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Moumita Bakshi Chatterjee

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New Delhi, May 11 Smarting under a correcting realty market and sluggish buying sentiments, real-estate players are scrambling to raise end-user demand through offers that promise to ease EMI burden until possession.

So, while realty companies including Parsvnath Developers are publicising ‘No EMI until possession’, others such as BPTP and Gaursons are offering two-year EMI holiday on specific projects.

“For those who are currently living on rent, the scheme makes sense as the EMI burden kicks-off only after possession,” says Mr Amit Raj Jain, Vice-President (Marketing) of BPTP. BPTP’s group housing project, ‘Resort’, in Faridabad offers a two-year ‘Pre-EMI interest’ to the bank on behalf of buyers.

Parsvnath’s Sonepat project, ‘Parsvnath Preston’, reimburses the EMIs paid prior to possession. “Such value-addition is gaining popularity as the customer is motivated to make the down payment and can then relax till possession. From the point of view of the developer, it ensures timely completion of the project as the fund flow is assured,” Dr B.P. Dhaka, COO, points out.

KDP Infrastructure has advertised ‘No pre-EMI for 18 months’ upon payment of 15 per cent of the booking amount on its ‘Grand Savanna’ project in Ghaziabad; Gaursons India makes a ‘No EMI up to 24 months’ offer to buyers of ‘Gaur Grandeur’ at Noida; and JMD Gardens’ project in Gurgaon promises that EMI payment would start ‘only after Grah Pravesh’.

Market observers point out that such offers provide an edge to the developer as well. “If the builder raises the money from the market to complete the project, he would avail himself of the funds at about 15-20 per cent interest rate, whereas in this case he gets assured booking at 10.5 per cent, which is the applicable rate for home loan borrowers,” says PNB Housing Finance MD, Mr V.K. Khanna.

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