Tuition Fee Varies Among Countries

Subhankar Roy, email

I am 22 years old and have recently started working in a software company. I want to set up my own consultancy firm by the age of 30. How should I go about investments so that I have a lump sum of around Rs 15 lakh to bootstrap my venture?

Going purely by calculations and assuming that you have the understanding and risk appetite for equity investments, I would recommend that you start systematic investment plans (SIPs) in an equity or equity-oriented mutual fund. Since your goal is a comfortable eight years away, an SIP of Rs 10,000 per month should do the job for you.

In fact, if you can increase your SIP annually in tandem with your salary increments, you would require lesser monthly SIP contributions, or if you intend to keep this amount constant, you would be able to accumulate more than your target. Be regular, diversify, and review your investments regularly, typically every six-month.

Col. Sanjeev Govila (retd), CFP, Sebi-RIA, CEO, Hum Fauji Initiatives

Ankit Sethi, email

I am planning to pursue an MBBS course at a college abroad. Please let me know the expenses I should plan for. Can I get an education loan (I don’t have any income at the moment), or will my father need to take the loan? Can I get a loan to cover expenses beyond tuition fees?

Tuition fees for MBBS programmes at foreign colleges can vary widely depending on the country and the institution, typically ranging from $20,000-70,000 per year, with additional living and other expenses.

Various countries and universities offer scholarships to international students, which can be based on academic merit, financial need, or other criteria. Additionally, private organisations and foundations may also provide scholarships.

For an education loan, given that you don’t have an income, you will need a co-applicant (typically, a parent or guardian) with a stable income and good credit history to apply for loan. These loans can cover tuition fees, living expenses, travel costs, health insurance, books, and other related expenses. All major banks offer education loans for studying abroad.

Dirghayu Kaushik, co-founder, CEO, Ambitio, an admission platform

Nitin Vyas, email

I took a home loan of Rs 30 lakh in 2013, in which around Rs 8 lakh is currently outstanding. I have enough savings to pay off this debt in one go. Should I clear the dues now or continue paying until the end of the term? Is there any charge for pre-closure? Also, what documents should I collect from the bank after closing the loan?

Deciding whether to pay off your home loan early or continue with the equated monthly instalments (EMIs) would depend on several factors. Early repayment will help you save on interest and improve cash flow, but, you might lose out on tax benefits under Section 80C and Section 24(b)of the Income-tax Act, 1961.

Most banks in India do not charge prepayment penalties on floating-rate home loans due to Reserve Bank of India (RBI) regulations, but fixed-rate loans might have charges. So, it’s advisable to check with your bank.

To prepay your loan, first get the foreclosure statement from your bank to know the outstanding amount and any charges. Then, make the payment either offline or online. Lastly, collect a no dues certificate (NOC), original property documents, a loan closure statement, and ensure that the bank removes its lien on your property. Note that if the interest savings from prepaying are more than the potential investment returns and the loss of tax benefits, it is better to pay off the loan.

Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution