SBI General home loan – Pre EMI+MF vs Full EMI

POSTED BY Sandip Pawar ON March 18, 2015 3:49 pm ONE COMMENT

I am planning to take SBI home loan for amount 16 Lacs, tenure 20 years. As loan amount is less than 20 Lac , SBI not giving Maxgain scheme (new amendment 🙁 )

I am confused between pre-emi and full emi..

opt 1: Paying full Emi from day 1
opt 2: Paying pre-emi for Moratorium period of 18 months and Amount saved which could have gone to loan repayment; invest that amount in Mutual Fund for 18 months. After 18 months, sell MF and use those money for loan repayment.

In which case there would be more benefits ?

One reply on this article “SBI General home loan – Pre EMI+MF vs Full EMI”

  1. Ashish Garg says:
    March 27, 2015 at 2:34 pm

    Hi,

    18 months is a small time period and is not recommended for investments in MF. Of course that’s not a rule but in 18 months you may not necessarily get a return of 15-18% per annum. There is also a possibility of loosing your principal leave aside getting returns.

    If you are ready to take that risk, you can consider this option. Safer would be to go with full EMI.

    Reply

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