Pre EMI is a popular concept among investors. A friend works for a realtor and he told me that the top investors in his network usually opt for Pre EMI and soon after getting possession of the under construction apartment, they sell it off. This came up when I enquired about what is pre EMI from him since I had just heard this term in the bank.
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To catch you up, what is pre EMI you ask right.
Pre EMI is an interest component which is paid monthly on the total loan amount availed till the construction of a building is completed. Although the borrower has to make more payments, the pre-EMI concept is relatively cheaper than a full-EMI concept.
This form of EMI is payable until you get possession of the completed property. This is practically what is pre EMI interest.
Want to get the best home loan interest rates? Looking to get loan approval quickly? NoBroker has you coveredNow you must be wondering why would someone opt for it? Is it even a wise decision? I am going to share a few things with you on that:
A borrower who is low on cash supply can opt for Pre EMI
It is also wise to use this option in case of urgent cash needs
Before opting for Pre EMI options, borrowers must keep in mind that it may burn a hole in their pocket if the project construction gets delayed
The repayment of loan amount starts only after the complete possession of the property so up until then it doesn’t affect loan amount of repayment tenure
There are no tax benefits in case of pre EMI option
I hope this clarifies your concerns on what is pre EMI and you got to know some important facts about pre EMI interest.
Read more: What is pre EMI interest in housing loan? Which is the best bank for home loans? Need information about home loanYour Feedback Matters! How was this Answer?
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What is Pre EMI?
Kishan
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3 Year
2022-03-04T12:46:31+00:00 2022-03-04T12:46:32+00:00Comment
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