Hello Folks,

Please help me in deciding which one to go for - Subvention scheme or CLP for one of the Jaypee Projects in the wishtown. I am relatively inexperienced in the matters of property and would appreciate quick help from the senior members:

Subvention Scheme benefits:
1. Save your money for 2 months, invest in some FD and pay to the bank at the start of EMI (after 2 years) so that the overall loan liability reduces.
2. No hassle of part payments to the builder. As such no calculation and re calculations for the EMIs you will have to pay.

1. In case of dispute in the property- you will have to fight with the mighty builder to get the bank's money back !

CLP benefits:
1. Let the bank disburse only the amount you need. You can club your own money with the bank's money to make payments. As such you withdraw the minimum required from the bank and hence lesser loan liability.
2. In case of project delays, you have time to make payments by your own.

1. If the bank does not provide the facility of repaying the principal as soon as you withdraw the money, you will suffer in case the project is delayed after say 50% construction is done. This is because you will have to pay only the interest till you get possession. since the duration increases due to delay, you pay more interest.
2. Hassles of part payments, calculations and re calculations may result in an error at your end!

Please share your views....add to the points above or comment on them ....
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  • pls see "Is subvention plan a good option" thread...