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Ramalingam Kalirajan |7047 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 25, 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

Asked by Anonymous - Apr 25, 2024Hindi

Money

Good Morning Sir, I'm partha working in Indian Railway as Clerk, sir i have 15 lakhs Loan in different banks. i'm fedup paying EMI's. Bank of Baroda agreed to give loan of 16 lakhs. my question is should i clear all Pending Loans and be free from Dedts or shall i construct 1st floor on my home with loan.what decision should i take sir

Ans: Partha,

Firstly, I truly understand the weight of the burden you're carrying with those EMIs. It's a challenging phase to constantly manage multiple debts. It's commendable that you're considering taking a step towards managing it better.

When faced with such a decision, it's essential to ask yourself what brings you peace of mind and long-term stability. Clearing off existing loans can offer a sense of relief, freeing you from the constant worry of repayments. Imagine the freedom from monthly obligations; isn't that a tempting thought?

On the other hand, investing in expanding your home sounds like a dream many of us have. It's not just about adding another floor; it's about creating more space for memories, growth, and family gatherings. But here's a thought - will this new construction enhance your quality of life significantly? And will it bring you closer to your long-term goals?

As a Certified Financial Planner, my suggestion would be to prioritize your financial freedom first. Once you clear those debts, you'll find it easier to focus on building a secure future. Remember, financial stability often brings along peace of mind and the freedom to dream bigger.

Take your time, weigh your options, and make a decision that aligns with your peace and future aspirations.

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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Harsh Roongta | Answer |Ask -Follow

Answered on Dec 24, 2019

Question by Sachin - Dec 24, 2019Hindi

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I need some financial advice from you regarding my home. I had purchased a flat in 2014 in under construction; I got possession of the same in 2016. My home loan started in Jan 2015 and till today and I am paying the EMI of Rs 110,000 every month on time. But since last year my income has dropped down and hence I could not further pay such a huge EMI, I have been paying huge EMI with interest for the past 5 years and have been working very hard only for paying huge EMI. I have also other monthly expenses beside EMI like home expenses, LIC, electricity, kids’ school & tuition fees. Hence I need advice from you that should I sell this flat and clear the bank loan so than I can live without any burden of paying huge EMI every month and I could focus on my work and career and with the balance money buy a small house without any loan. Day by day my stress level is increasing and hence because of this I could not give 100 per cent to my work.

Ans: I understand your dilemma. In fact there is no law that says that you cannot live in a rented flat. Consider living in a rented flat for a while till your finances take shape.

The rent will be a fraction of the EMI that you will need to pay even for a smaller home. Consult a personal finance advisor if you need to do so.

Ramalingam Kalirajan |7047 Answers |Ask -Follow

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

Asked by Anonymous - Jul 15, 2024Hindi

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I am 42, I constructed new home in 2020 and have a home loan of 65 la with EMI of 67k. Balance tenure is next 14 years.. I got 32 la after selling my old property (gram panchayath in village) and invested in Bangalore for registered property for 40 la with gold loan of 8 lakh..I have a car loan EMI 24k running balance is next 25 months and personal loan with EMI 22k for next 25months. I am in a confused position whether I did correct or not ?? I should have paid old property money to clear new home loan ?? Please advise!!

Ans: You have a home loan, car loan, and a personal loan. The combined EMIs are significant. You also invested Rs 32 lakh from selling an old property.

Evaluating Loan Repayment Strategy

Paying off your home loan with the proceeds from your old property could have been beneficial. Home loans have a long tenure and higher interest outgo. Reducing the principal early can save a lot in interest. Let's explore your current situation and alternatives.

Current Loan Commitments

Home Loan: Rs 65 lakh, EMI of Rs 67,000, tenure of 14 years.

Car Loan: EMI of Rs 24,000, balance 25 months.

Personal Loan: EMI of Rs 22,000, balance 25 months.

Analysing Investment in Bangalore Property

You invested Rs 32 lakh in Bangalore property, taking an additional Rs 8 lakh gold loan. This may have increased your debt burden. Property can be a good investment, but consider liquidity and returns.

Benefits of Paying Off Loans

Reduced Interest Burden: Paying off loans early saves interest. Home loans have long tenure and compound interest.

Improved Cash Flow: Reducing EMI obligations frees up monthly income. This can be redirected to savings or investments.

Impact of Current Debt Obligations

High EMI Burden: Combined EMIs are Rs 1,13,000 per month. This is a significant portion of income, limiting other financial goals.

Interest Outgo: High interest on personal and car loans increases financial strain.

Suggested Financial Strategy

Prioritise High-Interest Loans
Focus on clearing the personal and car loans first. They have higher interest rates and shorter tenures.

Use any available savings or additional income to prepay these loans.

Home Loan Management
After clearing personal and car loans, focus on reducing home loan principal. This can be done through partial prepayments.

Use bonuses, increments, or any lump sum income to make extra payments.

Review Bangalore Property Investment
Assess the potential returns and future prospects of the Bangalore property.

If it does not meet expectations, consider selling it and using proceeds to clear debts.

Emergency Fund
Maintain an emergency fund to cover at least 6 months of expenses. This provides a safety net in case of unforeseen events.
Systematic Investments
Once loans are under control, start systematic investments. This can be in mutual funds, PPF, or other suitable options.

Ensure diversification to balance risk and returns.

Final Insights

You have taken on significant debt obligations. Prioritising loan repayments, especially high-interest ones, is crucial. Evaluate the investment in Bangalore property and consider liquidity and returns. Gradually, free up your cash flow and redirect it to systematic investments for long-term growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Question by Vijay - Aug 27, 2024Hindi

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Hi I m earning 80k pm where i am spending half of my income to pay emi's. I am owning one house in Vishakhapatnam city which is worth of 1cr and it has home loan outstanding of 18 lakhs , I also own property which worth of 15 lakhs . Is it the right move for clearing the home loan to sell my other property to invest my monthly salary in other portfolios of investments. Kindly suggest me to take a decision for clearing my home loan dues. Is this a good approach or is there any other better investment options for future? Please suggest

Ans: It is always prudent to prepay your loans, as early as possible, and use the surplus income to more investments which could help you to fund your retirement and other financial goals.

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Thinking is a good trait to have, overthinking is not.

You literally have to STOP overthinking!!!

One way to overcome this is to stop thinking and become more action oriented. STOP analyzing everything in the head, put it on paper, there is something calming about putting thoughts on paper, writing them down with a pen and paper.
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Indulge in physical activity, play a game which is more action oriented , this teaches you to be fully present in the moment, which helps you in being in the moment. Being fully present in the moment is what gets you out of overthinking.
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There is a book called as, STOP OVERTHINKING by Nick Trenton, this book offers practical advice and exercises to help you break free from negative thoughts and worries. It provides evidence-based methods to combat overthinking and anxiety.

Another amazing book by Eckhart Tolle, "The Power of NOW", can help you.

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Ans: Hi!!

When I was working in the corporate world, the oft repeated quote was, "people don't leave the company ,they leave bad bosses".
Your manager's boss is your super boss, rt? Can't you go and speak to him directly and put your concerns across?
I am sure the HR must have noticed that people are quitting and might have explored the reasons why they are doing so too, do check with them.
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What is the upper age limit for CA course and mbbs course.

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Ans: Priya Madam,

You have not provided information regarding the number of hours your son sleeps.

(1) Given that your son is only 8 years old, it is important to ensure he gets a minimum of 8 hours of sleep at night and 2 hours in the afternoon. Sleeping hours can be reduced once he enters the 6th Standard.

(2) Ensure he receives a balanced diet and nutritious food to sustain his energy levels. (3) Encourage him to maintain regular water intake to prevent dehydration. (4) Facilitate opportunities for him to take regular breaks and engage in play. (5) A 3rd standard student can't study for extended periods. He should study for 25 to 30 minutes, followed by a 10 to 15-minute break after each 25-minute study session.

(6) I am providing this information for general awareness. Parents should refrain from physically assaulting their children to achieve compliance, as this can undermine their self-confidence. (7) They should engage in more polite and loving communication with the children. (8) Children frequently observe their parents and tend to emulate their actions. Ensure that the environment at home is tranquil. (9) Addiction to electronic gadgets may also result in fatigue. (10) Regarding the Study Planner, it has been previously stated that regardless of whether he studies in the morning or evening, he should engage in study sessions of 25 minutes followed by a 10-minute break after each session. He will not experience fatigue, and the output will be increased. Hope, this answer will help you, Madam.

All the BEST for Your Prosperous Son's Future.

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Hi Mam I had finished my MSC Clinical psychology. but as of now not able to find right job. what type of jobs available in India for this course. Or shall I move to HR based jobs. Kindly advice

Ans: OMG, an MSc in clinical psychology is like gold mine in today's time. Schools, colleges, corporates, hospitals are looking for psychologists. I just googled there are many jobs in the Government too.
If this is your area of interest then pls go ahead and start sharing your expertise with the world. Start consulting and start helping people, everyone is looking for an expert to help them navigate through life, specially the young !!

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

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