Choose a home loan plan that suits you!
Purchasing a house sounded a mammoth task a decade ago, which required a handsome cash outlay. It is now made easy by developers through various plans. Home buyer can choose from the plan as per his flexibility. The favourite ones are Construction-linked plan or CLP, Time-linked plan or TLP, Down payment plan or DP and Flexi payment plan.
Construction Linked Plan (CLP): In this plan home buyer can play the cost in pre-determined installments to the builder, at various stages of construction. It is a very result oriented plan and the home buyer does not end up paying more than what is agreed up on by both the sides. This plan helps, home buyers to have better fund management. In a market where most projects are running behind schedule, CLP is considered the best option.
Time Linked Plan (TLP): In this plan the home buyer is required to pay installments at various points of time, irrespective of development. The time line is set during the signing of the deal. The advantage of this plan comes from the fact that the buyer can pre-plan his instalment as the dates are known in advance. Developers normally offer discounts to TLP home buyers.
Down payment Plan (DP): This can be considered as the traditional method of loan repayment. The customer is required to pay around 10-20% of the total value of the loan while signing the deal and balance is to paid on a time period not exceeding 90-120 days or lower. DP promises good discount. It is advised to choose this option only when the track record of the developer is good and home buyer has liquidity.
Flexi payment plan: This plan is a combination of both the down payment plan and a construction linked plan. This plan is becoming popular these days as it offers the flexibility of CLP but is more cost effective.