I have bough an under construction flat to be possesed by Dec 2014. I’ve applied for home loan of 3000000 at interest rate of 10.10% for tenure upto 25 years to SBI (with MaxGain scheme that SBI offers)

Now question is should I opt for Pre EMI or EMI option until I get the possession of the flat.

Lets say following are the disbursements

Jan 2014 – 1500000

Feb 2014 – 500000

Apr 2014 – 500000

Jul 2014 – 250000

Oct 2014 – 250000

Should I go for Pre EMI or EMI?

If I go for EMI option, will I have to start paying full EMI of around 28000 starting from month of Jan 2014? Of this EMI will be only on amount disbursed by then?

If I go for Pre EMI, only interest on disbursement will be payable. But I am not understanding how the interest is calculated. For sure, initially, interest will be less.

But going by above example, by Apr 2014, I would have disbursed 2500000 from SBI. and interest for that would be around 22000 (please correct me if I am wrong or let me know how is that calculated). So I would be paying Pre EMI of 22000 starting from Apr 2014. In that case, is it not a better choice to go for Full EMI of around 28000 – at least that will help reduce Principle and subsequent EMI will reduce as well

Please help me with calculations of both the options. Also can I change option of Pre EMI to Full EMI midway before possession, say in Apr 2014?