Understanding the Start Date of Your Home Loan EMIs
When you're planning to take a home loan, one of the crucial questions that often arises is: "When do the EMIs start?" The answer to this question depends on several factors, primarily the disbursement schedule of your loan.
Key Factors Determining EMI Start Date:
Full Disbursement:
If the entire loan amount is disbursed to you or the seller/builder at once, your EMIs typically start from the next month after the disbursement.
For example, if the full loan is disbursed in May, your first EMI would be due in June.
Progressive Disbursement:
Meaning: In cases of under-construction properties, the loan amount is disbursed in stages based on the construction milestones.
EMI Commencement: The full EMI payments that include both interest and principal start once the complete loan amount has been disbursed. However, during the period of partial disbursement, you may be required to pay interest on the disbursed loan amount, known as pre-EMI.
Understanding Pre-EMIs:
Pre-EMIs are essentially interest-only payments on the portion of the loan that has been disbursed.
They help you reduce the overall interest payable on the loan.
While not mandatory, pre-EMIs can be a strategic move to save money in the long run.
Factors Affecting EMI Amount:
Apart from the disbursement schedule, the following factors influence your EMI amount:
Loan Amount: The higher the loan amount, the higher your EMIs will be.
Interest Rate: A lower interest rate can lead to lower EMIs.
Loan Tenure: A longer tenure can result in lower EMIs but higher overall interest payment.
Important Documentation for Loan Approval and Disbursement
Following are the key documents that are typically required in general:
Identity Proof: Identity proof includes documents like PAN card, Aadhaar card, passport, and voter ID.
Proof of Income: Income proof comprises of salary slips, income tax returns, bank statements.
Address Proof: For address proof, there are required documents such as utility bills, passport, rental agreement, and voter ID.
Proof of Employment: Employment proof includes documents like employment verification letter and offer letter.
Property Documents: The documents of property comprises sale agreement, NOC from the builder, and property title deeds.
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