SBI General home loan – Pre EMI+MF vs Full EMI

POSTED BY Sandip Pawar ON March 18, 2015 3:49 pm ONE COMMENT

I am planning to take SBI home loan for amount 16 Lacs, tenure 20 years. As loan amount is less than 20 Lac , SBI not giving Maxgain scheme (new amendment 🙁 )

I am confused between pre-emi and full emi..

opt 1: Paying full Emi from day 1
opt 2: Paying pre-emi for Moratorium period of 18 months and Amount saved which could have gone to loan repayment; invest that amount in Mutual Fund for 18 months. After 18 months, sell MF and use those money for loan repayment.

In which case there would be more benefits ?

One reply on this article “SBI General home loan – Pre EMI+MF vs Full EMI”

  1. Ashish Garg says:


    18 months is a small time period and is not recommended for investments in MF. Of course that’s not a rule but in 18 months you may not necessarily get a return of 15-18% per annum. There is also a possibility of loosing your principal leave aside getting returns.

    If you are ready to take that risk, you can consider this option. Safer would be to go with full EMI.

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