Personal Finance
Liabilities
pronounced: [L-i-a-b-i-l-i-t-i-e-s]
Financial obligations or debts owed to others, including home loans, personal loans, car loans, credit card outstanding, and any other borrowed funds.
Managing liabilities is crucial for improving net worth.
Example
A ₹50 lakh home loan at 8.5% p.a. for 20 years has an EMI of ₹38,601/month. Total interest paid = ₹42,64,240 — almost equal to the principal. Making part-prepayments from year 6 can reduce tenure by 4+ years.
Frequently Asked Questions
Last updated: 21 May 2026