Home Loan-EMI

rashmi1kanta (MANAGER) (110 Points)

08 June 2010  

Hi ,

I am having a Approved Home loan of 20L for a Duplex in May-2009  , Repayment period = 15yr , EMI = 20598  , ROI =9.25%

So far Bank has disbursed 13.3L , 1St disbursement was on June-2009 by the Bank , Property is under construction & no visibility of getting possession before June-2011 . Till now i was paying only interest on borrowing amount & this month bank has now charged me with EMI = 20598 from Now onwards , since the Loan is 1year old .

Bank says that it's good for me as i am also paying the princpal amount , however the Tenure & EMI will remain fixed.

My question is am paying the whole EMI for 20L ( though i borrowed only 13.3L ) , since Tenure & EMI remain fixed , How it's in favour of me.    Plz guide

Br//rashmi