INCOME TAX5 Sept 2026
EMI affordability: When does an ‘affordable monthly payment’ become unaffordable? Experts explain | Mint
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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