The home loan “No EMI till Possession” is also called EMI holiday or zero EMI until possession. As far as I know, it is a scheme often offered by builders and banks to homebuyers purchasing under-construction properties. I have shared more details about it below.
What Does No EMI till a Possession Mean?
Under this arrangement, the buyer does not pay EMIs (equated monthly instalments) until the property’s possession is handed over. Instead, during the construction phase, the builder pays the interest portion on the home loan on your behalf.
You take a home loan at the time of booking or construction, but you are not burdened with EMI payments until possession. The builder (or sometimes the developer) assumes responsibility for paying interest to the lender during that period.
Once the property is ready and possession is given, full EMIs (interest + principal) start from then onward.
There are distinct advantages and risks to this scheme.
On the plus side, it relieves financial pressure on homebuyers during construction. They don’t have to commit to monthly payments while the property is being built. Also, the builder has an incentive to complete construction on time (since interest payments rise with delays).
However, there are risks and caveats to watch out for. If possession is delayed beyond the agreed period, the obligation to pay accumulated interest may fall on the buyer. Also, some schemes cover only the interest portion, not the principal.
I hope you found this information about no pre emi till possession helpful.
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What is No EMI Till Possession?
akash
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2 months
2025-09-30T09:35:47+00:00 2025-10-07T11:30:18+00:00Comment
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