Queries

Loan EMIs Should Not Exceed 35-40% Of Monthly Income Jasmine Kahlon I have another three years left to pay off my home loan. The original tenure was 15 years. I don’t have regular salary, so, I want to repay the loan and not have the lingering liability. Plus, I would like to divert the money thus saved to enhance my health insurance and emergency funds. My loan interest rate is 6.5 per cent. Is it advisable to pay off the home loan? It is always advisable to pay off debt if you find the loan burdensome. In the early stages of a home loan, the interest portion is huge. But it can be reduced by partly paying the loan. Since your loan tenure is almost ending, you would have already paid off a major portion of the interest. Now, it is likely that most of the EMI would be the principal amount. Before deciding to pay off the loan, one needs to check on various factors. While more...