An EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender on a specified date every month. For home loans, it covers both the principal amount and the interest accrued over the loan tenure.
Repayment of a home loan typically starts: After the full loan amount is disbursed.In cases of under-construction properties, you may pay Pre-EMI (interest only) during the construction phase, with full EMI starting post-completion or final disbursement.
The tenure of a home loan usually ranges from 5 to 30 years, depending on the borrower’s preference and eligibility. Opting for a longer tenure reduces monthly EMIs but increases the total interest paid.
The eligibility criteria for a home loan typically include:
Yes, you can claim tax benefits under the Income Tax Act:
Missing an EMI payment can lead to:
Pre-EMI is applicable for under-construction properties or staggered disbursements.
Home loans are repaid through EMIs, which can be set up as:Auto-debit Lenders directly deduct the EMI from your bank account.Post-dated cheques Submit cheques for each EMI upfront.Online payments Through net banking or the lender’s mobile app.
An EMI calculator helps you: