What if you were told that there is a way out of escaping the monthly EMI burden

Posted by Trishya Sharma on August 2nd, 2019

Something has been trending for a while now and that too over the internet. What is the  major issue faced by millennials today? Income and expenditure ratio is the answer. There is a trend now-a-days. The Credit taking trend. 

Taking Credit is not an issue. But most of them have found it unable to match up these added expenses through their salaries. there has been an increase in debts. This affects their CIBIL.

Credit information Bureau deals with credit records of consumers and companies. It is an effort to enhance transparency, efficiency and accountability for credit access. It keeps a check on activities of an individual or an entity. This help banks, insurance companies and government companies to know the credit worthiness or risk associated with clients.  

FYI: CIBIL partners with two international credit Bureaus: Dun & Bradstreet and TransUnion International. 

What is their income-expenditure ratio?

According to an ICICI Lombard 2015 study, Indian millennials have almost 69 percent of income-expenditure ratio, which means they spend 69 percent of their income every month. Interestingly, the study pointed out that the millennials spend just 5 percent of their monthly income on health and medical needs.

The expenditure on family, livelihood, and EMIs account for 50 percent of the earnings, said the study.

What is EMI Free loan 

The  EMI Free Loan  are really EMI Free. That means No EMI. This concept involves Paying only interest on the Loan amount and and making lump sum payments towards principal amounts every six months. yes you heard that right. That is really possible.