Employee money guide

Checklist Before Taking a Loan

Review EMI affordability, interest rate, total cost, tenure, fees, insurance, and alternatives before taking a loan.

Direct Answer

Before taking a loan, check whether the EMI fits your cash flow, the purpose is necessary, and the total repayment cost is acceptable.

Key Takeaways

Check EMI-to-income ratio.
Compare total cost, not just EMI.
Avoid loans that weaken emergency savings.

Affordability checks

Compare EMI with net salary, rent, family support, existing EMIs, insurance premiums, savings, and variable income risk.

Loan cost checks

Review interest rate, processing fee, foreclosure rules, prepayment charges, insurance add-ons, and total interest over the full tenure.

Next Actions

arrow_forward

Financial literacy for employees

Apply this

Open

arrow_forward

Loan EMI calculator

Apply this

Open

arrow_forward

Debt management

Apply this

Open

Related Learning

arrow_forward

Debt hub

Continue learning

Read

arrow_forward

Budgeting hub

Continue learning

Read

FAQs

Is a lower EMI always better?

expand_more

No. A lower EMI can come from a longer tenure, which may increase total interest paid.

Reviewed by the Saventh Financial Literacy Team. Educational information for Indian employees — not personalised advice. Mutual fund investments are subject to market risk. Saventh AMFI ARN 324457.

Keep learning with Saventh

Use these lessons to build everyday confidence around salary, tax, insurance, SIPs, and long-term goals.

Saventh Investment is an AMFI Registered Mutual Fund Distributor.

Disclaimer: Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs.

Saventh Investment makes no warranties or representations, express or implied, on products offered through the platform of Saventh Investment. It accepts no liability for any damages or losses, however, caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
Investments in Securities markets are subject to market risks, read all the related documents carefully before investing.

AMFI Registered
ARN - 324457