What is the difference between pre-EMI and EMI?

Q: Can anyone help me out as to what is the difference between pre-EMI and EMI?

Shiva Kuchibhottlla, Hyderabad

24th November 2011

Neighborhood Issues in Hyderabad

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Replies (2)

What do you need to know about Pre-EMI financing option? please let me know I am confused while selecting EMI option...

Ramya Janagam, Hyderabad

5th November 2015

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If you are taking a home loan from a bank, you have to pay EMI, which includes both the interest and principal component.Nowadays bank is offering innovative options of repayment, One of them is the pre-EMI repayment plan, whereby buyers who are purchasing an under-construction property, repay the interest portion on the partly disbursed home loan according to the stage of construction of a project. As the disbursed amount increases, the interest increases too and so does the pre-EMI.

Dhananjay, Hyderabad

5th November 2015

Thanks Dhananjay, Is there is any tax befefit I can avail while opting Pre-EMI?

Ramya Janagam, Hyderabad

5th November 2015

Hi, As per my knowledge you can claim tax benefit after possession and lock-in period, claim deduction on the pre-EMIs under Section 24 of the Income Tax Act.

Dhananjay, Hyderabad

5th November 2015

Pre-EMI is the final disbursement. You may have to pay interest on a portion of the loan disbursed. EMI stands for Equated Monthly Installment, is the loan amount which has to be repaid in the specified number of months.

Syed Ali Khan, Hyderabad

24th November 2011

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