27th, Oct, 2025

How to choose right payment plan for your house?

Buying a house is a big dream, but choosing the right payment plan is equally important. A smart payment decision can reduce financial stress, save interest, and help you manage your monthly budget better.

What is a House Payment Plan?

A home payment plan is the schedule of how and when you will pay the builder or developer for your new house. It depends on:

• Project stage (under-construction or ready-to-move)

• Your budget & loan eligibility

• Builder policies

Why Choosing the Right Payment Plan Matters?

Better financial control
Lower loan interest burden
Avoid payment delays or penalties
Peace of mind during construction

Popular Home Payment Plans in India

Construction-Linked Payment Plan

Here, you pay based on construction progress.
Example: Foundation done → 10% payment, Roof done → next 10% payment.

Best for: People taking home loans
Benefits:

• EMI starts gradually

• You pay only when work happens

Risk: If construction delays, your possessions delay too

Ready to plan your dream home?

Use our House Construction Cost Calculator and choose the perfect loan and EMI that fits your budget.

Down Payment Plan

You pay 80-90% amount upfront, the rest at possession.

Best for:

• Buyers with strong savings

• Ready-to-move or fast progressing projects

Benefits:

• Big discounts & offers

• Quick ownership process

Risk:

• High financial burden at once

• More risk if builder delays project

Possession-Linked Plan

Pay major amount once house is ready.
Most suitable for ready possession homes.

Benefits:

• No risk of construction delay

• EMIs start after possession

Risk:

• Property may cost slightly higher

Flexi Payment Plan

Combination of down payment + linked payments.
Example: 30% upfront + remaining with construction.

Balanced option
Can be confusing with extra charges

Subvention Scheme (“No EMI Till Possession”)

Loans are taken now, but EMI paid by builder until possession.

Benefits:

• No EMI stress during construction

Risk:

• If builder delays — you start paying EMIs unexpectedly

• Check builder’s reputation carefully

Ready-to-Move vs Under-Construction: Which Plan to Choose?

Know More: Under-Construction vs. Ready-to-Move Properties 

Smart Tips to Choose the Right Payment Plan

Check builder credibility
Understand total cost (tax, registration, PLC, maintenance)
Compare home loan interest in each plan
Read the agreement carefully
Ask delivery timeline guarantee
Keep an emergency fund (6–12 months of expenses)

How Much Should You Pay Monthly?

A good thumb rule:

Your home EMI should not exceed 30%–40% of your monthly income

Example: If salary = ₹1 lakh/month
Recommended EMI = ₹30,000–₹40,000

Which Payment Plan is Best for You?

Documents You Must Check Before Payment

• RERA registration number

• Builder reputation & past delivery record

• Construction timeline

• Payment schedule written in agreement

• Bank approval for project

Final Advice from a Homebuyer’s Perspective

Choosing the right plan depends on:
Your financial comfort
Project stage
Risk tolerance

Take your time, compare options, and always choose a payment plan that suits your life — not just the builder’s offer.

FAQ

Q1. Which payment plan is best for a home loan buyer?
Construction-linked plan is best because EMI increases gradually.

Q2. What is No EMI Till Possession scheme?
Builder pays interest till possession. You start EMI after moving in.

Q3. Can I change my payment plan later?
Usually no — confirm before signing agreement.

Q4. How to reduce home loan burden?
Pay higher down payment + prepay EMI whenever possible.