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
Read more
Reply
35 Replies
Sort by :Filter by :
  • mathematical conclusion

    could someone give mathematical conclusion to this, or if someone has knowledge or have experienced this... it will be great for clarity if real time example of any project could be given comparing CLP and "no EMI till possession"
    CommentQuote
  • I think someone had posted one, in the pune Forum . Will have to look for it, will post it here, if i can find it .

    Originally Posted by richhaah
    could someone give mathematical conclusion to this, or if someone has knowledge or have experienced this... it will be great for clarity if real time example of any project could be given comparing CLP and "no EMI till possession"
    CommentQuote
  • Called subvention schemes, these r good only for investors who wish appreciation on limited investment. For end user always prefer construction linked plans.
    CommentQuote
  • no its not bad if you are looking at project only as investment point of view.
    advantage that you pay only a small amount ( 25-35 %) from your pocket in 1-1/2- 2yrs.
    con the interest portion tends to be higher as the bank releases money in bigger tranches and earlier than CLP.

    still the scheme is worth looking as the net outgo differential is not very huge in both cases

    Originally Posted by vineetkanwal
    Do you all believe that till no EMI till possession thing is still bad incase of plots and assuming that one doesn't have to pay extra for this option..........pls share your views guys cause i was considering buying a plot under such scheme.
    CommentQuote
  • Originally Posted by MANOJa
    I think someone had posted one, in the pune Forum . Will have to look for it, will post it here, if i can find it .

    Manoj were u able to find that post
    CommentQuote
  • Sorry, forgot to look for it . Let me try now . :o

    Originally Posted by vineetkanwal
    Manoj were u able to find that post
    CommentQuote
  • Originally Posted by MANOJa
    Sorry, forgot to look for it . Let me try now . :o

    thanks a lot
    CommentQuote
  • Sorry, vineet, unable to trace it .

    Originally Posted by vineetkanwal
    Manoj were u able to find that post
    CommentQuote
  • no post

    even i searched in Pune forums but couldnt find it....
    CommentQuote
  • Are you looking for this:

    http://www.rediff.com/getahead/2006/jul/03loan.htm


    Originally Posted by richhaah
    even i searched in Pune forums but couldnt find it....
    CommentQuote
  • Venky/Other members ,

    R there any genuine subvention schemes . What i am asking is that in some subvention schemes, i have seen that the BSP is higher & understandably so, but in some projects, say Ansal Escencia & few others, the BSP is the same, as the normal BSP .

    What is the catch here ? I can understand, offers of subvention schemes at normal BSP, at the time of downturn, but why r builders offering them now, with the project, selling, otherwise too ?

    Could somebody explain this ? Am i missing something here ?
    CommentQuote
  • Originally Posted by MANOJa
    Venky/Other members ,

    R there any genuine subvention schemes . What i am asking is that in some subvention schemes, i have seen that the BSP is higher & understandably so, but in some projects, say Ansal Escencia & few others, the BSP is the same, as the normal BSP .

    What is the catch here ? I can understand, offers of subvention schemes at normal BSP, at the time of downturn, but why r builders offering them now, with the project, selling, otherwise too ?

    Could somebody explain this ? Am i missing something here ?

    In case of same BSP for subvention/CLP May be you can negotiate for a better discount in case you are not taking the subvention scheme

    It's quite understandable why builders would go for subvention scheme following are the advantages for builder

    1) Will get 95 % withing 45 days, in CLP will get only 10-15 % as booking amount

    2) I assume that the builder is actually paying the interest to bank, ROI on a home loan is around 9.5 % or lower, If builder goes to bank to take loan of it's own, They would pay minimum 13-14%, That too if they get it, it's quite difficult these days

    3)No Debt on builder's accounts, So Better Debt/Equity ratio

    4) as a result of above builder can show inflated Sales/Profits

    5) Helps in selling the project, But as Manoja mentioned that doesn't seems to be a problem these days anyways, So this one doesn;t count too much

    POint 3) & 4) Specially helpful for listed players, Can help in jacking up there stock prices

    So Basically subvenation is like DP for builder, And they don;t give DP discount, Rather they pass it on to the Bank, And i guess DP is much better for builder as compared to CLP
    CommentQuote
  • DivyanshuG, thanks, yr. reply was a great help .
    CommentQuote
  • quite right on allpoints except a minor diff.

    the payout to builder is not like dp but still construction linked ( for genuine schemes) only that the payout is in 3/4 big tranches unlike clp where it is 10% odd every 2/3 months. yes builder benefits.

    and yes helps project as even speculators( with sould financial health:)) get in which otherwise would have not. specially true with salaried class who have turned investors...

    Originally Posted by DivyanshuG
    In case of same BSP for subvention/CLP May be you can negotiate for a better discount in case you are not taking the subvention scheme

    It's quite understandable why builders would go for subvention scheme following are the advantages for builder

    1) Will get 95 % withing 45 days, in CLP will get only 10-15 % as booking amount

    2) I assume that the builder is actually paying the interest to bank, ROI on a home loan is around 9.5 % or lower, If builder goes to bank to take loan of it's own, They would pay minimum 13-14%, That too if they get it, it's quite difficult these days

    3)No Debt on builder's accounts, So Better Debt/Equity ratio

    4) as a result of above builder can show inflated Sales/Profits

    5) Helps in selling the project, But as Manoja mentioned that doesn't seems to be a problem these days anyways, So this one doesn;t count too much

    POint 3) & 4) Specially helpful for listed players, Can help in jacking up there stock prices

    So Basically subvenation is like DP for builder, And they don;t give DP discount, Rather they pass it on to the Bank, And i guess DP is much better for builder as compared to CLP
    CommentQuote
  • Thanks for the correction, amit . I was also wondering on the DP point & was about to ask on this .
    CommentQuote