Payment Plans: The Three Types
When buying an under-construction property in Pune, you choose from three payment structures:
1. Construction-Linked Plan (CLP) — The Standard
Payment tied to builder’s construction milestones. Bank verifies milestone completion before disbursing funds.
Typical CLP milestones:
| Milestone | Payment % |
|---|---|
| Booking / token | 2% |
| Agreement execution | 8% (total 10%) |
| Foundation / excavation | 10% |
| Slab 1 | 10% |
| Slab 2 | 10% |
| Slab 3 | 10% |
| Structure completion | 15% |
| Finishing work | 10% |
| Occupation Certificate (OC) | 10% |
| Possession | 5% (balance) |
Pre-EMI under CLP: You pay interest only on what the bank has disbursed. Starts low (10% disbursed = low interest) and rises as construction progresses.
CLP advantage: Your payment risk is tied to construction progress. If builder is delayed, your disbursement is delayed — you don’t pay for work not done.
2. Time-Linked Plan — Developer’s Preference
Payment tied to calendar dates, not construction milestones:
| Date | Payment % |
|---|---|
| Booking | 10% |
| Month 3 | 20% |
| Month 6 | 20% |
| Month 12 | 20% |
| Month 18 | 20% |
| Possession | 10% |
Risk: You pay even if construction is behind schedule. Some builders prefer this as it gives them cash flow independent of construction speed.
RERA protection: Under RERA, builders must refund money with interest if they fail to deliver on time — time-linked plan doesn’t override this protection.
When to accept: Only from developers with a verified on-time track record. Avoid from unknown developers.
3. Down Payment Plan — Discount in Exchange for Cash
Pay 80–90% upfront, get a 3–6% price discount:
| Stage | Payment % |
|---|---|
| Booking | 10% |
| Within 30–60 days | 70–80% |
| Possession | 10% |
Buyer advantage: 3–6% discount on ₹1.15 Cr = ₹3.45L–6.9L saving. Minimal pre-EMI (bank disburses almost everything upfront).
Buyer risk: Maximum exposure if builder defaults. Best for Tier 1 national developers (Lodha, Godrej, Kolte-Patil) where risk of non-delivery is low.
Pre-EMI vs Full EMI: The Cost Analysis
Many buyers underestimate pre-EMI as “just interest” — it adds up significantly:
Lodha Panache 3 BHK (₹1.55 Cr, 15-month build period, ₹1,16.25L loan):
| Month | Disbursed | Pre-EMI |
|---|---|---|
| 1–3 (foundation) | ₹23.25L (20%) | ₹16,469 |
| 4–6 (slabs 1–2) | ₹46.5L (40%) | ₹32,938 |
| 7–12 (structure) | ₹81L (70%) | ₹57,188 |
| 13–15 (finishing) | ₹1,04.6L (90%) | ₹74,025 |
| Total pre-EMI (15 months) | ~₹6.2L |
That ₹6.2L is a real cost that must be factored into your total investment.
What to Negotiate on Payment Plans
Negotiable items (especially at end of phase or slow sales):
1. Delayed payment start — “Can I start paying at slab 1 instead of booking?” — some developers allow 3–6 months of deferred payment for the right buyer.
2. Flexi plan price discount — If you have upfront capital, ask specifically for the flexi plan and the exact discount offered. Compare across developers: Lodha typically offers 2–3% flexi discount; regional developers sometimes offer 4–5%.
3. 10:90 plan — Pay 10% now, 90% at possession. Useful for buyers who expect existing property sale proceeds by possession date. Check if your bank will fund the 90% at that point.
4. Subvention scheme — Developer pays your pre-EMI during construction (you pay nothing until possession). Popular in 2015–20 but now RERA-restricted. Verify current availability — some developers offer modified versions.
Lodha-Specific Payment Plans
Lodha projects (Panache, Magnus, Altero) typically offer:
Standard CLP: Milestone-linked as described above. Bank pre-approval from SBI/HDFC/ICICI is built into the sales process.
Flexi plan: Available for select phases. Discount: 2–3%. Requires 40–50% upfront within 60 days of booking.
Corporate salary hold: For buyers from large IT companies (Infosys, TCS, Wipro) with company housing loans, Lodha’s finance team coordinates directly with corporate HR loan programs.
Checklist Before Signing an Agreement
- Confirm RERA registration and possession date in the AFS matches RERA filing
- Understand which plan you are on (CLP vs time-linked) — confirm in writing
- Verify bank has pre-approved the project (faster disbursement, vetted project docs)
- Calculate total pre-EMI cost over the construction period
- Check penalty clause for late possession (RERA mandates interest at SBI MCLR+2%)
- Confirm the payment schedule matches the bank’s disbursement eligibility dates
FAQs
Q: What happens to my pre-EMI if the builder is delayed? Under RERA, if possession is delayed beyond the committed date, you are entitled to interest at MCLR+2% on amounts paid. This interest can be adjusted against outstanding payments or refunded. You continue paying pre-EMI to the bank regardless — but you can claim the RERA compensation from the builder.
Q: Is CLP better than time-linked for a first-time buyer? Yes — CLP aligns your risk with construction progress. Time-linked requires trust in the builder’s timeline. For first-time buyers: insist on CLP or RERA-backed agreement.
