Pre EMI vs Full EMI

POSTED BY Abhijit ON December 17, 2012 1:24 pm COMMENTS (3)


I have availed of a loan from HDFC for 20 years of 18lakhs. The possession of property is after 2 and 1/2 years.

I would like to know whether i should start with the full emi or pre emi.

whats is more profitable?

Thanks and Regards




3 replies on this article “Pre EMI vs Full EMI”

  1. Credexpert says:

    Dear Abhijit,

    Have you taken full disbursement of the loan? If you have taken the full disbursement then EMI would commence in the month following the month in which the full disbursement was availed. If you have taken part disbursement then are you proposing to tranche the loan and start EMI on that portion which you have already taken?

    Again tax benefits under the Income Tax Act ( section 24 and section 80 C) will be available only after you take possession of the house. The answer to your question depends on these answers and you should consider them before deciding on the two options you have mentioned.


  2. Biswa Singh says:

    If you think that for the coming 2 years full EMI can impact your monthly expenses bady then its better to go for the PRE-EMI. If not you can opt the full EMI itself.

  3. BanyanFA says:

    If you have disposable funds, better to start paying emis even before they are due.

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