Hello Sir/Madam, I bought an apartment from a standard builder in Hyderabad. the possession of house supposed to happen after an year. So, i have taken house loan from a Bank for this house. Now, i have started the regular EMI for this with interest rate of 9%. so, my question is, monthly i have some surplus amount after the EMI and expenses, is it good idea to use that for repaying my home loan or do i need to wait till possession. My wife suggests to wait till the possession, then start repaying. Please suggest what do you think is better?

Ans: When you repay any part of the loan and that too very early during your loan tenure, you save a considerable amount of future interest. Also, the current interest rates being very high, it will always be good for you to prepay some part of the loan now, if you have the money. Every repayment reduces the tenure of your loan, which is what is bringing down your overall loan interet. Pre-payment has nothing to do with the possession of your house technically. I suggest you to go ahead and prepay now than wait, if you have the money.

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I stay in Bharuch, a city in Gujarat. I am planning to book a flat of 2bhk in this city. The apartment is still under construction and I need home loan to buy that home. My queries are: How much per cent can I get home loan (I require 90 per cent of total cost). So it is possible by any bank? If the apartment is under construction and I have applied for loan then what will be the EMI condition. Few say till I get possession of house I will be charged only interest as EMI while other says I will be charged EMI with interest and principal amount. So what is correct and best way to me to do? Presently am staying in a rented house. So if EMI starts I will be in trouble as I need to pay both loan and house rent. So please guide me.

Ans: If the apartment cost is below 33 lakh then you can get a 90 per cent of the flat cost (not including stamp duty/registration charges) as a loan.

As long as the project is registered with RERA and approved by the concerned lender you will get a choice between paying just interest till possession (called pre-EMI in banking jargon) or starting off the EMI on the disbursed amount. The choice is yours.

During the years in which the property remains under construction no tax benefits are available for any loan payment – whether interest or principal.

Finally, don’t buy under-construction flats where delays are rife. Just buy a ready to move in flat.

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I am interested in going for a housing loan for purchase of flat. I wanted to know whether repayment of EMI can be done after getting the occupancy certificate or after 2 years which is later.

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