'In Rs 40L Debt Trap. How Do I Repay?'

Do you have insurance, stocks, mutual fund and personal finance-related queries?
Please ask your questions HERE and rediffGURU Milind Vadjikar, Association of Mutual Funds in India (AMFI)-registered MF distributor and Pension Fund Regulatory and Development Authority (PFRDA)-registered retirement financial planning advisor, will answer them.

Arvind: Sir I am getting retired in April 2025 after completing 40 years of Service in Reputed PSU. I want to know the following:

• Can I retain my PF account till March 2028 & by then I will be 63?
• Will I be earning interest till March 2028 even if I don't contribute to my PF after retirement?
• If the above is yes, then interest earned post retirement for 36 months will be taxable or non-taxable?

Kindly Suggest.

The response to your queries is as follows:

1. Yes you can hold active pf account for three years after retirement.

2. Yes it will continue to earn interest, without any contribution, for next 3 years after 2025 till 2028.

3. EPF interest during non-contributory phase is taxable.

SANJIB: Dear Sir, I am working in a Pvt company. I have taken Rs 13 lakh as housing loan in the year 2012 from LICHFL. They disbursed 12.5 lakh & hold 50 thousand on a/c of registration. I have repaid through monthly EMI since 1st June 2012 to March 2025.
While checking their portal it is showing Rs 6,66,325 as my balance amount and last instalment is on 7th Jan 2031.
Please note Rs 13137 is deducting as monthly EMI. Now I have 10 years of my service with me and not able to understand change of Repo rate and its effect.
What is your advice?
Should I repay balance amount or keep on repaying the amount through monthly EMI as already substantial amount has been repaid.
Sometime, I apprehend that excess has been deducted on a/c of repayment but not aware of basic EMI deduction calculation which can confirm my doubt.

You have a right to seek explanation from your lender regarding principal repayment and interest payment through EMIs across the loan tenure.

Irrespective of the repo rate movement, it is financially prudent to repay the outstanding home loan in totality as you are relatively closer to retirement (10 years).

This will give you freedom to save more towards retirement and other goals.

Anonymous: Hello Sir, I am a salaried employee and an EPF subscriber. I want to start VPF contribution.
Will EPS contribution be deducted from my VPF contribution also (as it is the case in EPF contribution)? If yes, what percent of VPF contribution will be deducted for EPS?

EPS is NOT deducted from VPF contribution.

Anonymous: My Self Sandeep age 40, looking for a term plan (75lakh -1 crore) where in i can pay till i turn 60 means i can pay for 20 years, Rs 2500-3000 per month. Add-ons required at least 50% payout on permanent disability (accidental/due to any illness) future premiums waived off in case of disability.
At least 50% payout on Terminal illness at least 50% payout on Critical illness premium waived off on found any illness SPOUSE COVERED

You may compare policies offered by different insurers as per your requirement, online, on web aggregator platforms like policybazaar, insurancedekho, policyx, turtlemint etc.

Or else you may visit individual insurer's website to study their product features but this can be cumbersome.

Another option is to seek help from an insurance advisor.

Almost all big companies offer term plans that can meet your requirements. For eg SBI Life e-shield next, HDFC life click to protect super, ICICI Pru life iprotect super, LIC new jeevan amar term plan etc.

P: My loans have crossed 40 lakh and i don't have a job. I don't know what should i do as i do not have any money to pay back. I am taking loans to repay interest for old loans.

Here's what you can do:

• Sell some of your asset like land, gold or vehicle to repay the loan on priority.
• Don't borrow to repay existing loans. Restructure the loans or seek a moratorium till you get a job.
• Borrow funds from family and friends explaining your mistakes and promise to repay once you get another job.
• Keep in mind the old saying to cut your cloth as per your size and act accordingly.

• You can ask rediffGURU Milind Vadjikar your questions HERE.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.