Interest subvention scheme is a grant by the government which allows the repayment of EMI loan to start after the possession of the property has taken place by the buyer. In an interest subvention scheme the buyer, bank and developer form an agreement according to which the buyer has to pay a certain percentage of the total amount (usually between 5% to 20%) and rest is paid by bank in the form of a loan which is given to the distributor or developer at different construction stages. I hope interest subvention meaning is clear to you now.
What are the features of interest subvention?The interest subvention scheme is introduced to provide a much needed boost to the real estate market by the government. Here I am enlisting a few features of the interest subvention for you:
Interest subvention is different from the subsidy as there is nothing free in it.
Interest subvention is just a financial aid to support home buyers. Buyers don’t have to pay all the money at once
EMI in interest subvention scheme starts post possession of the property
The scheme is highly beneficial for those who live in a rented accommodation and want to pay the EMI after getting the possession of property.
Until the possession of the house is given to the buyer, developer pays the interest cost till possession or the time period as mentioned in the agreement
In an interest subvention scheme, the developers and builders have an incentive to complete their project in time to get the complete amount due on the property.
I hope now you know interest subvention meaning.
You can check out more information about subvention scheme in real estate here. If you wish to get maximum home loan at best interest rates, check out NoBroker Home Loan ServicesYour Feedback Matters! How was this Answer?
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Authors Of The Question
What is interest subvention?
Mayank
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1 Answers
3 Year
2021-09-20T13:00:24+00:00 2021-09-21T12:30:14+00:00Comment
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