Hello members,

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

Any Idea, anyone??

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  • I talked to one HDFC guy and he said that you can pay interest+principal on part payments made under CLP. Yes you need to clarify everything before going for a plan.
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  • I hav a Q'n: suppose my flat cost is 30L and bank finance (24L) (80%)...and I don't pay EMI till 2 yrs...if interest rate is (10%) tenure 20yrs then total amt in 2 yrs would be Rs 555864 (EMI paid by Builder to Bank). And if builder takes Rs 200 more than CLP in this case, then for 1000 sqft amount would be only 2L and we can save directly Rs 355864 (No EMI till 2 yrs) and if we could save this amt then we can give downpayment at the time of possesion (i.e. remaning loan amt = 24L - Rs 355864 - principal deduct in 2yrs) and finally our EMI will be less after possesion (even bank takes slightly higher interest rate) and relief from immediate burden and full tax rebate after possession.
  • Originally Posted by vikas11
    hi sandeep,
    as u hv said ur budget is 80 lacs and rest u will paid by loan so why not go for subvention scheme in bptp new launc in 37d in which u dont have to ur emi and interest for 24 months.

    vikas ji good day....well when someone says "BPTP" ,"Naam he kaafi hai"....
    I have got 2 Prop with BPTP (Centra one commercial and park prime resid)
    The company is not just corrupt but investing in it is a nightmare.I am very much familiar with the working and regarding the subvention plan of 37D,First off all the Sector itself is a disaster....and secondly Subvention indicated Compete payment at the end of 24 months and i am sure or you can say i am damn sure that in 24 months you will see only the excavation part.so if someone wants to bbuy BPTP Then better to go with the CLP.

  • Subvention plan is the most dangerous plan to get in especially when the builder is of the likes of BPTP. In this arrangement, which is a tripartite agreement, bank releases the entire cost of the project to builder and you enter in the project by paying 20% of the EMI.

    The day 24 months get over , you start paying the EMI for the full amount. Worst part is there are no buyers for such deals in the secondary market so you get stuck with the builder till the time they hand over the project to you.

    Secondly, in case of BPTP be rest assured that in 2 years they will not go beyond 4th or 5th floor. Delivery wont happen in less than 6 years. See their past record. None of the projects have been delivered in less than this time frame across NCR.

    There is one interesting thread on IREF which was started by disgruntled customer of Unitech Vista on SPR who had bought a property under subvention 3 years back. Since last 1 year there has been no progress in Vista and in worst case scenario he will have to wait for another 4 years to get the possession. EMI's are killing him and there are no takers for this property in resale.

    So be very very clear of your goal and finances before taking a plunge in Subvention scheme ....

    All the best


    Originally Posted by krishna99
    Dear Ankit
    Help me understand.
    Are you saying that in subvention scheme, the financial agency releases all the money to the builder in one go at the begining of your agreement? Do they ask for EMI payment for the complete payment from the buyer after 24 months of subvention?
    In such case the builder's may delay the project execution, take all the money from the financial agency and the buyer would have to pay EMI after 24 months of subvention for the entire amount?

    If this is the case it would be better to stick to the CLP with a builder like BPTP
  • Subventions Schemes by Gurgaon Builders- GOOD or BAD?

    As we can see unitech promoting lot of their projects in Subvention scheme and lot of people go for these scheme thinking these are beneficial.

    I made Calculator with certain assumption which can guide anyone whether they should invest in Subvention scheme or not. Calculator is made on assumption of exit time of 24 months which is mandatory in any subvention scheme


    lets discuss it and help those people who come to IREF to get right suggestions.

    also add scheme available in subvention
  • Subvention schemes are extremely difficult to sell later on.
    they are suicidal in gurgaon where normal completion time of a projects is 5-7 years.
  • true Manu and thats why this calculator will help those people, who dont agree with your or my statement
  • Originally Posted by vibhusjain
    true Manu and thats why this calculator will help those people, who dont agree with your or my statement

    Subvention is LOOT by Builder-Bank Nexus..
  • You are right Sohna road and its our job to help our friends in IREF to understand this game
  • Originally Posted by amit001
    I have a few question on the Subvention Schmes..

    I am planning to buying an apartment in Subvention scheme for 24 months. I would need your help with the following questins:

    * If i sell the house in 3-4 months. What option will the new buyer get after buying in resale. Does he need to pay the 100% of the value of the flat either viw cash or via a bank loan

    * If i sell the house after the end of the subvention period after 24 months. Will the buyer needs to pay the 100% of the value of the flat via cash or via a bank loan. In nay case after 2 years 60-70% payment would have gone.

    * Can a resale buyer of a unit which was taken buy the initial allotee in Subvention ask the developer to convert into a CLP plan
    Lastly on a diffferent note if a person take a bank loan under the CLP scheme. Will the emi get calculated on the amount which the developer has demanded till the date of loan or will it be on the total amount for ex - when 20% is gone emi will be on 20%, when another 10% goes to the developer emi get increased and so on and so forth and on the delivery of the unit the emi will be on the total value of the house.

    Would really appreciate all your help.

    Best Regards

    Hi Amit,
    I am new to this forum. I see this thread was initiated in 2011. By the way, did you get this information? I am looking precisely for the same.
  • Hi

    Subvention scheme is not a good option for short term investors. It is most suitable for end users who are living on rent and can't afford to pay rent and PEMI at the same time.

    In subvention scheme I pay 15-20% of the amount and bank disburses 75-80% of the amount to the builder. The remaining 5% is paid on possession. Builder gets the amount from the bank on day 1 and he pays the bank the PEMI at around 10.5% rate of interest which is a very nominal rate of interest for the builder.

    If i plan to sell the property after 4 months the new buyer will have to pay entire 95% amount and subvention scheme is not transferred. For new buyer this is like buying a unit in Down payment plan.

    Builder will not convert the plan to CLP at any cost.

    The biggest pitfall in subvention scheme is in the case when builder doesn't start construction. In that case after 24 months my EMI will start and builder would have charged only 40% for the CLP units. In that case the entire beauty of this product gets defeated. So one has to be careful and please judge the credentials of the builder before committing oneself for the same.

    Also the rate of the unit in subvention scheme is higher than in CLP. Please also ensure that the calculation is done to ensure that we are not paying a huge premium upfront to the builder in going for the Subvention scheme.
  • Subvention scheme is good for those who --
    1. have not enough income to support EMI + rent
    2. r Ready to afford extra cost for Subvention scheme (Prateek wisteria Subvention scheme ) is great example . cost difference is any where from 5-10 lacs ruppes for subvention and without subvention.

    Bank interest is already added in the flat cost .
    In most of the cases you can find same flat in resale at much lower price
    Prateek Wisteria 955 Sqft 55 Lacs in subvention // where as same flat in resale you can get for 47 lacs.

    Subvention has its own beniffits with cost, if you ready to pay go for it.
    Make sure that you go for subvention with CLP option only.
    Subvention + Downpayment + Bad builder is suicidal .
    Happy investing
  • Originally Posted by eyeopener
    BlessU Ji

    How it makes the difference?


    Hope PLP is not a trap like any subvention scheme.

    In the subvention schemes, the builder saps the entire leverage worthiness of the buyer and loads the BSP with the interest cost for the subvention period. Builder gets money and the buyer is likely to be knocked off his feet when the EMIs start hitting the bank. Reason.. construction gets delayed because of builder, authorities, approvals etc etc.

    If under the PLP, the payment is after completion certificate and with the date of conveyance deed execution, it provides security to the buyer. Uncertainty still haunts, whether the builder is obliged to conclude the construction, apply for OC and whether govt provides infra/approval within the proposed period under PLP.

    The comparison comes up if the offer for PLP is similar to CLP, as the builder takes away 30% within 90 days in most cases and 90% with brick structure.

    This is also reflective of builders eagerness to sell stock so that he can pay off his immediate liabilities. I see more innovative products, sops, freebies being launched by other builders to cope with the current slow market.

  • BPTP Pedestal , i got email from HDFC bank , which says Subvention is till only 30th Sep 2015 but it was sold on condition until possession
    any body has any info about it , i guess all buyers need to get it clarified from builder

    Dear sir,

    We have recently signed up for a Pre-EMI subvention scheme with BPTP for their project Pedestal Floors and Visionnaire Homes, Sector 70/70A, Gurgaon. Please go through the features below carefully.

    Salient features of the scheme are as follows :
    Scheme is available for all fresh bookings in individual name.
    Standard ARHL rates as per loan slab will apply to all loans.
    No loans at fixed ROI please.
    Cost components : Basic, PLC, EDC, IDC and Car Parking only. All other charges are to be borne by the customer.
    LCR is to be maintained at 80% of property cost as per cost components defined above for loans upto Rs 75 lacs, and at 75% of property cost for loans above Rs 75 lacs.
    No pro-rata disbursements can be done under the scheme.
    No Insurance funding to be done
    No Tranching of loan to be done

    Disbursement Pattern under the scheme
    On booking : 15% of cost by customer
    Commencement of construction : 25% of cost by HDFC
    On FF Slab : 10% of cost by HDFC
    On SF slab : 30% of cost by HDFC
    On external plaster completion : 10% or 15% of cost by HDFC depending on LCR offered
    On offer of possession : 5% or 10% by customer depending on LCR offered
    All properties to be selected from regular property masters
    BPTP will subvent Pre-EMI interest on behalf of the customer from date of first disbursement till 31st Aug 2015 for Visionnaire Homes and upto 30th Sept 2015 for Pedestal Floors.
    Please use the FRIL calculator to run the subvention calculations and fix internal adjustment for the recovery of subvention amount.
    Beginning Sept 2015/Oct 2015, customer will need to start paying Pre-EMI/EMI to HDFC at the then prevailing ARHL rate. End of subvention term may not coincide with offer of possession as this is a fixed period subvention scheme.
    Customer is free to make prepayments as per current prepayment policy. However, if any prepayments are made during the subvention period, no Pre-EMI will be refunded to the Builder/customer under any circumstance.