No EMI Till Possession What does it Means?
“No EMI till possession� is one such offer. This is also one of the most innovative and recent pitch applied by builders and people into real estate. Though it sounds very attractive and a great option, it is important to study about this offer in deep before making any type of investment.
BENEFITS
Customer’s Benefit: Until the construction of the property is complete, customer can enjoy interest-free loan amount. It is also a guarantee that the builder will not delay the construction completion as thing will work-out in a more scheduled manner. The more the builder delays completion on construction, he will end up paying interest for the same period.
Bank’s Benefit Without any advertisements and other expenses, banks will get customers readily by signing up with builders on Such projects. The regular return on loan provided will be available plus the chance of default is very minimal.
Builder’s Benefit: Instead of opting loan from commercials lenders, builders can make use of this option to fund their construction. It will also help in getting customers instantly. The interest which the builder will have to pay on the properties until possession is quite lesser as compared to the loan they get from commercial lenders. No EMI until possession scheme is also called as “subvention scheme�. Being property builder, all you need to pay is just 20% of the property value until possession.
Benefits of the No EMI Scheme? Timely Project Completion When one goes for a no EMI till possession scheme for an underconstruction project, the builders are the ones who are paying the EMIs on your behalf till they hand it over to you. This ensures the completion of the new residential complex (project) on time.
Good Appreciation Value Since you just pay 20% of the property estimation as an upfront installment for your property, you have leverage until the point when you get ownership. Generally, most of the real estate project take roughly 3 years to get finished.
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