New Down Payment Norms in Mumbai

Q: I came to know that new down payment norms is being offered by the real estate developers in Mumbai. I want to know more about it.

Rakshit, Mumbai

19th August 2013

Real estate News in Mumbai

mumbai real estate

new down payment norms

buying a house in mumbai

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Add to what Mr Shrikant said the scheme is being brought out with a mutual understanding between the builders and banks. The new scheme will help the buyers in easing out the burden of down payment by halving it. A buyer is expected to save about 50% on the interest costs. The negative impact on the bank is not much as it will gain more customers for loans. The developer too can offset a hit by gaining more buyers.

Lalit Verma, Mumbai

19th August 2013

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Who are the builders who have already announced this scheme?

Rakshit, Mumbai

19th August 2013

Tata Housing has already announced the 10:80:10 scheme for its 'Amantra' project on the Thane-Kalyan road. It has currently tied up with Axis Bank, Tata Capital and HDFC for this scheme. Depending on the response to this project, the developer may extend the scheme to few other projects.

Lalit Verma, Mumbai

19th August 2013

Nirmal Lifestyle, another builder has come up with a 10:10:80 scheme for its 'Sports City' project, which is a minor variation to the above scheme. Here, a buyer will make a down payment of 10%, another 10% at the beginning of the construction and the remaining 80% on slab basis depending on the stage of construction. This scheme is rolled out in association with HDFC, ICICI Bank and India Bulls Finance.

Lalit Verma, Mumbai

19th August 2013

Hi Shrikant, Can you elaborate about the scheme if you have any idea about it? Thanks in advance.

Rakshit, Mumbai

19th August 2013

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The common scheme for making payments till now while purchasing a house has been the 20:80 mode, where a buyer pays 20% of the total amount as down payment and the remaining 80% as EMIs. The new scheme, which is 10:80:10 will give a breather to cash crunched buyers. In this new scheme, the buyer has to pay only 10% as down payment, 80% through bank loans during the construction period and the remaining 10% after taking possession of the property.

Shrikant Kejriwal, Mumbai

19th August 2013

Yeah even I have heard about it. As the property prices continuously go up everyday in Mumbai making it more difficult to buy a house, realtors in association with banking corporations have come up with new upfront payment norms in an attempt to woo more property buyers. The new upfront payment norms may be a sweet news for buyers who are planning to shelve their plans of buying a house in Mumbai due to the current norms of down payment and burden of EMIs.

Shrikant Kejriwal, Mumbai

19th August 2013

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