Pre-Emi or Full EMI?

POSTED BY Manish Ochani ON September 18, 2011 12:52 pm COMMENTS (3)



I have taken a home loan of 17 lakh for 20 years of which only 9.5 lakh is disbursed as yet.Pre EMI interest is being deducted of approx Rs8k.

Can you pls recommend the best options out of below:
1. Get Pre-emi converted to full EMI (of 17k) so that prinicpal also gets reduced
2. Continue paying interest only till full loan disbursement & pay partial repayments from after some intervals to reduce the liability(as its a construction linked plan)

Thanks in advance…!


3 replies on this article “Pre-Emi or Full EMI?”

  1. Sagar says:

    Your loan tenure is 240 months

    My opinion is you start 17k EMI so your principal amount started reducing immediately (8,000 for interest and 9,000 for principal) so maybe save months.

    But if you start EMI after full disbursement of your loan then (2,070 principal and 15,017 interest)

  2. Anand says:

    Full EMI is the best option, where part of the amount goes to principal. I had done the same for my house.

  3. Manish

    1. I am assumiung that by pre-EMI you mean a situation where u pay the interest on the loan till the builder gets full loan disbursal , and only after that the full EMI will start . Right ? That would be a better option i would say .


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