New Home, New Trap? Understand These Payment Terms First

When buying a home, especially under-construction ones, the payment plan you choose can significantly impact your cash flow, EMI burden, and financial peace of mind.

Developers offer multiple payment plans to cater to different buyer profiles — from salaried individuals to seasoned investors. Here’s a breakdown of the most common real estate payment structures you need to know before signing the dotted line:

📅 1. Time-Linked Plan

Payments are made on fixed calendar dates — not based on construction progress.

✅ How It Works:

• Buyer pays fixed percentages on pre-scheduled dates
• E.g., 10% now, 10% every 3 months regardless of whether construction progresses

🎯 Best For:

• Buyers who want predictable payment schedules
• Those who plan finances monthly and want no surprises in cash outflow

🏗️ 2. Construction-Linked Plan (CLP)

Payments are tied to actual construction stages.

✅ How It Works:

• Payments are released in stages as project progresses: foundation, slabs, roof casting, etc.
• Ideal for home loan buyers – banks release funds stage-wise too

🎯 Best For:

• Buyers who want to pay only when work is completed
• Those looking to minimize early financial load

💰 3. Flexi Payment Plan (CLP + DPP Hybrid)

A combination of down payment & construction-linked plans

✅ How It Works:

• Buyer pays 30–40% upfront, rest is tied to construction milestones
• Example: 10% now, 30% in 60 days, 40% at roof casting, 20% on possession

🎯 Best For:

• Buyers who can pay some amount upfront
• Ideal balance of commitment & flexibility

🛑 4. Subvention Plan – Builder Pays Pre-EMI

Buyer pays a small amount, and builder bears the loan interest (Pre-EMI) till possession

✅ How It Works:

• Buyer pays 10–20% upfront
• Builder pays EMI interest during construction
• Buyer starts EMI only after possession

🎯 Best For:

• Buyers with limited upfront funds
• Those who want to delay EMI burden till possession

📉 5. Subvention Plan – Buyer Pays Pre-EMI

Buyer pays only interest (Pre-EMI) until possession

✅ How It Works:

• Loan is disbursed in stages
• Buyer pays only the interest (Pre-EMI) till full handover
• No full EMI pressure during construction phase

🎯 Best For:

• Buyers who can manage interest-only payments
• Good for salaried individuals expecting higher future income

🧠 Which One Should You Choose?

📝 Final Advice:

Before choosing a payment plan:

• Understand your cash flow and loan eligibility
• Read the fine print: some builder subvention offers may hide future costs
• Ask for a payment schedule in writing
• Consult a real estate financial advisor or CA

💡 A good payment plan = less stress, smarter investing, and better ROI.

Visit : Rang Rekha 2 BHK Flats – Bigger Carpet, Better Life!

You tube : 3BHK Ready to move apartment at Mira Road #realestate #flatforsale