Expert Speak: DR. CHANDRA PRAKASH BHATIA, CA

Mr. Chandra Prakash Bhatia is a specialist Chartered Accountant. He has done Diploma in
Insurance and Risk Management (DIRM) and Forensic Auditor. He is the Chairman of Chartered
Accountants in Raipur Branch. Mr. Chandra Prakash has been in Chartered Accountancy for over 22 years. He is a private consultant in all multinational banks.

Q) Be a smart borrower; here are 5 ways to plan your EMI.

The idea of buying a house or a car as soon as you start earning can be quite lucrative, thanks to a
plethora of EMI options available in the market. However, calculating finances and EMIs can be a
daunting task and if not planned properly, loans can turn into nightmares in no time as they take away a large chunk of your salary.

Here are 5 ways that can help you in paying EMIs without any stress

1. Scan your expenses: everything starts with saving wisely. Put yourself under a tight budget, after all, your goal is to get rid of the loans.
2. Rainy day savings: Don’t dent your emergency savings to pay EMIs. Be prepared and make sure you create a separate fund for EMIs.
3. Mutual funds: If you have additional money left, put it in a good mix of mutual funds. The amount generated from mutual funds can take off the burden to a large extent.
4. Balance transfer scheme: Do opt for restructuring. Contact your bank to adjust the interest rates, EMI, and loan repayment tenure based on your repayment capacity. Transfer your car loan to another bank that is ready to offer a lower interest rate under ‘Balance Transfer Schemes’.

Repayment of loans on time is quite important as it affects your Cibil score, which can jeopardize your financial future. So start saving and plan your future wisely!