Home Loan Pre vs Full EMI

[AlertsByVivek]

I would like to inquire about the home loan EMI for an under-construction property. Which option is better: pre-EMI or full/tranche EMI? Currently, I don't have any liabilities, so I can afford to pay the full EMI. However, the amount disbursed is much less than the actual loan amount because the construction is only 40% complete. Can you please suggest how this will work? I am planning to take a home loan from HDFC.

For example

Total Loan : 20L
Disbursement: 5L
Tenure: 10 Year

if I choose full emi then how much I have to pay emi ? On Disbursement amt or total loan amt.

 

[zacobite]

I would like to inquire about the home loan EMI for an under-construction property. Which option is better: pre-EMI or full/tranche EMI? Currently, I don't have any liabilities, so I can afford to pay the full EMI. However, the amount disbursed is much less than the actual loan amount because the construction is only 40% complete. Can you please suggest how this will work? I am planning to take a home loan from HDFC.

For example

Total Loan : 20L
Disbursement: 5L
Tenure: 10 Year

if I choose full emi then how much I have to pay emi ? On Disbursement amt or total loan amt.

Full emi is on full amount / pre emi is on disbursement amount

If you ate confident of the progress of the construction start full emi.. will help you reduce your principal faster.. especially when you can afford it.

If you expect high delay in possession then don't take full. emi.. park the difference in an FD or a liquid fund and pay lump sum when u get possession.

Amount of emi will depend on your ROI. you haven't shared that

 

[AlertsByVivek]

Full emi is on full amount / pre emi is on disbursement amount

If you ate confident of the progress of the construction start full emi.. will help you reduce your principal faster.. especially when you can afford it.

If you expect high delay in possession then don't take full. emi.. park the difference in an FD or a liquid fund and pay lump sum when u get possession.

Amount of emi will depend on your ROI. you haven't shared that

ROI is 8.5

 

[zacobite]

ROI is 8.5

pre emi for 5 L will be around 3600 p. m and full emi will be around 24800 p. m