More Indians are swiping cards and taking EMIs this festive season, and for many families, total EMIs now cross 40% of take-home pay — the level lenders themselves treat as risky.
A report shows households are borrowing more for everyday upgrades, from phones to trips, even as repayments quietly eat into monthly budgets.
If your EMIs cross that 40% mark, that's your red flag.
What this means for you
- If you earn ₹50,000 a month, your total EMIs — credit card, personal loan, gadget EMI — should stay under ₹20,000, or your savings take the hit.
- Every "no-cost EMI" still counts against this limit, even without visible interest.
- More debt today means less left for your SIP or emergency fund tomorrow.
What you can do
- Add up all your current EMIs today and check if they're under 40% of your take-home pay — a 2-minute job on your phone calculator.
- Before your next festive purchase, ask yourself if this EMI pushes you past that line.
Festive spending is fun — just make sure next month's EMI doesn't quietly outgrow your paycheque.
Grow with clarity 🌱