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Developers banking on 20:80 scheme

Comments(2) Sub Category:Mumbai,Residential Real Estate Posted On: Sep 23, 2012

The mid-sized developers are banking upon the 20:80 scheme in the upcoming festival season.

It has been considered a popular marketing tool to attract buyers amidst a slowdown in the real estate business. Under the scheme, which is known as the ‘subvention scheme’, a buyer has to pay only 20 per cent upfront, while the remaining 80 per cent is paid at the time of possession.

Interest subvention schemes are a modified form of financing home loan, where a buyer of an ‘under construction’ property is not required to pay monthly EMIs for a defined time-frame, or until he takes possession.

It is being considered highly favourable for consumers as they can expect to save around Rs 2-3 lakh on interest cost.

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