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Home  » Business » Home loan: Where the EMI pinches

Home loan: Where the EMI pinches

By Nayantara Rai in New Delhi
May 12, 2006 11:01 IST
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In spite of the sweltering heat in Delhi, Amrinder Singh can be seen driving his Wagon R with the window rolled down. He does not use the car air-conditioner to save fuel.

Singh has chosen to sweat his way to ensuring that his fixed month expenses remain fixed at last year's level, when he was paying 7.25 per cent interest on his house loan.

Since May last year, when Singh took the loan, the rate has floated up to 9 per cent.

Thus, on his Rs 15 lakh (Rs 1.5 million) loan, Singh now has to shell out an equated monthly instalment of Rs 13,496, compared to only Rs 11,856 a year ago.

Singh would be the first to admit that an extra Rs 1,640 every month is not exactly crippling. Yet, he is a parsimonious man, who likes to keep things within the budget.

He is just happy that he bought the Wagon R, and not the Swift that his heart really yearned for. Had he listened to his heart, Singh may be taking the public transport more frequently now, where he wouldn't have to worry about the windows.


Profile

Name:
Amrinder Singh
Age: 40
Family: Married with two children, both under eight
Profession: MNC executive
Income: Rs 4.8 lakh per annum
Cost of flat: Rs 25 lakh
Bought: May 2005
Loan amount: Rs 15 lakh
Interest: 7.25%, floating
Tenure: 20 years

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Nayantara Rai in New Delhi
Source: source
 

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