For Instant Help, Call
India +91 9717000592
Ask a
QUESTION
You are here: Home > Home Loan > Subvention Scheme

Subvention Scheme


Subvention scheme in home loan is a new form of bank financing for home loans. As per this scheme, once an individual applies for a loan for an under construction property, for the first 2 years of the loan period, the borrower need not have to pay any EMIs, i.e., all the interest for first two years will be paid by the concerned  builder/ developer. So, principally you own a property without having to pay any interest for 24 months. Currently, banks have agreed to this form of financing only for Class A builders.
The scheme allows a buyer (after paying upfront amount and getting the balance amount financed by banks) to hop paying any EMI (Equated Monthly Installment) for a property under construction -- till the time of charming its possession. The statement sounds interesting: the developer will pay the EMI till the property is not ready. It is only after that the building work is complete that the owner needs to pay to the bank the principal amount along with the interest.
Benefit s?
For example, X buys a property of 1000 sq ft for the rate of Rs. 2000 / sq ft. X decides to avail a home loan for this and hence, makes an initial down payment of Rs. 4, 00,000 and the bank finances Rs. 16, 00,000. After necessary calculations X realizes that he has to pay Rs. 17000 EMI every month.
In 2 years time, the property value has shot up to Rs. 3000/ sq ft.
X just pays Rs. 4, 00,000 in the first 2 years. (Only down payment, no EMI for the first 2 years).
Hence, with enhance in the property price in 2 years, X has seen a gain of 150%.
So, visibly with the bank subvention scheme, investors benefit more.

Below are popular projects funded under Subvention Plan are:

CHD Avenue
Orris Aster court Premier..
Vatika Premium floor
Gurgaon golf course
Emaar Marbella Gurgaon
BPTP Amstoria


 

Resources

Home Loan FAQs
Frequently asked questions about home loans in India. Read More

Choosing Right Home Loan
If you are planning to buy home, learn more about home loans features and processes. Read More

Quick Calculators

Check out the quick tools & other award winning calculators

Personal Finance Guide

Looking for your everyday amount of clean and effective financial control content and articles?

Untitled Document

Apply Loan Instantly

For expert assistance, fill in the form
We will contact you in 15 Minutes !
Purpose*:
Loan Amount*:
Property Location*:
Name*:
Mobile*:
E-mail*:
 

Can't read the image? click here to refresh

SPEAK TO AN
EXPERT NOW

Provide us with your
Mobile Number & our
experts will call you

Home Loan Interest Rates

HDFC Bank 10.75% - 11%
Reliance Finance 11%
Dhanalakshmi Bank 12%
Barclays Bank 11% - 11.25%
HSBC 10.75% - 11%
Kotak Mahindra Bank 11.25% - 11.50%
DHFL 11.25% - 11.50%
Indiabulls 10.50%- 11.25%
First Blue 10.50% - 11.75%
Citi Bank 10.50% - 11%
Standard Chartered Bank 10.75% - 11%
Axis Bank 10.75% - 11%
ICICI Bank 10.50% - 11.75%
Deutsche Bank 10.75% - 11%
T & C apply* Know More