When you buy under-construction property, you do not pay the entire amount to the builder at the start. Your payments will be construction linked. While your property is under-construction you can choose to pay only the interest component on your partially disbursed loan – this interest only payment is called pre-EMI. Consider the below example
- Apartment cost – Rs. 50,00,000
- Own contribution (10%) – Rs. 5,00,000
- Loan amount – Rs. 40,00,000
- Current stage of demand – 30%
- Time to completion 24 months
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