Date: 2008-08-05 10:21:37
Query : I have taken 4 personal loans and 1 home loan. The HOME LOAN is for 20 years @ 12540 /- EMI. The remaining 22031/- includes the Personal Loans.
My query :
The HOME LOAN is ok for me as it helps me save tax. But I need to know how to handle the PERSONAL LOANS. Different EMIs have different tenure as described below:
1) 9840/- -> supposed to be closed by Oct,2009.
Outstanding amount: 114000 /- (as on 1st Aug, 2008)
2) 5313 /- -> Till March,2011
Outstanding: 148000 /-
3) 3878 /- -> Till Feb, 2010
Outstanding : 50000 /-
4) 3000/- -> For 10 years(this is the 1st year running).
My monthly commitments amount to be big as I am married and more expenses are likely to come in near future. Please advice how to cope up with the EMI part as my in-hand after the EMI payment becomes quite less to survive.
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Date: 2008-08-05 11:05:05
Message:
To help me prepare a personalised debt consolidation plan for you, I need the following information from your end.
Initial Loan Amt |Tenure|Rate Of Interest|EMI|No of EMI Paid
Loan 1:
Loan 2:
You will also need to list your Credit Card outstanding and Net Income.
Looking forward to your response on this.
Please revert with any clarifications on the above answer.
Regards,
Amitoj Sethi
www.deal4loans.com
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Date: 2008-08-06 10:11:50
Message:
Dear Amitoj,
The required details are given below:
Initial Loan Amt |Tenure|Rate Of Interest|EMI|No of EMI Paid
Loan 1: 250000 | 60 months | 10 % | 5313.00 | 29
Loan 2: 150000 | 48 months | 11 % | 3878.00 | 35
Loan 3: 200000 | 24 months | 16.5 % | 9840.00 | 12
Loan 4: 200000 | 120 months | 13 % | 3000.00 | 12
Loan 5: 1500000 | 240 months | 8 % | 12540.00 | 45
Credit card outstanding: 27,000 /- (approx)
Net income: 65000 /- per month (Take home)
Also, I have insurance policies of almost 85,000 /- yearly premium and investment of almost 50,000/- per year.
Note:
** Loans 1-4 are personal loans, Loan 5 is the HOME LOAN.
** Loan 3 is actually a TOP-UP loan going on. The original loan was supposed to be finished by Aug, 2008 but since I took the top-up last year, it would finish by Aug,2009.
** Loan 5: HOME LOAN(I really want to pursue this loan since it gives the tax exemption).
Let me know if this is fine.
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Date: 2008-08-08 13:48:11
Message:
Your monthly net take home is Rs. 65,000 (including quarterly allowances)
Your monthly EMI commitments is Rs. 35,926(assuming 5 % payment on credit card balance)
Based on the data provided, your eligibility for top-ups is as listed below
Principal Tenure Rate of Interest EMI EMIs Paid Principal Balance Top-up Available
Loan 1 250000 60 10.00% 5311.761178 29 144587.2451 105412.7549
Loan 2 150000 48 11.01% 3877.556877 35 47314.00395 102685.996
Loan 3 200000 24 16.50% 9840.470267 12 108175.5077 91824.49227
Loan 4 200000 120 13.12% 3000.387265 12 189626.2368 10373.76319
Loan 5 1500000 240 8.00% 12546.60103 45 1366870.477 133129.5232
My recommendation to you is as follows
a. Opt for a top-up on loan 1,2 & 5. This should generate liquid cash to the extent of Rs. 3.40 lacs without any change in your monthly outgo, but your tenure will increase.
b. If the loan provider is able to offer a top-up with an enhancement, please take up the offer. There will be an increase in the EMI in this case.
c. Use the Rs. 27,000 to pay off card debts as these are typically at 36 %.
d. This should bring down your monthly EMI commitments by about Rs. 34,576
e. With the balance amount you can pay off loan 3 & 4.
You should ensure that all additional income is ploughed back to ensure that your debt is reduced. Please regulate your expenses and get into a habit of saving a portion of your salary every month. Prudence in expenses is the only trick to stay out of debt traps.
Do get back to me for any clarifications on your personalised debt consolidation plan.
Please revert with any clarifications on the above answer.
Regards,
Amitoj Sethi
www.deal4loans.com
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City : Bangalore
Employment Status : Salaried
Annual Income : 1050000
Type of Loan Running : Yes
Loan Running : hl, pl,
EMI Amount : 38000
Tenure : 60
ROI Loan : Yes
EMI Paid : 9 to 12 months
Credit Card Holder : Yes
Amount Due : 26000
Loan Running on Credit Card : No
Residential Status : owned
Vehicle Owned : 2 Wheeler