Srinagar, July 31 -- At first glance, housing loans seem like a win-win:Tax exemptions, bank incentives, and the cultural prestige of homeownership combine to create a powerful lure.Initially, it appears like you have to pay a modest EMI for a lifetime asset, but beneath this optimism lies a more sobering reality.For example, a housing loan of Rs 40-50 lakhs translates into EMIs of Rs 35,000-40,000 per month. This is nearly half the take-home pay of a mid-level government employee. And during the first several years, those payments go mostly toward interest, not the principal. As time passes, and the interest accumulates, the EMI keep nibbling away at the salary and savings.

One of the major factors behind this debt trap are the cultural...