It can help you save a lot of money during the whole booking process. The flexi-payment plan is a simple combination of a construction-linked plan (CLP) and down payment. In layman’s term, the bank, the customer, and the realty developer cooperate with each other. The bank disburses small amounts of the fee every time a part of the property is completed. It is best suited for middle-income buyers.
In the down payment plan, you’re paying the developer directly. Initially, the customer has to make a simple down payment that corresponds to 10-15 percent of the total property price. The rest 80-85 percent is paid within 30 days after booking. The remaining amount is paid at the time of the possession.
This is the most used payment plan but there’s risk in it as 95 percent of the property cost is paid in advance. Buyers are advised not to use this mode of payment if the developer is not trustworthy.
Better than the down payment plan and CLP, the flexi-payment plan offers two primary advantages. One, the price of the property is down by 5-6 percent, which makes a discernable difference, second, there’s no risk as the payment is never made in advance to the builder. The disbursement of cash depends on the progress of the property construction.
If you are paying under the CLP or traditional plan, you can switch to flexi-payment. However, the switch will cost you. Hence, ensure the program you want to follow according to your requirements before you begin.