{"id":3418,"date":"2011-10-10T01:49:43","date_gmt":"2011-10-09T20:19:43","guid":{"rendered":"http:\/\/www.bharatestates.com\/blog\/?p=3418"},"modified":"2020-06-15T04:58:24","modified_gmt":"2020-06-14T23:28:24","slug":"what-is-the-difference-between-emi-and-pre-emi","status":"publish","type":"post","link":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/","title":{"rendered":"What Is The Difference Between Emi And Pre Emi?"},"content":{"rendered":"

\"\"Equated monthly installment is known as EMI in short. Whenever we take a loan we need to repay it in a specific time frame with interest and that is why a certain amount is to be paid monthly. This amount is called Equated Monthly Installment. It is calculated on the basis of interest rate, loan amount or principal amount and the time frame or tenure of loan for which the loan is taken. It is an unequal combination of interest payment and principal repayment but the EMI<\/a> is calculated in such a way that the amount to be paid monthly comes out to be constant for the entire tenure for which loan is taken. The interest rate can be fixed or floating depending on your choice. Both the options have their plus and minus.It is really a popular term known to almost everyone today as most of the young population is taking loan for their dream home. There is another word which is not as popular as EMI. It is Pre \u2013 EMI. May be you have heard it but need to understand as it is also very important factor when you are applying for loan.\u00a0 A pre EMI is the amount of interest on the disbursed money from bank to the builder. Let us understand it by taking an example say if you are buying a property<\/a> that is under construction or will be ready in two years from now. Suppose if you have booked an apartment in 2010 April and it will be ready by 2012 April. In this case you have a option to ask your bank from which you are taking loan, not to disburse the entire amount before the building is complete. And thus the bank will disburse partial amount like the first disbursement on completion of first five floors and second on completion of ten floors. It is banks decision and both the parties bank and the builder have this agreement on the disbursement. Now in this case the actual loan repayment will take place only after the bank will disburse the entire amount of loan to the builder. By that time you need to pay only the Pre- EMI which is equal to the amount of interest accumulated on the disbursed money by bank. You can enjoy the pre EMI benefit for two years which is expected time frame for the builder to complete the building. After that the actual EMI on the loan will start.There is a disadvantage of Pre EMI. One cannot claim tax deduction on Pre EMI before the construction of the property<\/a> is complete.\u00a0 When the construction is complete one can claim the total pre EMI interest paid in subsequent years in five equal instalments as deduction for tax saving. Here the important thing is that the Pre EMI is the amount of interest on the disbursed money but not the principal which you may have paid during the construction period. Suppose if you have paid 100000 as Pre EMI to the bank then you can use 20000 rupees for the next five years for tax deduction as the total will come out to be Rs. 100000 in five years.In other words we can say that in Pre- EMI the bank pays the amount of loan periodically instead of paying it in one time based on the progress of construction. It is in banks hand to decide when it will disburse the partial amount of loan to the builder<\/a> like on completion of certain floors, etc. During this period the borrower has to pay just the simple interest at the rate which is decided by bank on the disbursed amount only. This interest is known as Pre \u2013 EMI and it ends when the payment of actual EMI commences. The basic difference between EMI and Pre- EMI is that Pre EMI is paid when partial loan amount is disbursed by the bank (lender) but the EMI begins when the loan is fully disbursed. In some cases the lender\/bank may make advance payment entirely even though the construction is not complete yet if the buyer requests the bank to do so or the bank is convinced by the builder that he will complete the construction in time. It is called advance disbursement of loan. In this case the actual EMI will start immediately. The builder is definitely benefited by this advance payment as he gets the funds in advance to complete the construction. That is why builders<\/a> usually insist on advance disbursement of funds and to encourage the buyer for this they sometimes offer discounts on the cost of property.Ruchi Mahajan\u0437\u0430\u0439\u043c \u043d\u0430 \u043a\u0430\u0440\u0442\u0443 \u0431\u0435\u0437 \u043e\u0442\u043a\u0430\u0437\u043e\u0432 \u043a\u0440\u0443\u0433\u043b\u043e\u0441\u0443\u0442\u043e\u0447\u043d\u043e<\/a>\u0432\u0437\u044f\u0442\u044c \u043a\u0440\u0435\u0434\u0438\u0442 \u043e\u043d\u043b\u0430\u0439\u043d<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Equated monthly installment is known as EMI in short. Whenever we take a loan we need to repay it in a specific time frame with interest and that is why a certain amount is to be paid monthly. This amount is called Equated Monthly Installment. It is calculated on the basis of interest rate, loan […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[447,433],"tags":[],"class_list":["post-3418","post","type-post","status-publish","format-standard","hentry","category-realty-guide","category-tips"],"blocksy_meta":[],"yoast_head":"\nWhat is EMI,Pre-EMI | Difference between EMI and Pre EMI, EMI vs PRE EMI<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is EMI,Pre-EMI | Difference between EMI and Pre EMI, EMI vs PRE EMI\" \/>\n<meta property=\"og:description\" content=\"Equated monthly installment is known as EMI in short. Whenever we take a loan we need to repay it in a specific time frame with interest and that is why a certain amount is to be paid monthly. This amount is called Equated Monthly Installment. It is calculated on the basis of interest rate, loan […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/\" \/>\n<meta property=\"article:published_time\" content=\"2011-10-09T20:19:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-06-14T23:28:24+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.bharatestates.com\/blog\/wp-content\/uploads\/2011\/10\/emi-preemi.jpg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/#\\\/schema\\\/person\\\/d713a900e6cc96b1468e2e80d6dfb417\"},\"headline\":\"What Is The Difference Between Emi And Pre Emi?\",\"datePublished\":\"2011-10-09T20:19:43+00:00\",\"dateModified\":\"2020-06-14T23:28:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/\"},\"wordCount\":787,\"commentCount\":1,\"image\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/www.bharatestates.com\\\/blog\\\/wp-content\\\/uploads\\\/2011\\\/10\\\/emi-preemi.jpg\",\"articleSection\":[\"Realty Guide\",\"Tips\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/\",\"url\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/\",\"name\":\"What is EMI,Pre-EMI | Difference between EMI and Pre EMI, EMI vs PRE EMI\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/www.bharatestates.com\\\/blog\\\/wp-content\\\/uploads\\\/2011\\\/10\\\/emi-preemi.jpg\",\"datePublished\":\"2011-10-09T20:19:43+00:00\",\"dateModified\":\"2020-06-14T23:28:24+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/#\\\/schema\\\/person\\\/d713a900e6cc96b1468e2e80d6dfb417\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/wp-content\\\/uploads\\\/2011\\\/10\\\/emi-preemi.jpg\",\"contentUrl\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/wp-content\\\/uploads\\\/2011\\\/10\\\/emi-preemi.jpg\",\"width\":\"304\",\"height\":\"209\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/what-is-the-difference-between-emi-and-pre-emi\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Is The Difference Between Emi And Pre Emi?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/\",\"name\":\"\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/#\\\/schema\\\/person\\\/d713a900e6cc96b1468e2e80d6dfb417\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/3304f2ba20ca986362483dfae3e79c8232a9c903ffb2d3e2f0f48f3c4c7ef992?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/3304f2ba20ca986362483dfae3e79c8232a9c903ffb2d3e2f0f48f3c4c7ef992?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/3304f2ba20ca986362483dfae3e79c8232a9c903ffb2d3e2f0f48f3c4c7ef992?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"url\":\"https:\\\/\\\/www.bharatestates.com\\\/blog\\\/author\\\/admin\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What is EMI,Pre-EMI | Difference between EMI and Pre EMI, EMI vs PRE EMI","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/","og_locale":"en_US","og_type":"article","og_title":"What is EMI,Pre-EMI | Difference between EMI and Pre EMI, EMI vs PRE EMI","og_description":"Equated monthly installment is known as EMI in short. Whenever we take a loan we need to repay it in a specific time frame with interest and that is why a certain amount is to be paid monthly. This amount is called Equated Monthly Installment. It is calculated on the basis of interest rate, loan […]","og_url":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/","article_published_time":"2011-10-09T20:19:43+00:00","article_modified_time":"2020-06-14T23:28:24+00:00","og_image":[{"url":"http:\/\/www.bharatestates.com\/blog\/wp-content\/uploads\/2011\/10\/emi-preemi.jpg","type":"","width":"","height":""}],"author":"admin","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#article","isPartOf":{"@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/"},"author":{"name":"admin","@id":"https:\/\/www.bharatestates.com\/blog\/#\/schema\/person\/d713a900e6cc96b1468e2e80d6dfb417"},"headline":"What Is The Difference Between Emi And Pre Emi?","datePublished":"2011-10-09T20:19:43+00:00","dateModified":"2020-06-14T23:28:24+00:00","mainEntityOfPage":{"@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/"},"wordCount":787,"commentCount":1,"image":{"@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#primaryimage"},"thumbnailUrl":"http:\/\/www.bharatestates.com\/blog\/wp-content\/uploads\/2011\/10\/emi-preemi.jpg","articleSection":["Realty Guide","Tips"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/","url":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/","name":"What is EMI,Pre-EMI | Difference between EMI and Pre EMI, EMI vs PRE EMI","isPartOf":{"@id":"https:\/\/www.bharatestates.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#primaryimage"},"image":{"@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#primaryimage"},"thumbnailUrl":"http:\/\/www.bharatestates.com\/blog\/wp-content\/uploads\/2011\/10\/emi-preemi.jpg","datePublished":"2011-10-09T20:19:43+00:00","dateModified":"2020-06-14T23:28:24+00:00","author":{"@id":"https:\/\/www.bharatestates.com\/blog\/#\/schema\/person\/d713a900e6cc96b1468e2e80d6dfb417"},"breadcrumb":{"@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#primaryimage","url":"https:\/\/www.bharatestates.com\/blog\/wp-content\/uploads\/2011\/10\/emi-preemi.jpg","contentUrl":"https:\/\/www.bharatestates.com\/blog\/wp-content\/uploads\/2011\/10\/emi-preemi.jpg","width":"304","height":"209"},{"@type":"BreadcrumbList","@id":"https:\/\/www.bharatestates.com\/blog\/what-is-the-difference-between-emi-and-pre-emi\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.bharatestates.com\/blog\/"},{"@type":"ListItem","position":2,"name":"What Is The Difference Between Emi And Pre Emi?"}]},{"@type":"WebSite","@id":"https:\/\/www.bharatestates.com\/blog\/#website","url":"https:\/\/www.bharatestates.com\/blog\/","name":"","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.bharatestates.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.bharatestates.com\/blog\/#\/schema\/person\/d713a900e6cc96b1468e2e80d6dfb417","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/3304f2ba20ca986362483dfae3e79c8232a9c903ffb2d3e2f0f48f3c4c7ef992?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/3304f2ba20ca986362483dfae3e79c8232a9c903ffb2d3e2f0f48f3c4c7ef992?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/3304f2ba20ca986362483dfae3e79c8232a9c903ffb2d3e2f0f48f3c4c7ef992?s=96&d=mm&r=g","caption":"admin"},"url":"https:\/\/www.bharatestates.com\/blog\/author\/admin\/"}]}},"_links":{"self":[{"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/posts\/3418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/comments?post=3418"}],"version-history":[{"count":1,"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/posts\/3418\/revisions"}],"predecessor-version":[{"id":33472,"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/posts\/3418\/revisions\/33472"}],"wp:attachment":[{"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/media?parent=3418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/categories?post=3418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bharatestates.com\/blog\/wp-json\/wp\/v2\/tags?post=3418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}