INCOME TAX5 Sept 2026
EMI affordability: When does an ‘affordable monthly payment’ become unaffordable? Experts explain
Just because an EMI looks small doesn't mean it is affordable. Experts say all your EMIs together should stay under 30% of your monthly income. If income is ₹50,000, keep total EMIs within ₹12,000–₹15,000. Over-borrowing quietly builds stress, often when a second loan services the first. Always check your whole financial picture before taking any loan.
Key Statutory Highlights
- Total EMI obligations across all loans should not be more than 30% of monthly income.
- For a monthly income of ₹50,000, total EMIs should stay within the ₹12,000 to ₹15,000 range.
- An EMI stops being affordable when it leaves no room for other household expenses and savings.
Actionable Advice for Taxpayers / Founders:Add up all your current EMIs and check if they cross 30% of your net monthly income. If they do, or you face hardship, seek professional financial guidance before taking any new loan.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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