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Debt Counselling: Sanjay Agarwal

Business Standard / 26 Jul 12 | 12:47 AM

My investments include two plots of land valued at Rs 80 lakh and Rs 40 lakh, PPF of Rs 20 lakh, debt and equity mutual funds (Rs 6 lakh) and Ulip (Rs 10 lakh). I have Rs 4 lakh cash in hand. If I have to raise money for some need, would you advise opting for a personal loan or some other route?
One can advise about the loan only after knowing the loan amount and the purpose for which it is required. You may need to buy a house for which home loan is available and is not very expensive. Some banks also provide loans against mortgage of property. You may raise a loan against PPF or insurance policy according to the applicable rules. Personal loans are relatively more expensive since these are given without any security.

I am servicing an education loan for three years, one more year to go. I have scored well in G-MAT and can secure admission in foreign universities, which I don't want to let go. The funding options I have are - 1) another loan, and 2) savings. I am repaying the ongoing education loan in a balloon fashion, that is, paying larger sums. I don't want to take too much debt. But, if I use my savings, I will be left with nothing at the end of the new course. I am nearing the last date to write to the universities.
I’d recommend that you approach your existing banker and ask for another education loan the repayment of which should start once you get employment again after completing the new course. You may pay the balance amount of the existing loan from the savings or request the bank for rescheduling it, which should not be difficult considering your good repayment track record.


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The writer is senior vice president and group head - retail business group & technology solutions group at Arcil. The views are his own.

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