Property investing is a sure way to secure your future. There are many good home loans available with easy EMI payments. Sometimes, lenders provide you with the option of a pre-EMI where you have availed only a part of the loan and you pay interest on the amount disbursed until the full loan is available for use. So you must be wondering as to what is pre-EMI interest then!

Well, the interest rate on this type of a loan is called pre-EMI interest rates and these are to be paid on a monthly basis till the final loan amount is disbursed. Thereafter, the regular EMIs commence and the loan payments go on.

Many times, the pre-EMI is the best EMI option because this option for a home loan repayment turns out to be beneficial to those investors who avail loans to buy properties and then sell the property soon after getting the possession. For those properties under construction, the Pre EMI interest amount does not qualify for tax deduction with respect to the principal amount which is to be paid back. However, loan repayment with the help of a pre-EMI scheme is subject to tax deductions only on the interest paid when the construction is fully complete and the property is ready for possession. The pre-EMI amounts are divided into 5 proportional amounts and are allowed for tax related deductions. Therefore, one can take tax benefits on pre-EMI.

Home loan interest rates may vary based on the market trends and the type of home loan you avail. Home loan lenders such as Bajaj Finserv have introduced a new EMI scheme that gives customers a chance to avail loan against property or other types of home loans without worrying about paying the first three EMIs. The balance amount can be paid through unique repayment option thereafter. Bajaj Finserv provides an online portal for consumers to apply online for home loan.

In order to avoid burdening the customer with a higher EMI, Bajaj Finserv will first attempt to increase the tenure of the loan which is subject to permissible limits. If, however, despite the increase in tenure, the EMI is not adequate to cover the interest payment, then Bajaj Finserv will increase your EMI amount. To reduce your EMI, they recommend making a part prepayment at your nearest Bajaj Finserv branch or through their online platform Experia.

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