I am planing to buy a 2BHK by taking a home loan. I wish to avoid pre-EMI and pay full EMI right from start. I was in contact with an HDFC guy and he says this ..

They have an option for this, I can pay full EMI for sanctioned amount.
However, in this case the builder has to ask for disbursement ( from bank) exactly on first of the month. If they ask for disbursement during the middle of month then I need to pay an Pre-EMI amount for those days ...

Does this make sense .. Is it same with all other banks as well ?
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  • ur point is not clear. As per my understanding of Pre-EMI is like this. Bank pays full sanctioned amount to builder in the beginning itself with the approval of the buyer. Interest for the loan amount will be paid by the builder till he gives the position of the flat to the buyer. Buyer will pay EMI after taking the position of the flat. In this method, buyer need not to pay interest for the loan amount during the construction period and builder gets much needed funds at cheaper interest rate through the buyer, so win-win situation for the both parties.