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What is better pre EMI or interest before possession of house?
What is better, paying pre-EMI or interest before possession of a house?
Well, that depends on your financial situation and preferences. Pre-EMI payments are smaller payments made towards the interest of the loan before the actual EMI starts, whereas interest before possession is the interest charged on the entire loan amount before you take possession of the property. Pre-EMI payments may help in reducing your initial financial burden by keeping your payments smaller, but you may end up paying more interest over the total tenure of the loan. On the other hand, interest before possession can be costlier initially, but it may be better for long-term financial planning as you will be paying interest on the entire loan amount.