
Listen
Money
Debt trap I am 29F and have 37lacs unsecured loans as followed Muthoot 12lacs Kotak 6lacs Fullerton 9lacs Truebalance 29630 Lenditt 83000 with 27000 emi Kreditbee 2lacs with 15k emi Instamoney 25000 with 12k emi Kissht 15150 with 7170 emi Phocket 15347 with 7252 emi rupeeredee 14420 with 7753 emi Ramfincorp payday loan 42880 Rupee 112 payday loan 45850 Fibe 50000 emi 9077 MoneyView 62712 emi 3484 Flexsalary 63233 emi interest 4000 I had resorted to the application loans as was scared of not being able to repay my current emis and fell into this huge debt trap.. Now am unable to keep up and really have been pleading banks to give me time so that I can resolve the payday loans first.. Am super lost don't know how to approach this Have no assets whatsoever and make like 50k a month with no support... How can I proceed and stop this? This was the first month when I defaulted on all of these loans and am still not able to find a way out.. I had spoken to lawerpanel guys but they wanted me to pay them 30k for 6 months to help with settlement and asked me to default these and I was like I don't have money for this.. pls help!
Ans: Understanding Your Situation
You have Rs. 37 lakhs in unsecured loans.

Your monthly salary is Rs. 50,000.

You have defaulted on all EMIs for the first time.

You took payday loans to manage past EMIs but fell into a deeper debt trap.

You approached a settlement agency but couldn't afford their fees.

You have no assets or external financial support.

Immediate Actions to Stop the Crisis
1. Stop Taking New Loans
Do not take another loan to pay existing EMIs.

Avoid payday loans, as their high interest worsens your situation.

2. Prioritise Loan Payments
List your loans in two categories:

High EMI & Payday Loans: (e.g., Kreditbee, Instamoney, Kissht, Phocket, Rupeeredee, Ramfincorp)
Other Personal Loans: (e.g., Muthoot, Kotak, Fullerton)
Focus on repaying payday loans first, as they have extreme interest rates.

3. Negotiate with Lenders
Contact all lenders and explain your financial situation.

Request a moratorium or restructuring to reduce EMIs.

Many lenders prefer lower EMIs over defaults.

Request waiver or reduction of penalties.

4. Avoid Settlement Agencies
Agencies demand high upfront fees, worsening your financial stress.

You can negotiate with lenders directly for better terms.

5. Increase Monthly Income
Find a side job, freelancing, or gig work for extra income.

If possible, request overtime or salary advance from your employer.

Consider renting a room or shared living to reduce expenses.

Strategic Debt Repayment Plan
1. Minimum Payments for Essential Loans
Pay minimum dues on loans that cannot be negotiated.

Keep essential personal loans active to avoid legal issues.

2. Close Payday Loans First
These have high penalties and should be cleared first.

Negotiate one-time settlements if possible.

3. Debt Snowball or Avalanche Method
Snowball: Pay the smallest loan first for quick wins.

Avalanche: Pay the highest interest loan first to save money.

Choose what suits you best.

Legal Considerations
Loan defaults affect your credit score but do not lead to jail.

Lenders may pressure you, but harassment is illegal.

File a complaint if you face threats from recovery agents.

Seek legal help if you face extreme pressure. Some lawyers help for free.

Lifestyle Adjustments to Free Up Cash
Reduce unnecessary expenses like dining out, subscriptions, and shopping.

Move to a cheaper living space if possible.

Cook meals at home instead of ordering food.

Use public transport instead of cabs or bikes.

Final Insights
Your situation is difficult, but it can be fixed with discipline.

Avoid taking new loans at any cost.

Negotiate with lenders for lower EMIs.

Close payday loans quickly to escape their high interest.

Find additional income sources to speed up repayment.

Stay mentally strong and seek free legal aid if needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |9730 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 15, 2025

Asked by Anonymous - May 15, 2025
Money
Dear Sir, I am 32 years old. I have multiple loans, details below - Auto loan -> outstanding amount 16 lakh -> emi 40k - Auto loan top up -> outstanding amount 3 lakh -> emi 14k - Over Draft Loan 1 -> 38 lakh -> emi 47k - Over Draft Loan 2 -> 10 lakh -> emi 12k - Personal loan 1 -> outstanding amount 4 lakh -> emi 12k - Personal loan 2 -> outstanding amount 5 lakh -> emi 17k My monthly in hand income is 1,88,750/- My monthly expenses - Sending 15k to my parents - Rent 30k - Monthly Expenses 50k I live in Hyderabad. My savings - 1 lakh in Mutual funds, will mature in December - 11 lakh in EPF - 3 lakh in NPS How can get out of this. EMI is huge and very hard to manage all.
Ans: You are 32 years old, staying in Hyderabad. Your monthly income is Rs. 1,88,750. But your EMI pressure is very high. You also have some decent long-term savings. Your question shows responsibility and the right mindset. That’s a good start.

Let’s now assess your situation fully and see step-by-step solutions.

?

Understanding Your Current Financial Structure

You are paying six EMIs.

?

Total EMI amount is Rs. 1,42,000 per month.

?

Your other monthly expenses are Rs. 95,000. That includes rent, groceries, parents.

?

Your total monthly outgoing is about Rs. 2,37,000.

?

Your in-hand income is Rs. 1,88,750.

?

That means, every month, you are in a negative cash flow of around Rs. 48,000.

?

This cannot continue for long.

?

You must act immediately. Else the pressure will only grow.

?

You also have savings of Rs. 11 lakh in EPF and Rs. 3 lakh in NPS.

?

Mutual fund of Rs. 1 lakh will mature by December.

?

These are helpful, but not enough for short-term rescue.

?

?

Break Down of All Existing Loans

Auto loan of Rs. 16 lakh – EMI Rs. 40,000

?

Auto top-up loan of Rs. 3 lakh – EMI Rs. 14,000

?

Overdraft loan 1 of Rs. 38 lakh – EMI Rs. 47,000

?

Overdraft loan 2 of Rs. 10 lakh – EMI Rs. 12,000

?

Personal loan 1 of Rs. 4 lakh – EMI Rs. 12,000

?

Personal loan 2 of Rs. 5 lakh – EMI Rs. 17,000

?

Together, this is too much EMI burden for your income level.

?

Action is required to reduce EMI burden fast.

?

?

Immediate Action Plan to Handle Debt Load

Do not take any new loans at all.

?

This includes credit card EMI and BNPL schemes too.

?

Sit with a Certified Financial Planner and create a debt priority list.

?

Pay off the highest EMI burden with smallest balance first.

?

Personal loan 2: EMI Rs. 17K for only Rs. 5L loan.

?

If you can close this, it will ease pressure by Rs. 17K.

?

Similarly, personal loan 1 is Rs. 4L but EMI is Rs. 12K.

?

Focus on clearing these two personal loans first.

?

You can consider part-withdrawing EPF to close one of these.

?

EPF partial withdrawal is allowed for repayment of loans.

?

It is better to close a high interest loan than keep EPF untouched.

?

Do not touch NPS now. It is not liquid and meant for retirement.

?

The mutual fund maturing in December can also help close part of another loan.

?

Avoid touching EPF entirely for now. Use only if no other option.

?

If possible, sell one of your vehicles and close auto loan or top-up.

?

This is tough. But temporary sacrifice helps long-term relief.

?

?

Restructuring Strategy for Existing Loans

Approach your bank for loan restructuring.

?

This is allowed in hardship cases by RBI guidelines.

?

You can request to increase tenure of personal loans.

?

That will reduce EMI and ease cash outflow monthly.

?

You can also consider consolidating all loans into one.

?

A debt consolidation loan may give lower EMI burden.

?

Approach bank where you have salary account.

?

Show all EMI proofs and request for consolidation or top-up loan.

?

Use that single loan to clear all smaller EMIs.

?

This is not new debt, only better restructuring.

?

?

Budget Correction and Expense Reduction

Your current household expense is around Rs. 50,000.

?

Plus rent and parents' support, total fixed cost is Rs. 95,000.

?

Review your monthly lifestyle budget very sharply.

?

Cut down online subscriptions, eating out, shopping.

?

Even saving Rs. 5,000 a month helps in EMI pressure.

?

Rent is Rs. 30,000. See if you can shift to slightly cheaper house.

?

Even Rs. 5,000 rent cut helps monthly flow.

?

Request parents to allow break in support for 6 months.

?

Or reduce support to Rs. 5,000 temporarily.

?

Explain situation openly. This is temporary.

?

These all together can give Rs. 10,000 to Rs. 15,000 cash flow.

?

?

Start Emergency Fund, Even Small Amount

You don’t have any liquid emergency fund right now.

?

Begin with saving just Rs. 1,000 or Rs. 2,000 per month.

?

Keep this in savings account or sweep FD.

?

Do not lock this in PPF or NPS.

?

Emergency fund gives you mental peace and confidence.

?

?

No New Investment Until Loans Are Handled

You already have EPF and NPS. That is enough for now.

?

Do not start new SIPs or gold chits until EMI load reduces.

?

Mutual fund maturity in December must go to debt closure.

?

Re-start new investments only after EMI comes below Rs. 70K.

?

That is your comfort level based on income.

?

?

Rebuild Credit Score Gradually

If you miss EMIs, your credit score will drop fast.

?

Restructuring loan is better than missing EMI.

?

Closing small loans improves credit score steadily.

?

Keep 100% payment record after restructuring.

?

?

Don’t Use Credit Cards for Loans Again

Do not take loan on credit card.

?

Interest is very high and can trap you quickly.

?

Pay credit card in full. No minimum due payment method.

?

?

Emotional and Mental Health is Also Important

Loan stress can cause worry and anxiety.

?

You are trying to handle the situation. That is good.

?

Talk to someone in family or trusted friend.

?

Keep your mental strength high. That helps decisions.

?

Every month, even 1 step ahead is progress.

?

?

Final Insights

You are facing heavy loan pressure, but solutions exist.

?

Prioritise high EMI, low balance loans first.

?

Restructure loans with bank. Try consolidation option.

?

Use EPF partial withdrawal only as backup plan.

?

Sell unused vehicle if required to reduce auto loan.

?

Pause all new investments for now.

?

Cut budget wherever possible.

?

Begin tiny emergency fund.

?

Mental peace and clarity will help you handle this better.

?

Follow this plan for 12 months and review again.

?

Things will improve. Stay focused.

?

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

..Read more

Ramalingam

Ramalingam Kalirajan  |9730 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 02, 2025

Asked by Anonymous - May 29, 2025Hindi
Money
Dear sir , I'm 32 years old. I have lent money from an acquaintance of 15 lakhs with an monthly interest of 45k. And I have also lent another 4.5 lakhs with monthly interest of 38k from another friend. These were used to close all the small loans from third party apps with a very high interest. I also have small personal loans . 1. 1,70,000 with 8,000 emi and around 2 years of tenure remaining m 2. 2,50,000 with 6,000 emi and around 2.5 years tenure. 3. 1,00,000 with 6,000 emi and around 1.5 year tenure . I have an monthly income of around 30k. And I Currently do not possess any form of savings , assets or investments. How do I get out of this loop of constantly getting another debt to repay another one ? I work in the fitness industry so there's no scope of earning more than 10k from my current salary in India even though I have more experience in this field.
Ans: Your concern is valid and very real.

You are 32 years old.

You earn Rs 30,000 monthly.

You have borrowed heavily from acquaintances.

You also hold three personal loans.

You are stuck in a debt loop.

You want a practical and long-term solution.

Let us now give you a detailed 360-degree strategy.

Understanding the Complete Debt Picture
Rs 15 lakhs loan from acquaintance, paying Rs 45,000 monthly interest

Rs 4.5 lakhs from another friend, paying Rs 38,000 monthly interest

Personal loans: Rs 1.7L, Rs 2.5L and Rs 1L

EMI on personal loans: Rs 8,000 + Rs 6,000 + Rs 6,000 = Rs 20,000

Total monthly outgo on debt: Rs 1,03,000

Your income is only Rs 30,000

You are in deep negative cash flow every month

You are likely borrowing more to pay interest and EMIs

There are no assets, savings, or investments right now

Appreciating Your Decision to Seek Help
You have taken a bold first step.

You have recognised the problem clearly.

You want to stop the debt cycle.

That shows willingness to act and change.

This mindset will help you come out of this.

Let's now move step by step.

Step 1: Stop Borrowing Further, Even for a Day
No more loans from anyone, under any situation

Stop all app-based loans completely

Inform friends that you cannot borrow more

Every new loan worsens the trap

Any money borrowed now will increase your pain

Accept this truth today and stay strong on it

Step 2: Understand That You Cannot Continue Like This
You are paying Rs 1.03 lakhs interest and EMI

Your income is Rs 30,000

This math can never work

You are surviving through borrowed time and favours

You are in a debt trap right now

It will not go away on its own

You must act boldly and wisely

Step 3: Discuss a Structured Debt Settlement with Lenders
First, talk to the friend who gave Rs 15 lakhs

Show him your situation openly

Request to stop monthly interest for some time

Offer to pay a fixed EMI instead of interest

Do not avoid or delay conversations

People respect honesty and intention to repay

Next, approach the friend who gave Rs 4.5 lakhs

Follow the same approach

Suggest converting monthly interest into a longer-term EMI

Offer a token amount monthly

Rework the payment terms to suit your capacity

Involve a family elder if it helps build trust

Step 4: Consolidate All Personal Loans If Possible
Check if you can get a single loan to close all personal loans

Target is to reduce EMI burden

You may not get loan from bank due to low credit

Try to get help from a family member to get a low-interest personal loan in their name

Only to consolidate existing EMIs, not new borrowing

If this is not possible, maintain current EMIs

Prioritise loans with highest interest

Keep communication open with lenders

Avoid missing EMIs to protect your credit score

Step 5: Cut All Possible Expenses Immediately
Stop non-essential expenses like:

  - OTT subscriptions
  - Dining out
  - Online shopping
  - Gym expenses if you can self-train
  - Fuel and travel which can be avoided

Shift to a more affordable living setup if needed

Speak to landlord to reduce rent temporarily

Share accommodation if possible

Buy basic groceries only, no luxury items

Use cash to control daily expenses

Maintain a diary of every rupee spent

Step 6: Increase Income with Secondary Work
You said fitness jobs limit income

But look for add-on work during free time

Some ideas:

  - Online fitness coaching from home
  - Recording videos for online classes
  - Selling fitness guides or diet plans
  - Helping with social media content for fitness brands
  - Freelance training for apartment gyms

Aim for Rs 5,000–Rs 10,000 extra monthly

Every bit of income helps reduce debt burden

Use these earnings strictly to pay back lenders

Step 7: Avoid Any Investment Till All Loans Are Closed
No SIP, no stocks, no mutual funds now

Do not fall for quick return promises

You are in debt repayment phase

Investment can come later, not now

Keep focus only on clearing loans

Step 8: Seek Free Counselling If Emotionally Drained
Debt creates mental pressure

It may cause anxiety or fear

Speak to someone who listens, not judges

Use free helplines or NGOs offering support

Don’t suffer alone silently

Keep your mind strong and focused

This is a temporary phase, not permanent

Your future can change with effort

Step 9: Once Stable, Start Emergency Fund Slowly
After you clear high-interest debts

Start saving Rs 500–Rs 1000 monthly

Put in liquid mutual fund via regular plan

Avoid direct plans – they offer no guidance

Certified Financial Planner can guide better

Use emergency fund only for urgent needs

Never use for shopping or travel

Keep building it month by month

Step 10: Finally Build a New Financial Identity
Clear your loans step by step

Rebuild your credit slowly

Start tracking income and spending every month

Stay away from lending apps permanently

Create small savings habit after debts are over

Start SIP with Rs 1000 in regular equity fund when possible

Review goals with Certified Financial Planner yearly

Learn to say ‘No’ to money offers when not needed

Finally
You are in a serious but solvable financial crisis

Accept it, face it and work on it

Stop new borrowing right now

Restructure old debts with honesty and clarity

Cut lifestyle expenses sharply

Create new income channels in fitness or beyond

Don't try to invest until debts are closed

Once stable, build emergency and investment habit

Use mutual funds with regular plan and guided help

Stay away from index and direct funds for now

This problem is hard but not permanent

With small steps and strong action, you can come out

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |8802 Answers  |Ask -

Career Counsellor - Answered on Jul 14, 2025

Career
My son kcet rank 12971 ( 2bg category) he is looking for top colleges for CSE Bangalore and Mysore. Kindly suggest.
Ans: Farid Sir, With a KCET rank of 12 971 in the 2BG category, your son is assured of admission to these 15 reputable AICTE-approved, NBA/NAAC-accredited institutions in Bengaluru and Mysuru whose 2024 CSE closing ranks for reserved categories exceeded your score. Each offers modern computing labs, experienced faculty, strong industry tie-ups and placement cells recording 70–85% consistency over the last three years:

Alliance College of Engineering & Design, Alliance University, Anekal (CSE closing rank ~73 084)

Global Academy of Technology, Rajarajeshwari Nagar (CSE closing rank ~77 065)

East West Institute of Technology, BEL Layout (CSE closing rank ~84 824)

Garden City University, Old Madras Road (CSE closing rank ~98 787)

Cambridge Institute of Technology, North Campus, Kundana (CSE closing rank ~91 162)

Impact College of Engineering & Applied Sciences, Sahakar Nagar (CSE closing rank ~100 096)

REVA University, Yelahanka (CSE closing rank ~55 784)

Acharya Institute of Technology, Soladevanahalli (CSE closing rank ~101 534)

Atria Institute of Technology, Hebbal (CSE closing rank ~98 519)

M.S. Ramaiah University of Applied Sciences, MSR Nagar (CSE closing rank ~43 320)

CMR Institute of Technology, Varthur (CSE closing rank ~26 945)

RNS Institute of Technology, Bengaluru (CSE closing rank ~26 945)

New Horizon College of Engineering, Marathahalli (CSE closing rank ~25 808)

Presidency University, Bangalore (CSE closing rank ~30 000–35 000 range)¹

MVJ College of Engineering, Channasandra (CSE closing rank ~19 389)
All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Ramalingam

Ramalingam Kalirajan  |9730 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 14, 2025

Asked by Anonymous - Jul 14, 2025Hindi
Money
I am 46 years old..in a government job with salary in hand of 85k.I invest 9k in PFi 12.5 k each in PPFand sukanya samriddhi.My daughter is 13 at present.I pay 22k for HBLI invest 8k in SIP.will get around 10 k as rent of my flat. .I have a family floater where I pay 26k annually and an RD of 4K per month.My PPF Sukanya and PF as of now are all around 11lakhs.I will retire in 2039.I have a SBI life which is market linked priced at around 13.5 lakhs at present.It will mature in 2027.The outstanding loan amount of HBLis 7lakhs.where and how much should I invest to repay my loan as well as make investment for the future.
Ans: You have been thoughtful with your investments and savings. At this stage, clarity and right structuring are more important than increasing the number of investments.

Let us now look at your situation from a full 360-degree view and build a practical plan.

? Age, Income and Goals

– You are 46 now with 13 years left to retirement.
– Your in-hand salary is Rs 85,000 per month.
– You also receive Rs 10,000 monthly rent from your flat.
– So, your total regular cash inflow is Rs 95,000.
– Your daughter is 13 years old. Education and marriage are big upcoming expenses.
– Retirement planning is also a priority from now.

Time is limited, so every rupee must work smartly.

? Ongoing Financial Commitments

– You invest Rs 9,000 in PF (mandatory deduction).
– You invest Rs 12,500 in PPF and same in Sukanya Samriddhi.
– Your monthly EMI for home loan is Rs 22,000.
– You invest Rs 8,000 in SIPs.
– You pay Rs 26,000 per year as premium for family floater.
– You have an RD of Rs 4,000 monthly.

This shows a very good savings culture. But allocations need refinement.

? Existing Assets Summary

– PPF, PF, Sukanya total is around Rs 11 lakh.
– SBI Life (market-linked) value is Rs 13.5 lakh, maturing in 2027.
– You also own a house and earn Rs 10,000 rent from it.
– These are strong financial pillars to build upon.

You are not starting from scratch, which is a great position to be in.

? Loan Situation

– Outstanding loan is Rs 7 lakh on your home.
– EMI is Rs 22,000 per month.
– You have 13 years to close the loan before retirement.
– Ideally, loans should be cleared before retirement.

Let us see how to manage this smoothly.

? Cash Flow Evaluation

– Monthly inflow: Rs 85,000 salary + Rs 10,000 rent = Rs 95,000.
– Expenses + SIP + EMI + savings = around Rs 75,000–80,000 monthly.
– You may be left with Rs 15,000–20,000 buffer.

This buffer must be managed with purpose and not by chance.

? SBI Life Policy Assessment

– This is a market-linked insurance policy.
– Value now is Rs 13.5 lakh. Maturity is in 2027.
– These insurance cum investment plans often give lower returns.
– Better to surrender it after 2027 maturity.
– Reinvest the entire maturity amount into mutual funds.
– Do not renew or reinvest in another ULIP.

ULIPs are expensive and do not provide long-term value. Shift to mutual funds.

? Home Loan Repayment Planning

– Do not pre-close home loan in a hurry now.
– Keep regular EMI going from your salary.
– Instead, focus your extra savings to grow wealth.
– In 2027, when SBI Life matures, use Rs 2 lakh from it.
– Use that to make a part-payment of the home loan.
– This will reduce EMI burden in later years.

Target complete closure of loan by 2034 latest. Do not keep till retirement.

? Emergency Fund Requirement

– You must keep at least Rs 2 lakh in liquid form.
– This is not for investment. It is for protection.
– Use part of your RD and savings account for this.
– Stop RD if needed, and create emergency fund instead.

Without this, any sudden expense will force you into loans again.

? Child Education and Marriage Planning

– Your daughter is 13 now. Graduation in 5 years.
– Post-graduation and marriage will follow after that.
– Your Sukanya account and PPF help with this.
– But that alone is not enough. Add a goal-based SIP.
– Use regular plans of actively managed mutual funds.
– Avoid direct funds. Avoid index funds.

Regular plan SIPs with Certified Financial Planner help in review and changes.

? Why Avoid Index Funds and Direct Funds

– Index funds cannot manage downside risk.
– They fall when market falls. No protection strategy.
– They follow the index blindly without human guidance.
– Direct mutual funds look cheaper but offer no support.
– You won’t get regular review, asset allocation help or correction.
– Without expert guidance, direct funds underperform in long term.

A Certified Financial Planner with MFD support brings strategy and safety together.

? SIP Strategy Going Forward

– You already invest Rs 8,000 in SIPs.
– Continue this. Do not stop unless emergency arises.
– After 2027, increase this to Rs 12,000 or more.
– Use part of SBI Life maturity to start extra SIP.
– Use mutual funds that match your time horizon and goals.
– One SIP for daughter, one for retirement.

All new investments should be with specific targets in mind.

? Retirement Planning from Age 46

– You have 13 years left till retirement.
– PF and PPF will help, but are not enough.
– Inflation will reduce value of PPF corpus.
– Mutual funds offer better post-tax returns.
– Regular investing over next 13 years is critical.
– Increase SIP as your salary grows.

You must target financial independence before retirement. Not just pension dependency.

? Health Insurance and Risk Cover Review

– You have a family floater. That’s good.
– Check sum insured is at least Rs 10 lakh.
– Top it up if needed. Health costs rise each year.
– Also ensure you have term life insurance.
– Amount should be minimum 10 times your salary.
– Do not mix investment with insurance.

Protection planning is as important as wealth planning.

? Real Estate Holding – Just Maintain It

– You get Rs 10,000 rent monthly from your flat.
– That is good passive income. Do not sell this property.
– But avoid buying any more real estate.
– Maintenance, taxes and liquidity make real estate less attractive.
– Better to invest in mutual funds for flexibility and return.

More assets do not mean more wealth if they are not liquid.

? Income Use Plan from Now to Retirement

– 2024–2027: Focus on loan EMI, SIP and emergency fund.
– 2027: Use part of SBI Life maturity for loan part-payment.
– Rest of the money to be invested in SIP.
– 2027–2034: Increase SIP for retirement and daughter’s future.
– 2034: Plan to fully close home loan.
– 2035–2039: Save maximum possible in SIPs.

Clear path like this gives financial control and peace.

? Asset Diversification

– Avoid locking more in PPF or RD now.
– Keep PPF running, but don't increase contribution.
– Stop RD and move that money to SIP after emergency fund is ready.
– Avoid gold, crypto, or other complex assets.
– Just focus on simple, quality mutual fund SIPs in regular plan.

Simple, consistent approach wins over long term.

? Finally

– You are in a strong position due to early planning.
– But some parts need correction and better allocation.
– Use next 3 years to organise your finances more efficiently.
– Don't rush to pre-close loan unless there’s surplus.
– Reinvest the SBI Life maturity wisely.
– Avoid index funds, direct funds and real estate.
– Stick to regular plan mutual funds with guidance.
– Focus on specific goals – child education, marriage and your retirement.

Clear direction now will ensure peace later. You are very much on track.

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

...Read more

Ramalingam

Ramalingam Kalirajan  |9730 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 14, 2025

Money
Hi Sir I have Purchased a Home which is Around 25L with all my Savings,M.funds. My Inhand Salary is 60,000/-, And Debt details are as follows Personal Loan- 2Lac Gold Loan - 2.25Lac From Relatives - 4.5Lac.(1yrear time taken) Now I am finding very difficulty to Save the money and tracking every Single Penny.. Kindly suggest me in this Case what to do.
Ans: Let’s carefully understand your financial position and work step-by-step to improve it. The current situation seems tight, but with the right planning, things can be managed well.

? Current Financial Snapshot

– Home purchased for Rs 25 lakh with your entire savings and mutual funds.
– No home loan, which is a good point. Property is fully owned.
– In-hand monthly salary is Rs 60,000.
– Existing debts include:

Rs 2 lakh personal loan

Rs 2.25 lakh gold loan

Rs 4.5 lakh borrowed from relatives
– You mentioned that you are struggling to save or track money.

This is a very common challenge in the early years of home ownership. Let’s take one step at a time.

? Cash Flow Stress Analysis

– Your monthly income is not matching with outflow due to EMI and regular expenses.
– Personal loan and gold loan EMIs may be high due to short repayment terms.
– You also have a moral obligation to return the amount to your relatives in 1 year.
– Your current cash outflows may be above 70% of your income.

This gap creates financial stress. We need to balance it.

? Immediate Focus: Create a Monthly Budget

– Write down every expense, even the smallest one.
– Break expenses into 3 parts: Must-Have, Flexible, and Avoidable.
– Must-Have: Rent (if any), groceries, child school fees, transport.
– Flexible: DTH, OTT, eating outside, non-essential shopping.
– Avoidable: Unused subscriptions, unplanned EMI purchases, gadgets.
– First target is to reduce the flexible and avoidable categories.

You must review this every 15 days. It will give clear spending awareness.

? Debt Prioritisation Strategy

– Start with the costliest loan: usually personal loans and gold loans.
– Try to close the personal loan first. Interest is normally very high.
– Next focus on gold loan, since delay may lead to loss of gold asset.
– Relative loan is at zero or low interest, repay slowly.
– Talk to relatives honestly and request 6 more months for comfort.

It’s okay to request this. Most families do understand.

? Use a Debt Avalanche Method (Without Calculation)

– Pay minimum EMI on all loans.
– Use any surplus to close highest-interest loan first.
– Then move to next high-interest loan.
– Do not try to repay all equally. That will not reduce total interest much.

Focused repayment brings mental peace.

? Emergency Fund Creation

– Right now, you don’t have any savings left.
– Without an emergency fund, any small expense will push you to borrow again.
– Start building a fund of at least Rs 30,000 to Rs 50,000 in a savings account.
– Set small goals like saving Rs 2,000 a month.
– Emergency fund is not for investments. It is for protection.

This step avoids future personal loan traps.

? Investments Can Wait – But Not Planning

– Do not start any SIP or investment now. Focus only on debt clearing and emergency fund.
– But track your expenses and income as if you are planning for a SIP.
– This mental discipline will help when you are actually ready to invest.
– Planning must begin today, investing can wait 6–9 months.

Clarity in numbers always comes before wealth creation.

? Role of Mutual Funds Later

– Once debts are cleared and emergency fund is ready, only then start investing.
– Go for actively managed mutual funds through Certified Financial Planner and MFD.
– Regular plans allow you to get guided review and handholding.
– Avoid direct plans unless you are trained in market analysis.
– Regular plans offer rebalancing, portfolio review and behavioural support.

Guided approach helps in emotional control during market changes.

? Why Not Index Funds

– Index funds may seem cheaper, but carry hidden risks.
– They cannot protect you during market crash.
– They blindly follow the index without risk filters.
– No scope for active management or downside protection.
– Actively managed funds give better returns in uncertain markets.

Safety with growth is key for salaried individuals like you.

? Income Expansion Attempts

– If possible, take small freelance work in weekends or evenings.
– Tutoring, online assistance, delivery work, or any skill-based work helps.
– Even Rs 3,000 extra income can fast-track loan closure.
– Don’t ignore small side income. Every rupee counts in debt management.

This step adds strength to your plan.

? Lifestyle Adjustments – Temporarily

– Pause all unnecessary spending like dining out, movies, and clothing for now.
– Stick to basic lifestyle until all high-interest debts are cleared.
– Use old phone, avoid gadgets, reuse clothes and accessories.
– Don’t feel bad. This phase is temporary and purposeful.

Short-term sacrifice brings long-term peace.

? Avoid These Mistakes

– Do not take another loan to repay existing loans.
– Don’t swipe credit cards for regular expenses.
– Avoid BNPL or EMI traps on online shopping.
– Don’t invest in gold or crypto now.
– Avoid insurance policies that combine investment and life cover.

Focus only on liquidity and debt reduction now.

? Family Support and Communication

– Speak with your spouse or parents honestly about current situation.
– Assign small responsibility to each family member.
– Even saving Rs 200 in electricity or food matters.
– Emotional support from family boosts financial discipline.

Unity brings faster solutions.

? Future Planning – Once Stable

– After debt closure, build 3 months' salary as emergency corpus.
– Then, set financial goals like retirement, children education, and vacations.
– Start SIP in 2-3 mutual funds under regular plan with guidance.
– Choose goals-based investing, not trend-based investing.
– Review goals every 6 months with a Certified Financial Planner.

Future planning needs structure, not trial and error.

? Insurance Check

– Ensure you have term life cover equal to at least 10x of your annual income.
– If you have ULIPs or traditional endowment plans, review them with a CFP.
– Surrender if needed and shift to mutual funds for long-term wealth.
– For health, minimum Rs 5 lakh cover is needed for family.

Insurance is protection, not investment.

? Mental Framing for Money Success

– Stop comparing lifestyle with others.
– Avoid social media-based spending urges.
– Be content and frugal for next 1–2 years.
– Celebrate small financial wins – like repaying one EMI early.
– Keep reminding yourself – this is a phase, not forever.

Discipline is more powerful than any investment plan.

? Finally

– You have already done one good thing – bought a house without a home loan.
– This is your foundation. Now your job is to build peace and liquidity.
– Cut expenses, increase income, repay loans smartly.
– Say no to lifestyle pressure and wrong investment traps.
– Once you are stable, mutual fund investment under regular plan will guide your growth.

Keep moving step by step. You are already on the path.

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

...Read more

Nayagam P

Nayagam P P  |8802 Answers  |Ask -

Career Counsellor - Answered on Jul 14, 2025

Career
Sir CSE in BITS if to choose between goa and hyderabad then whivh one should we opt for and why ? We have git hyderbad and will get Goa if done freeze the option in preference
Ans: Sharma, Both BITS Goa and BITS Hyderabad offer excellent Computer Science and Engineering programs with identical curriculum, faculty standards, and degree credentials under BITS Pilani. BITS Goa (established 2004) provides a picturesque 188-acre campus with pleasant weather, strong cultural festivities including the renowned Waves festival, and slightly higher placement consistency with First Degree placements at 91.15% in 2023. The campus features modern computing labs, proximity to beaches, and a vibrant social atmosphere. BITS Hyderabad (established 2008) offers a sprawling 200-acre campus with state-of-the-art infrastructure, modern laboratories, and excellent connectivity to Hyderabad's IT ecosystem. The campus recorded First Degree placements at 87.23% in 2023 with strong industry partnerships. Both campuses maintain similar median packages around ?17-18 LPA and attract identical top recruiters including Google, Microsoft, Amazon, and other leading firms. The Practice School program and academic rigor remain consistent across both locations, ensuring comparable educational quality and career outcomes.

Recommendation: Choose BITS Goa if you prioritize pleasant weather, cultural vibrancy, scenic beauty, and slightly better placement consistency; opt for BITS Hyderabad if you prefer state-of-the-art modern infrastructure, proximity to India's IT hub, and enhanced industry exposure opportunities within a rapidly growing tech ecosystem. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8802 Answers  |Ask -

Career Counsellor - Answered on Jul 14, 2025

Nayagam P

Nayagam P P  |8802 Answers  |Ask -

Career Counsellor - Answered on Jul 14, 2025

Asked by Anonymous - Jul 14, 2025Hindi
Career
Ict ioc is best or nit manipur/mizoram civil is best . I confused what should I do .
Ans: The ICT–IOCL Odisha Campus offers a unique five-year integrated M.Tech in Chemical Engineering with minors in six disciplines, blending nine trimesters of on-campus coursework with six trimesters of paid industrial internships, led by PhD-qualified faculty in state-of-the-art labs and backed by NAAC A++ accreditation and merit-cum-means scholarships. In contrast, National Institute of Technology Manipur’s four-year B.Tech in Civil Engineering admits 38 students per year, is NIRF-ranked 101–150, features foundational structural, geotechnical, and environmental labs under government funding, and achieved a median UG package of ?8.75 LPA with 147 of 161 graduates placed in 2024. NIT Mizoram’s B.Tech Civil cohort (34 seats) recorded a 100% placement rate in 2024 with a median package of ?6 LPA and recruiters such as Adobe and Tech Mahindra, all within its Institute of National Importance framework and burgeoning permanent campus near Aizawl Airport.

Recommendation: If your goal is industry-immersive chemical engineering training with guaranteed stipends and entrepreneurial focus, choose ICT–IOC Bhubaneswar; for a core civil engineering pathway with strong government support, higher civil-branch placements and national-level credentials, opt for NIT Mizoram, with NIT Manipur as a solid fallback. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Nayagam P

Nayagam P P  |8802 Answers  |Ask -

Career Counsellor - Answered on Jul 14, 2025

Career
My son has secured a seat in the AI & Data Science course at IIIT Kota through JoSAA counselling. Kindly guide us regarding the scope and future opportunities in AI & DS under current circumstances. Also, should we still consider participating in CSAB rounds, or is it advisable to retain this seat?
Ans: The B.Tech in Artificial Intelligence & Data Engineering at IIIT Kota was established in the 2024–25 academic session with an annual intake of 60 students, offering a curriculum that blends foundational AI, data science, and hands-on project work under PhD-qualified faculty. As a newly launched branch, the first cohort has not yet graduated, so there are no branch-specific placement records for 2024 or 2025. However, IIIT Kota’s established CSE and ECE branches have reported strong placement statistics in 2024, with an overall placement rate of 74% and average packages above ?12 LPA, indicating a positive recruitment environment for computing disciplines. The AI & DS program is designed to meet current industry demand for data scientists, AI engineers, and analytics professionals, leveraging the institute’s growing partnerships with leading tech firms and its status as an Institute of National Importance. Participation in CSAB rounds may be considered if you are targeting higher-ranked NITs, IIITs, or core CSE branches, but for most candidates, the current AI & DS seat at IIIT Kota offers a robust platform for future opportunities in AI, machine learning, and data analytics.

Recommendation: Retain the AI & Data Science seat at IIIT Kota for its modern curriculum, strong institutional reputation, and emerging placement ecosystem; participate in CSAB only if you have a realistic chance at a core CSE seat in a higher-ranked NIT or IIIT, otherwise focus on maximizing opportunities in the current program through internships and research projects. All the BEST for Admission & a Prosperous Future!

Follow RediffGURUS to Know More on 'Careers | Money | Health | Relationships'.

...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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x