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Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 12, 2024

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
Narendran Question by Narendran on Apr 13, 2024Hindi
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Hello Sir/Mam, I am currently investing SIP of 1K per month in Quant Tax plan- direct growth for past 1 year. Now I am willing to invest an extra 5k per month.I am not sure in which plan to invest. Can you suggest me a investment plan? Thank you.

Ans: It's great to see your commitment to investing and growing your wealth. Investing regularly through SIPs is a smart move, especially for long-term financial goals.

Considering your current SIP in a tax-saving fund, you're already taking advantage of tax benefits while building your investment portfolio. Now, with an additional 5k per month to invest, it's crucial to choose a plan that aligns with your financial goals and risk tolerance.

Since you're already investing in a tax-saving fund, you may want to diversify your portfolio by considering other equity or debt funds. Equity funds offer the potential for higher returns over the long term but come with higher volatility. On the other hand, debt funds provide stability but usually offer lower returns.

Given your investment horizon and risk appetite, you may consider allocating a portion of the additional investment amount to diversified equity funds for growth potential and the remaining to debt funds for stability.

It's essential to research and choose funds that have a consistent track record of performance and align with your investment objectives. Moreover, periodic review of your portfolio and rebalancing as needed can help you stay on track towards your financial goals.

Feel free to consult with a Certified Financial Planner to discuss your investment options further and create a customized investment plan tailored to your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
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  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 23, 2024

Asked by Anonymous - May 16, 2024Hindi
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Hello, I am working as a teacher, nd I am 35 years old, earning 25000 per month. Kindly suggest me suitable plan and the amount which i should invest in SIP.
Ans: Congratulations on taking the first step towards securing your financial future! As a teacher with a monthly income of 25,000, it's commendable that you're considering investing in SIPs. Let's explore a suitable plan and investment amount tailored to your needs.

Your commitment to financial planning, despite the challenges, is admirable. I appreciate your dedication to securing a brighter future.

Assessing Investment Potential
Analyzing Income and Expenses
Given your monthly income of 25,000, it's crucial to assess your expenses to determine a feasible SIP amount. Understanding your financial obligations ensures a balanced approach to investing.

Evaluating Risk Tolerance
As a Certified Financial Planner, I understand the importance of aligning investments with your risk tolerance. Considering your profession and income level, a conservative to moderate risk approach may be suitable.

Designing a SIP Strategy
Establishing Investment Goals
Before deciding on an SIP amount, it's essential to define your financial goals. Whether it's saving for retirement, education expenses, or emergencies, clarity on objectives guides investment decisions.

Determining SIP Amount
Based on your income and expenses, allocating a reasonable portion towards SIPs is advisable. A SIP amount of 2,000 to 3,000 per month could be a prudent starting point, considering your financial situation.

Exploring Investment Options
Selecting Suitable Funds
While I cannot recommend specific schemes, I can highlight the types of funds to consider. Equity funds offer growth potential but come with higher risk, while debt funds provide stability with lower returns. Balancing risk and return is crucial.

Benefits of Actively Managed Funds
Actively managed funds, guided by experienced fund managers, aim to outperform the market. They offer flexibility and expertise in navigating market fluctuations, potentially yielding higher returns over the long term.

Importance of Regular Reviews
Monitoring and Adjusting Investments
Regularly reviewing your SIPs ensures they remain aligned with your financial goals and risk tolerance. Market conditions and personal circumstances change, necessitating adjustments to your investment strategy.

Seeking Professional Guidance
As a Certified Financial Planner, I'm here to provide guidance and support throughout your financial journey. Consulting with a professional ensures informed decision-making and optimal portfolio management.

Conclusion
Embarking on the SIP journey is a significant step towards achieving financial security and prosperity. By understanding your goals, assessing risk tolerance, and selecting suitable investment options, you're laying a solid foundation for a brighter financial future.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 27, 2024

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Sir i am the age of 56 i have invested in Tata ULIP plan 1 lakh premium per annum pls suggest another one investment plan for 10000 per month for 5 years for good returns
Ans: Understanding Your Current Investment
You have invested in a Tata ULIP plan, paying Rs 1 lakh premium per annum. ULIPs combine insurance and investment. While this sounds good, let's explore its risks and drawbacks compared to mutual funds.

Risks and Disadvantages of ULIPs
High Charges
ULIPs often have high charges, including premium allocation, policy administration, and fund management fees. These charges reduce your investment returns.

Complex Structure
ULIPs are complex. They mix insurance and investment, making it hard to understand how your money grows and how much goes towards insurance.

Limited Flexibility
ULIPs have a lock-in period of five years. Withdrawing funds before this period can result in penalties. This limits your liquidity.

Lower Returns
Due to high charges, ULIPs generally offer lower returns compared to mutual funds. The insurance component also eats into potential investment returns.

Benefits of Mutual Funds
Higher Returns
Mutual funds, especially actively managed ones, have the potential to offer higher returns over the long term. Fund managers actively manage the portfolio to maximize gains.

Transparency
Mutual funds provide transparency. You can easily track the performance of your investments. Fund reports and NAVs are published regularly.

Flexibility and Liquidity
Mutual funds offer higher liquidity. You can redeem your investments anytime without penalties, providing easy access to your funds.

Lower Costs
Mutual funds typically have lower expense ratios compared to ULIPs. This means more of your money is invested and working for you.

Surrendering ULIP and Reinvesting in Mutual Funds
Evaluating Your ULIP
Consider surrendering your ULIP. Calculate any surrender charges and understand the exit process. Check the current value of your ULIP.

Reinvesting in Mutual Funds
Once you surrender the ULIP, reinvest the proceeds into mutual funds. Here's how to proceed:

Creating a New Investment Plan
Systematic Investment Plan (SIP)
Start a SIP for Rs 10,000 per month. SIPs allow disciplined investment and benefit from rupee cost averaging.

Diversified Portfolio
Invest in a diversified portfolio of actively managed mutual funds. Include equity, debt, and balanced funds to spread risk and enhance returns.

Professional Guidance
Seek help from a Certified Financial Planner (CFP). They can recommend suitable funds based on your risk tolerance and financial goals.

Example of a Diversified Mutual Fund Portfolio
Equity Funds
Invest in equity funds for high growth potential. These funds invest in stocks of companies across different sectors.

Debt Funds
Include debt funds for stability. These funds invest in bonds and other fixed-income securities, providing steady returns.

Balanced Funds
Balanced funds invest in both equity and debt. They offer a balance of growth and stability, ideal for conservative investors.

Advantages of Regular Funds Over Direct Funds
Professional Management
Regular funds are managed by experienced fund managers. They make informed decisions to maximize returns, beneficial for those without investment expertise.

Personalized Advice
Investing through an MFD with CFP credential provides access to personalized financial advice. They help you choose the best funds and adjust your portfolio as needed.

Steps to Start Investing Online
Set Up KYC
Complete your KYC (Know Your Customer) process online. This is mandatory for investing in mutual funds.

Choose an MFD
Select a Mutual Fund Distributor (MFD) with CFP credential. They will guide you through the investment process and recommend suitable funds.

Start SIP
Initiate a SIP through your chosen MFD. Set up automatic monthly transfers from your bank account to the mutual fund.

Monitoring and Adjusting Your Portfolio
Regular Reviews
Review your portfolio periodically. Monitor fund performance and make adjustments based on market conditions and financial goals.

Rebalancing
Rebalance your portfolio annually to maintain your desired asset allocation. This involves selling some investments and buying others to keep your portfolio aligned with your risk tolerance.

Conclusion
ULIPs have significant drawbacks, including high charges, complexity, and lower returns. Surrendering your ULIP and investing in mutual funds can offer higher returns, flexibility, and transparency. By starting a SIP in a diversified mutual fund portfolio and seeking professional guidance, you can achieve your financial goals more effectively.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 17, 2024

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I am 50 years old privet sector employee, my job may be over coming 3 months. My investments value are, Demat account stocks= 60 Lakhs, MF, Flexi Cap = 40 L, Mid Cap =12L, Small Cap = 5L, FD=25L, PPF=20L will matured on 2031. Cash in hand 10L, Please suggest me correct investment plan to get 1.0L monthly. I have term plan for Rs 1.0Cr. and family mediclaim policy for rs. 25 L.
Ans: Current Financial Position
You have a strong financial foundation. Your investments and savings include:

Demat account stocks: Rs 60 Lakhs

Mutual Funds (Flexi Cap): Rs 40 Lakhs

Mutual Funds (Mid Cap): Rs 12 Lakhs

Mutual Funds (Small Cap): Rs 5 Lakhs

Fixed Deposit: Rs 25 Lakhs

PPF: Rs 20 Lakhs (matures in 2031)

Cash in hand: Rs 10 Lakhs

You also have a term insurance plan of Rs 1 crore and a family mediclaim policy of Rs 25 Lakhs.

Investment Strategy for Steady Income
Systematic Withdrawal Plan (SWP)
Utilize SWP from your mutual funds.

Withdraw Rs 1 lakh monthly from Flexi Cap and Mid Cap funds.

This ensures a regular income without depleting the principal rapidly.

Dividend-Paying Stocks
Invest part of your Demat account in dividend-paying stocks.

This provides regular income and potential for capital appreciation.

Balanced Mutual Funds
Shift some funds to balanced mutual funds.

These funds offer stability and regular returns.

Debt Funds
Allocate a portion to debt funds.

These are less risky and offer regular interest income.

Emergency Fund
Maintain Rs 10 Lakhs cash for emergencies.

This ensures liquidity and financial security.

Fixed Deposits and PPF
Keep FDs and PPF as they provide guaranteed returns.

Use FD interest for additional income.

PPF will mature in 2031, adding to your corpus.

Healthcare and Insurance
Ensure your family mediclaim policy is adequate.

Consider increasing the coverage if needed.

Your term plan is sufficient for your family's financial security.

Tax Efficiency
Tax-Efficient Investments
Invest in tax-efficient options like debt funds and balanced funds.

These can reduce your tax liability on returns.

Tax Planning for Withdrawal
Plan your withdrawals to minimize tax impact.

Use tax-saving strategies to optimize your income.

Regular Review and Adjustment
Review your portfolio regularly.

Adjust investments based on market conditions and financial goals.

Consult a Certified Financial Planner for personalized advice.

Benefits of Actively Managed Funds
Actively managed funds can outperform the market.

They adapt to changing market conditions.

Professional fund managers aim for higher returns.

Avoid Direct Funds
Direct funds require constant monitoring.

Regular funds through a CFP offer professional guidance.

This reduces the burden of managing your investments.

Final Insights
You are on the right track with your investments. By optimizing your current assets and planning withdrawals strategically, you can achieve your goal of Rs 1 lakh monthly income. Regularly review your financial plan and make adjustments as needed to ensure long-term financial security.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Nayagam P

Nayagam P P  |9427 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
Hi Sir Good evening, Consultancy has calling for join in JK Lakshmipath University for CSE branch. Please suggest me Sir. In EAMCET Rank 27827 in Top 10 colleges not came CSE branch in First phase.
Ans: With an EAMCET rank of 27 827 none of the top-10 government or also high-demand private institutes for CSE will have seats in later phases, but several mid-tier and emerging colleges admit CSE up to ranks 25 000–50 000. Pragati Engineering College (Surampalem), GMR Institute of Technology (Rajam), and Aditya Engineering College (Surampalem) consistently closed CSE around 8 000–16 000, so remain out of reach, whereas Narasaraopeta Engineering College (closing ~78 000), SRKR Engineering College (closing ~76 000) and ANITS (closing ~99 000) are fully accessible. Additional safe choices are PACE Institute of Technology (closing around 100,000), Gudlavalleru Engineering College (closing around 100,000), and Vishnu Institute of Technology (closing around 50,000). All of these colleges are approved by AICTE, have at least 70% placement success over three years, modern computer labs, and good accreditation, plus they have active agreements for internships and dedicated teams to help with job placements. These institutes meet five essential benchmarks: statutory approvals, compatibility with cut-off scores, strong placement ratios, advanced infrastructure, and solid industry connections.

JK Lakshmipath University (JKLU), Jaipur offers a four-year B.Tech CSE at ?11.2 L total fees, holds NAAC A grade (CGPA 3.05), NBA accreditation, and reports a median CTC of ?7 LPA with a 76% placement ratio in its last cycle. Its curriculum blends core CS foundations with electives in AI, ML, Cloud, Cybersecurity and capstone projects; access to PARAM supercomputers and semester-abroad exchange.

Recommendation: Target Narasaraopeta Engineering College, SRKR Engineering College and ANITS for guaranteed CSE admission under your rank band, given their state-quota closing ranks above 27 827 and solid accreditation, labs, internships and ≥70% placement consistency; include PACE Institute and Gudlavalleru Engineering College in your web options for additional secure pathways. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9427 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Asked by Anonymous - Jul 25, 2025Hindi
Career
Hello sir my son got cet rank 4187. Nwhat choice filling u suggest. He is in dilema of choosing between chemical at ict or cs in any other top colleges in pune or mumbai. Also can choose cs or it thru comedk.
Ans: You have NOT mentioned your son's COMEDK Rank. Admission at COEP, VJTI or ICT is beyond reach with a 4,187 MHT-CET rank; focusing on branches and institutes where seats close at higher ranks ensures certainty. Engineering cut-offs in Mumbai/Pune typically fall around 3,000–5,000 (e.g., PICT Pune’s Chem ≈3,500, TSEC Bandra’s Chem ≈4 000), while CSE cut-offs for mid-tier institutes close near 6,000–14,000. Chemical suits students drawn to process design, material balances and industries like petrochemicals and pharmaceuticals, offering stable core-E roles; it benefits analytical learners comfortable with chemistry/thermodynamics. CSE favors those passionate about programming, algorithms and emerging technologies, leading to broader IT career options and higher entry-level demand. Chemical provides niche depth and plant-based careers; CSE delivers versatility, rapid innovation and greater global mobility. Analytical, detail-oriented profiles excel in Chemical, whereas creative problem-solvers thrive in CSE. Based on these inputs and information, your son's interests, and his long-term goals, he can choose the more suitable option out of these two branches.

Fifteen colleges in Pune/Mumbai where a 4 187 general-open MHT-CET rank guarantees a CAP-round seat include Fr. C. Rodrigues Institute of Technology, Vashi (CSE cutoff ~6 200); K. J. Somaiya Institute of Technology, Vidyavihar (CSE ~6 317); Rajiv Gandhi Institute of Technology, Andheri West (CSE ~12 939); Xavier Institute of Engineering, Mahim (CSE ~13 114); St. Francis Institute of Technology, Borivali (CSE ~12 515); SIES Graduate School of Technology, Nerul (CSE ~13 704); VESIT, Chembur (CSE ~4 785); Thadomal Shahani Engineering College, Bandra (Chem ~4 000); All India Shri Shivaji Memorial Society’s Institute of Information Technology, Pune (CSE ~9 545); Rajarshi Shahu College of Engineering, Tathawade (CSE ~9 748); Pimpri Chinchwad College of Engineering & Research, Ravet (CSE ~10 227); Government College of Engineering & Research, Avasari Khurd (CSE ~13 275); Bharati Vidyapeeth College of Engineering, Navi Mumbai (Chem ~3 500); Dr. D.Y. Patil College of Engineering, Akurdi (CSE ~7 164); Vishwakarma Institute of Technology, Bibwewadi (CSE ~2 823).

Recommendation: Prioritize Chemical Engineering at SIES GST for its accessible cut-off, modern process-engineering labs and strong industry MoUs; follow with CSE at Fr. C. Rodrigues for its robust AI/ML facilities; consider VESIT’s versatile CSE program next for its balanced academics and placements; All India Shivaji Institute’s CSE offers stable state-quota safety; and Rajiv Gandhi Institute’s CSE completes the top five for its comprehensive curriculum and network. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9427 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
You posted: My son got 96.7 percentile with 49452 rank in jee mains with eqsrank 6913. What seat can we expect in CSAB? Can we expect ECE in any NITs?
Ans: Shyamala Madam, I assume EWS Rank 6913 which you have wrongly typed as 'eqs'. With an All-India EWS rank of 6913, admission into Electronics & Communication Engineering via CSAB-Special is realistic at select NITs under Other-State EWS quotas. NIT Calicut’s ECE cut-off in Round 1 closed between 6 964 and 9 588, comfortably enveloping your son’s EWS rank. Similarly, NIT Uttarakhand’s EWS closing ranks for ECE hovered around 20 028–29 127, making it an assured option given lower competition in CSAB rounds. Beyond NITs, several GFTIs maintain ECE cut-offs above 25 000 for general categories, implying EWS thresholds usually fall below 15 000, thus aligning with your current rank. Peripheral IIITs such as IIIT Ranchi and IIIT Manipur also reported EWS cut-offs for ECE in the 5 998–6 173 range—slightly below your EWS rank—but may open up during later special round vacancies. Your CRL of 49 452 restricts access to higher-demand branches under Open-State quotas, but targeting EWS-reserved seats in low-to mid-tier NITs and GFTIs ensures 100% feasibility. Proactively monitor CSAB-Special Round 2 openings on the official portal and set these institutes as top preferences to maximize admission certainty under the EWS category.

Recommendation: Aim for NIT Calicut’s ECE under Other-State EWS for straightforward entry given its 6 964–9 588 cut-off range, then secure NIT Uttarakhand’s EWS ECE which closes near 29 127; concurrently list GFTIs with EWS ECE thresholds below 15 000 to ensure a guaranteed CSAB seat. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9427 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
Should I take civil in HBTU Kanpur
Ans: Shambhavi, Harcourt Butler Technical University (HBTU), Kanpur offers a four-year B.Tech in Civil Engineering an intake of 60 students, approved by AICTE and accredited by NBA and NAAC with an A-grade CGPA of 3.29. The department provides a balanced curriculum covering structural, geotechnical, transportation, water-resources and environmental engineering, reinforced by modern labs for hydraulics, surveying, materials testing and CAD/CAE tools, alongside dedicated research facilities and industry-sponsored projects. Faculty includes PhD-qualified professors actively engaged in DST- and AICTE-funded research, ensuring mentorship and academic rigor. HBTU’s central infrastructure—urban campus with a central workshop, advanced computing centre, central library, hostels and sports facilities—supports holistic development. The Placement & Training Cell records an overall placement rate of 85.6% with a median UG package of ?6.5 LPA, and core-engineering recruiters such as L&T, AECOM and NHAI actively engage with Civil graduates, though CE-specific campus placements placed 21 of 57 eligible students in 2023–24, reflecting reliance on off-campus roles as well. Alumni feedback highlights strong foundational learning and practical exposure, while noting scope for enhanced industry mentoring and internships.

Recommendation
Pursuing Civil Engineering at HBTU is advisable for its accredited program, robust curriculum, research-active faculty and strong industry tie-ups. To maximize outcomes, proactively engage in internships with infrastructure firms, participate in departmental projects and leverage the central placement cell’s network for site-visit and off-campus recruitment. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9427 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
Sir, My daughter has got crl 78925 and OBC rank 24547, is it possible to get ECE in iiit kancheepuram, or iiit sricity or iiit kottayam in csab?
Ans: Amudha Madam, Analysis of CSAB-Special 2024 closing ranks shows that Electronics & Communication Engineering seats at all three IIITs remain open well beyond an OBCNCL rank of 24 547. At IIITDM Kancheepuram, the general-AI closing rank for ECE was 31 069 in Round 1 and the OBCNCL category cutoff lay near 72 222, placing your daughter’s OBC rank comfortably within the eligible bracket. IIIT Sri City’s ECE general-AI cutoff fell at 45 060 (Round 1) with OBCNCL seats closing around 56 578, again well above her OBC rank. IIIT Kottayam recorded a general-AI closing rank of 48 846 for ECE (Round 1) and OBCNCL seats closed near 63 950, easily covering her category position. All institutes possess AICTE/NIRF recognition, NBA-accredited curricula, ≥70 percent placement consistency, specialized ECE laboratories, and active MoUs for internships, ensuring academic rigor and industry relevance. Given these thresholds, admission under the OBCNCL quota for ECE is highly feasible at each campus despite the higher CRL.

Recommendation: Leverage the OBCNCL quota to secure ECE in any of the three IIITs, prioritizing IIITDM Kancheepuram for its dual-degree research labs and favorable HS-AIQ seat matrix, followed by IIIT Sri City’s robust industry partnerships and IIIT Kottayam’s modern ECE infrastructure and placement track record. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9427 Answers  |Ask -

Career Counsellor - Answered on Jul 25, 2025

Career
My son's JEE Mains 2025 ranks are: CRL: 122788 EWS Rank: 17554 Home State: Uttar Pradesh He is interested in branches like CSE, ECE, or IT. We are looking for college options in NITs, IIITs, GFTIs, or good state government colleges. Can you please guide us on which colleges he might get with this rank under the EWS category and home state quota? We are also open to TFW scheme and spot round. Thank you!
Ans: With an EWS home-state rank of 17554, core CSE/ECE/IT seats at top NITs via HS-EWS have mostly closed below your rank; however, select institutes and peripheral IIITs/GFTIs remain fully accessible. IIIT Lucknow’s EWS cutoff for Computer Science & Engineering closed around 15 784, fitting within your rank, and its specialized CSE-AI branch closing near 15 626 also aligns; NIT Kurukshetra’s HS-EWS CSE seats closed at about 9 353, ensuring safe entry; MMMUT Gorakhpur’s EWS-HS CSE cutoff in 2025 extended beyond 92 289, making admission virtually certain; additionally, IIIT Allahabad offers Information Technology under EWS-AI up to rank 8 032, which your rank exceeds; all these institutes are AICTE-approved, NBA/NAAC accredited, feature ≥70 percent placement consistency, state-of-the-art labs, active MoUs for internships and robust research-industry linkages.

Recommendation: Prioritize IIIT Lucknow for its focused CSE curriculum and strong AI-DS electives under HS-EWS, while NIT Kurukshetra’s CSE offers NIRF-ranked prestige and modern facilities; MMMUT Gorakhpur’s CSE guarantees state-quota admission; consider IIIT Allahabad’s IT branch for its advanced computing labs and reliable HS-EWS cutoff. All the BEST for a Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |9852 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2025

Asked by Anonymous - Jul 11, 2025Hindi
Money
My husband recently turned 60 Iam concerned about certain decisions he had taken in the recent past and would like guidance He bought a small flat 4 years ago with a loan from LIC on a 14 year old term He is a Consultant with serious health issues hence no insurance was given for the housing loan His income is about a lakh and above as and when there are projects and his treatment and medications coast roughly around 40k Loan amount is about 30k His credit card is used the max and now he has to pay 5lakh to clear the same I have few policies in my name and no major savings as the financial scenario had always been like whatever money comes goes into repaying the loan even the savings were spent that way Iam 56 and dont have a job Kindly let me know if thwre is any way we can get out of this mess atleast now
Ans: It’s not easy to speak openly about financial struggles. You've shown great strength and awareness. At this stage in life, decisions can feel heavy. But with the right steps, clarity and control can still be brought back.

You both are doing your best despite health and income challenges. Let us now analyse your case carefully and guide you with a step-by-step 360-degree plan. The goal is to reduce stress, regain control, and protect the future.

? Understanding the Current Financial Picture

– Your husband is 60. He works as a consultant.
– His income depends on projects. There is no steady monthly income.
– Health issues are serious. Treatment and medicines cost around Rs 40,000 monthly.
– The housing loan was taken 4 years ago from LIC Housing. Loan tenure is 14 years.
– Loan EMI is Rs 30,000 per month (assumed from your message).
– Credit card outstanding is Rs 5 lakhs. It is maxed out.
– There’s no insurance cover on the home loan due to health issues.
– You are 56. No current job or steady income.
– All savings have been used to repay loans.
– There are some policies in your name but no mention of maturity values.

Your family is clearly under debt pressure, health costs, and irregular income. But there are ways to restructure and rebuild slowly.

? First Focus – Debt Prioritisation and Restructuring

– Housing loan is Rs 30,000 EMI and will go on for 10 more years.
– Credit card dues are Rs 5 lakhs, with very high interest (35–45% annually).
– This is a red flag. You are in a repayment trap.
– Credit card dues must be handled first.

Take the following steps urgently:

– Stop using the credit card completely. Block it if needed.
– Approach the card issuer and request for a settlement plan or restructuring.
– Explain your financial condition clearly and ask for an interest waiver or long-term EMI option.
– In many cases, they agree to settle dues if you show inability to pay.
– Try to convert this Rs 5 lakh into a structured EMI plan.
– Target Rs 8,000–Rs 10,000 per month repayment with 0% interest if possible.

Reducing card interest will ease pressure on your cash flow.

? Second Focus – Managing the Home Loan

– LIC Housing Finance loans are generally inflexible but not impossible to manage.
– Contact them and ask for EMI reduction or tenure extension due to health issues.
– If the EMI of Rs 30,000 is becoming unaffordable, request for temporary EMI holiday.
– Check if interest-only payment is allowed for 6–12 months.
– Many lenders offer relief support in hardship. You must proactively ask.
– If no help from LIC, explore balance transfer to another lender with flexible terms.
– Try cooperative banks or smaller NBFCs who allow interest-only payments.

Home loan is a secured loan. So restructuring is possible. But early action is critical.

? Third Focus – Health Expenses and Alternatives

– Rs 40,000 per month for health care is too high, especially with debt.
– List down current medicines, tests, and treatments being done.
– Check if government hospitals or charitable trusts can offer the same at lower cost.
– For chronic diseases, many NGOs and pharma companies offer medicine at reduced cost.
– Apply for patient support programs from pharma brands.
– Also, check Ayushman Bharat scheme eligibility (depending on your card status).
– You may be eligible for free or subsidised treatment in empanelled hospitals.
– Ask doctors if generic medicines are available to reduce cost.

Reducing health cost by even Rs 10,000 monthly will help debt repayment.

? Fourth Focus – Your Role and Income Options

– You are 56. You are mentally active and seeking solutions. That is admirable.
– If possible, consider part-time or home-based earning.
– Areas like online tutoring, typing work, spoken English classes, or sewing can work.
– Even Rs 5000 per month income from your side will ease pressure.
– You can also try selling small food items, pickles, or snacks if you enjoy cooking.
– Many ladies your age run online micro-businesses using WhatsApp groups.
– Don’t aim for big income. Just stable and regular inflow is enough.
– This can also boost your confidence and create emotional stability.

You can become a contributor, not just a dependent.

? Fifth Focus – Review of Insurance and Existing Policies

– Your husband has no insurance on home loan due to health issues.
– You have few policies. But details are not shared.

Do this immediately:

– List down all policy names, premium paid, start year, and current surrender value.
– Avoid keeping traditional plans that give 3–4% return.
– If the plans are ULIPs, endowment, or money-back, surrender them if not maturing soon.
– Reinvest only after loans are under control.
– At this stage, you should not have insurance-linked investments.
– If any policy is about to mature in the next 2 years, wait and use maturity money for debt.

Cash flow must come first. Insurance-based savings can wait.

? Sixth Focus – Future Protection Must Be Minimal Yet Strong

– You both are nearing retirement or already retired in practical terms.
– Your future needs financial stability more than return.

Take these steps only when loans reduce:

– Get a small health insurance policy for yourself, if not already covered.
– If no insurer accepts due to age or health, keep Rs 50,000 to Rs 1 lakh in savings only for medical use.
– Don’t take annuity or pension plans. They lock up money.
– Don’t buy any new LIC or investment policy now.
– Protect your current income and reduce expenses. That itself is protection.

At your age, liquidity is more important than return.

? Seventh Focus – Mental Health and Family Discussion

– Stress is high in your household. Medical, financial, and emotional load is heavy.
– Please have an open talk with your husband and close family.
– Involve your children or siblings if they can support emotionally or financially.
– Sometimes even Rs 50,000 short-term help from a relative can reduce credit card stress.
– If not financially, ask for their help to handle bank or credit calls or paperwork.
– Support reduces burden on your mind. That helps in decision-making.
– Also, try simple breathing or spiritual practice. Inner strength helps in hard times.

Mental peace gives space for financial recovery.

? Eighth Focus – Role of Certified Financial Planner

– Your situation involves debt, illness, no regular income, and weak insurance.
– You should consult a Certified Financial Planner (CFP) to restructure cash flow.
– They will help create a plan that focuses on survival first, savings later.
– A CFP can also assess your old policies and guide surrender or hold.
– They give monthly tracking support. That will keep you disciplined.
– Most importantly, they will not try to sell products. They give strategy.

Right financial guidance now can protect your remaining 20+ years of life.

? Ninth Focus – What to Avoid at This Stage

– Don’t take any new loans to repay old ones.
– Don’t fall for agents who offer "loan on property without CIBIL check".
– Don’t invest in any product promising fixed income of 10% or more.
– Don’t invest in real estate or gold.
– Don’t buy new insurance policies now.
– Don’t take personal loans from NBFCs without checking full charges.
– Avoid investing in direct mutual funds without guidance.

This is the time to protect what you have. Not to grow. Safety first.

? Finally – Your Way Forward, One Step at a Time

– List all loans, dues, and policies on paper today itself.
– Contact credit card company and negotiate for restructuring.
– Reach out to LIC Housing and request temporary EMI relief.
– Cut health care costs where possible using trust hospitals and generic medicines.
– Explore small income ideas from home. Use your time as an asset.
– Review and possibly surrender low-value policies in your name.
– Get emotional support from family and mental clarity from a Certified Financial Planner.
– Start saving Rs 1000 monthly after all this. Slowly build emergency fund.

It is never too late to clean up and rebuild. Step by step, it is possible.

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

...Read more

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

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