Pre-EMI is a type of home loan offered by lenders in which borrowers pay only the interest on the loan for a certain period of time, usually before the construction of the property is completed.

1. Learn Everything About
Pre-EMI Home Loans

2. It entails making regular monthly
payments on the interest components of
your home loan.
Understanding Pre-EMI
It entails making regular monthly
payments on the interest
components of your home loan.

3. Pre-EMI
computation
You can calculate this using the following
formula:
[Principal X Interest Rate X (1+Interest Rate) ^
Tenure]/ [(1+Interest Rate) ^Tenure-1]

4. Comparison
Between Full And
Pre-EMI

5. Disbursement
Funds are disbursed in parts in pre-
EMI loans.

6. Tax Advantages
You cannot claim a tax deduction if your
property is under construction and you do not
have a possession certificate.

7. Full EMI loan can be repaid sooner.
Interest Rate And Payback
Tenure
Pre-EMI interest is less expensive
than full-EMI interest.

8. The principal repayment obligation
under full EMI decreases as the
loan progresses.
Impact on Loan Variables
The pre-EMI has no bearing on the
loan amount or tenure.
1. 2.

9. When To O P T For
A Pre-EMI Loan?
You expect a rise in your earnings.
1.
2. If you have any plans for investing
the difference between the full and
pre-EMIamounts.

10. Ideal for borrowers
who anticipate an
increase in income.
The loan burden
increases after the
completion of the
property construction.
Key Considerations for Pre-EMI Loans
Extended EMIs if
possession is delayed.

11. Taxation On Pre-
EMI Loans
You are eligible for taxbreaks on
principal and interest payments only
after receiving a possession
certificate.

12. Pre-EMI loans are perfect for buying under-
construction property. It also aids in the
effective management of your finances.

13. Thanks
Would Love to hear from you.
Hero Housing Finance Ltd.
09, Basant Lok, Vasant Vihar, NewDelhi - 110057
Tel: 18001024145
Email: customer.care@herofincorp.com
Website: https://www.herohousingfinance.com/
URL: https://www.herohousingfinance.com/blog/knowledge-series-of-
experts/what_is_pre_emi_and_how_it_is_calculated