144,372+ Members
   Get Started   Latest Posts Search Today's Posts Mark Forums Read
IREF® Real Estate in India - Property Discussion
IREF® - Indian Real Estate Forum > Real Estate in India > Real Estate Gurgaon > Subventions or 80:20 or No EMI Schemes by Gurgaon Builders- Calculator vs CLP
Reply
 
LinkBack Thread Tools Search this Thread
Old August 6 2010, 08:49 PM   #1
Member
 
vikramwix's Avatar
 
Join Date: Jan 2010
Location: Gurgaon
Posts: 199
Likes Received: 15
Likes Given: 0
My Mood: Bashful
Icon18 Subventions or 80:20 or No EMI Schemes by Gurgaon Builders- Calculator vs CLP

Hello members,

Wondering what's the catch with "No EMI till Posession" thingy being promoted by Companies like MAPSCO etc....


Any Idea, anyone??

Thanks,
Vikram
 
Old August 6 2010, 09:40 PM   #2
Member
 
Join Date: Jul 2010
Posts: 177
Likes Received: 1
Likes Given: 0
My Mood: Fine
Default No EMI

First catch is --it is "No EMI till 2 years" instead of "No EMI till possession", even for Ramprastha Edge Tower.So your EMI may start before possession. Though the builders ASSURE that possession will be offered within 2 years but even builders are not sure about their assurance ( that is why they offer No EMI for 2 years instead of No EMI till possession ).

Second catch is that the BSP per square foot for EMI scheme is Rs 200 more than the normal CLP, so your EMI will start late but will be higher than a person whose EMIs start at usual time.

Third catch is that usually bank interest rate will be higher if you are taking loan under this scheme in comparison to normal house loan because only a few banks are participating in such scheme and therefore you can't shop freely for ur home loan and bank will take advantage of that in the form of slightly higher interest rate than ur real worth.

Fourth catch is that if construction is delayed for any reason u'll be paying monthly EMI at the end of 2 years onwards whereas the guy who booked on construction linked payment plan will not be paying any money to the builder.

So No Interest no EMI till 24 months scheme is not good for the buyer.

the scheme is for such buyers who can't afford both rent and EMI for 2 years .

Benefit to the builder is more than buyer because builder gets 95 percent of the TSP within 45 days ( 15 percent from the buyer and 80 % from the bank ) and builder pays the interest to the bank for 2 years using the money charged extra from you ( Rs 200 per sf ).So builder gets 95 percent of the TSP without giving any down payment discount.

Anyone who has availed this scheme may better explain the merits and demerits.
 
Old August 6 2010, 09:59 PM   #3
Member
 
Trublu's Avatar
 
Join Date: Jul 2010
Posts: 183
Likes Received: 17
Likes Given: 67
My Mood: Inspired
Default

Even though the bank pays the builder 95% of the total amount due, you would not be eligible for the usual downpayment discount on the bsp.
 
Old August 6 2010, 11:43 PM   #4
Member
 
Join Date: Jul 2010
Posts: 177
Likes Received: 1
Likes Given: 0
My Mood: Fine
Default you pay more

Quote:
Originally Posted by Trublu View Post
Even though the bank pays the builder 95% of the total amount due, you would not be eligible for the usual downpayment discount on the bsp.
Rather you pay 200 psf more than CLP
 
Old August 8 2010, 09:07 PM   #5
Veteran Member
 
Venkytalks's Avatar
 
Join Date: Sep 2009
Location: New Delhi
Posts: 5,467
Likes Received: 1844
Likes Given: 234
Default

In NOIDA you just lose the DP discount.

In Gurgaon you lose the discount and also pay 200 Rs more than with CLP
__________________
Venky (Please read FORUM RULES watch a VIDEO or SEARCH FAQs before posting)
 
Old August 19 2010, 08:59 PM   #6
Member
 
Join Date: Aug 2010
Posts: 242
Likes Received: 0
Likes Given: 0
Default

scheme like no EMI looks good on paper

but i am against it as this is nothing but just like buying shares without paying full amount & just giving margin money to share broker

people should understand that in such scheme if for some reason builder fails to give u possession in time for some reason or the other than banks will going to knock your door for the monthly EMI,hence it will be the user who will going to suffer at the end if things go wrong

but on the other hand one can argue if onc pays advance money for booking & keeps paying money according to CLP plan & than if things go wrong at the end at the time of possession for some reason than again user will going to suffer for all what he has invested as interest cost will be a huge burden

the things i want to say is that this so called NO EMI scheme will going to create bubble in realestate at some point in future where some buliders will going to play this card of NO EMI to attract investor & end user by giving them a dream of getting a house they want by just paying 10 -15 % money of actual flat value

this will going to create artificial demand in realestate & will harm the actual user who want to buy a dream house for living

unless banks play a responsible role & protect users in case of any liability because of bulider not fulfilling his agreement such things should be stopped

" just a thought "

cheers
 
Old August 20 2010, 04:27 PM   #7
Member
 
vikramwix's Avatar
 
Join Date: Jan 2010
Location: Gurgaon
Posts: 199
Likes Received: 15
Likes Given: 0
My Mood: Bashful
Default Thanks all

Thanks all for your valuable inputs.
 
Old August 20 2010, 04:38 PM   #8
New Member
 
Join Date: Aug 2010
Posts: 32
Likes Received: 0
Likes Given: 0
My Mood: Cool
Default

in flexi and clp plan..at what time EMI starts after possession or right from the begining?
 
Old August 20 2010, 05:24 PM   #9
Veteran Member
 
Join Date: Jul 2010
Posts: 2,094
Likes Received: 289
Likes Given: 48
My Mood: Cheerful
Default

Quote:
Originally Posted by gaurav1 View Post
in flexi and clp plan..at what time EMI starts after possession or right from the begining?
as far as i know
usually till the time of posession you pay pre-emi which is just the interest portion of amount dispursed by bank. the emi starts after possession.
more info from members welcome on this
 
Old August 20 2010, 07:58 PM   #10
Veteran Member
 
Join Date: May 2010
Posts: 1,666
Likes Received: 299
Likes Given: 163
Default

Quote:
Originally Posted by AmitMM View Post
as far as i know
usually till the time of posession you pay pre-emi which is just the interest portion of amount dispursed by bank. the emi starts after possession.
more info from members welcome on this
Amit is correct. One has to pay pre-emi for the portion of the amount disbursed by the bank. Actual emi will start after possession.
You will not get any tax rebate on pre-emi payment.
 
Reply
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Join IREF Now!    
Related Threads
Subventions Schemes by Gurgaon Builders- GOOD or BAD?- CLOSED
Rent vs Buy Calculator
Tired Realty Market Offers Subvention, NO EMI Schemes Lure in Gurgaon- CLOSED
Home Loan Eligibility Calculator
Fixed deposit schemes offered by builders


Tags
scheme, subvention
".Gurgaon.", ".Haryana."India