Outdated EMI Rule? Plan Loans Smarter with New Financial Strategies

• The traditional 2-6-10 rule for EMIs is outdated for today's financial realities, designed for small consumer purchases.
• Rising household debt and credit card outstanding highlight the need for updated borrowing strategies.
• Affordability should be based on actual monthly surplus, not gross income, as income alone doesn't reflect financial resilience.
• Experts recommend keeping total EMIs within 30-35% of net income and not exceeding 60-70% of monthly surplus after savings.
• Crucial stress tests include a 6-month survival fund, rate shock analysis, and an income reality check for stable repayment.