{"id":23968,"date":"2023-08-28T17:29:18","date_gmt":"2023-08-28T17:29:18","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=23968"},"modified":"2024-07-08T21:34:10","modified_gmt":"2024-07-08T16:04:10","slug":"pre-emi-vs-full-emi-find-which-is-the-better-option","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/pre-emi-vs-full-emi-find-which-is-the-better-option\/","title":{"rendered":"Pre EMI vs Full EMI: Find Which Is the Better Option"},"content":{"rendered":"\n

<\/p>\n\n\n\n

Let\u2019s face it; given the inflated property prices of today, buying a home outright is an option, not many enjoy. Thus, most homebuyers resort to borrowing a home loan to fulfil their home buying dreams.<\/p>\n\n\n\n

With these loans, one can divide the home amount into many small-sized chunks \u2013 known as EMIs \u2013 and pay them comfortably over 20-30 years. But did you know that they are two ways to structure your EMI repayments? Yes \u2013 Pre-EMI and full EMI.<\/p>\n\n\n\n

Knowing the difference between the two is imperative as it can essentially lighten your loan burden. So, here\u2019s all you need to know about home loan<\/a> pre-EMI and full EMI.<\/p>\n\n\n\n

What is pre-EMI?<\/strong><\/h2>\n\n\n\n

Pre-EMI options are available on under-construction properties. When you choose this option, you only pay the interest component of an EMI and not the principal. Why? Because most building projects require you to shell out part of the total amount at different construction stages, and therefore, the lender also releases money in tranches.<\/p>\n\n\n\n

Considering this, pre-EMIs help you cut your loan spendings as you service the loan by paying only the pre-EMI interest. Once you move into your new home, you start paying the principal portion.<\/p>\n\n\n\n

However, the pre-EMI period usually lasts for three years, after which you must start paying the full EMI, regardless of whether you\u2019ve received possession or not.<\/p>\n\n\n\n

Additional Read – <\/strong>Top Things to keep in mind before prepaying your Home Loan<\/a><\/p>\n\n\n\n

What is full-EMI?<\/strong><\/h2>\n\n\n\n

Full-EMIs are what you pay when you have the keys to your new home. As this includes both the interest and principal, you finally start servicing the outstanding loan amount rather than paying interest.<\/p>\n\n\n\n

That said, full-EMIs don\u2019t necessarily have to start when the construction is complete, and you can even pay full EMIs during the construction phase.<\/p>\n\n\n\n

Pre-EMI vs full EMI: Which one to choose?<\/strong><\/h2>\n\n\n\n

The answer to this question comes down to your preferences and financial situation. If you\u2019re not comfortable paying full EMIs before the property is handed over to you, pre-EMIs are the right choice. Also, if you can\u2019t service the full EMI amount, pre-EMIS can come in handy.<\/p>\n\n\n\n

However, consider that you\u2019ll only be paying interest for the pre-EMI period, which means your outstanding amount won\u2019t budge by a single penny. Also, you\u2019ll probably be paying lakhs in absolute interest during the pre-EMI period, which can significantly increase your overall loan spendings. Also, you\u2019re engaged with your loan for a longer time, as the pre-EMI period isn\u2019t included in your loan tenure.<\/p>\n\n\n\n

This makes an excellent case for full EMIs, as you\u2019re spending less \u2013 both time and money.<\/p>\n\n\n\n

Additional Read – <\/strong>Different Housing Loan Options Available in India<\/a><\/p>\n\n\n\n

Final thoughts<\/strong><\/h3>\n\n\n\n

Before choosing any EMI method, thoroughly examine your current and future financial situation, and decide accordingly. If you\u2019re okay spending less initially, even though the total amount will be significantly higher, then choose pre-EMIs. Otherwise, full EMIs will suit you well. You can use a home loan EMI calculator<\/a> to evaluate your choices.<\/p>\n\n\n\n

Buying a new home? Let Tata Capital help you on this quest. With our attractive housing loan features \u2013 affordable home loan interest rates<\/a>, easy home loan eligibility<\/a>, and fast applications \u2013purchase your dream property without any financial hassles.<\/p>\n\n\n\n

Visit our website to know more!<\/p>\n\n\n\n

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Apply For Home Loan<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n
<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"

Let\u2019s face it; given the inflated property prices of today, buying a home outright is an option, not many enjoy. <\/p>\n

Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":23969,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-23968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-home"],"yoast_head":"\nPre EMI vs Full EMI: Find Which Is the Better Option - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"Explore the differences between pre-EMI and full EMI repayment options for home loans, and determine which option suits your financial situation and preferences\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pre EMI vs Full EMI: Find Which Is the Better Option - Tata Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Explore the differences between pre-EMI and full EMI repayment options for home loans, and determine which option suits your financial situation and preferences\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/pre-emi-vs-full-emi-find-which-is-the-better-option\/\" \/>\n<meta property=\"og:site_name\" content=\"TATA Capital Blog\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-28T17:29:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-07-08T16:04:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.tatacapital.com\/blog\/wp-content\/uploads\/2021\/12\/2-pre-emi-vs-full-emi.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tata Capital\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tata Capital\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/pre-emi-vs-full-emi-find-which-is-the-better-option\/\",\"url\":\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/pre-emi-vs-full-emi-find-which-is-the-better-option\/\",\"name\":\"Pre EMI vs Full EMI: Find Which Is the Better Option - 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