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Ramalingam Kalirajan |10874 Answers |Ask -Follow
Mutual Funds, Financial Planning Expert - Answered on Jul 12, 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
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
Asked by Anonymous - Jul 12, 2025Hindi
Hi My monthly in hand salary is 84k My loans emi are more than 70 k What to do
Ans: ? Understand the seriousness of your EMI burden
– Your EMI is more than Rs.70,000.
– Your take-home is Rs.84,000.
– This means more than 80% goes in repaying loans.
– This is a very high debt-to-income ratio.
– It leaves very little for your monthly needs.
– Saving and investing becomes almost impossible.
– This can affect your peace of mind and stability.
? Start with identifying the types of loans
– List all loans with EMI and balance.
– Note the interest rate and tenure for each.
– This includes personal loans, credit card dues, car loans, etc.
– Check which loan has the highest interest rate.
– This step gives full clarity on your debt structure.
? Avoid any new loans or expenses for now
– Don’t take more loans to handle current EMIs.
– That will only increase your burden.
– Avoid using credit cards for EMI or cash withdrawal.
– Stop or pause any high-cost spending.
– No gadgets, no travel, no luxury expenses.
? Build a basic household budget immediately
– Track every rupee of your monthly spending.
– Separate must-have expenses from avoidable ones.
– Rent, groceries, medicines, utilities – keep these.
– Remove online shopping, OTT, dining out, weekend trips.
– Live very simple for the next 12–18 months.
? Find options to reduce your EMI load
– Try negotiating lower interest rate with lender.
– Use balance transfer to reduce EMI.
– Banks give lower rate for good credit scores.
– Extend loan tenure to lower monthly EMI.
– This increases total interest, but gives relief now.
? Try part-prepayment of small loans
– If any loan has low balance, try prepaying it.
– Use bonus, PF loan, family support if needed.
– Start with highest interest loan.
– That will save more in long run.
? Explore debt consolidation with proper advice
– Sometimes combining loans into one can help.
– But only do this if interest rate is lower.
– You must study terms carefully.
– Don’t go for informal lenders or apps.
– Only use regulated NBFCs or banks.
? Emergency fund is missing – create it gradually
– With such tight cash flow, emergency fund is vital.
– You can’t handle job loss without it.
– Aim for Rs.25,000 to Rs.50,000 first.
– Slowly grow it to 3 months of EMI and needs.
– Park it in safe liquid instruments.
? Investment should be paused temporarily
– Right now your focus is loan reduction.
– Investments can wait for 6–12 months.
– Clear debt and build stability first.
– Later, you can invest for goals.
? Avoid insurance-linked investments
– If you hold any ULIP, endowment or money-back plans, exit now.
– These give poor returns and have high charges.
– They reduce your liquidity and flexibility.
– Shift to pure term plan for protection.
– Invest separately in mutual funds later.
? Surrender and re-invest policies if applicable
– If you have LIC or similar policy, review it.
– If it is not term insurance, check surrender value.
– Exit non-performing plans and reinvest in mutual funds.
– Mutual funds are flexible and goal-based.
? Resume investments once cash flow improves
– Start small SIPs only when your EMI is manageable.
– Use actively managed mutual funds for better returns.
– Index funds look cheap, but have limits.
– Index funds don’t beat the market.
– Active funds try to give better than average return.
? Why index funds are not suitable for your case
– Index funds follow market blindly.
– They do not adjust based on risk or time horizon.
– They may underperform during crashes.
– You need customised growth, not average returns.
– Active funds managed by experts offer more.
? Mutual fund route – regular plan with MFD and CFP
– Don’t go for direct funds on your own.
– Direct funds give no hand-holding or guidance.
– Choosing wrong fund can cause loss.
– MFD + CFP can guide based on your goals.
– They help monitor and rebalance regularly.
? Focus on income stability and skill improvement
– Parallel to loan control, work on job stability.
– Upgrade skills in your domain.
– Learn tools, certifications or soft skills.
– Job loss or salary cut can worsen your loan problem.
– Keep improving yourself every 6 months.
? Plan for goals once loans are under control
– After 1–2 years, plan for these goals:
– Emergency fund
– Child education
– Retirement
– Home down payment (only if within budget)
– Prioritise retirement even if child is small.
– Don’t depend on property or pension in future.
? Always protect your family with insurance
– Term insurance is needed if you have dependents.
– Rs.50L to Rs.1Cr cover is ideal.
– Premium is low and benefit is high.
– Also, get health insurance for entire family.
– Don’t rely on company medical policy alone.
? Don't panic or lose confidence
– Many people face such debt situations.
– It’s a phase, not the end.
– Proper budgeting and planning can solve it.
– Stay disciplined and committed.
– One year of effort can change everything.
? Create a 3-step action plan from today
– Step 1: Review all EMIs and spending.
– Step 2: Try restructuring or partial prepayment.
– Step 3: Build emergency fund and resume SIP later.
? Stay away from high-risk or quick return plans
– Avoid crypto, trading, Ponzi apps or get-rich schemes.
– You can’t solve debt through speculation.
– Safety and liquidity matter more now.
? Keep reviewing your plan every 3 months
– Sit with a Certified Financial Planner regularly.
– Share updates and revise your goals.
– Consistency in execution is more important than speed.
– Financial freedom takes time but is possible.
? Finally
– Focus now is on survival and regaining balance.
– Once done, you can restart your investment journey.
– With planning and patience, you can still build wealth.
– You already took the first step by asking.
– Take action now, even if small.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
– Your EMI is more than Rs.70,000.
– Your take-home is Rs.84,000.
– This means more than 80% goes in repaying loans.
– This is a very high debt-to-income ratio.
– It leaves very little for your monthly needs.
– Saving and investing becomes almost impossible.
– This can affect your peace of mind and stability.
? Start with identifying the types of loans
– List all loans with EMI and balance.
– Note the interest rate and tenure for each.
– This includes personal loans, credit card dues, car loans, etc.
– Check which loan has the highest interest rate.
– This step gives full clarity on your debt structure.
? Avoid any new loans or expenses for now
– Don’t take more loans to handle current EMIs.
– That will only increase your burden.
– Avoid using credit cards for EMI or cash withdrawal.
– Stop or pause any high-cost spending.
– No gadgets, no travel, no luxury expenses.
? Build a basic household budget immediately
– Track every rupee of your monthly spending.
– Separate must-have expenses from avoidable ones.
– Rent, groceries, medicines, utilities – keep these.
– Remove online shopping, OTT, dining out, weekend trips.
– Live very simple for the next 12–18 months.
? Find options to reduce your EMI load
– Try negotiating lower interest rate with lender.
– Use balance transfer to reduce EMI.
– Banks give lower rate for good credit scores.
– Extend loan tenure to lower monthly EMI.
– This increases total interest, but gives relief now.
? Try part-prepayment of small loans
– If any loan has low balance, try prepaying it.
– Use bonus, PF loan, family support if needed.
– Start with highest interest loan.
– That will save more in long run.
? Explore debt consolidation with proper advice
– Sometimes combining loans into one can help.
– But only do this if interest rate is lower.
– You must study terms carefully.
– Don’t go for informal lenders or apps.
– Only use regulated NBFCs or banks.
? Emergency fund is missing – create it gradually
– With such tight cash flow, emergency fund is vital.
– You can’t handle job loss without it.
– Aim for Rs.25,000 to Rs.50,000 first.
– Slowly grow it to 3 months of EMI and needs.
– Park it in safe liquid instruments.
? Investment should be paused temporarily
– Right now your focus is loan reduction.
– Investments can wait for 6–12 months.
– Clear debt and build stability first.
– Later, you can invest for goals.
? Avoid insurance-linked investments
– If you hold any ULIP, endowment or money-back plans, exit now.
– These give poor returns and have high charges.
– They reduce your liquidity and flexibility.
– Shift to pure term plan for protection.
– Invest separately in mutual funds later.
? Surrender and re-invest policies if applicable
– If you have LIC or similar policy, review it.
– If it is not term insurance, check surrender value.
– Exit non-performing plans and reinvest in mutual funds.
– Mutual funds are flexible and goal-based.
? Resume investments once cash flow improves
– Start small SIPs only when your EMI is manageable.
– Use actively managed mutual funds for better returns.
– Index funds look cheap, but have limits.
– Index funds don’t beat the market.
– Active funds try to give better than average return.
? Why index funds are not suitable for your case
– Index funds follow market blindly.
– They do not adjust based on risk or time horizon.
– They may underperform during crashes.
– You need customised growth, not average returns.
– Active funds managed by experts offer more.
? Mutual fund route – regular plan with MFD and CFP
– Don’t go for direct funds on your own.
– Direct funds give no hand-holding or guidance.
– Choosing wrong fund can cause loss.
– MFD + CFP can guide based on your goals.
– They help monitor and rebalance regularly.
? Focus on income stability and skill improvement
– Parallel to loan control, work on job stability.
– Upgrade skills in your domain.
– Learn tools, certifications or soft skills.
– Job loss or salary cut can worsen your loan problem.
– Keep improving yourself every 6 months.
? Plan for goals once loans are under control
– After 1–2 years, plan for these goals:
– Emergency fund
– Child education
– Retirement
– Home down payment (only if within budget)
– Prioritise retirement even if child is small.
– Don’t depend on property or pension in future.
? Always protect your family with insurance
– Term insurance is needed if you have dependents.
– Rs.50L to Rs.1Cr cover is ideal.
– Premium is low and benefit is high.
– Also, get health insurance for entire family.
– Don’t rely on company medical policy alone.
? Don't panic or lose confidence
– Many people face such debt situations.
– It’s a phase, not the end.
– Proper budgeting and planning can solve it.
– Stay disciplined and committed.
– One year of effort can change everything.
? Create a 3-step action plan from today
– Step 1: Review all EMIs and spending.
– Step 2: Try restructuring or partial prepayment.
– Step 3: Build emergency fund and resume SIP later.
? Stay away from high-risk or quick return plans
– Avoid crypto, trading, Ponzi apps or get-rich schemes.
– You can’t solve debt through speculation.
– Safety and liquidity matter more now.
? Keep reviewing your plan every 3 months
– Sit with a Certified Financial Planner regularly.
– Share updates and revise your goals.
– Consistency in execution is more important than speed.
– Financial freedom takes time but is possible.
? Finally
– Focus now is on survival and regaining balance.
– Once done, you can restart your investment journey.
– With planning and patience, you can still build wealth.
– You already took the first step by asking.
– Take action now, even if small.
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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