Hi 

With all my sources I could pay 45 lacs and left with 55 lacs of loan from SBI for 20 years. Property is under contruction with possession in 1.5 years down the line. Disbursements would happen in stages over next 1 year.

Now, if I go with Full EMI option – my EMI is 54K/month

But if I go with Pre-EMI for say first six months (and then full EMI) – my pre-EMI is 5k for 1st month, 5k for 2nd month, 10k for third, 15k for forth, 20k for fifth and 25k for sixth. (per discussion with builder each demand letter would come every 1.5 months and each demand letter value in my case is 6.5 lakhs)

With pre-emi, I may be able to save (54*6=324) – (5+5++10+15+20+25k = 80k) = 2.44 lacs

I can very well use this amount to pay to builder directly and request for lower amt of loan in first place i.e. instead of 55 lacs of loan, it would be 55-2.44=52.56 lacs. So when I go to Full EMI with this new loan amt, it would be 51k approx.

Isnt it better this way, where I am just paying interest during pre-emi (which is not good from finance guru perspective), I am able to reduce my original loan amt by using savings during pre-emi phase (in comparison with full emi) and hence resultant interest paid is less. Please advise. I am very much inclined with this option.

Note: SBI informed me I can choose PreEMI period is as per my choice.

Note: In preEMI phase is still counted in 20years tenure. Loan tenure does not exceed 20 years. But full EMI amt increases marginally when shifting from preEMI to Full EMI.