When do home loan EMIs start?
The creation of a disbursement cheque is the point of time when home loan EMI starts. You generally begin paying EMIs from the month subsequent to the month in which the funds are disbursed.
Key takeaways on EMI timing
Understanding when your home loan EMI begins helps you plan your finances better and avoid surprises. Here are the key points to keep in mind:
- Ready property: If the entire loan amount is disbursed at once, your full EMI usually starts from the next month after disbursement.
- Under-construction property: During the construction phase, you typically pay a Pre-EMI, which covers only the interest on the amount released so far. The full EMI begins once the loan is completely disbursed or you take possession of the property.
- First EMI due date: The exact due date is mentioned in your loan agreement and is generally calculated based on the disbursement date.
- Delayed disbursement: If the full loan amount is released in May, your first EMI will most likely be scheduled for June.
You must normally pay your EMI by a fixed date each month. So, if you choose to pay your home loan EMI on the 5th of every month, and the disbursement cheque was delivered on the 25th of the month, your first EMI will be for the period spanning the 25th to the 5th. The following EMIs would be calculated as per the EMI schedule and you will have to pay full EMIs on or before the 5th of every subsequent month.
You can use a home loan EMI calculator to know your EMI as per the loan amount, tenor, and home loan interest rate offered.
You repay the loan in EMIs comprising both principal and interest. Repayment by way of EMI starts from the month following the month in which you take full disbursement.
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