What portion of your salary should you spend on loan EMIs?
Most people buy a house or a car by taking a loan from the bank, but do you know what is the maximum portion of your salary that you should spend on EMI? What is the 40 percent EMI rule? What are the disadvantages of spending more on EMIs? Among home loan, personal loan, auto loan and credit card bills, which loan should you eliminate first?
Tata Motors said on Monday that it has entered into a partnership with the Bank of Maharashtra to offer retail loans for its passenger vehicles. Under the scheme, the Bank of Maharashtra will offer loans to customers of Tata Motors with interest rates starting from as low as 7.15%, subject to certain conditions, the company said in a statement.
The scheme will offer a maximum of 90% financing on the on-road price of the vehicle for individuals like salaried employees, self-employed people, professionals, businessmen, and agriculturists, it said. For corporate clients, the financing would be for a maximum of 80% of the on-road price.
Rajan Amba, vice-president of Tata Motors said, “given the ramifications of the second wave of the pandemic, we, at Tata Motors, have always tried to make our personal mobility solutions more affordable and accessible for individuals and families at beneficial rates.” The partnership with the Bank of Maharashtra will support the company’s customers in these tough times, he added.
“We hope that these offers will make the process of purchasing a car that much easier for customers and that this will positively impact their overall buying experience of Tata cars,” Amba said.
Executive director of Bank of Maharashtra Hemant Tamta said, “We are optimistic that we can forge a great partnership and serve our customers with the best products and services.” Tata Motors said the partnership is also offering its customers a hassle-free option of getting their loans approved with zero processing fee till September 30, 2021 under “Monsoon Dhamaka Offer”.
Buyers can also avail of a special EMI option starting with Rs 1,517 per lakh for seven years.