Announcement

Collapse
No announcement yet.

Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

Collapse
X
Collapse

Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

Last updated: August 24 2016
41 | Posts
  • Time
  • Show
Clear All
new posts
  • #21

    #21

    Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

    Venky good pt.. I agree totaly on your views...

    Do you know of any bank other than HDFC who have this kind of product?

    Originally posted by Venkytalks View Post
    Hi deepak mittal.

    Yes, pre-emi pays only interest. Full EMI with principal and interest starts after 3 years if you opt for pre-EMI option.

    Usually people opt for pre-EMI if they cannot afford both full EMI and rent on their salary.

    But if you can afford, you should pay as much EMI as possible in the early part of the loan with CLP. This pays back a lot of principal and little of interest, so when full loan is disbursed, your principal becomes less by about 10% (same as your so-called downpayment discount).

    According to earlier posts, every bank will allow this in theory - in practice, they might not like it (its against the banks "interest" to have a lot of principal paid back quickly

    Its a good scheme for own flat from reliable builder.

    Not so great for investors and speculative builders - there a pre-EMI is better since there is less financial involvement (tranche EMI means much more is paid, almost like the EMI of a downpayment)

    Comment

    • #22

      #22

      Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

      Originally posted by deepak_mittal View Post
      Hey venky..seriously speaking i heard trench EMI first time..do you have idea of any other Bank other than HDFC providing same product?
      Secondly, In simple Pre-EMI can we pre pay the principal amount also?
      e.g. loan amount is 30L and bank has disbursed only 8L till now..so can we make some payment that will contribute to that principal amount?
      In all banks you can start your full EMI instead of only Pre-EMI. HDFC has a special facility where instead of full EMI, you can even choose a different amount for Tranche EMI.

      It is also possible to pre-pay the partially disbursed principle. However this depends on your bank's terms for pre-payment.

      Comment

      • #23

        #23

        Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

        Amjamirs2, I agree.

        SBI gives loan only on CLP and permits full EMI as calculated to be paid back - basically they have only tranche EMI.

        HDFC permits chosing the EMI in the first 3 years - according to repayment capacity.

        Axis I think - not sure - puts a 25% limit on how much principal can be paid back in first 3 years.

        All banks permit full EMI to start immediately - basically tranche EMI. But they dont advertise the benefits because bank earns less interest on the same disbursal on tranche EMI - so they keep quiet and dont try to educate the buyer.

        Prepayment is very different - there is a penalty for it with most banks.
        Venky (Please read watch a or before posting)

        Comment

        • #24

          #24

          Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

          Thanks Vanky

          This is info I was looking since morning. basically i had purchased a flat in Noida and talking to ICICI for CLP plan loan. Their executive suggest me go for DP instead of full EMI from start-up. they have started calculating me benefits and all..same doubts come to my mind for which venky you have put in your first post here..and you got calculator..

          now based on yr calculation, I am sure DP is no longer better than full EMI..thanks for it..anyway i will try to do my calculations also..

          Comment

          • #25

            #25

            Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

            just want to share my calculation on DP vs full EMI in under construction plan/

            I have purchased a flat ard 30 lakhs..planning to take loan of 20 lakhs..

            Loan amount..20 laks
            duration 15 years
            ROI 8.75%

            CLP..with full EMi of 19989

            total cost is 2998463

            DP with full EMI of 16990 [ now in case of DP, i will take loan of 17 lakhs as got 3 lakh discount]

            Total cost is 1358313+170000=3058313

            so net net full EMI is better in terms of money also..and risk is also less..

            Comments welcome..

            Comment

            • #26

              #26

              Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

              Tranche EMI

              I was searching on Tranche EMI's benefits and ended up here. Very valuable information here.
              One question about the EMI calculator uploaded here. When disbursment is on CLP, why EMI is calculated for total loan amount?
              I mean, when disbursment is done partially and not full loan amount, then EMI should be calculated based on the amount disbursed and not on full loan amount, right?
              Calculator shows me EMI paid from first month till last month same. This factor will also change the calculation a lot.

              Comment

              • #27

                #27

                Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

                EMI remains constant through out your loan period irrespective of bank's disbursement amount. However, interest is calculated on the disbursed amount only. Amount after subtracting Interest from EMI goes towards your principal repayment.

                Comment

                • #28

                  #28

                  Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

                  Originally posted by kasavgp View Post
                  I was searching on Tranche EMI's benefits and ended up here. Very valuable information here.
                  One question about the EMI calculator uploaded here. When disbursment is on CLP, why EMI is calculated for total loan amount?
                  I mean, when disbursment is done partially and not full loan amount, then EMI should be calculated based on the amount disbursed and not on full loan amount, right?
                  Calculator shows me EMI paid from first month till last month same. This factor will also change the calculation a lot.
                  Answered in the noida forum here

                  http://www.indianrealestateforum.com...unt-12647.html
                  Venky (Please read watch a or before posting)

                  Comment

                  • #29

                    #29

                    Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

                    Originally posted by amjamirs2 View Post
                    It is good to have a completion based payment to builder. However you should start full EMI from first month itself. This way you repay the loan much earlier than expected tenure.
                    Please check the attached file explaining calculations. This is a rough caclulator I created in EXCEL. Good to understand your home loan.
                    amjamirs2, Your XLS is password protected, can you PM the password to unprotect?, need to play around few things as per my need.

                    Excellent tool you have made.

                    Comment

                    • #30

                      #30

                      Re : Comparison of CLP on Tranche EMI vs. Downpayment with discount from builder

                      @amjamirs2, ignore the last post, I got the workaround, copy and pasted into the new worksheet, now no more protected sheet issue

                      Comment

                      Have any questions or thoughts about this?
                      Working...
                      X