NIL PRE-EMI OFFER

Over the past 30 years you have been constantly supporting the Manjeera team, this is the way we say thank you and welcome you to the Manjeera family. Now Manjeera Monarch Vijayawada offers 0% interest on the purchase of your dream house with us till the possession. Customers are waived off the interest rates until the possession of your house, we Manjeera Constructions will pay your interest component on behalf of you. Booking a flat in Manjeera Monarch now enables you to avail all these benefits by paying just 10% of your project fees as advance and another 10% before November 2017.

(Note: This is a limited period offer applicable on selected units only, for a short period of time)

Let’s look at what one of the leading consumer finance company Bankbaazar.com says on Pre emi scheme.

What is full  EMI payment?

Full EMI repayment of a home loan is the payment of principal as well as interest. This payment begins once the construction of the house/ building is completed. Some banks also permit commencement of full EMI payment while the loan amount is being disbursed in stages. If you have opted for the pre-EMI payment option, EMI payment will commence once the pre-EMI phase ends. By paying the full EMI, the interest is repaid and the outstanding loan amount will be reduced during the loan period.

What is Pre-EMI payment?

Pre-EMI is the payment of interest applicable on the loan only. This amount is paid in the period during which the house/ building is being constructed. It ends once the construction is completed. Pre-EMI amount is lesser than full EMI amount since only the interest portion is paid out and the principal loan amount remains intact. The pre-EMI period is not part of the loan tenure.

Example: Person A opts for a home loan of Rs. 15, 00,000 over a period of 20 years. The construction of his house will be completed in 3 years, during which he wishes to pay pre-EMI. After this 3 years is competed and his pre-EMI payment ends, EMI repayment period commences. Thus, the total loan tenure would be 3 years (pre-EMI period) + 20 years (loan tenure) = 23 years.

(This example is for illustration purposes only)

Benefits of Pre-EMI

  • Those who wish to save money during the pre-EMI period and invest it in such a way that they get good returns on the amount. The opportunity cost of the money that would have to be paid as full EMI and that which could be accumulated and invested in a good savings scheme will help determine which repayment option to choose. For example, Consider the full EMI payment is Rs. 25,000 out of which the interest contribution is Rs. 5,000. By choosing to pay pre-EMI only, i.e., Rs. 5000 interest only, the borrower can invest the remaining Rs. 20,000 elsewhere and earn consistent returns. This can be accrued to pay the EMI at a later stage.
  • The pre-EMI option is also ideal for property investors who wish to sell the property once construction is completed.
  • Those who are waiting for a change in income capacity or cannot afford to pay full EMI at the moment will find the pre-EMI payment to be the best option.

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