What is a Payment Plan in Real Estate?
A payment plan in real estate is a method by which the total cost of a property is paid over time, rather than all at once. It outlines when and how much the buyer needs to pay during the buying process. These plans are usually shared by the builder or seller at the time of booking. Real estate payment plans may include details like booking amount, payment at different construction stages, and final amount at possession. This structure helps both the buyer and seller stay clear on financial terms throughout the property transaction.
What Are Different Types of Payment Plans In Real Estate?
When buying a property or investing in reale state, knowing how and when to pay is just as important as selecting the right home. Types of payment plans in real estate are structured to give buyers flexible options that suit their financial situation. These plans make the purchase process easier by breaking down payments into clear stages.
Here are the most common payment plans for real estate buyers in India:
1. Down Payment Plan
In the Down Payment Plan, the buyer pays about 80–90% of the total property cost upfront at the time of booking. The remaining amount is paid at the time of possession. This plan is suitable for buyers who have the financial strength to make a large initial investment. Many builders offer attractive price discounts under this plan since they receive funds early. However, the risk is higher for the buyer, as most of the money is paid before the project is completed. It’s important to go with a trusted builder if you choose this option.
2. Construction-Linked Plan (CLP)
Under the CLP, payments are made in phases according to the construction progress of the property. For example, you pay at the time of foundation, then again at the time of slab casting, brickwork, and so on. This is one of the safest and most widely used real estate payment plans. It reduces financial risk for buyers, as you pay only when visible work is completed. It’s ideal for those who want more control and wish to avoid paying large sums early in the process.
3. Flexi Payment Plan
The Flexi Payment Plan is a flexible combination of the Down Payment and Construction-Linked Plans. Here, the buyer pays a fixed amount (usually 30–50%) at the time of booking, and the rest is linked to the construction milestones. This plan is good for buyers who can afford to pay a bigger amount upfront and still want to manage the rest in smaller stages. It also benefits builders by improving cash flow early on in the project.
4. Possession-Linked Plan
In this plan, the buyer pays a small percentage (usually 10–20%) at the time of booking, and the remaining large portion (up to 80%) is paid when the property is ready for possession. This is a good choice for buyers who want to avoid tying up large funds in under-construction properties. It reduces the financial burden during the construction period and gives buyers peace of mind that they’ll pay only when they get possession of the property.
5. Subvention Plan
A Subvention Plan is often used in partnership with banks. The buyer takes a home loan, but the builder agrees to pay the interest on the loan until the property is ready for possession. This means the buyer doesn’t have to pay any EMIs during construction. EMIs begin only after receiving the property. It’s a convenient option for buyers who are also paying rent or managing other financial responsibilities. However, it’s important to ensure that the builder and project are RERA-approved and bank-approved.
6. 30:30:40 Payment Plan
In a TLP Payment Plan, the buyer makes payments based on a fixed schedule, not on how fast the construction is moving. For example, you might have to pay 10% every three months, no matter what stage the project is at. This plan is less flexible compared to others because the payment timeline stays the same—even if the builder faces delays. It’s important to check the builder’s track record before choosing this option.
7. What is 10:90 Payment Plan in Real Estate?
Under this plan, the buyer pays only 10% at the time of booking, and the remaining 90% at the time of possession. It’s ideal for buyers who want to reduce risk and avoid early financial burden.
These payment plans for real estate offer flexibility and ease, so you can choose what suits you best.
What Are the Benefits of Real Estate Payment Plans?
Buying a property is a big decision, and not everyone can pay the full amount at once. That’s why real estate developers offer different payment options to make the process smoother and more comfortable. These plans allow homebuyers to choose how and when they want to pay, based on their financial situation. Here are some simple and real-life benefits of real estate payment plans:
1. Easier on Your Budget
You don’t have to arrange a huge amount all at once. Payment is spread out, making it easier to manage.
2. Flexibility in Payment
Different plans offer flexibility—whether you want to pay more upfront or delay most payments till possession.
3. Better Financial Planning
Since payment stages are defined clearly, it becomes easier to plan your finances and manage EMIs or savings.
4. Reduced Loan Burden
Some plans, like subvention schemes, reduce your EMI burden in the early stages by letting the builder cover the interest.
5. Risk Management
Plans like construction-linked payments ensure you only pay when work progresses. This helps protect your money and reduces the risk of delays or incomplete projects. It also lowers the chances of falling into real estate fraud, as your payments are directly linked to actual construction milestones.
What is the Best Payment Plan for You?
SPJ Vedatam is thoughtfully designed across multiple levels to accommodate a variety of commercial needs—from retail showrooms to entertainment spaces and food outlets. Each floor serves a distinct business purpose and offers investment flexibility based on size and budget.
Real estate payment plans are designed to offer flexibility—but the best choice is the one that aligns with your current financial situation and future plans. Speaking to a trusted property consultant in Gurgaon can help you understand the details and make an informed decision based on project stage, builder reputation, and legal approvals.
Need Help with the Right Property or Payment Option?
ADXCORP is a trusted real estate company in Gurgaon, offering expert guidance for residential and commercial property investments. We help you understand project details, compare real estate payment plans, and choose the right option based on your goals. Our team believes in honest advice, timely updates, and a people-first approach.
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FAQ
A 20/20/30/30 payment plan means you pay 20% at booking, 20% during construction, 30% near completion, and 30% at possession of the property.
A One Percent Payment Plan allows you to pay just 1% of the total property cost every month until possession. It’s designed to make buying easier with smaller, regular payments.
Example:
If a property costs ₹50 lakhs, you pay ₹50,000 per month (1%) until the full amount or possession is reached. This plan helps reduce the upfront burden and is often offered in under-construction projects.
The best payment plan depends on your budget. CLP, 10:90, or down payment plans offer different benefits based on payment ease and project stage.
Aayush Thakur
Hi, I’m Ayush Thakur, a Real Estate Consultant in Gurgaon with 10 years of experience. I specialize in commercial, residential, and retail properties, helping clients find the best deals with expert guidance for a smooth buying, selling, or investing process.