Posted On March 4, 2019 by One Rajarhat
When it comes to buying a home in a preferred location, home buyers often find it difficult. Several considerations come into play at this time. The problem turns worse even when properties are available in the affordable price range, but the buyers fail to finalize on the location. Moreover, location of a property, being one of the most important aspects, it’s important to consider it from various perspectives at the same time.
However, if you are planning to buy a 2 BHK premium apartment in Rajarhat Newtown,you can now avail that based on the subvention scheme.
So what’s subvention? Precisely, this is a usual mortgage finance structured to provide payment flexibility, so as to alleviate burden on the buyers. The term has been derived from the Latin term ‘subventus’ or “to help”.
What is Pre-EMI? How it is Related with Subvention Scheme?
Before we move into what an interest rate subvention scheme is all about, let’s probe into the concept of Pre-EMI and how it is considered to be a burden on the buyers.
To purchase an under construction property in India, one has to make regular payments on the basis of the construction progress. This payment plan is known as construction linked plan. Following the purchase agreement, the buyer has to make several frequent payments to the developers from his savings or the home loan account that he/she has. In case of the latter, the home buyer has to pay the EMI incurred per month from the loan. Quite obviously, he is paying money for the home he is not even using. This payment is called the Pre-EMI (Equated Monthly Installment).
Needless to say, such kind of pre-EMIs is no less than an unjustified burden on the taxpayers. Since the property is in a construction stage, the buyer can’t even let it out and earn rent. Purchasing a property is one of the biggest decisions in one’s life. But, before becoming the owner they have to pay rent for the house they are staying as well as the EMI accrued from the home loan.
Subvention Scheme at One Rajarhat
To help the home buyers, One Rajarhat has recently announced subvention on their luxury apartment at Rajarhat. According to this, home buyers are required to pay only 20% of the entire property price at the time of booking and avail the rest of the amount from bank as home loan. Right from that time till the project completion, the EMI of the bank will be paid by the developers and the homeowners will start paying the EMI, post possession.
With that said, it’s undeniable that a subvention scheme is basically a win-win for buyers, real estate developer and banks alike. For a buyer, an interest discount is certainly a help, especially when he is going to make such a huge investment. On the other hand, banks as well as the developers are going to get more business in tough markets due to the subsidized interests.