Hi, My name is Dinkar and I had applied for a home loan in SBI for 34 lakhs.  They have processed my Loan under the SBI YUVA home loan policy that includes a MANDATORY moratorium period for 3 years in which Ist year there is no repayment and after that there is a payment of the interest for next two years leading to normal EMI from 3rd year. However, I am purchasing a ready to occupy property and would like to start my EMI directly. After talking to the Bank executives (including manager and cheif manager) I got to know that it is a mandatory period and I cannot start my EMI directly. Therefore, my question is that during that period will I be able to pay my Principal amount ( like lumsum amount which I save) apart from the Pre-emi interest so that I can decrease my interest later.  

Below I am Quoting the statement in the arrangement letter provided by the bank

             \”Moratorium period is the period starting from the date of first disbustment, during which repayment of the principal and/or interest may not be stipulated. Please note that interest is applied to the account on the basis of the balance outstanding in the account, during the moratorium period\”

In the above statement I am unable to understand the two conflicting sentences as one says that you cannot pay the principal or interest and the other says that the interest will be calculated on the outstanding balance in the account.

I am already fed up of talking to different people here and I am unable to get a proper answer. I would greatly appreciate if some one can help me out on this.

Thanks,

Dinkar