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By:

Sayli Gadakh

11 November 2025 at 2:53:14 pm

Life on EMIs: Convenience or Financial Pressure?

Financial freedom is not about owning everything today; it is about the ability to choose tomorrow. Bharath, a 34-year-old salaried professional in Pune, earns Rs 85,000 a month. On paper, he’s doing well. He owns a 2BHK apartment, drives a decent car, recently upgraded to a premium smartphone, and his home is filled with modern appliances. But by the 25th of every month, his bank balance is close to zero. Where does the money go? A closer look reveals the answer: EMIs. Rs 32,000 for a home...

Life on EMIs: Convenience or Financial Pressure?

Financial freedom is not about owning everything today; it is about the ability to choose tomorrow. Bharath, a 34-year-old salaried professional in Pune, earns Rs 85,000 a month. On paper, he’s doing well. He owns a 2BHK apartment, drives a decent car, recently upgraded to a premium smartphone, and his home is filled with modern appliances. But by the 25th of every month, his bank balance is close to zero. Where does the money go? A closer look reveals the answer: EMIs. Rs 32,000 for a home loan. Rs 11,500 for a car loan. Rs 4,000 for a personal loan taken during a family function. Rs 3,200 for a smartphone on EMI. Add to this a couple of credit card minimum payments, and over 60 per cent of his salary is already committed before he even begins to spend on groceries, fuel, or utilities. Bharath’s story is not unusual; it is the new normal for many middle-class families. Over the last decade, easy access to credit has transformed consumption patterns. With just a few clicks, you can “afford” things that once required years of savings. Zero down payments, no-cost EMIs, and instant approvals—these offers make purchases feel light on the pocket. But what often goes unnoticed is the long-term burden they create. From a chartered accountant’s perspective, the problem is not EMIs themselves. In fact, certain EMIs, like a reasonably planned home loan, can be part of healthy financial planning. The issue arises when EMIs start funding lifestyle rather than assets. There is a fundamental difference between productive and consumption EMIs. A home loan, if within budget, builds an asset. An education loan can enhance earning capacity. These are investments in your future. On the other hand, EMIs for gadgets, vacations, or luxury items often depreciate in value the moment you buy them—yet you continue paying for them long after the excitement fades. This is where many middle-class earners fall into what I call the “EMI illusion". Because the monthly payment looks small, the purchase seems affordable. But affordability should not be judged by whether you can pay the EMI; it should be judged by whether it fits sustainably within your income and goals. A simple rule many financial experts recommend is this: Total EMIs should ideally not exceed 30–40 per cent of your monthly income. Beyond this, your financial flexibility starts shrinking rapidly. In Bharath’s case, crossing the 60 per cent mark has left him vulnerable. One unexpected medical expense or a temporary loss of income could push him into a debt spiral. Another common oversight is committing to EMIs without building an emergency fund. Equally concerning is the role of credit cards. Many individuals treat the “minimum amount due” as a safety net. In reality, it is a costly trap. Interest rates on unpaid credit card balances can go as high as 30–40 per cent annually, silently compounding the burden. So, is an EMI-driven life a convenience or financial pressure? The answer depends on discipline. EMIs can certainly make life convenient. They allow you to access necessities when needed and spread out large expenses. But without boundaries, they quickly turn into financial pressure, restricting your choices, delaying your savings, and increasing stress. For middle-class families aiming for stability, a few practical steps can make a significant difference. Before taking any EMI, ask whether it is a need or a want. Ensure you have at least three to six months of expenses saved before committing to new debt. Avoid taking multiple small EMIs simultaneously, as they add up faster than expected. Prioritise closing high-interest loans, especially credit card dues. Most importantly, focus on building savings and investments alongside repayments. Financial freedom is not about owning everything today; it is about the ability to choose tomorrow. Bharath has now started reassessing his finances. He has postponed further purchases, begun prepaying his high-interest loans, and is working towards creating an emergency fund. The journey may take time, but the direction has changed. And that, perhaps, is the real takeaway. Because in the end, the goal is not just to live a comfortable life but to live one that is financially secure. (The writer is a Chartered Accountant based in Thane. Views personal.)

Dravidian Disruptor

For over half a century, Tamil Nadu’s politics rested on a comforting certainty that while power would alternate, it would never escape the gravitational pull of the Dravida Munnetra Kazhagam and the All India Anna Dravida Munnetra Kazhagam. This binary was treated akin to a law of nature.


Now, in a single election, Vijay and his Tamilaga Vettri Kazhagam (TVK) have rewritten the old grammar of Dravidian politics that has painstakingly been constructed since 1967.


Vijay has dismantled the state’s entrenched duopoly and dethroned M. K. Stalin’s DMK at its own citadel. The TVK’s stunning emergence as the single-largest party was a stark reminder that political orders, however entrenched, can collapse with startling speed when the electorate decides to move on.


To call this a ‘Thalapathy moment’ is not merely to indulge in cinematic metaphor but to recognise the peculiar alchemy Vijay has mastered. His campaign inverted the orthodoxies of Indian politics. Where others sought ubiquity, he cannily chose absence. Where rivals submitted themselves to the daily churn of press conferences and reactive commentary, Vijay withheld from doing so.


In a media ecosystem addicted to noise, especially during a high-stakes poll season, the TVK’s restraint became a differentiator. It all floored most political pundits, who failed to see the signs. Consider the party’s first major conference in Vikravandi in October 2024. The massive crowds there were fervent, suggestive of a constituency seeking articulation. There, Vijay sketched an ideological canvas that drew from Ambedkar, Periyar and Kamaraj in a careful triangulation of social justice, rationalism and welfare pragmatism.


While not radical in content, it was novel in its packaging. His manifesto, with its emphasis on women detailing monthly assistance for heads of households, free LPG cylinders, support for marriages was again not new in Tamil Nadu’s welfare-heavy politics. But the TVK framed these promises less as patronage and more as dignity. By fielding 24 women candidates and foregrounding gendered economic security, it tapped into the younger, aspirational and more digitally connected electorate.


Indeed, it is in the digital sphere that TVK’s campaign found its most potent amplifier. Short, shareable videos humanised Vijay and diffused his message far beyond traditional rally grounds.


The TVK contested the very terms on which elections are fought. It bypassed intermediaries and distrusted conventional wisdom For Tamil Nadu, the implications are profound. The Dravidian duopoly, once thought impregnable, has been breached by a figure who straddles cinema and politics with uncommon ease. Whether Vijay can translate this insurgent victory into stable governance remains an open question.


Yet, for now, the verdict is unmistakable. The electorate has delivered not just a result but a rebuke to complacency, to predictability and to an analytical class that mistook continuity for certainty. In doing so, it has announced the arrival of a new protagonist. Tamil Nadu has seen many political dramas. This one, however, feels like a genre shift.

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