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
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  • 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.
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  • 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.
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  • you pay more

    Originally Posted by Trublu
    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
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  • In NOIDA you just lose the DP discount.

    In Gurgaon you lose the discount and also pay 200 Rs more than with CLP
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  • 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 :bab (4):
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  • Thanks all

    Thanks all for your valuable inputs.
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  • in flexi and clp plan..at what time EMI starts after possession or right from the begining?
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  • Originally Posted by gaurav1
    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
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  • Originally Posted by AmitMM
    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.
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  • Originally Posted by vinaybhatia
    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.


    EMI starts after 2 years/possession, which ever is earlier. Normally, in actual circumstances , possession is after 3 or 4 yrs.
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  • Please check out tranche EMI option also - more details in NOIDA and Pune fora. It is the best option
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  • Also if you want to sell the flat after6 months/1 year this option take all your profits as you have already paid much higher cost than the market
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  • 1. Normally No EMI schemes hasve psqft prices a little higher .. e.g. 150-200 psqft more

    2. Also there aoption of Smart home loan, where Actuall EMI starts after 18 mnths normalyy, till then u need to pay preEMI(only interest on loan disbursed)


    So if planning to sell it off, option 2 is also ok, as not much is paid in per EMI in during initial mnths..


    For self use or long term keep, also option 2 ok, as it is construction linked so a little risk free if at all builder flees ... and otherwise too EMI burden start little later when you actually get a feel of progress of project ...

    And you can prepay even before your EMI starts.. this bring ur EMI down even before it starts ..
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  • 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.
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  • 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.


    could you share the details about this plot ?
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