Pre-EMI is better or EMI?

Q: Hi, I am looking for a property which will be ready in next two years. What would be beneficial for me if I take a loan, pre emi or EMI only? If EMI only I pay can I claim the tax benefit for the interest component?

PRASAD HEGDE, Bangalore

11th March 2015

Home Loan in Bangalore

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Hi All, I want to know when when can I opt for pre EMI. Looking for expert advice

Harinarayan, Bangalore

16th July 2015

Comment

The Pre-EMI option is suitable in following cases:

1) If you plan to sell your property in the first few years or at the time of possession.
2) If you require the balance for some very important immediate needs
3) If you have lower cash flows available in the beginning

Bhargav Dev, Bangalore

16th July 2015

mail me formore details on home loan and its tax advantage

yatheesh, Bangalore

9th July 2015

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Opting for full EMI payment can be more beneficial in the long run as one starts repaying the principal amount from the first day itself.

Rakesh, Bangalore

13th March 2015

Comment

The common problem faced by a potential home buyer while planning to invest in an under construction or partially completed project is that of which home loan repayment schedule to go for.

There are mainly two options to choose from, one can either opt to pay full, equated monthly installments (EMI) or pre-EMIs. In the first option, the amount one pays each month will be calculated on the basis of the total loan amount. In the second option, one would have to pay only the interest on the loan that will be disbursed at each stage of construction and the real EMI payment will commence only after he gets possession of the home.

Bhargav Dev, Bangalore

12th March 2015

Comment

Paying pre-EMIs is better than paying full EMI's. If the time taken for completion of construction of a home is say two years then it means that the buyer would have to pay only the interest amount for two years, which would invariably be a lot less than paying the full EMI.

Krupa Vasavaraj, Bangalore

12th March 2015

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