If you take loans beyond your capacity to repay, most, if not all, of what you earn, will go in loan repayment. So, how do you borrow right? Here are some tips. Don’t let sum of all EMIs exceed half of take home pay That’s right. Be it home, car or any other loans, the total payout should be less than half your take-home pay.
Give preference to home and study loans Study and home loans can create future income. That’s why most of the EMI limit of 50% of take home pay should be taken up by them. Car, personal and other consumption loans shouldn’t exceed 15% of your take home pay.
We hope you found this useful. Please leave behind your comments and suggestions. For more, download our mobile app, visit our website www.fundoomoney.com and subscribe to our YouTube channel and digital magazine FundooMoney Indian. Also, follow us on Instagram, Pinterest and Slideshare.
