Expert: Kartik Jhaveri, Founder & Director of Transcend Consulting India Pvt Ltd .
Question: I want to take a home loan for investment purpose. Possession is expected post 3 years. Please tell me if the EMI begins from the first day of availing the loan. Can I opt for a Pre-EMI option?
Answer: The moment you take the loan, you will have to start paying EMIs, either the pre-EMI (in which you would have to pay only the interest on the loan that will be disbursed at each stage of construction) or full EMI (in which you pay both interest & principal). It is advisable to opt for the full EMI option since you start paying off the principal amount from day one.
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