“What’s up, my dear Florists!”
Your friendly neighborhood Financial Florist here, and today we’re going to have a real talk about something that’s probably flooding your Instagram feed – those stunning ‘dream home’ ads with seemingly ‘affordable’ EMIs. You know, the ones that make you feel like you’re wasting money on rent?
Well, buckle up, because we’re about to dive deep into why that 20-year home loan might be the most beautiful trap you’ll ever see.
Let me paint you a picture:
It’s 2024, you’re 25, earning ₹60,000 per month, and that attractive apartment worth ₹50 lakhs seems perfect. The bank is offering an 8.5% interest rate for 20 years, and the EMI calculator shows ₹43,391. Sounds doable, right?
WRONG! Let’s break this down, my fellow Florists:
1. The True Cost:
- Principal amount: ₹50,00,000
- Interest paid over 20 years: ₹54,13,840
- Total payment: ₹1,04,13,840
Yes, you read that right. You’re paying MORE in interest than the actual house cost!
Your Financial Florist,
