What is full EMI and pre-EMI payment?

Full EMI or just EMI payment is the process of repaying a home loan, inclusive of principal amount and interest amount. This is the equated monthly instalment (EMI) that you start paying once the construction of your house or building is completed. Some banks also permit commencement of full EMI payment while the loan amount is being disbursed in stages.

Pre-EMI payment is when you only pay the interest applicable on a loan and this amount has to be paid when the house/ building is being constructed. The pre-EMI period ends once the construction is completed. The pre-EMI amount is lower than full EMI amount, as only the interest part of the loan has to be repaid, while the principal loan amount remains as it is.

Do note that the pre-EMI period is not included in the loan tenure.