Buying a property is a major financial milestone, and not everyone can pay the full amount upfront. To make the process easier, developers now offer several payment plans, allowing buyers to pay in instalments. Understanding these options helps buyers select a plan that suits their financial situation.
Gone are the days when lump-sum payments were the only option. Today, developers provide options like construction-linked plans, flexible payment plans, time-linked plans, down payment plans, and possession-linked plans. Each comes with its own advantages and risks.
Types of Property Payment Plans
1. Down Payment Plan (DP Plan)
This is the traditional plan where buyers pay most of the property cost upfront.
Payment Schedule:
| Timeline | Payment (%) |
|---|---|
| At booking | 10–15% |
| Within 40–60 days | 80–85% |
| At possession | 5% (includes society charges, taxes, etc.) |
Advantages:
- Attractive discounts up to 10% on total property cost.
- Suitable for buyers working with reputable developers.
Risks:
- High financial exposure if there is a construction delay.
- Legal risks if the developer faces bankruptcy.
2. Construction-Linked Plan (CLP)
Payments are tied to construction milestones rather than time.
Example Payment Flow:
- 10–15% at booking
- 10% after 45 days
- 20% after completion of fifth floor, and so on
Advantages:
- Lower risk for buyers, as payment is linked to progress.
- Encourages developers to complete construction on time.
Risks:
- Buyers with home loans may need to pay EMIs while waiting for construction to complete.
- Delays in construction increase financial burden.
3. Time-Linked Plan (TLP)
Payments are made as per a fixed schedule, regardless of construction progress.
Advantages:
- Easier to plan finances due to predictable payment schedule.
- Some developers offer discounts for on-time payments.
Risks:
- Payments must continue even if construction is delayed.
4. Flexi-Payment Plan (FPP)
A combination of down payment and construction-linked plans.
Payment Flow:
- Around 50% upfront before construction begins
- Remaining paid in instalments linked to construction
Advantages:
- Initial discount and flexible payments for the rest.
- Suitable for buyers with varying budget availability.
Risks:
- Construction delays or disputes can increase financial burden.
- Home loan EMIs may overlap with rent or other expenses.
5. Possession-Linked Payment Plan (DPP)
Also called deferred payment, this plan requires a small initial booking amount, with the majority due after possession.
Payment Schedule:
| Timeline | Payment (%) |
|---|---|
| At booking | 20–25% |
| After possession | 75–80% |
Advantages:
- Low initial investment
- Time to arrange remaining funds until possession
- Easier exit if plans change
Risks:
- Limited availability
- Requires developers with trustworthy track records
Choosing the Right Payment Plan
There is no “one-size-fits-all” plan. Selection depends on:
- Budget and cash flow
- Payment frequency preferences
- Home loan availability
- Developer credibility
Developers may also offer customized payment plans, so always review options for the specific project before committing.
FAQs
There are several types of property payment plans, including down payment, construction-linked, time-linked, flexi-payment, and possession-linked plans. Developers may also offer customized plans for specific projects.
This plan divides the total property cost into four instalments:
- 20% at booking
- 20% after a few months
- 30% during mid-construction
- 30% at possession
It’s a type of time- or milestone-linked plan that spreads payments evenly.
In this plan, buyers pay 1% of the property price per month until the property is completed. It is typically used for affordable housing projects to make the investment more manageable.
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