When does home loan EMIs start

Understand how and when your home loan EMIs start and what to expect.
When does home loan EMIs start
2 min read
28 July 2023

What is an EMI and when does it start?

Home loan EMIs are the monthly repayments against the borrowed amount which consist of both the principal amount and the agreed interest. The home loan EMIs start based on the terms and conditions agreed upon between you and the financial institution providing the loan.

Typically, there is a grace period called the moratorium period before the EMIs begin. During this period, as a borrower, you are not obligated to make any EMIs, and the lender may choose to include the added interest to the outstanding loan amount or calculate it separately with the help of a home loan EMI calculator.

The duration of the grace period can vary among lenders and depends on factors such as the borrower's profile, your lender’s policy, and the agreed loan agreement. Typically, the grace period is three to six months.

Once the grace period ends, the regular repayment schedule begins, and you are expected to start making monthly instalments towards your home loan on or before the due date.

Remember to thoroughly review the loan agreement, consult with the lender, and be prepared to make regular repayments once the grace period ends. By staying informed and responsible, you can make your journey of home ownership seamless with the help of a home loan.

How is your final EMI amount decided

The final EMI amount for a loan is determined by several key factors, including the loan principal amount, interest rate, loan tenure, frequency of compounding, and amortization schedule. The type of loan, special features, and prepayments can also influence the EMI. To calculate the EMI, financial institutions use mathematical formulas, and there are online tools available to estimate it based on your loan details. Understanding these factors is essential to ensure that the EMI aligns with your budget and financial goals.


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Frequently asked questions

When does home loan EMIs start?

Home loan EMIs typically start after the entire loan amount has been disbursed to the borrower. Some loans may have a moratorium period during which only interest payments are required. Once the moratorium period ends or if it is not applicable, regular EMIs, including both principal and interest, commence. It's important to review the loan agreement and discuss the repayment schedule with the lender for clarity.

What is the best date for EMI for home loan?

The best date for your home loan EMI depends on your personal financial situation. Consider factors such as your salary credit date, monthly budgeting, and cash flow. Choose a date that aligns with your financial preferences and obligations. Communicate with your lender to understand the available options and ensure timely payments to avoid penalties. Automated payments can also be set up for convenience.

Does home loan EMI start from next month?

The start date for home loan EMIs depends on the loan agreement. In many cases, EMIs commence immediately after the loan amount is disbursed. Some agreements may include a moratorium or grace period, during which only interest payments are due.