Dear All,

Many cities like Delhi, Jaipur etc builders are offering scheme known as ZERO EMI or No EMI till possesion.

Unable to find any such projects in Pune. In case anyone is aware of any such schemes offered by any builder please let me know.

Regards
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  • May be because, average number of projects getting delayed is quite large in Delhi region whereas the same figure is lower in Pune.

    Anyway, Zero EMI doesn't make any sense. You pay some % while initially booking the property (which is also huge money) and you lock yourself at the mercy of the builder.

    This initial money acts as a source of liquidity and source to repay the huge debt owned by the developer class. So, its a trap for ordinary buyers.
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  • How does it works? Most of the builder does construction on buyer's money, buy giving them demand letter after certain level construction is complete.
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  • Zero EMI means instead of taking loan from bank at 18% or more, builder uses you as a scrapegoat to get money at 10%p.a. However, the risk is not lying with builder, so should he default, the buyer will have to pay full loan back to bank, as the loan is on his name.

    In India, individuals cannot say that since flat is not complete, bank cannot demand full payment. If the builder doesn't build the building, or defaults on payments, then first your guarantor will be targetted, then your properties/assets will be auctioned till bank recovers its amount.
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  • Originally Posted by TheTruth
    Zero EMI means instead of taking loan from bank at 18% or more, builder uses you as a scrapegoat to get money at 10%p.a. However, the risk is not lying with builder, so should he default, the buyer will have to pay full loan back to bank, as the loan is on his name.

    In India, individuals cannot say that since flat is not complete, bank cannot demand full payment. If the builder doesn't build the building, or defaults on payments, then first your guarantor will be targetted, then your properties/assets will be auctioned till bank recovers its amount.



    Originally Posted by Hairpin
    May be because, average number of projects getting delayed is quite large in Delhi region whereas the same figure is lower in Pune.
    Anyway, Zero EMI doesn't make any sense. You pay some % while initially booking the property (which is also huge money) and you lock yourself at the mercy of the builder.

    This initial money acts as a source of liquidity and source to repay the huge debt owned by the developer class. So, its a trap for ordinary buyers.


    That means bakra mat bano.

    if a builder is offering zero emi scheme .. it means builder may default and buyer is left high n dry
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  • Originally Posted by BaagadBilla
    That means
    bakra mat bano.
    if a builder is offering zero emi scheme .. it means builder may default and buyer is left high n dry


    Hey, what you say seems true. If the builder defaults then the buyer is in trouble for sure. Are there any good builders in Pune who have been carrying out such transactions effectively and truthfully?
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  • Who said this is not in Pune ?

    check this :
    http:// www. guardiandevelopers.in/

    these folks have rolled out a 100 % interest free scheme
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  • Originally Posted by ashwinrath
    check this :
    http:// www. guardiandevelopers.in/

    these folks have rolled out a 100 % interest free scheme


    ashwinrath; the link is not working Ashwin. You have any alternate link.
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  • Originally Posted by bsuman7
    ashwinrath; the link is not working Ashwin. You have any alternate link.


    Please copy the link to your browser and remove spaces. IREF doesnt allow external links in their site.
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  • HI,
    1. This Zero EMI scheme is not actually a Zero EMI till possession scheme. It will br for 24 months or 36 months (please check the fine print in agreement)
    2. If you ask your banker (As I did in may case) he will tell you till what date the agreement (Tri-party agreement) is valid. In my case a renouned builder told me that you do not have to pay EMI till possession(i.e till year Oct 2018), but when I asked the bank they said that the tri party agreement says that builder will pay EMi till Dec 2016 only after which "It is responsibility of OWNER or Builder to pay EMI on time" note that OWNER is writeen first. I canclled the deal and got saved from a debt trap.
    3. Always be careful about this legal documents, if one does not understant it please hier a lawyer for this (its better to pay some small amount to laywer as a part of consulting fee) rather than creeping for rest of the life
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  • Basically, in this ZERO EMI till possession scheme, buyer does not pay in monthly installments after his loan is sanctioned. Builder pays EMI by giving post dated cheques for the decided tenure. Now that tenure can be year or more. But the catch is that builder only pays interest of your EMI and principal amount is deducted from the owner of that property (buyer). In such schemes builders already have tie-ups with banks or other financial sources.
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