How Much EMI Can You Really Afford?

The 40% rule and how to stress-test a new loan.

Lenders may approve more than you can comfortably repay. A good rule is to keep all EMIs below 40% of take-home pay.

Stress test - Could you still pay if your income dropped 20%? - Do you have 3 months of EMIs saved? - Use the CreditSafe Loan Risk Analyzer to see the true APR, including fees.

Create a free account to track your learning progress.