The 40% EMI Mantra

Back to all Infographics

While saving and building wealth, one must not ignore the liabilities they may incur in the path towards wealth creation. This is where the 40% EMI rule can save the day.

Individuals usually take loans to buy a house or a car or they may run up huge credit card bills.

The 40% EMI mantra states that the total debt / EMI that you pay towards a loan or credit card bill must not exceed 40% of your net income.

Put simply, if you plan to buy a house (or anything else), with a take home salary of Rs 1 lakh, make sure the EMI is less than Rs 40,000.

This simple mantra will ensure your liabilities are in control and don’t disrupt your finances or your ability to repay the loan.

Read more

Popular Infographics

Tag Clouds

Related Infographics

Leave a Comment

Thanks for submitting your details.

This Diwali, Bond With Gold

27 Oct 2022

Multi-Asset Funds: Benefit Of Different Asset Class In One Fund

13 Oct 2022

Add this website to home screen

Are you Bank of Baroda Customer?

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.

The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.

Proceed to the website

Thank you for visiting

We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.