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Note on computation of average Pre-EMI interest of Rs 9,961
Most Home Finance Companies restrict the total number of partial disbursements to four or six.
However, for simplicity purposes, we have assumed that disbursement takes place at the beginning of each month.
Total amout to be disbursed is Rs 27,00,000 over 24 months.
On an average, Rs 1,12,500 will be disbursed every month.
Month | Loan at the start of the month (Rs) | Loan disbursed | Interest | Loan at the |
1 | - | 112,500 | 797 | 112,500 |
2 | 112,500 | 112,500 | 1,594 | 225,000 |
3 | 225,000 | 112,500 | 2,391 | 337,500 |
4 | 337,500 | 112,500 | 3,188 | 450,000 |
5 | 450,000 | 112,500 | 3,984 | 562,500 |
6 | 562,500 | 112,500 | 4,781 | 675,000 |
7 | 675,000 | 112,500 | 5,578 | 787,500 |
8 | 787,500 | 112,500 | 6,375 | 900,000 |
9 | 900,000 | 112,500 | 7,172 | 1,012,500 |
10 | 1,012,500 | 112,500 | 7,969 | 1,125,000 |
11 | 1,125,000 | 112,500 | 8,766 | 1,237,500 |
12 | 1,237,500 | 112,500 | 9,563 | 1,350,000 |
13 | 1,350,000 | 112,500 | 10,359 | 1,462,500 |
14 | 1,462,500 | 112,500 | 11,156 | 1,575,000 |
15 | 1,575,000 | 112,500 | 11,953 | 1,687,500 |
16 | 1,687,500 | 112,500 | 12,750 | 1,800,000 |
17 | 1,800,000 | 112,500 | 13,547 | 1,912,500 |
18 | 1,912,500 | 112,500 | 14,344 | 2,025,000 |
19 | 2,025,000 | 112,500 | 15,141 | 2,137,500 |
20 | 2,137,500 | 112,500 | 15,938 | 2,250,000 |
21 | 2,250,000 | 112,500 | 16,734 | 2,362,500 |
22 | 2,362,500 | 112,500 | 17,531 | 2,475,000 |
23 | 2,475,000 | 112,500 | 18,328 | 2,587,500 |
24 | 2,587,500 | 112,500 | 19,125 | 2,700,000 |
Total | 2,700,000 | 239,063 |
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Total interest paid over 24 months is Rs 2,39,063. Average interest paid per month is Rs 2,39,063/24 = Rs 9,961.
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