What Is Pre-EMI

Interest In

Home Loan?

Pre-EMI is a term commonly used

in the context of home loans or

other types of long-term loans, particularly in India.

It is payable every month

from the date of each

disbursement up to the date of commencement of EMI.

However, many banks offer a

special facility whereby customers

can choose the installments they wish to pay for under construction properties till the time the property is ready for possession.

Anything paid over and

above the interest by the

customer goes towards principal repayment.

The customer benefits

by starting EMI payment

earlier and hence, repays the loan faster.

The pre-EMI payments

are typically lower than the

regular EMI payments, which include both the interest and principal components of the loan.

Once the full loan amount

is disbursed, the regular

EMI payments begin, which include both the principal and interest components.

Some banks also offer

their customers flexible

repayment options. Here, the EMIs are unequal.

Pre-EMI interest is payable

every month from the date of

each disbursement up to the date of commencement of EMI.

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