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Home Loan-EMI

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rashmi1kanta

MANAGER

51 Points Posted on 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

Replies (1)

Siddarth R Sunder Ram

Finance Professional

223 Points Posted on 15 June 2010

Since you have actually borrowed i.e used up only 13.3 lacs, your EMI should technically be on 13.3 lacs only. However your EMI is being calculated on 20 lacs. This means that you'll be clearing your loan faster. So it works out in your favour.