Monday, November 10, 2008


Watched the movie EMI yesterday. It's about loans and credit in India. The movie shows a story of four people who use credit and loans and cannot repay them back. And how they end up being pressurized by the bank.

Some points were really worth thinking about. It's really scary how people borrow loans with repayment period of 15-20 years. We cannot even predict our lives tomorrow and we assume about such a long time. So much can change in those years. It's no fault of people as well. Consider the case of the housing loans. Middle class people cannot be expected to buy a house without a loan considering the current rates in real estate which seem incredibly high.

Then there are people who survive on credit cards. It's easy to get a free credit card. So just use it and when you need to pay up, just pay it from another credit card. And the cycle continues.

The moral of the movie (if it had any) was to use loans responsibly. What I feel is that people should not be greedy for the luxuries of life. Sure we should always aim for a good life. But do we really need that car when we have public transportation? Or do we really need that Rs. 2 lakh plasma TV? And that too on loans?

I guess it's just a question of how much is enough. Sadly for us it never is.