Pre-EMI calculator for an under-construction flat
A home loan for an under-construction flat is released in stages as the building rises, and until it is fully disbursed you either pay interest only on what has been released (pre-EMI) or start full EMIs straight away. This calculator uses the MahaRERA model agreement's stage-wise payment caps to show each month's disbursement and pre-EMI, the total interest under both options and what a delay in possession adds.
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Pre-EMI vs full EMI from the first disbursement
Month-by-month disbursement and payments until possession
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How this is calculated
- Demands. Each stage's demand is the flat price × (this stage's cumulative % − the previous stage's). Stamp duty, registration and GST are separate (see the stamp duty calculator).
- Who pays. Your own contribution (price − loan) pays the earliest demands, as lenders usually require; the bank disburses the rest in the month each later demand falls due.
- Pre-EMI. For every month from the first disbursement to the last, interest = total disbursed so far × annual rate ÷ 12, with each tranche counted from the month it is released. Regular EMIs on the full loan then start the following month for the tenor you choose: EMI = P × i × (1 + i)n ÷ ((1 + i)n − 1).
- Full EMI from the first disbursement. The EMI is worked out on the amount disbursed so far over the months left to a fixed end date (first disbursement + tenor), and recalculated each time a new tranche is released. This follows the common "tranche EMI" approach; your bank's exact method may differ.
- Delay. The slider moves the possession stage and its disbursement later. The cost of delay compares the result with no delay.
- Pre-construction interest. Interest paid in financial years before the one in which possession falls is totalled and divided by five, as section 22 of the Income-tax Act, 2025 allows (formerly section 24(b)). For a self-occupied home the ₹2 lakh annual cap includes this instalment and applies only under the old regime.
Note that the two options do not end on the same date: with full EMI the loan closes earlier, which is part of why it costs less interest. Banks calculate interest on daily balances from the actual disbursement dates, so real figures will differ slightly.
Check the project first. MahaRERA registration, the lender's approval of the project and a registered agreement matter more than the EMI option. See our guide to home loans for under-construction flats.
Questions people ask
What is pre-EMI?
Pre-EMI is interest only on the part of the loan disbursed so far, paid monthly until the loan is fully disbursed. Regular EMIs (interest plus principal) start after the final disbursement. Your loan does not reduce while you pay pre-EMI.
Is pre-EMI or full EMI better?
Pre-EMI keeps monthly outgo low during construction, which helps if you are also paying rent. Full EMI from the first disbursement (often called tranche EMI) costs more each month but starts repaying principal, so total interest is lower and the loan usually closes earlier. If possession is delayed, pre-EMI can run for years without reducing the loan.
Why does the bank disburse in stages?
RBI told banks in 2013 that housing loans for under-construction property must be closely linked to the stages of construction, with no upfront disbursal, and NHB gave the same instruction to housing finance companies in November 2025. The bank pays its share to the builder as each construction-linked demand falls due, often after checking progress.
What payment schedule does MahaRERA allow?
The model agreement for sale in the Maharashtra RERA Rules, 2017 caps cumulative payments by stage: up to 10% before the registered agreement, 30% after the agreement, 45% on plinth, 70% on slabs including podiums and stilts, 75% on walls, plaster, flooring, doors and windows, 80% on sanitary fittings, staircases, lift wells and lobbies, 85% on external plumbing, plaster, elevation and terraces, 95% on lifts, pumps, electricals and paving, and the balance at possession after the occupancy or completion certificate.
Can I claim tax on pre-EMI interest?
Interest paid before the financial year in which construction is completed can be deducted in five equal instalments starting from that year, under section 22 of the Income-tax Act, 2025 (formerly section 24(b) of the 1961 Act). For a self-occupied home the total interest deduction is capped at ₹2 lakh a year, and only under the old tax regime. Check your position with your tax adviser.
Who pays if the builder delays possession?
Your pre-EMI or EMI to the bank continues regardless. Under section 18 of RERA, if you stay in the project, the promoter owes you interest for every month of delay, at SBI's highest MCLR plus 2% in Maharashtra. That compensation comes from the builder, not the bank.
Is anything I type stored or sent to Biz Corp Solutions?
No. The calculation runs entirely in your browser. Your inputs are only kept in this page's web address so you can copy a link and share the same calculation.
Buying a flat that's still being built?
We check which banks and housing finance companies have approved your project, compare their pre-EMI and tranche-EMI options, and track each disbursement for you. The lender makes the final credit decision.
This calculator gives an estimate for planning and discussion. It is not financial, legal or tax advice, and it is not a sanction or an offer. Lenders, regulators and government offices apply their own rules and may round or calculate differently; their figures prevail. Biz Corp Solutions arranges funding through partner banks, NBFCs and financial institutions, and lenders decide sanction, rates and terms. Last reviewed 5 October 2026.