Realty cos now offer EMI incentives

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.