Can't Afford That Bike? The 3x EMI Rule Saves You

Before buying a phone, bike, or car on EMI, there's a simple rule to check if you can actually afford it — without breaking your budget or hurting your credit score.

Here's what happened: Many Indians buy gadgets and vehicles on EMI without checking if the monthly outflow fits their actual take-home salary.. Financial planners recommend your total EMI burden — including existing loans — should never exceed 40% of your net monthly income.. Impulse purchases on easy EMI schemes often cause people to skip emergency savings, investments, and insurance premiums..

What you should do: Calculate your EMI-to-income ratio: add all existing EMIs, divide by net salary — if it crosses 40%, skip the new purchase.. Check your credit utilisation on GoCredit before applying for any new loan or credit card to buy the item.. Set a '3-month rule': save the full EMI amount for 3 months first — if you can do it comfortably, you can afford the loan..

Pro tip: The real cost of a ₹50,000 phone on a 12-month no-cost EMI is never zero — processing fees and blocked credit limit quietly raise your effective borrowing cost by 3–5%.