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Ramalingam Kalirajan |10879 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 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

Question by Pradeepa on Jul 23, 2025Hindi

My name is Pradeepa,36 yrs old and I m widower.i have 2 kids (8yrs and 6yrs).Now I m working as a Teacher got monthly 13500 and I got rent from my house portion which is 8000 and also got 3000 from tution.This is my earning.My monthly expenditure is 15000 and remain for my kids school fees.i could not able to do any savings from this money.i bought one plot when my husband alive.The rate is 21Lakhs. In that ,16 Lakhs got loan last oct,2024.Now outstanding is 1550000.i try to be sale my plot but it could be late process.but I need to pay monthly EMI of 15840. I have only170gm jewels.which option I can take.can mortgage the jewel and pay the EMI or Sell the jewels and pay the EMI.If I sell the jewel ,I got only 13L only.then need remain 2.5L.or if i mortgage ,then i having two loans(plot and jewel).I m not sure when the plot wil sale.i have big confusion in this.plz give clarity.

Ans: Pradeepa, you are already doing your best in a difficult situation.

Raising two children, running a home, managing loans, and still trying to plan—takes great strength.

You have taken very wise steps so far. Let’s now go step-by-step and bring clarity.

This reply gives you a full 360-degree view on what to do next.

? Your Current Income and Expenses

– Your total monthly income is Rs 24,500.

– It includes salary (Rs 13,500), house rent (Rs 8,000), tuition income (Rs 3,000).

– Your basic expenses are Rs 15,000. That leaves Rs 9,500.

– But your plot EMI is Rs 15,840. So, you have a monthly shortage.

– You are managing this somehow now. But it is not sustainable.

? Plot Loan is Creating Financial Pressure

– Your plot loan is about Rs 15.5 lakh now.

– Monthly EMI is Rs 15,840. It is higher than your monthly savings.

– Right now, you are borrowing or delaying something to pay this EMI.

– This pressure will increase over time if the plot doesn’t get sold soon.

– The loan is not for a house you live in. It’s for a plot.

– Plot is not giving you income, only expenses.

– Paying EMI every month without savings is risky for future.

– So this loan needs to be addressed first.

? Possibility of Selling the Plot

– You said plot is valued at Rs 21 lakh.

– Selling may take time, but the sooner it sells, the better.

– Don’t wait for higher price. Selling now reduces your EMI burden.

– Even if you get Rs 18–19 lakh, you can close the loan.

– You may also get extra money after clearing loan.

– Talk to a trusted agent, keep price realistic, and push the sale.

– Mention that EMI is becoming difficult while negotiating.

? Option 1: Mortgage the Jewellery

– You have 170 grams of gold. That’s a valuable asset.

– You may get Rs 6–7 lakh loan depending on purity.

– But this creates a second loan. Now you will have two EMIs.

– It solves the problem only for short time.

– You will have to pay interest monthly for gold loan.

– It gives you time but not complete relief.

– It’s only a temporary bandage, not a full solution.

– Use this only if you are sure plot will sell in next 3–4 months.

– Else, second loan will also become a problem.

? Option 2: Sell the Jewellery

– You said you may get Rs 13 lakh for the gold.

– Selling will reduce your plot loan from Rs 15.5 lakh to Rs 2.5 lakh.

– This brings your EMI down to Rs 3,000 approx.

– This is very easy to handle from your income.

– It will immediately reduce stress.

– You can save the monthly gap of Rs 13,000.

– Once the plot is sold, use balance money to rebuild gold slowly.

– You can buy back gold in future when you are financially strong.

– This gives you peace and breathing space now.

– Also helps you build small emergency savings again.

– For now, this is the better option compared to mortgaging.

– You reduce loan and don’t add more.

? Which Option Is Better for Your Situation

– Selling the gold is a better option.

– It gives you permanent relief.

– You will only have one small EMI to manage.

– Mortgage is only a short-term help, but adds new stress.

– Avoid having two loans if income is tight.

– Selling gold may be emotionally hard, but it is practical now.

– Peace of mind for you and your children is more valuable.

? Things to Avoid Now

– Don’t borrow from relatives or private lenders.

– Don’t take personal loan to close plot loan.

– Don’t wait too long for plot price to go up.

– Don’t sell gold and keep plot loan running.

– Don’t ignore insurance for yourself.

– If you don’t have term insurance, consider it once EMI is under control.

? What You Can Do Once Pressure Is Reduced

– Once you sell jewellery and reduce EMI, you’ll save Rs 13,000 monthly.

– Use part of that to build emergency savings.

– Keep 3 months of expenses in bank savings or recurring deposit.

– Start small savings for kids' education.

– Begin with Rs 1,000 SIP per child in equity mutual fund via Certified Financial Planner.

– You can increase SIP slowly every year.

– Don’t worry about returns now. Focus on regular saving habit.

– Use mutual funds through Certified Planner who can help with goal-based planning.

– Avoid investing through direct mutual funds. It doesn’t give guidance or reminders.

– Use regular plans with advice. That gives clarity, reviews, and support.

? Protecting Your Children’s Future

– Keep life insurance active. Use term insurance if not yet done.

– It’s cheap and gives big cover for your children.

– Don’t mix insurance and investment. ULIPs and endowments don’t help now.

– For both kids, open savings account. Teach them value of saving.

– Focus on building stable income and health.

– Education is your biggest gift to them.

– Stay strong. You're already doing the right things.

? Simple Plan Going Forward

– Sell gold. Reduce loan. Keep only one EMI.

– Try to close plot loan when buyer comes.

– Save the EMI difference every month.

– Build 3-month emergency fund.

– Start SIPs slowly for kids.

– Rebuild gold in small parts in future.

– Don't add new loans unless emergency.

– Keep a written budget and stick to it.

– Meet Certified Financial Planner once things settle.

? Emotional Strength and Practical Choices

– Selling gold may feel like a loss. But it’s not.

– It’s a step towards freedom from pressure.

– You are not losing asset, you are gaining peace.

– Your late husband would have wanted you to live stress-free.

– Gold can be bought again, but mental health can’t.

– Your kids need a peaceful mother more than gold.

? Finally

– You are handling a difficult situation with courage.

– Selling the gold now is wiser than mortgaging it.

– Reduce EMI stress. Save what you can.

– Focus on income, savings and education.

– Keep your life simple and debt-free.

– You have already shown great strength.

– Keep going step by step. Peace will come.

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

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