An offer loaded with benefits! Subvention Scheme

An offer loaded with benefits! Subvention Scheme
What is a Subvention Scheme?
The word “Subvention” means “granting of money, especially by government”. In real estate the term “subvention” is used in a different context, however.
Here when you decide to buy a home, you can book it by paying an initial payment & the bank pays the entire loan amount to the developer upfront.
If you buy a home under this scheme you will own a house without having to pay any interest till a stipulated time period or possession.
The scheme is also known as 20:80 scheme as the buyer only has to pay 20% as the total cost initially.
Subvention Scheme Advantages:
You will not be burdened by the EMIs during the construction period.
Here you do not pay EMI till possession, so here the money that would have gone in an EMI can be saved and put elsewhere as support investment.
You can also reap benefits of the price appreciation while you don’t pay the EMI.
If the buyer or the investor is staying in a rented accommodation then there will be no monetary pressure of paying both EMIs and house rent.