EMI – Equated Monthly Installment. This is the amount paid monthly by a borrower to the bank or any other lender. It basically has two components –
- 1. The portion of the principal amount
- 2. The interest portion for that month
Pre-EMI – Prior to final disbursement of the Housing Loan, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. It is payable monthly/quarterly upto the date of commencement of EMI.