Subvention Scheme Makes Home Buying Easy!

nearing possession flats in Wagholi Annexe

It’s always easier to buy a home through convenient loan schemes. Subvention Scheme is one such scheme that makes the process of buying a home absolutely easy for you!

Till recently, buying a home really meant a humongous challenge…for it was not without burning a huge hole in your pocket. Something a common man or a self made person could not even dream of! However, today there is a change in the situation. A change for good.  Owning a home is your right and schemes like PMAY and Loan subvention scheme would enable you to assert it!

If you have no home in your name and are a first time home buyer, it’s even easier! You can avail of PMAY (Pradhan Mantri Aawas Yojana). Besides, you can benefit by the Subvention Scheme-a new form of banking financing for new homes. Avail of this scheme; and you won’t have to pay any Pre-EMI till fixed period or possession. This means that all interest would be paid by the developer. Thus, the banks or financial institutions disburse 80% value to the company. So, instead of passing the payment discount to the customer; the company pays the PRE-EMI component to the bank on behalf of the customer for a specific period according to the subvention plan.

Subvention Scheme is a new form of bank financing for home loans. According to this scheme, after an individual applies for a loan for a property under construction, the concerned person need not pay any Pre- EMIs till fixed period or possession i.e., all the interest till fixed period or possession will be paid by the developer. So, basically you own a property without having to pay any interest till fixed period or possession! Currently, banks have agreed to this form of financing only for Category A developers. Under the subvention scheme the banks / financial institutes disburse 80% of the value of the property to the company and instead of passing the Payment discount to the customer; the Company pays the PRE – EMI (interest) component to the bank on behalf of the customer for the specific period as per the subvention scheme plan. The loan would be sanctioned / disbursed to you by the bank based on your eligibility to repay the loan. Thus, the bank lends the money to the end user or end buyer, that’s you!    The bank does this irrespective of EMI sharing scheme. It just finances your home loan on the basis of the cost of your flat. The bank always extracts EMI from the buyer’s (your) account. On the contrary, if you go for the subvention scheme, the banks deduct the EMIs from the builder’s account.

Benefits for the home buyer 

  • A pre EMI holiday till fixed period or possession where you get time to plan for the finances.
  • Ideal for customers who are living on rent. In the beginning, the buyer pays rent and no EMI, later s/he pays EMI and no rent.
  • An initial payment of 15% – 20%. This eases your financial load on customers.
  • Customers are able to source loans from the bank at a lower rate than the market rate.
  • The involvement of the bank ensures that the customer’s investment is safe.
  • Greater return on investment
  • Customer will not have to pay any instalment or interest against the loan.
  • The interest payable by the customer for the applicable period will be shouldered by Developers.
  • EMI will start only after a specific period or after possession as per the terms agreed to by the customer with the bank.

If you are on a hunt for 3/2 bhk flats in Wagholi, find your ultimate destination at Suburbia Estate. This attractive residential complex offers you 1, 2 & 3 bhk residences along with decent amenities. Besides, a refreshing community life comes as welcomes add- on!

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