All You Need to Know About Marathon EMI Holiday Programme
Last Updated on, September 12th, 2022
EMI Holiday Scheme
With the EMI holiday scheme, you can avoid paying any pre-EMI on your home loan for upto 24 months. Here’s how it works
Standard Loan
When you purchase under-construction property, you will need to pay the developer as per the construction linked payment schedule. The bank charges interest every month (called pre-EMI) on the amount disbursed.
Consider the following examples:
Flat cost: Rs.10,000,000
Downpayment: Rs.10,00,000
Sanctioned loan amount: Rs.90,00,000
Rate of interest: 7.50%
| Month |
% Due |
Own |
Cumulative Bank Loan Disbursed |
Pre-EMI |
|
|
|---|---|---|---|---|---|---|
| 1 | 50% | Rs.10,00,000 | Rs.40,00,000 | Rs.25,000 | ||
| 2 | 50% | Rs.40,00,000 | Rs.25,000 | |||
| 3 | 60% | Rs.50,00,000 | Rs.31,250 | |||
| 4 | 60% | Rs.50,00,000 | Rs.31,250 | |||
| 5 | 70% | Rs.60,00,000 | Rs.37,500 | |||
| 6 | 70% | Rs.60,00,000 | Rs.37,500 | |||
| 7 | 80% | Rs.70,00,000 | Rs.43,750 | |||
| 8 | 80% | Rs.70,00,000 | Rs.43,750 | |||
| 9 | 80% | Rs.70,00,000 | Rs.43,750 | |||
| 10 | 90% | Rs.80,00,000 | Rs.50,000 | |||
| 11 | 90% | Rs.80,00,000 | Rs.50,000 | |||
| 12 | 100% | Rs.90,00,000 | Rs.56,250 | |||
| Rs.10,00,000 | Rs.90,00,000 | Rs.4,75,000 |
The buyer has to service a pre-EMI of `25,000 in the first two months. The pre-EMI amount gradually increases to `52,125 in the last month.
The total interest cost during the period is Rs.4,75,000
For home buyers who are currently living on rent paying the pre-EMI and monthly rent can become a challenge. In such cases an EMI holiday scheme can help the buyer by deferring the burden of pre-EMI for a specified duration
EMI holiday loan
In an EMI holiday scheme, the buyer does not pay any pre-EMI during the specified period. The interest cost is instead added to the loan outstanding each month.
| Month |
% Due |
Own |
Disbursed |
Interest Cost |
Loan Out- |
Actual Pre-EMI |
|---|---|---|---|---|---|---|
| 1 | 50% | Rs.10,00,000 | Rs.40,00,000 | Rs.25,000 | Rs.40,25,156 | 0 |
| 2 | 50% | Rs.40,00,000 | Rs.25,157 | Rs.40,50,313 | 0 | |
| 3 | 60% | Rs.50,00,000 | Rs.31,564 | Rs.50,81,878 | 0 | |
| 4 | 60% | Rs.50,00,000 | Rs.31,762 | Rs.51,13,640 | 0 | |
| 5 | 70% | Rs.5,00,000 | Rs.55,00,000 | Rs.35,085 | Rs.56,48,725 | 0 |
| 6 | 70% | Rs.55,00,000 | Rs.35,305 | Rs.56,84,029 | 0 | |
| 7 | 80% | Rs.65,00,000 | Rs.41,775 | Rs.67,25,805 | 0 | |
| 8 | 80% | Rs.65,00,000 | Rs.42,036 | Rs.67,67,841 | 0 | |
| 9 | 80% | Rs.65,00,000 | Rs.42,299 | Rs.68,10,140 | 0 | |
| 10 | 90% | Rs.75,00,000 | Rs.48,813 | Rs.78,58,953 | 0 | |
| 11 | 90% | Rs.75,00,000 | Rs.49,118 | Rs.79,08,072 | 0 | |
| 12 | 100% | Rs.85,00,000 | Rs.55,675 | Rs.89,63,747 | 0 | |
| Rs.15,00,000 | Rs.85,00,000 | Rs.4,72,050 | 0 |
Important – Since the pre-EMI interest amount is added to the loan amount, the bank will not be disbursing the entire sanctioned amount. This means that you will need to make an additional self funded contribution to the apartment cost to the extent of the interest cost.
However, since this payment has to be made in the latter stages of construction, the buyer will get some time to save sufficient funds to make up the difference.
Important Considerations –
Full EMI will commence once OC is received or possession is handed over regardless of period left in EMI holiday.
If you’re availing an interest holiday, it’s important to note that the bank will not disburse the entire sanctioned amount to the developer since the pre-EMI cost is added to the loan outstanding each month. Since banks are only allowed to fund to a maximum value of 90%, the difference will need to be paid by the buyer.
Disclaimer –
This booklet is intended for educational purposes only and only broadly outlines the EMI holiday scheme.
The builder is not responsible for the validity or accuracy of the details since the scheme may vary from bank to bank depending on various credit norms.
Please check all details thoroughly with your home loan banker before proceeding with any scheme.
This facility is available only on certain projects and with specific banks//HFI’s. Please check with our sales team for details.
Calculations above are based on certain assumptions and may not be accurate. Please check with your banker for accurate details. Marathon reserves the right to end this scheme without any prior notice.
