Home Loan EMI: How Much of Your Salary Should Go Towards Your Monthly Installment?

• A home loan is a secured loan for purchasing or renovating a home, typically with lower interest rates due to property collateral.
• The EMI for a home loan depends on the loan amount, repayment tenure, and interest rate, often having longer repayment periods (20+ years).
• Financial experts recommend that your home loan EMI should not exceed 35-40% of your monthly salary to manage other essential expenses and savings.
• Exceeding the 40% rule can lead to financial strain, potential default, and impact your credit score, making it harder to cover living costs.
• Higher EMIs (up to 50-60%) might be manageable if you have no other loans, financial dependents, a stable high income, or anticipate a significant salary hike.

Why It Matters: Keep home loan EMIs within 30-40% of your monthly income for financial stability and to cover other expenses.