Under Construction Payment Plans Explained
Pay Smart, Not Fast!

1. Construction-Linked Plan (CLP) – The Safest Option

How it works: You pay in installments linked to actual construction milestones — foundation (10%), ground floor (10%), each slab (5-8%), finishing (10%), possession (5-10%).

• Pros: Your money flows only as work progresses. If construction stalls, your payments stop too. Lowest risk for buyers.
• Cons: Usually no discount offered. Total cost may be slightly higher than other plans.
• Best for: First-time buyers, risk-averse investors, salaried professionals.

2. Time-Linked Plan (TLP)

How it works: Payments are scheduled at fixed time intervals (every 3-6 months) regardless of construction progress.

• Pros: Predictable payment schedule helps with financial planning. Sometimes comes with 2-3% discount.
• Cons: You may pay even if construction is delayed. No link between your payment and actual progress.
• Best for: Business owners with irregular income who prefer fixed schedules.

3. 50-50 Plan (Subvention Scheme)

How it works: Pay 50% upfront (booking + initial amount) and the remaining 50% at possession. No EMI during construction period.

• Pros: No EMI burden while waiting for possession. Good if you're currently paying rent and can't afford both.
• Cons: Large upfront amount needed. If possession is delayed, your 50% is locked with the builder.
• Best for: Buyers who have savings but want to avoid double payment (rent + EMI).

4. Down Payment Plan (DPP) – High Risk, High Reward

How it works: Pay 80-95% of the flat cost upfront within 30-90 days of booking. Remaining at possession.

• Pros: Typically comes with the highest discount (5-10% off). Maximum savings if the builder delivers on time.
• Cons: Maximum risk. Almost all your money is with the builder before construction is complete. If the builder faces financial trouble, you're most exposed.
• Best for: Only if the builder has an impeccable track record AND you're getting a significant discount.

Which Plan Should You Choose?

If you're salaried: Construction-linked plan is your safest bet. Your risk is minimized and payments align with progress.

If you're a business owner: Time-linked or 50-50 plans offer flexibility that suits irregular income patterns.

Golden rule: Never choose a plan just for the discount. A 5% discount isn't worth it if it puts your entire investment at risk. Pay smart, protect your money, and let construction progress earn your trust.