I have taken loan from SBI for an under construction flat. Construction is expected to complete in 2017. I am paying pre-EMI as full amount of loan has not been disbursed. I have two options ? either to start paying full EMI or to continue with pre-EMI and accumulate the amount to pay to the builder later. Which one will you suggest me?
If you start paying full EMI then you will be able to pay a large portion of your principal amount during the construction period. This happens because during this period, interest will be calculated on the disbursed amount.