a) A subvention scheme or No EMI plan is when you pay a small portion of the total cost at the time of purchase. The buyer pays 5% to 25% of the full price at the time of the purchase and the rest of the balance at the time of possession. A scheme like this makes buying a house much easier. Also, it is the better option for payment when investing in something like a house.

The benefit is that you have the time to collect the remaining amount till the time of possession. If you take a home loan, the EMI begins only after possession.

b) It is a simpler and more affordable option when you are investing in a house. Whether you plan to pay the entire amount through savings or take a home loan and pay in installments, either way a subvention scheme will help you save your money. The contract of a subvention scheme states that the developer will pay the interest on the home loan until the construction is complete. This scheme eventually helps you save on cost. Also, up until the time of possession, you pay only a nominal amount.