I have booked a flat at Thane and the construction will be over by Dec 2006. The flat cost 23 lacs. I have applied for home loan and they have suggested a scheme for me which I would like to discuss with you. The scheme is as follows:- I would take a home loan of amount 20 lacs. The EMI would be around Rs. 15k- per month for 20 years. I would pay the bank 15k /- EMI from the beginning of the disbursement however the pointed to be noted here is the disbursement to the builder will not be 20 lacs, but in parts as per the demand of the builder in break ups till the project is completed. For Ex: On October 1st I ask the bank to disburse 5 lacs to the builder and the EMI would start from the same month and I pay bank Rs 15k. They would calculate the EMI for 5 lacs and would deduct the amount from the 15k. For instance if the EMI for 5 lacs is 5k, it would get minus from 15k so rest is 10k which would get minus from the outstanding principal. I understand the principle of 1 lac exemption for principal and 1.5lacs for interest component. Would the same rule apply for me? Will the calculation differ as I havent yet taken the possession of the flat? This is not a pre-emi schm
