Bulk of salaries spent on paying off loans: Industry group

June 21st, 2009 - 6:38 pm ICT by IANS  

New Delhi, June 20 (IANS) Even as the average salary has gone up by 30 percent, the actual take-home has fallen 30 percent in the last 10 years on account of monthly loan repayments, a report by an industry lobby released Sunday said.
According to the Associated Chamber of Commerce and Industry (Assocham), the sectors in which the pinch of equated monthly instalments or EMIs is most painful for employees include IT, automobile, hospitality, civil aviation, manufacturing and textile.

The chamber reached its conclusion following a survey of 5,000 people between March and May.

Assocham secretary general D.S. Rawat said that on an average, a person with a monthly salary of Rs.25,000 paid around Rs.10,000 in EMIs that include repayment for purchase of house, automobile, and luxury items, apart from insurance premium which averaged around Rs.2,500.

“About 85 percent of respondent belonging to the middle class spent on EMIs for home loan, education loan, insurance premiums as their top priorities, followed by lifestyle goods,” Rawat said.

About 50 percent of respondents said their take-home is up to 40 percent of their total package, the survey found.

In addition, about 30 percent said they shelled out between Rs.4,000-5,000 in repaying office loans.

–Indo-Asian News service

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