Home Loan EMI: Buying a house is every person’s dream, but to fulfill this dream most of the people take the help of home loan. Many times the bank offers a big loan based on the income of the customer, but the question is whether it would be right for you to take such a big loan? Financial experts believe that before buying a house, it is more important to decide how much EMI you can comfortably pay every month. Wrong decision can put pressure on your financial situation for a long time.

Home loan is a long term responsibility
Home loans are usually taken for a tenure of 15 to 20 years or even more. This means that every month a part of your salary will be deducted as EMI for many years. Therefore, instead of taking a loan only on the basis of bank eligibility, it is important to keep in mind your actual need and paying capacity.

How much should be the EMI burden?
According to financial advisor Ankur Wariku, home loan EMI should not exceed 30 percent of your monthly income. For example, if your monthly salary is Rs 1 lakh then your EMI should be around Rs 30,000 only. This will not affect your other important expenses and the financial balance will remain in balance.

Never ignore these expenses
Apart from home EMI, there are many other expenses of the family which cannot be avoided. These include children’s school fees, health insurance, medical expenses, vehicle EMI, daily household expenses, investments and savings. If a large part of your income goes only towards home loan installments, it may be difficult to meet these needs.

Big house or children’s education?
Experts say that children’s education is the most important investment for the future. Today the cost of higher education is increasing rapidly. In such a situation, it is not considered wise to take a loan more than your financial capacity just to buy a big house. If needed, a smaller house can be chosen, but children’s education and family safety should not be compromised.

Follow this formula before taking home loan
Assess your total income, monthly expenses, savings and future financial needs before applying for a home loan. If EMI remains around 30% of your income, you will be more financially secure. Remember, it is not the amount of loan that the bank can give that is important; What is important is how much EMI you can pay without stress.