SBI home loan repayment

POSTED BY Abhishek Upadhyay ON February 28, 2013 12:47 pm COMMENTS (7)

Hi,

I took a home loan of 20 Lakh from SBI. While repaying it, I came to know that for the initial 1-1.5 year I am paying for the interest only and thesr are no change/substraction from principle amount. Is that the SBI policy for home loans

7 replies on this article “SBI home loan repayment”

  1. Rahul says:

    I had booked under construction flat and started paying full EMI from start. But when I visited to sbi bank the managed asked me that your repayment is not started yet. After I asked what do you mean by that ? Then she looked into the transactions and said the EMI which you are paying that it means repayment.

    Is she hiding something here ? Can someone address this ?

    1. I am not clear about your point .. please rephrase it again !

  2. Dear Abhishek, your loan is for an under construction flat & hence during past 1Y or so you are only paying interest on the part disbursed amount. As you are not paying any extra amount into your payment, how can your principal be reduced. From march 2013 onwards, as your regular EMI ‘ll start, there ‘ll be principal reduction in your loan. the SBI people have told you correctly regarding the pre -emi thing. The only problem was they were not able to clarify you clearly. 🙂

    thanks

    Ashal

  3. Abhishek Upadhyay says:

    Hi Ashal,
    I took a home loan of 20 lakhs for 20 years for an under constrauction flat. This loan was sanctioned at an interest rate of 10.00 with a Moratorium period of 3 months.1st part of disbuirsment was made in Nov 2012 and till date 2 slots of disbuirsments have been completed currently valued at 16 Lakhs.
    The EMIs ((~20K)) are starting from the month of March 13. When I got the repayment schedule I found that for the initial 1-1.5 year I am paying for the interest only and there is no deduction from principle amount. When enquired with SBI branch manager, I was told this policy if being followed in SBI throughout.
    Please let me know if this is the case.

  4. Dear Abhishek, full disbursal has been done or not? Was there any Moratorium period in your loan agreement. Please read & confirm the same or contact SBI branch for clarification.

    thanks

    Ashal

    1. Abhishek Upadhyay says:

      Hi Ashal,
      I took a home loan of 20 lakhs for 20 years for an under construction flat. This loan was sanctioned at an interest rate of 10.00 with a Moratorium period of 3 months.1st part of disbuirsment was made in Nov 2012 and till date 2 slots of disbuirsments have been completed currently valued at 16 Lakhs.
      The EMIs ((~20K)) are starting from the month of March 13. When I got the repayment schedule I found that for the initial 1-1.5 year I am paying for the interest only and there is no deduction from principle amount. When enquired with SBI branch manager, I was told this policy is being followed in SBI throughout.
      Please let me know if this is the case.

  5. Ashish says:

    Hi Abhishek,

    Is it your pre-EMI that you are paying now or the actual EMI? If it is pre-EMI than you must be paying only interest, otherwise there has to be a small portion of principal re-payment as well.

    For initial years principal payment is nominal and my not significantly reduce the principal, if the tenure is long say 15-20 years..

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