Subvention Scheme
What Subvention Scheme means
A builder-bank arrangement where the developer pays the home loan interest on behalf of the buyer until property possession, marketed as "no EMI until possession". The cost is typically embedded in a higher property price.
Example
A "9:1 subvention" offer asks you to pay 10% booking amount; the builder services interest on the 90% bank loan until possession — but the flat is often 5–8% more expensive than comparable non-subvention properties.
This definition is based on NHB – Advisory on Subvention Schemes ↗. We link every figure to its primary source — see our data methodology.
Related loan cost terms
- Margin MoneyThe borrower's own contribution towards the purchase price of an asset — the gap between the asset's cost and the loan amount. Also called down payment or own contribution.
- Processing FeeA one-time, non-refundable charge levied by the lender to cover the administrative cost of evaluating and processing a loan application; typically 0.25%–2% of the loan amount.