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Buying a house requires months, perhaps years of savings. With property rates getting higher with each passing day. Potential buyers turn to home loans from financial institutions. Buyers can choose between Pre EMI vs full EMI to repay the loan over a short/long tenure.
Calculate your EMI on a home loan via NoBroker EMI calculator Get home loans without hefty paperwork through NoBroker What is Pre EMI interest vs full EMI?Pre EMI Interest is the monthly payment that includes only the interest component of your home loan. Whereas Full EMI is the monthly payment of the home loan. It includes the interest component of the loan along with the principal amount.
There are various differences between the two. Take a look at the table given below to have an idea.
Pre EMI interest |
Full EMI |
Borrowers can avail of this home loan option for a property which is under construction. |
Borrowers can avail of this home loan option for a property that is under construction/being renovated. |
The lender disburses the loan amount partially. |
The principal amount may be disbursed partially or completely (depending on the bank) |
The borrower has to pay the interest component instead of the entire EMI amount. |
The borrower has to pay the entire monthly EMI. |
The borrower has to pay the lender as soon as the building begins. |
The borrower has to pay the lender once the principal loan amount is disbursed. |
The pre-EMI interest rate is determined using the loan amounts that have been disbursed. |
Full EMI interest rates are calculated in accordance with the entire principal amount. |
This loan option has no impact on the principal amount, loan payback term, or interest rate. |
This loan option reduces the principal amount and loan payback term. |
You can use a Pre EMI vs full EMI calculator to determine which option is better suited for your needs. You should think carefully about both options to make a better financial decision.
This is all from my end on Pre EMI vs full EMI.
Read more:
What are the principles of lending followed by banks? How to calculate the remaining EMI of my car loan? How much GST on credit card EMI? What are the best home loan options available in India currently?Your Feedback Matters! How was this Answer?
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What is the difference between pre emi vs full emi?
Jaya
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2 Year
2022-12-21T08:58:28+00:00 2022-12-21T16:57:31+00:00Comment
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