If you're buying a flat at Godrej MSR City Shettigere, Bangalore, one of the biggest choices you'll face is how to repay your home loan. Two common terms you'll hear are Pre-EMI and EMI. But what do they really mean? And how do they affect your monthly payments and future finances?

This guide breaks it down simply. Whether you're a first-time buyer, an investor, or someone already paying Pre-EMI, this article will help you understand which loan option might work best for you.

1. First Things First: What Do Pre-EMI and EMI Mean? What is EMI?

EMI stands for Equated Monthly Installment. This is the amount you pay every month to your bank once your full home loan is disbursed. It includes:

• A part of your loan principal (the actual borrowed amount)
• Plus the interest on the loan

Every EMI you pay reduces your total loan bit by bit.

What is Pre-EMI?

Pre-EMI is a payment you make during the construction period of the building. In this case, you pay only:

• The interest on the loan amount that's been disbursed so far

The principal doesn't reduce during this phase. Once the construction is done and you get possession, your full EMI starts.

2. Why This Matters for Godrej MSR City Buyers

Godrej MSR City in Shettigere is a large township project by Godrej Properties. The first phase, called Barca, launched in April 2025. The expected possession date is March 2030.

That means you may be in the Pre-EMI phase for up to 5 years, depending on when you take the loan.

Banks don't release your full loan amount at once. They give it in parts—called tranches—as construction moves forward. So, whether you choose Pre-EMI or EMI, you start making payments before you even move in.

3. How Pre-EMI Works at Godrej MSR City

Let's say your home loan is ₹80 lakh. The bank first releases ₹20 lakh. You'll start paying interest only on ₹20 lakh. As the project moves forward, more amounts get released, and your monthly Pre-EMI increases.

Why Some Buyers Choose Pre-EMI:

• Lower Payments Now: Your monthly cost is less, which helps if you're also paying rent.
• Flexibility: Easier to manage if your income is expected to grow in the next few years.
• Good for First-Time Buyers: Especially those who need time to plan bigger expenses later.

What's the Catch?

• You're Only Paying Interest: Your loan amount stays the same until EMIs begin.
• Higher Total Interest: Over time, you pay more in interest compared to EMI.
• Loan Tenure Feels Longer: If you take Pre-EMI for 5 years, your full loan starts only after that.
• Risk of Delays: If construction is delayed, you keep paying Pre-EMI for longer, increasing your total cost.

4. Full EMI from Day One: Pay More Now, Save Later

Some lenders (including Godrej Capital) let you start full EMI even while the flat is under construction. That means you start paying both principal and interest from the first loan disbursal.

Why Full EMI Can Be a Smart Choice:

• Your Loan Reduces Faster: Each EMI helps cut down your loan right away.
• You Save on Interest: The sooner you start reducing the principal, the less total interest you pay.
• Better for Long-Term Planning: Fixed monthly payments help with financial discipline.
• Less Worry if Delays Happen: Even if the project takes longer, you're still reducing your loan.

Why It's Not for Everyone:

• Higher Payments Now: Your monthly EMI will be much higher compared to Pre-EMI.
• Needs a Strong Budget: If you're paying rent or have other expenses, this may be hard to manage.

5. What About Tax Benefits?
During Construction (Pre-EMI Phase):

• You can't claim any tax benefits while paying Pre-EMI.
• However, once you get possession, you can claim that interest in 5 equal yearly parts under Section 24(b).

After Possession:

• Interest (Section 24b): Up to ₹2 lakh per year for self-use property.
• Principal (Section 80C): Up to ₹1.5 lakh per year, but only after full EMI starts.

Note: If you rent out the flat, you may be able to claim more interest, but the set-off limit is ₹2 lakh per year.

6. Current Interest Rates (As of June 2025)

• Public Banks: Starting from 7.50% p.a.
• Private Banks / HFCs: Starting from 8.45% p.a.
• Godrej Capital: Offers home loans starting at 8.55% p.a.

Your rate may vary based on your credit score, salary, and loan size.

7. Godrej Capital's "Design Your EMI" – More Control, More Comfort

Godrej Capital offers a unique feature called Design Your EMI, just for buyers in Godrej MSR City.

Here's What It Does:

• Lets you start with interest-only payments (like Pre-EMI) for a few years
• Gives you flexibility to increase EMIs later, when your income grows
• Helps you plan your cash flow better during the 5-year construction phase

If you like the idea of Pre-EMI but still want some control, this is a great middle ground.

8. Which Option Is Right for You?

Ask Yourself: Can I afford higher payments now? Or do I need more room in my budget today?

Conclusion: Pick What Works for Your Life

There's no "one size fits all" answer. For some, Pre-EMI gives breathing room. For others, Full EMI brings long-term savings.

If you're buying a flat in Barca @ Godrej MSR City, think about:

• Your current income
• Your rent
• Your long-term financial goals
• Whether you plan to live in or sell the property

Use an EMI calculator, talk to your bank or Godrej Capital, and make a plan that fits your life—not just your loan.