Equated Monthly Installment (EMI): How It Works, Formula, Examples
Equated Monthly Installment (EMI): How It Works, Formula, Examples
4 months ago
investopedia.com
The 40% EMI (Equated Monthly Installment) rule suggests that your total loan EMIs should not exceed 40% of your monthly income. This guideline helps ensure that you have enough income left for other essential expenses and savings. Exceeding the 40% limit could lead to financial strain, as a significant portion of your income is committed to loan repayments. It might result in a higher risk of defaulting on payments, affecting your credit score and financial stability. Additionally, it could limi
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