Learn everything about Pre-EMI home loans

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Learn Everything About Pre-EMI Home Loans
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Understanding Pre-EMI
It entails making regular monthly payments on
the interest components of your home loan.
It entails making regular monthly payments on
the interest components of your home loan.
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Pre-EMI
computation
You can calculate this using the following
formula Principal X Interest Rate X (1Interest
Rate) Tenure/ (1Interest Rate) Tenure-1
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Comparison Between Full And Pre-EMI
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Disbursement
Funds are disbursed in parts in pre- EMI loans.
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Tax Advantages
You cannot claim a tax deduction if your
property is under construction and you do not
have a possession certificate.
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Interest Rate And Payback Tenure
Pre-EMI interest is less expensive than full-EMI
interest.
Full EMI loan can be repaid sooner.
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Impact on Loan Variables
The principal repayment obligation under full
EMI decreases as the loan progresses.
The pre-EMI has no bearing on the loan amount or
tenure.
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• When To OPT For A Pre-EMI Loan?

You expect a rise in your earnings.
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2. If you have any plans for investing the
difference between the full and pre-EMI amounts.
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Key Considerations for Pre-EMI Loans
Ideal for borrowers who anticipate an increase
in income.
The loan burden increases after the completion
of the property construction.
Extended EMIs if possession is delayed.
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Taxation On Pre-EMI Loans
You are eligible for tax breaks on principal and
interest payments only after receiving a
possession certificate.
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Pre-EMI loans are perfect for buying under-
construction property. It also aids in the
effective management of your finances.
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