How EMIs Build Financial Confidence
kabeer murugkar • September 1, 2025
EMIs have a bad reputation. Ask anyone about EMIs, and you’ll hear a dramatic sigh. For most people, it sounds like a monthly punishment—like a gym membership you can’t skip. Every month, right on time, no excuses. A hard commitment.
Although, EMIs do much more than most people realise when they are paying back the loan. For a lot of our customers, EMIs have brought structure. They have built habits. And over time, they have created something bigger: confidence.
This used to be a hunch and an assumption. We wanted to understand how this plays out in real life, among other things that homeownership brings upon. So we ran a study–280 households, 10 cities and a mix of EWS, LIG and MIG homebuyers. We also spoke to 30 families at length. All the participants in the study have been homeowners for over six years. Enough time for us to see what sticks.
Here’s what we found:
- 57% saw improved credit health
- 48% took top-up loans
- 24% made voluntary part-payments
Not bad at all.
Turns out, paying EMIs regularly does a few things.
Internally, it sets boundaries. Makes you think twice before spending. Externally, it builds your credit profile. Banks start seeing you as someone who’s sorted. Would it be a stretch to say it is an auto-debit with benefits apart from the home?
I can however definitely say that it opens doors (apart from the home, of course!) to more–top-ups, increased formal credit access and bigger financial goals.
Our respondents left us with one unanswered question: “What’s next?”. This shift in goalposts has been enabled by the indirect impact EMIs have had on the families.
To read the full report click here.
