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

 

[Lathish kumar]

I have a better solution the home you live will be free of cost for you , choose EMI anything wish you want and choose tenure for min 20 years to max 30 years . So that you can claim deduction on principal and interest you paid and comming to free of cost home just take 0.15% of your total home loan and invest that amount monthly in large cap index fund . Easily min you will get 12% return and after the long 30 yrs tenure you will recover both principal and interest paid to the bank and some extra corpus will remains in your account and also you can claim tax deduction by paying home loan for long term

 

[Kalyan]

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.

If you can afford to pay full emi,opt for that as it reduces your principal too. The emi will be on full amount and not in the disbursement amount.