what is pre emi

Pre-EMI is a type of payment scheme for home loans that includes only the interest component of the loan, and not the principal amount. This option is available to borrowers when their home or apartment is under construction, and it allows them to start repaying the loan while better managing their cash flow, as the amount is less than the full EMI. Pre-EMI payments are made during the period when the house or building is being constructed, and they end once the construction is complete. Once the construction is complete, the borrower will be asked to pay the full EMI. Pre-EMI payments are not considered a part of the home loan tenor, and they are designed to reduce the burden on the borrower during the time that the asset is under development.