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Harsh

Harsh Roongta  | Answer  |Ask -

Answered on Dec 24, 2019

Pritam Question by Pritam on Dec 24, 2019Hindi
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We had applied for a joint home loan to HDFC. The agent and even the local branch manager assured ROI of 8.5 per cent and promised to negotiate for even lower rates. When the final sanction came, the rate of interest quoted was 8.75 per cent. We are in a fix, what to do? Should we apply to other banks which are offering lesser interest rates? No disbursement done as yet.

Ans: What are you thinking? Apply to another bank and get the loan on the basis of the transparent external benchmark. Borrowing from a housing finance company makes no sense whatsoever given the completely non-transparent way in which their floating rates are fixed as compared to banks.

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Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

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Hi sir Good morning I have taken busines loan of 75,000 almost a year know we have paid more than 90% amount but still we have to pay 705000 from HDFC Bank
Ans: Loan Details
You took a business loan of Rs 75,000 almost a year ago.

You have paid more than 90% of the amount.

You still owe Rs 7,05,000 to HDFC Bank.

Understanding the Discrepancy
There seems to be a misunderstanding or calculation error regarding the loan amount and payments.

Clarifying the Loan Terms
Review your loan agreement to understand the interest rate, tenure, and repayment schedule.

Seeking Clarification
Contact HDFC Bank to clarify the outstanding loan amount and any discrepancies.

Steps to Manage and Pay Off the Loan
1. Detailed Loan Statement
Request a detailed loan statement from HDFC Bank.

This will help you understand the breakdown of the principal amount, interest, and any additional charges.

2. Assessing Repayment Options
Lump Sum Payment
If you have the funds, consider making a lump sum payment to reduce the outstanding amount.

This can save you on interest payments.

EMI Adjustments
Discuss with the bank the possibility of adjusting your EMI.

This can help you manage your monthly cash flow better.

3. Refinancing the Loan
Lower Interest Rates
Check if you can refinance the loan at a lower interest rate.

This can reduce your monthly EMI and total interest outgo.

Extending the Tenure
Consider extending the loan tenure.

This will reduce your monthly EMI but increase the total interest paid.

Improving Cash Flow for Loan Repayment
1. Expense Management
Budgeting
Create a detailed budget to track your income and expenses.

Identify areas where you can cut costs.

Prioritize Payments
Prioritize loan repayments to avoid penalties and additional interest.

2. Increasing Income
Business Revenue
Focus on strategies to increase your business revenue.

This can help you generate more funds for loan repayment.

Additional Income Sources
Consider additional income sources, such as part-time work or freelance opportunities.

3. Emergency Fund
Building an Emergency Fund
Ensure you have an emergency fund to cover unforeseen expenses.

This will prevent you from dipping into loan repayment funds.

Using Savings
If you have savings, consider using a portion to pay off the loan.

This can reduce your debt burden.

Seeking Professional Advice
1. Certified Financial Planner (CFP)
Personalized Guidance
Consult a CFP for personalized financial advice.

They can help you create a detailed repayment plan and manage your finances better.

2. Debt Counseling
Understanding Debt Management
Consider debt counseling services to understand better debt management strategies.

They can help you negotiate with the bank and manage repayments.

3. Legal Advice
Reviewing Loan Agreement
If there are discrepancies in the loan amount, seek legal advice.

A legal expert can help review your loan agreement and identify any issues.

Long-Term Financial Planning
1. Financial Goals
Setting Clear Goals
Set clear financial goals for your business and personal life.

This will help you prioritize and manage your finances better.

2. Investment Planning
Diversifying Investments
Once the loan is paid off, focus on diversifying your investments.

This will help you build wealth and achieve financial stability.

3. Risk Management
Insurance Coverage
Ensure you have adequate insurance coverage for your business and personal life.

This will protect you from unforeseen financial risks.

Final Insights
Comprehensive Review
Conduct a comprehensive review of your loan and repayment plan.

Ensure you understand all the terms and conditions.

Regular Monitoring
Regularly monitor your loan statements and payments.

Keep track of any discrepancies and address them promptly.

Open Communication
Maintain open communication with HDFC Bank.

Seek clarification on any issues and negotiate terms if needed.

Balanced Approach
Take a balanced approach to managing your finances.

Prioritize loan repayment while maintaining a healthy cash flow for your business and personal needs.

Long-Term Perspective
Keep a long-term perspective in mind.

Focus on building financial stability and achieving your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 19, 2025

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I have taken a floating home from Axis Bank for 30 lakh last year, with a interest rate of 8.5%, i have also prepaid 5 Lakh within five months, now i have an outstanding amount of arround of 24 lakh, as the RBI reduced the repo rate, Bank is refusing to reduce interest rate from 8.5% to 8.25%. please suggest what should i do now?
Ans: You took a floating-rate home loan from Axis Bank at 8.5% interest.
You prepaid Rs 5 lakh within five months, reducing your outstanding amount to Rs 24 lakh.
RBI reduced the repo rate, but Axis Bank refuses to lower your rate to 8.25%.
Why Your Interest Rate Is Not Reducing
Banks do not always pass repo rate cuts immediately to all borrowers.
Some loans are linked to MCLR (Marginal Cost of Funds Based Lending Rate), which adjusts slowly.
New loans might be under RLLR (Repo Linked Lending Rate), which reacts faster to RBI rate cuts.
Your loan agreement decides how and when rate cuts apply.
What You Can Do
1. Ask for a Rate Reduction
Request Axis Bank to switch your loan to an RLLR-based loan.
Banks charge a conversion fee, but it might save you lakhs in interest over time.
2. Compare with Other Banks
Check other banks' home loan rates for balance transfer options.
If a bank offers a lower rate, consider switching the loan.
Ensure the processing fee & charges don’t negate the benefit.
3. Negotiate with Axis Bank
If you have a good repayment record, negotiate for a lower spread or margin.
Mention that other banks offer better rates, increasing your bargaining power.
4. Make Partial Prepayments
If you have extra savings, consider small prepayments to reduce interest burden.
Prepaying reduces the principal, which lowers total interest paid.
5. Use a Home Loan Overdraft Account
Check if Axis Bank offers a home loan overdraft facility.
You can park surplus money and withdraw when needed, reducing interest payments.
Best Action Plan
Contact Axis Bank and request a switch to an RLLR-based loan.
Compare other banks for balance transfer options.
Negotiate for a lower spread if staying with Axis Bank.
Consider prepayments to reduce long-term interest costs.
By taking the right step now, you can save a significant amount on interest payments.

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

..Read more

Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 19, 2025

Asked by Anonymous - May 18, 2025
Money
Sir we took a sbi global Ed-vantage education loan with collateral for 80lakh on May 2024. For 10.65.%for 15yrs. They said int rates are computerized pan India. So we trusted them. But after one year nd disbursement of 40lakh . But we got email saying interest is now 11.15% we checked. current rates it was 9.15 .%. we were shocked it made as to check what was the rate during our loan sanction time. It was same 9.15. we felt cheated . When we asked the bank they said they can't change that. Let's see what can be done for 0.5%increase . Trusting sbi nd not checking the rates was our fault. Now what's the remedy for us. Hope you can guide us. We will be grateful for your help.
Ans: You’ve done the right thing by revisiting and questioning the loan terms. It’s understandable to feel disappointed and betrayed. Many borrowers assume public banks will offer full transparency. But sadly, loan processes — even in SBI — are not always straightforward. Let’s explore your case from all angles and suggest clear remedies.



1. Understanding the Real Issue First


Your SBI education loan was sanctioned at 10.65% in May 2024.



Today, after disbursing Rs. 40 lakh, you’ve been told the new rate is 11.15%.



But the current advertised rate is only 9.15%.



This mismatch raises a key concern: Was your rate fixed or floating?



SBI Global Ed-Vantage loans are generally linked to EBLR (External Benchmark Lending Rate).



That means the interest rate must change as the RBI repo rate changes.



But the reality is, SBI often adds a “spread” or “premium” over the benchmark rate.



This spread is based on credit score, collateral, student profile, etc.



Even if repo goes down, SBI may increase spread, keeping final rate high.



And sadly, banks don’t disclose this clearly unless you ask.



2. What Might Have Happened in Your Case


SBI’s base rate (EBLR) may have been 9.15% during sanction.



But your rate was 10.65%, which means spread was 1.50%.



Now, repo may have dropped, but SBI raised the spread silently to 2.00%.



So your new rate is 9.15% + 2.00% = 11.15%.



This is how banks play with the spread behind the scenes.



It’s not illegal. But it is misleading if not explained upfront.



3. Your Mistake Was Only Trusting Without Verifying


It’s true — not checking the benchmark and spread is common.



Many assume SBI will give best possible rate.



But banks use “pan-India computerized” explanation to avoid individual discussions.



Now that you caught it, it’s time to take the right steps.



4. What You Can Do Immediately


First, send an official written complaint to SBI branch manager.



Ask for detailed loan sanction letter, annexure, and EBLR-linked rate calculation.



Request a written breakup: current repo rate + spread = your interest.



Ask for justification of why spread is 2.00% now.



Mention the advertised rate (9.15%) and ask why you didn’t get it.



Submit this via email and hard copy and ask for written reply.



5. If Bank Doesn’t Cooperate, Escalate in Stages


After 7 working days, if branch doesn’t reply, write to SBI Zonal Office.



You can get email and contact on SBI website under grievance redressal.



Still no help? Raise complaint to SBI Customer Care portal online.



Use this link: https://crcf.sbi.co.in/ccf/



Clearly mention the unfair spread hike, deviation from base rate, and lack of clarity.



Upload all documents, email chains, and screenshots.



You will get a complaint ID. Follow it regularly.



6. If Still No Resolution – Use RBI Ombudsman Route


Wait for 30 days from SBI complaint.



If no response or unsatisfactory reply, file online to RBI Banking Ombudsman.



Use this link: https://cms.rbi.org.in



Fill full complaint history, and attach copies.



You can highlight that loan was linked to repo rate but you were charged more.



RBI may take strict action if SBI is found wrong.



7. Optional But Powerful – RTI Filing


You can also file RTI to SBI Head Office.



Ask:



What was EBLR in May 2024?



What is the spread for Global Ed-Vantage loans for a profile like yours?



Why your loan is now at 11.15% while base rate is 9.15%?



File online here: https://rtionline.gov.in



Cost is Rs. 10. Takes 5 minutes. Use your name and bank account number.



SBI must reply in 30 days.



8. What to Avoid Now


Do not make fresh disbursement of the remaining Rs. 40 lakh unless clarified.



Don’t blindly continue EMI or interest payments without documents.



Don’t fall into trap of “switch to fixed rate” offers from bank.



That can trap you at high rates even when repo falls later.



And don’t assume you can’t fight – RBI is serious about customer complaints.



9. Is Loan Takeover Possible from Another Bank?


After first disbursement, loan takeover is hard.



Very few banks take over mid-way student loans.



But if issue continues, and rate remains high, you may explore NBFC options later.



They may allow takeover if collateral is strong.



But this should be Plan B, not immediate action.



10. What Can You Learn and Apply Ahead?


Always ask for base rate + spread breakdown during loan sanction.



Ask if rate is repo-linked or MCLR-linked or fixed.



Collect the signed loan agreement and annexure with these details.



Ask for email confirmation, not just verbal words.



And monitor repo and EBLR changes every quarter.



11. Financial Tip: Start Small SIP for Education Loan Buffer


Start a monthly SIP to build buffer for future EMIs.



In case interest rate continues rising, this corpus can help.



Use short-term debt fund or ultra short-term fund for this.



This will reduce dependence on fresh disbursement or bank help.



Finally


You’ve taken a bold and right step by verifying everything.



SBI has no right to quietly raise spreads without proper explanation.



You can fight this legally and fairly through written complaints and RTI.



Be persistent, polite, and professional.



Track everything and escalate stage by stage.



Your case can also become reference for many other parents and students.



Take this fight not just for you, but for every Indian borrower.


Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

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Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Asked by Anonymous - Jul 20, 2025Hindi
Career
Hi, my son has secured an admission in a 2+2 BITS CSE program 2025 at Hyderabad (first 2 years) and Iowa state univ (for next 2 years). Under DASA he can potentially get AI at NITK or ECE at NIT Trichy or CSE in NITW (his CRL rank is 25200). Can you please advise and provide recommendations on what we can choose and reasons? We know 2+2 ISU program is more expensive compared to NIT DASA fees but is it worth the money vis-a-vis doing a B.Tech at NIT and doing a masters in US later? For this rank, what can he get at the said NITs under DASA?
Ans: The BITS Pilani–Iowa State University 2+2 CSE offers two years at BITS Hyderabad (ACM-aligned curriculum, NAAC A++ accreditation, state-of-the-art AI, data-science and cloud labs) followed by two years at Iowa State University (top-50 US engineering program, immersive B.S. in Computer Engineering, ISU merit scholarships up to US $4,500/year). Total direct tuition and campus fees for BITS Hyderabad amount to approximately ?10.5 L per year, while Iowa State tuition exceeds US $33,000 annually, plus living expenses. Graduates earn dual degrees with global brand recognition and typically secure near-100% placement through BITS’s 200+ recruiter network and ISU’s strong career services, commanding premium compensation packages in software, data science and R&D roles.

Under DASA with an All-India CRL of 25,200, he qualifies for: B.Tech AI at NIT Surathkal (AI cutoff: 26,688); B.Tech ECE at NIT Trichy (ECE cutoff: 66,706); and B.Tech CSE at NIT Warangal (CSE cutoff: 46,935). Each NIT features NBA accreditation, experienced PhD faculty, modern labs and strong industry MoUs. NITK AI and NITW CSE boast placement rates above 80% and growing AI/analytics recruitment pipelines, while NIT Trichy ECE records near-75% core-sector placements. Annual DASA fees at NITs range from US $15,000–18,000, significantly lower than BITS-ISU costs, with comparable scholarship opportunities limited.

Balancing long-term ROI, the BITS 2+2 path accelerates global exposure, dual-degree credentials and premium placements at higher upfront cost. A B.Tech at NIT followed by a US master’s entails lower initial investment, robust core engineering training and the flexibility to self-fund graduate studies through campus placements or scholarships.

Recommendation: Opt for BITS 2+2 CSE if you prioritise world-class international exposure, dual degrees and, top-tier placement networks despite higher fees. Choose a DASA seat at NIT (AI at NITK or CSE at NITW) for cost-effective core engineering training with solid placement and later pursue a US master’s via merit scholarships. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Career
Best option in iiit hyderabad for better placement and early internship in btech and dual degree for course cse with speclization ai ml
Ans: Dipanshu, IIIT Hyderabad’s B.Tech in CSE offers an ACM-aligned curriculum covering algorithms, systems, AI/ML, data science and electives in computer vision and NLP, delivered through state-of-the-art AI, cloud-computing and robotics labs. A 12-credit Practice School internship begins in the fifth semester, supported by a proactive placement cell and corporate mentoring, yielding a 99% placement rate for BTech CSE with an average package of ?31.98 LPA over the past three years. Faculty include PhD-qualified researchers with strong industry collaborations, and accredited NAAC A++ status underpins academic quality. The five-year dual-degree integrates the BTech foundation with a research-oriented MS by Research, immersing students in advanced AI/ML theory, thesis work under DST/CSIR grants, and early research assistantships via centres like Kohli Center on Intelligent Systems. Dual-degree cohorts see 100% MS placement at an average of ?26.46 LPA, and graduates often secure RA internships and stipends of ?20,000–?50,000 monthly through lab-based projects. Both paths benefit from IIIT-H’s industry MoUs, interdisciplinary innovation hubs and global recruiter network, yet differ in academic depth, time-to-degree and placement profiles.

Recommendation: Opt for the BTech CSE for its higher average placement packages, structured Practice School internships from year three and broader recruiter diversity. Choose the dual degree if you seek early research immersion, advanced AI/ML specialization, funded thesis work and a stronger pathway into academia or R&D roles. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Career
My son got admission in KCG college chennai with CSE. Now we got CSE in Amrita Chennai. My concern that Amrita chennai feeswise more than double comes to around 18 laks whereas KCG 8 laks overall Kindly suggest which one is good. Amrita is over burden for me. Still considering my son career I am ready to take loan or something to manage. Kindly suggest which one is goo
Ans: Raj Sir, KCG College of Technology, affiliated to Anna University and AICTE-approved, holds NAAC A+ and NBA accreditation for its CSE programme, a centrally located 50-acre campus with 140+ virtual and physical labs, including specialized AI, cloud and programming facilities. Its dedicated placement cell reported an 88%–94% placement rate over the past three years, with an average package of ?5 LPA and top recruiters such as Accenture, Cognizant, IBM and Amazon. Total tuition fees amount to approximately ?2 lakhs for the entire B.E. course.

Amrita School of Engineering Chennai, a constituent of Amrita Vishwa Vidyapeetham (NAAC A++), operates a 13.5-acre hill-campus with state-of-the-art AI, data-science, cybersecurity and cloud labs, and a strong industry-university research ecosystem. Its CSE graduates achieved a 90%+ placement consistency in 2024, with an average package of ?9.2 LPA and participation from 300+ recruiters including TCS, Wipro, Accenture and Amazon. Total tuition fees for B.Tech CSE are ?18 lakhs over four years.

Academically, KCG offers a robust ACM-aligned curriculum and extensive virtual-lab access, whereas Amrita provides a research-driven, choice-based credit system, extensive centers of excellence, and global collaborations. Both institutions maintain active MoUs and experienced Ph.D. faculty, but Amrita’s higher spend yields stronger median placements and broader recruiter reach.

Recommendation: Opt for Amrita Chennai CSE if investment is feasible, to leverage its superior placement outcomes, advanced research infrastructure and extensive industry linkages. Choose KCG College CSE for an accredited curriculum with solid placement consistency at a significantly lower cost, preserving financial flexibility. MY SUGGESTION: Finalise KCG and advise your son to keep upgrading his skills during the next 4 years, build a strong & professional LinkedIn Profile, improve his soft skills etc., to be competitive among other students for campus placement. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9162 Answers  |Ask -

Career Counsellor - Answered on Jul 20, 2025

Asked by Anonymous - Jul 20, 2025Hindi
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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