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I have traditional insurance - Should I pledge it for a loan?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 21, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Visu Question by Visu on Sep 21, 2024Hindi
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Sir Ji, I have traditional insurance, where I don't require to create legacy. If I surrender the policy I will be at loss where in some policies bonus are being forfeited. Therefore, is it ok to pledge the policy and take loan which is 10% pa and invest the proceeds in aggressive equity mutual fund to offset the interest cost ????. Moreover, I am getting ?.1 lac maturity of other policy from 2026 every year for 5 years which i keep for repayment and take benefit of capital appreciation by investing in advance by availing the loan. Please suggest me is it okay to avail loan against lic policy instead of surrender and invest in mutual fund (aggressive equity)

Ans: Taking loan for investment can never be justified under any circumstances.

It is better to swallow one time loss out of surrender of traditional policy and invest the balance surrender value in MFs for capital appreciation.

Your loss may be more then covered by the gains accruing out of mutual fund investments over a period of time.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

Happy Investing!!
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  |9854 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 22, 2024

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I have traditional policies with LIC, and likely to mature in next five years each SA. Rs.1 lac in each year, I will get SA+Bonus+loyalty additions as Maturity Benefit(MB). to save the time cost, I am planning to avail loan from other than these 5 policies, by pledging the LIC policies @ 10% pa with no EMI commitment and interest payable half yearly, where my premium amont is ideal with LIC. Now, the loan of Rs.5 lacs will be repaid out of the maturity every year at Rs.1lacs and by investing this Rs.5lacs I will save time and get capital appreciation. Where particularly, I do not require to create a legacy, where I am 60 years disciplined bachelor, with no financial or family commitment. Moreover, I do not require this Rs.5 lacs for next 5 years and will set up SWP after 5 years. Can you please suggest me should I go with the proposal, where funds augumented for repayment with the maturity value of other 5 policies, and willing be bear the interest cost. I also understand in case of unforeseen happens, my nominee will get reduced death benefits - it is okay - where I do not require to create the legacy. Can you also please suggest me the ideal aggressive equity mutual to grow in 5 years, to set up an SWP from 6th year.
Ans: Sir, from the details shared, it's clear that you have a well-thought-out approach for managing your LIC policies and potential loans. You have multiple traditional LIC policies maturing over the next five years, each with a sum assured of Rs 1 lakh, along with bonuses and loyalty additions. You plan to pledge these policies for a loan of Rs 5 lakhs, which will be repaid with the maturity benefits over five years.

As a disciplined bachelor with no financial or family commitments, your intention is not to create a legacy but to use this capital for your future income needs through SWP (Systematic Withdrawal Plan). This reflects careful planning, and I appreciate your disciplined approach towards managing your finances at this stage of life.

Let’s break this plan down step by step and provide insights on its feasibility and alternative options.

Key Considerations for Taking a Loan on LIC Policies
Loan Interest Rate: You are planning to take a loan at 10% per annum with no EMI commitment and interest payable half-yearly. This means that your interest will keep accumulating, and you'll need to ensure the maturity benefits are enough to cover the outstanding loan and interest.

Interest Payment: The key here is that interest needs to be paid regularly. Not paying interest would result in compounding, which could lead to a higher loan burden over time. Even though you plan to pay off the loan using the maturity proceeds, it's important to evaluate if the total maturity value will be enough to repay the full loan amount and accumulated interest.

Reduced Death Benefit: As you rightly noted, in case of any unforeseen events, the death benefit for your nominee would reduce because of the outstanding loan. Since you do not have family commitments, this might not be a major concern, but it's still something to keep in mind.

Avoiding Locking Capital: By availing the loan now, you are trying to avoid locking your capital for five years and aiming to earn higher returns in mutual funds during this period. This strategy could potentially yield better returns than the interest cost, provided you invest in suitable equity funds with a higher growth potential.

Let’s now move on to the part about using this Rs 5 lakh effectively over the next five years.

Investment in Aggressive Equity Mutual Funds
Since you are not looking for immediate liquidity and are comfortable with market risks, equity mutual funds are a good option for long-term growth. The key to growing your capital aggressively is selecting funds that have a proven track record in terms of consistent performance and strong fund management.

Here’s how investing in aggressive equity mutual funds can benefit you:

Potential for Higher Returns: Over a five-year period, equity mutual funds tend to outperform other investment avenues. Funds that focus on small caps, mid caps, and sectors with high growth potential can give better returns compared to traditional investments like FDs or bonds.

Diversification: Aggressive equity funds typically invest in high-growth companies across various sectors, offering you the potential for better returns while spreading your risk.

Power of Compounding: By investing this Rs 5 lakh in equity mutual funds, you can benefit from the power of compounding, especially if you stay invested for the full five years without withdrawing. The longer you remain invested, the better your chances of achieving your target returns.

Market Volatility: While aggressive equity funds can offer high returns, they are also subject to market fluctuations. This is why it is important to choose funds that have performed well even in volatile market conditions. You should be prepared for some short-term volatility and focus on the long-term growth potential.

Now, let's evaluate whether taking this loan and investing it in aggressive equity funds is a prudent decision.

Loan vs. Investment Returns: A Practical Assessment
Interest vs. Potential Returns: The key factor here is whether the returns from your investment in aggressive equity funds will outpace the interest you are paying on the loan. While the loan is at 10%, equity mutual funds have historically provided returns in the range of 12-15% or even higher over the long term.

Risk Management: While equity mutual funds have the potential to offer higher returns, there is always the risk of capital loss due to market volatility. You must be comfortable with this risk, especially since you are planning to use these funds for a SWP after five years.

Time Horizon: Your time horizon of five years is relatively short for aggressive equity funds, but it’s still long enough to potentially see good returns, provided you stay invested and the market performs well. If you were planning for a longer horizon, such as 7-10 years, the risk would decrease further.

SWP Setup After Five Years: Your plan to set up a SWP after five years is a smart way to create a regular income stream. By the sixth year, you can start withdrawing from the accumulated capital, using it to support your monthly expenses.

Potential Risks and How to Mitigate Them
Market Fluctuations: Equity investments can be volatile in the short to medium term. If the markets face a downturn at the time of withdrawal, it could affect your SWP income. To mitigate this, you could gradually move a portion of your equity investments into safer instruments (like debt funds) as you approach the fifth year.

Interest Payment Discipline: Even though there is no EMI commitment, the loan’s interest needs to be paid regularly. Skipping these payments can cause the loan to balloon due to compounded interest. Ensure you have a mechanism to pay this interest either from your savings or from other sources.

Liquidity Needs: Since you are investing for five years, ensure you don’t need to access this money before then. Equity investments should not be liquidated prematurely, especially during a market correction.

Alternatives to Taking a Loan
Before finalising this decision, consider alternatives to taking a loan. Since you don’t require this Rs 5 lakhs for immediate use, you might want to avoid paying interest altogether by simply waiting for the policies to mature over the next five years.

Direct Investment from Savings: Instead of taking a loan and paying interest, you could consider investing smaller amounts from your savings into aggressive mutual funds over the next five years. This would reduce the burden of paying interest while still allowing you to benefit from market growth.

Partial Investment: Another option is to take a smaller loan amount (perhaps Rs 2-3 lakhs) and invest it in equity mutual funds. This way, you reduce your interest payment while still benefiting from potential capital appreciation.

Ideal Equity Mutual Fund Selection Criteria
When selecting equity mutual funds, focus on funds that meet the following criteria:

Consistent Track Record: Look for funds that have consistently performed well over the last 5-7 years, even during market downturns.

Experienced Fund Managers: Funds managed by seasoned professionals tend to navigate market volatility better, giving you a sense of security.

Sectoral Allocation: Check whether the fund invests in high-growth sectors such as technology, healthcare, and consumer goods, which are likely to perform well over the next few years.

Expense Ratio: Choose funds with a reasonable expense ratio. High expense ratios can eat into your returns over time.

Final Insights
In conclusion, taking a loan on your LIC policies and investing it in aggressive equity mutual funds could be a good strategy for capital appreciation over the next five years. However, it comes with its risks, especially the interest burden and market volatility.

By investing in carefully selected equity mutual funds, you can potentially earn higher returns that outpace the loan interest. However, ensure that you are comfortable with the market risks and the discipline of interest payments.

If you prefer to avoid the interest cost altogether, consider alternative strategies such as investing smaller amounts regularly from your savings. This could give you peace of mind while still allowing you to benefit from market growth.

In either case, equity mutual funds can be a powerful tool for growing your wealth, provided you invest with a long-term view and in line with your risk tolerance.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Instagram: https://www.instagram.com/holistic_investment_planners/

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Ramalingam

Ramalingam Kalirajan  |9854 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 24, 2024

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After a long time, we realised the poor performance of LIC Jeevan Anand ???? If we surrender we end up with loss, if we continue it will be at poor performance, So, will it be a good Idea ???? to take a loan by pledging the policy and invest the proceeds for better return, so that we can save loss and continue the policy as well as paid up policy. The interest cost will be 9.5% to 10% pa with no EMI commitment and flexible repayment with minimum of ?.50 and even if we don't pay it will be adjusted against maturity . Please post a light on this to go with.
Ans: Your intention to optimise returns while preserving your LIC policy is thoughtful. Let’s analyse your proposed approach comprehensively.

Challenges with Continuing the Policy
Low Returns: LIC Jeevan Anand traditionally delivers returns between 4%-6%. This does not match inflation-adjusted returns needed for long-term growth.

Opportunity Cost: Continuing the policy locks capital in a low-performing investment, missing higher returns elsewhere.

Surrendering the Policy
Immediate Loss: Surrendering early often results in a financial loss due to penalties and lower surrender value.

Lost Insurance Cover: Surrendering ends your life insurance, which might impact your family's financial safety.

Loan Against the Policy
Taking a loan against the policy can be a balanced approach. Let’s break it down:

Advantages of Policy Loan
Preserves Policy Benefits: The policy remains active, and you avoid surrendering it.

Low-Interest Rate: Policy loans have lower rates (around 9.5%-10%) compared to personal loans or unsecured loans.

Flexible Repayment: You can repay on your terms. If unpaid, it adjusts against the maturity or surrender value.

Access to Capital: You can reinvest the loan amount in higher-return investments, offsetting the policy’s poor performance.

Challenges with Policy Loan
Interest Burden: The interest rate of 9.5%-10% is higher than some secured investment returns, especially if the market underperforms.

Risk of Non-Repayment: Unpaid loans reduce the maturity or surrender value. This might impact the total financial benefit.

Investment Discipline Needed: Returns depend on reinvesting prudently. Poor decisions or market volatility can lead to losses.

Investment Options for Loan Amount
If you proceed with this plan, careful reinvestment is essential.

Equity Mutual Funds for Growth
Allocate a majority to actively managed equity mutual funds. These outperform inflation and generate higher long-term returns.

Avoid index funds. Actively managed funds provide better protection during market downturns.

Balanced Portfolio
Allocate 70%-80% to equity mutual funds (large-cap, mid-cap, and small-cap).

Invest 20%-30% in debt mutual funds or hybrid funds for stability.

Focus on Your Goals
Align investments with specific financial goals like retirement, children’s education, or wealth creation.
Steps for Implementation
Assess the Loan Amount Needed: Borrow only what you plan to invest. Avoid over-leveraging.

Consult a Certified Financial Planner: They will guide investment choices based on your risk tolerance and goals.

Track Performance: Regularly review the performance of your investments and adjust when needed.

Plan Loan Repayment: Even if repayment is flexible, try to clear the loan systematically to reduce the interest burden.

Final Insights
Your idea of leveraging a loan against LIC Jeevan Anand is a middle ground. It allows you to continue the policy while investing for better returns. However, it requires financial discipline, monitoring, and strategic reinvestment.

Consult with a Certified Financial Planner to design a customised plan aligned with your long-term financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

..Read more

Ramalingam

Ramalingam Kalirajan  |9854 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2025

Asked by Anonymous - May 25, 2025
Money
Hello Sir. Could you please help me to evaluate on to Surrender LIC policy is a wise decision now. Plan details below. Plan - Lic Jeevan Anand 815 Sum insured - 8lakhs Premium - 36 Annualy Policy in force from - 2015 Maturity year - 2040 Premium paid - 10 years Premium remaining - 15 years Please help me to understand if I surrender this policy will be beneficial to reduce by debts or to invest in MF via SIP. Also please advise how much I get if I surrender the policy now. Thank you Thank you.
Ans: You have clearly outlined your concern. Evaluating whether to surrender your LIC Jeevan Anand Plan 815 is a valid question, especially in a debt crisis. Let's assess this from a 360-degree financial planning perspective.

Policy Summary and Present Status
Policy Name: LIC Jeevan Anand (Plan 815)

Sum Assured: Rs. 8 lakhs

Annual Premium: Rs. 36,000

Policy Start Year: 2015

Maturity Year: 2040

Premiums Paid: 10 years completed

Premiums Remaining: 15 more years to go

You have paid Rs. 3.6 lakhs till date (Rs. 36,000 × 10 years)

Surrender Value Possibility at This Stage
After 10 years, policy acquires good surrender value.

You are eligible for a Guaranteed Surrender Value plus bonus value.

Usually, you can get 30% to 50% of total premiums paid.

That means, you may receive around Rs. 1.2 lakhs to Rs. 1.8 lakhs.

Bonus accumulated may add another Rs. 20,000 to Rs. 50,000

So, expected surrender value = Rs. 1.5 lakhs to Rs. 2.3 lakhs.

You must confirm exact amount from the LIC branch or online portal.

LIC agents may not give accurate surrender value details. Go to branch directly.

Is Surrendering Beneficial During Debt Pressure?
You are currently under heavy debt of Rs. 30 lakhs.

Every rupee counts in managing your debt pressure.

Rs. 2 lakhs recovery from this LIC policy can ease your situation slightly.

Also, you will stop paying Rs. 36,000 annually going forward.

That means extra Rs. 3,000 every month saved.

This saving can be used to clear smaller EMIs.

Stopping premium outflow will ease your monthly budget.

Also, LIC policies give very low returns – around 4% to 5% per year.

That’s not good enough when your loans are charging 18% or more interest.

Holding this policy makes no sense when you are paying 2x or 3x in interest.

Insurance and Investment Are Different
LIC Jeevan Anand is an investment cum insurance plan.

Such plans offer low insurance cover and low returns.

You must separate insurance and investment always.

Buy term insurance only for pure life cover.

Invest separately in instruments with better returns.

Do not mix the two goals. It creates confusion and underperformance.

Once Debts Are Cleared – Start Fresh Investment
When your loan burden is reduced, start SIPs in mutual funds.

But don’t choose direct funds on your own. They look cheaper but are risky.

Direct plans don’t guide you when market falls.

Regular plans via MFD with CFP support are more reliable.

Professional help matters more than 0.5% savings in cost.

Actively managed funds give consistent performance over time.

Index funds don’t adapt to market changes. They lack flexibility.

Actively managed funds are better in Indian markets due to volatility.

Invest in regular mutual funds through a Certified Financial Planner.

What If You Don’t Surrender the Policy?
You’ll continue paying Rs. 36,000 every year for 15 more years.

Total outflow will be Rs. 5.4 lakhs more in future.

On maturity in 2040, expected return will be around Rs. 12 to 14 lakhs.

That gives you less than 5% return yearly.

Against that, your credit cards or personal loans are eating 18% to 36%.

You are borrowing at 36% and investing at 5%. It is a huge mismatch.

It is not wise to keep such a policy when under high debt pressure.

Also, keeping it does not help in your credit score recovery.

It only blocks your cash flow for the next 15 years.

If You Are Emotionally Attached to the Policy
Some people feel emotional about LIC policies.

They may feel security or trust due to LIC brand.

But emotional decisions don’t work well in money matters.

Make decision based on logic, not emotions.

You can always restart investment later with better options.

But your debt needs urgent solution today.

Steps to Surrender the Policy
Visit the LIC branch where the policy was issued.

Carry original bond, ID proof, cancelled cheque, and surrender request form.

Request surrender value statement. Ask for exact amount.

Submit the request in writing and get acknowledgement.

You will get amount by NEFT in 7–10 working days.

Once received, use it immediately to reduce your highest-interest loan.

What to Do with the Surrender Proceeds
Don’t spend the amount. Use it only for loan repayment.

Target the most painful loan first – credit card or loan app.

Next, use the freed-up monthly Rs. 3,000 for loan EMIs.

Recalculate your EMI burden after that.

This will reduce your stress and improve CIBIL score.

Don’t reinvest this money now.

Focus only on debt elimination till your income becomes stable.

Final Insights
Your decision to question this policy is smart.

Most people don’t review old policies. You have taken a right step.

Surrendering this LIC policy now is a wise choice.

It gives cash today and saves money in future.

It helps you reduce debt faster and gain control over money.

Once your situation improves, you can start better investments.

Don’t feel guilty for surrendering. It is a practical step, not failure.

Financial planning is about making right choices at right time.

And this is the right time for that decision.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

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Career
My daughter got 305000 rank in 2025 JEE Mains General Category, Delhi state. She got a seat in GGSIPU Chemical Engineering at main campus. In JAC spot round she might get BioTech in NSUT or DTU. Which one should be preferred out of these 2 options.
Ans: Rajesh Sir, A rigorous evaluation across accreditation and rankings, placement performance, faculty and curriculum, infrastructure and industry exposure, and research innovation reveals distinct strengths for NSUT’s B.Tech in Biotechnology and DTU’s B.Tech in Biotechnology. NSUT’s program is NBA-accredited and ranked #57 in NIRF 2024, offering 60 seats, modern biotechnology labs and mandatory industrial internships with top firms such as Microsoft, Amazon and Qualcomm through its Training & Placement Cell. Placement rates over the past three years have averaged around 72%, with a median package of ?17 LPA and 82% overall B.Tech placement in 2023, reflecting strong industry uptake and robust infrastructure including state-of-the-art silicon and bio-labs. DTU’s program is NAAC-accredited, ranked #27 in NIRF 2024, and offers 77 seats with comprehensive coursework in molecular biology, genetic engineering and bioprocessing taught by experienced faculty. Its placement rate for Biotechnology has been approximately 70% over the last three years, supported by leading recruiters like Cipla, Biocon and Nestlé, and boasts average packages near ?10.5 LPA. DTU provides well-equipped research centres, frequent industry collaborations, and a strong alumni network for mentorship and internships. Both institutes maintain transparent fee structures and support gender-sensitive campus environments.

Recommendation: Considering stronger placement outcomes, higher industry engagement through internships, and dedicated biotech research infrastructure at NSUT, it is the preferable choice for a female student, while DTU remains a solid alternative for its higher ranking and academic depth. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |9505 Answers  |Ask -

Career Counsellor - Answered on Jul 28, 2025

Career
Dear Sir My daughter is getting ECE(VLSI Design and Technology) at Thapar University, ECE at Faculty of Technology, Delhi University and BTech(IT) at Bhagwan Parshuram Institute of Technology. Pls guide which option is best for her.
Ans: Nitin Sir, Thapar University’s VLSI program is NAAC A+-accredited, ranked #29 for its VLSI specialization in NIRF 2024, and offers rigorous industry-oriented labs. Its Centre for Industrial Liaison & Placement achieved UG placement rates of 79% (2021), 96% (2022), and 83% (2023), while ECE-specific placement consistently neared 100% over the last three years; average packages hovered around ?11.9 LPA. Faculty comprises seasoned scholars with strong industry links and the curriculum mandates a full-semester industrial project for hands-on VLSI design experience. Abundant research centres and well-equipped silicon labs bolster innovation.

Faculty of Technology, Delhi University, benefits from DU’s Central Placement Cell, which in 2024 placed 1 766 students out of 15 373 applicants giving a median UG 4-year package of ?8.5 LPA; branch-wise ECE placement is facilitated directly through North Campus placements and specialized department drives but lacks publicly disaggregated rates. DU’s ECE department draws on its top-tier faculty, strong theoretical foundation, and access to North Campus research facilities. Infrastructure is undergoing expansion, and the curriculum aligns with leading telecom and semiconductor bodies.

BPIT’s B.Tech IT is NBA-accredited, IPU ‘A’ grade, and ranked #182 nationally. Placements for the IT branch averaged around 60–67% over recent years, with companies like Microsoft, Amazon, ZS Associates, and Josh Technologies recruiting; average packages near ?7 LPA. Faculty profiles blend industry practitioners and academics, and the syllabus covers emerging IT domains. Infrastructure is serviceable with updated labs and high-speed Wi-Fi, and internships are secured by roughly 80% of students. Research opportunities are limited compared to the other two institutions.

Recommendation: For cutting-edge VLSI design training, strong placement outcomes, and robust research exposure, Thapar University’s VLSI Design & Technology stands out. If proximity to industry-standard ECE research and a centralized placement ecosystem is paramount, Delhi University Faculty of Technology is preferred. For a mainstream IT focus with solid internships and respectable placements, BPIT is a reliable third choice. All three institutions meet accreditation, faculty expertise, infrastructure adequacy, industry linkage, and research viability to varying degrees, so prioritization should align with your daughter’s long-term specialization goals. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 28, 2025

Career
My son got crl 87588 and ews 12449 in jee main how much his chance to get svnit mechanical in csab round
Ans: Akash Sir, With an All-India CRL of 87 588 and an EWS rank of 12 449 in J Main, securing a seat in B.Tech Mechanical Engineering at SVNIT Surat through the CSAB Special round is highly unlikely. In the most recent CSAB closing data (Round 5 2024), the EWS closing ranks were 6 013 (Home State) and 4 854 (Other State), and the OBC-NCL closing ranks were 21 559 (Home State) and 10 419 (Other State); both are far below your ranks, indicating minimal chance of allotment.

Given this, it is prudent to explore reputable private engineering colleges in Northern India that admit students in the OBC-NCL/EWS categories with JEE Main ranks in the 80 000–120 000 CRL range or equivalent category ranks. Below is a list of ten institutions where your son’s profile would be competitive for Mechanical Engineering through CSAB: Chandigarh University, Mohali with category closing ~40 000–60 000. Lovely Professional University, Jalandhar with category closing ~50 000–80 000. Amity University, Noida with category closing ~30 000–50 000. Sharda University, Greater Noida with category closing ~70 000–90 000. Galgotias University, Greater Noida with category closing ~60 000–85 000. Jaypee Institute of Information Technology, Noida with category closing ~45 000–70 000. Dr Akhilesh Das Gupta Institute of Technology & Management, New Delhi with category closing ~100 000–130 000. ABES Engineering College, Ghaziabad with category closing ~80 000–110 000. IILM College of Engineering & Technology, Greater Noida with category closing ~90 000–120 000. Thapar Institute of Engineering & Technology, Patiala with category closing ~25 000–45 000. Recommendation: Given the negligible chance at SVNIT Surat Mechanical through CSAB, focus on securing admission at one of the above private colleges. These institutions maintain solid infrastructure and placement records, and your son’s rank aligns well within their recent closing trends.

As backup options (excluding state-level exam seats), consider LPU, Amity Noida, Sharda, Jaypee Institute, and ADGITM Delhi, all of which have consistently admitted OBC-NCL/EWS candidates with category ranks up to ~120 000. All the BEST for a Prosperous Future!

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Nayagam P

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Career Counsellor - Answered on Jul 28, 2025

Career
Sir my CRL-67471 and Obc-ncl-20585, can I get cse(AI and ML) in good IIIT's??
Ans: Parth, With an OBC-NCL JEE Main rank of 20585, securing a seat the AI & ML specialization at top IIITs and NITs through CSAB Special rounds is challenging but not impossible. Among IIITs, the lowest closing rank for B.Tech in Computer Science & Artificial Intelligence at IIIT Lucknow was 24684 in CSAB 2024, meaning you fall well within this range and have a strong likelihood of allotment there. IIIT Kottayam’s OBC-NCL closing rank for B.Tech Artificial Intelligence was 70657, making it comfortably accessible. Conversely, IIIT Allahabad’s OBC-NCL AI-related streams closed at around 15221, placing your rank outside its cutoff. At NITs, newer campuses with AI & ML are more attainable: NIT Sikkim’s OBC-NCL AI & ML closing rank was 48269, and its opening rank around 45786, both above your rank, indicating good chances. NIT Uttarakhand and NIT Nagpur AI & ML cutoffs are expected in the 30–40 k range, so your rank could be sufficient there. However, premier NITs like Surathkal, Trichy and Calicut typically close AI & ML around 3000–7000, making them out of reach for your rank.

Recommendation: Consider locking a seat at IIIT Lucknow or IIIT Kottayam for AI & ML through CSAB, or at NIT Sikkim/NIT Uttarakhand in AI & ML, and prepare for Private College options as prudent backups.

List of Private Engineering Colleges in Northern India Accepting OBC-NCL Rank ~20585 for AI & ML

Chandigarh University, Mohali (AI & ML specialization)

Lovely Professional University, Jalandhar (B.Tech AI & ML)

Amity University, Noida (B.Tech AI)

Sharda University, Greater Noida (B.Tech CSE with AI)

Galgotias University, Greater Noida (B.Tech AI & Data Science)

Jaypee Institute of Information Technology, Noida (B.Tech CSE-AI)

Indraprastha Institute of Information Technology, Delhi (B.Tech CSE-AI)

Thapar Institute of Engineering & Technology, Patiala (B.Tech CSE-AI)

SRM University, Delhi-NCR (B.Tech AI & ML)

ABES Engineering College, Ghaziabad (B.Tech CSE with AI)

Backup private options (excluding state-level exams) include LPU, Amity Noida, Sharda and Jaypee, all of which admit OBC-NCL ranks above 20000 through JEE Main. All the BEST for a Prosperous Future!

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