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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.)

The Quiet Shift in India’s Ballot

The 2026 Assembly poll results have shown that India’s voters are shifting from familiarity to aspiration by rewarding those leaders and parties who promise a credible path to the future.

Something significant has shifted in Indian politics, and we are still trying to explain it using the comfort of old ideas. For decades, we believed elections in India were won on the strength of grassroots connection. The party that knew the people best, that walked their streets, spoke their language, and understood their daily struggles would prevail. It was a persuasive theory because it rewarded political intimacy. It also made the voter seem predictable.


The recent churn in states as different as West Bengal and Tamil Nadu forces us to confront a harder truth: the Indian voter has not abandoned the grassroots. They have moved beyond it.


Structural Rupture

A result where the Bharatiya Janata Party secures an overwhelming majority in West Bengal, decisively defeating the All India Trinamool Congress and even unseating Mamata Banerjee, is a structural rupture. Bengal has historically rewarded leaders who were deeply embedded in its social fabric. Mamata Banerjee did not merely understand the grassroots; she embodied them. If such a leader can be reduced to a fraction of her dominance, the explanation cannot lie in a sudden loss of touch.


Something else has changed. And it is not the leader. It is the voter. The history of Bengal offers a clue. The long rule of the Communist Party of India (Marxist) was built on one of the deepest grassroots networks India has seen. Yet, after 34 years, that very depth became its weakness. What began as representation turned into control; what began as presence turned into predictability. The voter did not reject the grassroots. The voter rejected a system that stopped evolving.


Mamata Banerjee rose by breaking that system. But over time, she too became that system. This is the first uncomfortable truth of Indian politics: every anti-establishment eventually becomes the establishment. And once that happens, the rules change.


But there is a second shift, and it is more profound. Indian voters are no longer loyal to familiarity in the way they once were. They are loyal to momentum. They are constantly asking: who represents movement, scale, and the future? This is where the Bharatiya Janata Party has demonstrated an advantage. Its rise cannot be explained only through organisation or arithmetic. It lies in its ability to layer the local with the national, governance with aspiration, and delivery with a larger narrative of belonging.


At this point, the political argument often turns to TINA - There Is No Alternative. It is an easy explanation, and a lazy one. Indian voters have never hesitated to create alternatives when they feel the need. The coalition years of the late 1980s and 1990s were proof of that. What we are witnessing today is not the absence of alternatives, but the dominance of a narrative that others have failed to match.


Unpredictable Outcomes

The developments in Tamil Nadu reinforce this. The weakening of the Dravida Munnetra Kazhagam under M. K. Stalin, a leader backed by legacy and organisational depth, suggests that even the most stable political ecosystems are no longer insulated. Tamil Nadu has, for decades, operated within a predictable binary. Tamil Nadu’s politics was never about multiple choices but was about a familiar choice repeated over time. When that binary begins to crack, it signals something deeper than anti-incumbency. It signals a voter willing to step outside inherited choices.


And yet, the clearest insight into this shift did not come from an election result. It came from an exhibition floor. A man walked up to me at a business expo. His company had a turnover of Rs. 6 crore. In his hand was a basic Nokia phone. He listened to what we were building like enterprise systems and integrated platforms, and then asked a simple question: “Can this run on my phone? And is it AI-enabled?”


There was no hesitation in that question nor any apology for scale. It was, in its own way, a declaration: I may be small, but I still want access to the future. That moment stayed with me because it felt eerily familiar.


This is exactly what the Indian voter is doing. They are not constrained by where they are. They are not voting only based on what they have experienced. They are voting based on what they believe they deserve. The gap between current reality and future expectation no longer creates hesitation. It creates demand.


The old model of politics assumed that voters prioritised familiarity and responsiveness. The emerging model suggests that voters prioritise alignment with aspiration. They are no longer asking, “Do you understand me?” They are asking, “Can you take me where I want to go?”


This is why grassroots understanding, while necessary, is no longer sufficient. It gives you access to the voter. It does not guarantee relevance. What determines relevance today is the ability to integrate three forces: delivery, credibility, and narrative. Delivery answers the question of performance. Credibility answers the question of trust. Narrative answers the question of direction.


Miss one, and you weaken. Miss two, and you struggle. Miss all three, and the voter does not punish you but they simply move on. Most parties can demonstrate delivery and many can build credibility. But very few can sustain a narrative that makes the voter feel part of something larger than their immediate reality. When that alignment happens, electoral outcomes stop being incremental. They become decisive, as in the seismic shifts we have witnessed.


The lesson here is both political and deeply human. The Indian voter is not cynical. Nor are they blindly loyal. They are, increasingly, aspirational in a way that refuses to be boxed by circumstance. That is what makes this moment humbling. Because it reminds us that the voter we thought we understood is already ahead of us.


And in today’s India, elections are no longer about who is closest to the ground. They are about who is closest to the future.


(The writer is a learning and development professional. Views personal.)

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