# Pre-Emi Calculation

I would like to take home loan for under-construction building in India. Completion time will be 30Months. How do I calculate pre-emi, if I take the home-loan of Rs.60L for 15 Years with an interest of 10.5%.

Disbursement will be after every 4 month. (Rough calculation will be like this)

``````Month  Disbursed_Amount  Total_Disbursed_Amount
1      Rs. 9L            Rs. 9L
2      Rs. 9L            Rs. 18L
3      Rs. 9L            Rs. 27L
4      Rs. 9L            Rs. 36L
5      Rs. 9L            Rs. 45L
6      Rs. 9L            Rs. 54L
7      Rs. 6L            Rs. 60L
``````

After 30 Month, full amount will get disbursed to builder by bank. Once I got the possession, I will start the EMI to bank.

But in this meantime, how do I calculate the Pre-EMI for these 30 Month ?

I will be pleased, if someone provide the formula for pre-emi calculation for above given data

• I don't know how things work in India but for a view of how they work in the US (or in one state in the US), see this answer. If the same workings apply, your monthly payment during the construction period will be interest only on the amount owed, and will change every 4 months as more money is disbursed. So, the formula for the monthly payment (made at the end of each month) will be P*(0.105/12) where P is the amount disbursed as of the beginning of the month. (This assumes that no disbursements occur in the middle of the month.) – Dilip Sarwate Jul 20 '15 at 13:38
• @DilipSarwate, In India, AFAIK, during pre-emi, principal amount is also get added to interest. So, I think, formula must be different – SHW Jul 20 '15 at 14:03