POSTED BY May 6, 2013 4:47 pm COMMENTS (8)ON
I have recently availed a Site/Plot Loan from Axis Bank.
I have been charged a PRE-EMI amount that got deducted before the actual EMI started.
I have also been provided the EMI breakup for Principal and Interest for the entire period[120 months].
The Bank offcials have told me that the Pre-EMI payment will account towards the Interest component.
Next, I used the EMI calculator found at JagoInvestor.com and other sites and find there is a difference of 4K in the interest charged by Axis and also they have not accounted the PRE-EMI payment under the interest. So I am actually supposed to pay an extra of Pre-Emi and 4K!
Note: I used the current ROI in the calculator for the entire loan period.
Can you tell me where does the Pre-EMI payment usually get accounted in a Home Loan ? Interest or Principal part?