When taking out a home loan for an under-construction property, the EMI usually begins only after the lender disburses the loan amount to the builder in stages as the construction progresses, which means you usually pay only interest ("pre-EMI") on the disbursed amount during the construction phase, and full EMIs (principal and interest) begin once the property is ready for possession; this is often referred to as a "moratorium period" in which only interest is paid.