By Admin 
Real Estate News: The ‘No EMI till possession’ offer has become one of the most circulated offers in Indian real estate, especially in under-construction housing projects. This idea seems to be quite popular for buyers who are already struggling with rent, down payment and rising property prices.
Often the builder promises the buyer that he can book the flat right away and he will not have to pay the loan EMIs every month. But many home buyers are able to understand its entire system properly only later. Sometimes, when they realize that the financial burden has not completely ended. It’s just adjusted differently.
EMI does not end completely
The most important thing is that in most cases the home loan actually starts when the bank starts paying money to the builder. Along with this, interest also starts accruing from that time itself. In a “No EMI till possession” condition, the builder usually agrees to pay the pre-EMI interest till the buyer gets possession.
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This is the reason why the buyer does not feel the burden of making payments every month. However, the loan remains in the name of the buyer only. If there is a delay in the project or the arrangements change, then difficulties may arise later.
The final price of the property may increase
The ‘No EMI till possession’ scheme may make the buyer feel like they are getting a huge financial discount. However, the truth is that developers already add these expenses (carrying cost) to the full price of the flat. In some projects, projects with such schemes may be priced slightly higher than similar flats without such schemes.
In some cases, developers cover the costs themselves because it is more important for them to accelerate sales during times of low demand. In any case, buyers should weigh the total cost of purchasing a home rather than just focusing on short-term EMI relief.
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Offer works when the project is strong
According to financial buyers, such a scheme often helps in transferring money during construction. But the biggest misconception is that the biggest reason for buying property is ‘no EMI till possession’. Remember, a strong developer, timely possession, necessary approvals and proper completion of the project are more important than some temporary relief in repayments.