Subvention Scheme: A Win -Win Situation In The Market! May be Not?

Taking a house loan is not only a big task but it also comes with bundles of baggage. The recent update in the realty market is that of subvention scheme. The term is nothing but a relief for those who have booked their properties which are still under construction. The subvention scheme in easy terms is that process wherein a buyer books his property by paying approximately the 30% amount and the remaining amount is then paid by the bank which is in turn, the loan for the buyer.

The highlight of the scheme is that the developer of the property until the possession has to bear the interest. The scheme is surely a boon for the buyers in one aspect because the projects these days witness quite a lot of delay.

The sky-high prices of the properties are surely unreachable by the masses. In such a scenario it is a relief when one does not have to pay for both the rent and the EMI.

Well, all is not rosy and fair in this scheme. Before you get all excited about that luxurious apartment have a look at these points –

• Once the subvention period is over, the buyer stands at a loss too. The EMI on the 80% loan will begin irrespective of the construction being carried on.
• The buyer stands at fault if the developer fails to pay the EMI. This happens because the bank holds the record of the buyer and not the developer.
• The budget kept in for the property may get all varied if the project is delayed. It can happen that the customer eventually ends up paying a lot more than he initially intended to.

With its benefits and comforts, the subvention scheme is also like inviting a wrath to oneself. Experts also suggest that every scheme has its own motive and likewise in the subvention scheme the cost of the property is higher and is already inculcated in the plan.

It also creates a misfit for the consumers because during the lock-in period of the scheme one cannot sell the property.

Lastly, go for this scheme only if the builder has a dependable history. One can also check the progress of the developer’s other projects.

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