I am going for home loan for 30 Lakhs with SBI and the house will be ready for occupation only by Oct 2012. SBI is giving me options to go for either Full EMI from the date of loan sanction or max 18 months moratorium period where I need to pay only Interest. I have following queries on the same (didnot get consistent answers from customer care, branch counsellor 🙁 ).
1) Bank is going to pay the amount to the builder in installments based on every stage completion. So if I go for moratorium will I be paying the interest for the entire loan amt (30L) from the date of sanction or is the interest will get calculated only for the disbursed amount only ?
2) If I go for full-EMI, again the interest part of the full EMI is for entire amount (30L) or for the amount disbursed only.
3) In either case, can I show this interest for IT excemption ?
Would be great if someone can clarify me on this as I need to plan the EMI accordingly.
Thanks In Advance,