Home Loans – What EMI can you afford?

One of the biggest assets you will purchase in your lifetime is your home.

Purchasing a home can sometimes be a financial strain and you may find it difficult to manage your household expenses if your EMI is too high.

You need to take into consideration all your fixed liabilities like health insurance, car/bike EMI and insurance, children’s school fees when checking how much you can afford as EMI towards your home loan.



“You can always upgrade to a bigger home or a villa when your income increases over the next 10 years but today you should pick a home that you can afford.”



As a thumb rule, home loan EMI should not be more than 35-40% of your monthly net income. Combined EMIs of all your loans should not be more than 50% of your total monthly income.

If your income is Rs. 50,000/- then you can afford an EMI of Rs. 20,000/month, which means you can afford a home loan of Rs. 30L was taken on a 30-year term at a home loan interest rate of 6.95%.

For more details on your home loan eligibility and Govt subsidy of Rs. 2.67L towards your home loan, Please call 76674 66666 or 76676 99999.