All glossary terms

Financing and payments

Subvention scheme

Definition

A payment plan in which the builder bears the home-loan EMI for the buyer until possession or for a fixed period, in exchange for which the buyer pays a higher headline price.

Subvention schemes spike in popularity during slow markets when builders want to make a project feel affordable upfront. Buyers should look at the all-in cost over the construction period rather than the EMI alone.