One of the biggest challenges in buying a property in Thane is the financial aspect. Even with competitive home loan options, the monthly interest and down payment can be a difficult proposition for several prospective homeowners.
This is where the subvention scheme gains traction wherein the buyer pays a fixed percentage of the home value and the balance on possession of the property. However, there are several aspects that need to be considered when it comes to this scheme. To help you make an informed choice, here we bring you everything you need to know about this scheme.
Subvention Scheme
A subvention scheme is a financial arrangement between the buyer, the developer, and the bank. Under this scheme, the buyer is not required to pay EMIs (Equated Monthly Instalments) until the possession of the property.
Key Features of a Subvention Scheme
- This scheme is a three-party agreement between the buyer, developer, and the bank.
- The prospective homeowner applies for a loan for their 2 BHK luxury home in Thane under the subvention scheme and is required to pay a down payment. After this, during the construction phase, the developer pays the interest on the loan to the bank.
- Once the property is ready for possession, the buyer starts paying the EMIs, which include both principal and interest.
Benefits of the Subvention Scheme
- This scheme is a three-party agreement between the buyer, developer, and the bank.
- The prospective homeowner applies for a loan for their 2 BHK luxury home in Thane under the subvention scheme and is required to pay a down payment. After this, during the construction phase, the developer pays the interest on the loan to the bank.
- Once the property is ready for possession, the buyer starts paying the EMIs, which include both principal and interest.
Benefits of the Subvention Scheme
1. Buyers do not have to worry about paying EMIs while their upcoming flat in Thane is being constructed, easing their financial burden. This allows buyers to save or invest the money that would otherwise go towards EMIs.
2. The scheme makes homeownership more affordable, especially for first-time buyers.
3. Developers are motivated to complete the project on time since they are responsible for the interest payments leading to timely project delivery.
4. Affordability increases as buyers need to pay only a small portion of the total cost upfront, usually 10-20% of the property value.
Factors to Consider in a Subvention Scheme
1. Some developers may charge a premium for properties under the subvention scheme to cover the interest cost they bear during construction. Be sure to check for property prices with or without the scheme and always opt for a credible real estate developer in Thane such as Ace Realty.
2. Carefully read through each term and condition before signing a contract. It may be advisable to consult a legal professional to ensure there are no hidden clauses in your agreement.
Conclusion
The subvention scheme can be an attractive option for homebuyers looking to reduce their financial burden during the construction phase of a property. While it offers several benefits, it can also include potential risks, such as higher property prices. To ensure your dream of purchasing a 2 BHK property in Thane comes true in the best possible way, always pick a reputed and trusted builder such as Ace Realty.
