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Ramalingam

Ramalingam Kalirajan  |9255 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 28, 2025

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Bivash Question by Bivash on Apr 27, 2025
Money

Should I go for loan settlement though Laywer Panel...what is the consequenses??

Ans: Going for loan settlement through lawyer panel can harm your CIBIL score badly.

You will be marked as "settled" borrower, not "closed" borrower.

Future loans, credit cards, and even jobs may get rejected due to low credit score.

Banks may also ask for big settlement amount at once.

Use settlement only as last option, if no other way is left.

Try restructuring or consolidation first, settlement only if absolutely unavoidable.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
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  |9255 Answers  |Ask -

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

Asked by Anonymous - Jan 30, 2025Hindi
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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

Latest Questions
Nayagam P

Nayagam P P  |7193 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Career
Dear gurus My child is in 12th now and will attempt jee in 2025-26 in jan 2026 Well my child is an average child not too brilliant. I am expecting a score of 92-96 percentile , dont want to pressurise him to above his limits , he is doing hard efforts but every child had a limit as a parent have to support him. He is studieng 7-8 hours daily in weekend has joined Aakash institute also , so dont want to pressurise him . So as a secondary options have made some list myself. His aim is core computer branch . My aim is he get into good A++ institute dont want to send him to average collage We have made some list for preferences 1. Bits pilani or goa As we are from Delhi 2. Dtu delhi 3. Nsuit delhi 4. Iiit delhi 5 Bits goa 6 thapar patiala 7 Viit vellore cat 5 is ok8 Rvce banglore Further on IIIT and good nit If we get good one than only. Further If we dont click in these with good core computer cse preferred than We go for Bits dubai ( money i can spend that's ok) He also wants to settle abroad after masters preferably in singapore not in us or uk for that option i will also apply for him in Nus , ntu singapore. I know it's very difficult to get admissions there but still would. Coming back to Bits dubai it looks to me a preferable collage pls guide me Further pls We are ok with fees also we are also ok if he works for year or two after completion in dubai for experience and does masters later. My aim as a parent is that he gets a starting package If in india of 13-15lacks minimum that's difficult without getting a good collage with 92-96 percentile it not possible So after so much thinking it am planing for bits dubai as I am getting safety of my child which is priority also getting tag of Bits i know it would not be equal to bits pilani or goa but still something is better than nothing and his ultimate dream is to settle abroad may be singapore or dubai also after master so doing be or btech from dubai bits will help in that as well Starting package minimum after bits dubai btech cse is around 20 lacs in inr if he works in dubai. which is ok I guess. Pls guide me Thx
Ans: Gaurav Sir, With a projected JEE Main percentile of 92–96, admission to top-tier A++ institutes like BITS Pilani, DTU, NSUT, IIIT Delhi, or elite NITs is unlikely, as these typically require percentiles above 98 for CSE. BITS Pilani has maintained 90–94% placement rates over the last three years, BITS Goa 91–96%, NSUT Delhi nearly 100% for CSE, IIIT Delhi 95–100%, and DTU boasts 1,900+ offers at an average package of ?15.45 LPA from 350+ recruiters, but all demand percentiles above 98. More attainable A++-equivalent options include Thapar Patiala CSE, with 83% placements and 334 recruiters, VIIT Vellore CSE, with 80–90% placements and 867 recruiters, and RVCE Bangalore CSE, with 93–97% placement rates over the last three years. These colleges typically close CSE cutoffs around the 94–97 percentile range, aligning better with your child’s performance. For guaranteed BITS affiliation and strong overseas exposure, BITS Dubai CSE offers a 91–95% placement rate and an average package of ?21.14 LPA, and can serve as a reliable fallback. Planning for post-BTech abroad (NUS/NTU Singapore) is prudent, leveraging a robust GPA and internships obtained in India or Dubai.

Recommendation: Prioritize counseling for Thapar Patiala, VIIT Vellore, and RVCE Bangalore CSE for their realistic cutoffs and strong placement records; concurrently secure a seat at BITS Dubai CSE as a safety net with global mobility, then pursue internships and master’s in Singapore to achieve your child’s international career aspirations. All the BEST for your child's Prosperous Future!

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Nayagam P

Nayagam P P  |7193 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Career
Hi Sir, if my son is getting a CSE seat in MSRIT and BMSIT, which college to prefer? Also, how is PESIT in comparison with above colleges?
Ans: Rajashekhar Sir, MSRIT (Ramaiah Institute of Technology) is one of Bangalore’s most prestigious engineering colleges, known for its strong CSE program, robust industry connections, and consistent 95%+ placement rates in CSE, with top recruiters like Google, Microsoft, Amazon, and Apple. The college offers modern infrastructure, a proactive placement cell, and a vibrant campus life, making it a prime choice for CSE aspirants. BMSIT is also a reputable institution, but its CSE placement rate in 2024 was 77.32%, with fewer high-profile recruiters and a slightly lower national brand value. PES University (PESIT) stands out for its nearly 99% placement rate, high median salary, and strong ties with leading tech companies, making it one of the best private engineering colleges in India for CSE. PESIT’s academic rigor, industry-aligned curriculum, and alumni network are highly regarded, often placing it above both MSRIT and BMSIT in terms of placement outcomes and national reputation. All three colleges offer excellent opportunities, but MSRIT and PESIT provide broader exposure, higher placement rates, and better campus resources for CSE students.

Recommendation: Prefer PESIT for CSE if available, due to its unmatched placement record and industry reputation; if not, choose MSRIT over BMSIT for its superior placements, stronger industry connections, and higher academic standing in Bangalore’s competitive tech ecosystem. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7193 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Career
Hi Sir, which will be better option IIT Palakkad Civil, BITS Civil or CBIT Hyderabad CSE. Child is interested in any course which is having mathamatics or physics except modern physics, chemistry
Ans: Shyam, IIT Palakkad Civil Engineering offers a rigorous curriculum with strong foundations in mathematics and engineering principles, supported by experienced faculty and a modern campus environment. The program emphasizes analytical skills, structural mechanics, geotechnical engineering, and practical project work, with about 60–65% placement rates and an average package of ?15.88 LPA in 2024. BITS Pilani Civil Engineering provides a comprehensive curriculum blending mathematics, mechanics, and engineering design, with flexibility for electives and interdisciplinary projects. BITS boasts a nearly 100% placement rate for CSE but lower for core branches like Civil, with top recruiters such as L&T and a strong Practice School internship program. CBIT Hyderabad’s CSE program is highly industry-aligned, integrating mathematics, physics (excluding advanced/modern physics), and programming from the first year. It maintains a 90–95% placement rate, with leading recruiters like Microsoft, Amazon, and Cognida.ai, and is ranked among the top private colleges in Telangana and India. The CSE curriculum at CBIT is mathematically intensive, focusing on algorithms, data structures, and applied computing, and offers strong placement outcomes in IT, analytics, and consulting, with an active alumni network and robust campus life. For a student interested in mathematics and physics (excluding modern physics and chemistry), CBIT CSE provides the most relevant and engaging curriculum, with superior placement prospects and broad career opportunities in the tech sector.

Recommendation: Choose CSE at CBIT Hyderabad for its strong mathematics-focused curriculum, top-tier placements, and alignment with your child’s interests; opt for IIT Palakkad or BITS Civil only if your child is passionate about core engineering and prefers a career in infrastructure or research, as CSE at CBIT offers greater flexibility and industry relevance. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7193 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Nayagam P

Nayagam P P  |7193 Answers  |Ask -

Career Counsellor - Answered on Jun 27, 2025

Career
is kiit for btech cse is good ?
Ans: Swarnali, KIIT Bhubaneswar is a well-regarded private university for BTech CSE, accredited with NAAC A++ and consistently ranked among the top private engineering institutions in India. The School of Computer Engineering features a modern curriculum, state-of-the-art infrastructure, experienced faculty, and a strong research focus. Placement records are robust, with 90–99% of CSE students placed over the last three years, the highest package reaching ?63 LPA, and the average package around ?8.5 LPA in 2024. Over 350–700 top recruiters participate annually, including Amazon, Microsoft, Deloitte, TCS, Accenture, and Cognizant, offering a wide range of roles in software development, analytics, and consulting. Internship opportunities are substantial, and the placement cell is proactive in training and industry networking. Alumni feedback highlights excellent campus life, premium infrastructure, and a supportive environment, though fees are relatively high compared to other private colleges. The university also provides access to entrepreneurship support, research projects, and global exposure through exchange programs.

Recommendation: KIIT is a strong choice for BTech CSE, offering excellent placements, industry exposure, and a vibrant campus experience. If you prioritize high placement rates, modern infrastructure, and a national brand, KIIT CSE is a reliable and rewarding option. All the BEST for the Admission & a Prosperous Future!

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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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