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  • Construction-linked plans suit buyers who are not in a position to make a huge financial commitment.

  • Banks usually give two kinds of loans for such plans. First, the loan is for the initial contributions and only pre-EMIs are charged.

  • The loan increases with each installment to the builder and the pre-EMI amount goes up.


  • Regular EMIs start only after the final disbursement has been made.

  • Since the pre-EMI Home Loan Offerspain is lesser in earlier years, this suits buyers who expect their income to rise in the next few years.

  • They can also use the pre-EMI period to repay loans taken for the down payment.


  • In the second type, EMIs are based on the entire loan amount sanctioned even though only a portion is disbursed.

  • The interest is very small in initial years and a bigger sum goes into repaying the principal.

  • Source: http://timesofindia.indiatimes.com/business/personal-finance/Pick-the-right-payment-plan/articleshow/49622928.cms


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