A home purchase is a significant life choice. It involves an enormous financial investment. The fact that buying a home is so expensive keeps many people from making the decision. Home loan EMIs might be intimidating, but construction linked payment plan home loan can help buyers realise their ambition of owning a home without immediately burdening them with high EMIs.
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What is CLP payment plan?
The CLP full form in real estate is the construction linked payment plan. When you purchase an under-construction project, you do not give the developer the whole sum of the flat cost upfront. The developer may charge for the flat in accordance with the stage of development under the terms of the Real Estate Regulatory Act (RERA).
Calculate your EMI on a home loan via the NoBroker EMI calculatorHow does a CLP plan work?
In this arrangement, the bank continues to give the developer funding for project construction based on the project's real progress. Keep in mind that the bank is actually lending the money to the buyer in this case rather than the builder directly.
However, because the project is still only on paper, it gives the builder the loan money in installments based on the progress of the development.
Simply put, the bank will transfer to the builder a fraction of the total borrowed funds from the buyer each time a specific phase of the project is finished.
Benefits of CLP:Lowers the risk for banks and buyers.
Uninterrupted and timely cash disbursal for the building project.
Lower cost of borrowing for the builder.
Chance to book a property at lower rates, for buyers.
I’d like to conclude my answer here about the construction linked payment plan. I hope this helps:)
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Construction Linked Payment Plan?
Riya
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2023-05-20T10:55:21+00:00 2023-05-20T12:59:41+00:00Comment
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