Before committing to a payment plan, get clear answers on how instalments are tied to construction, what the booking amount actually locks in, how a home loan interacts with the builder's schedule, and what the cancellation or refund terms are — each is a question for the sales team or your lender, not something to assume.
Understand what type of plan you're being offered
Common structures include construction-linked plans (instalments tied to building milestones), down-payment plans (a large upfront payment for a discount), and possession-linked or flexi plans. Ask which structure applies, and get the exact milestone-by-milestone breakdown in writing rather than a summary percentage.
Questions for the sales team
These are worth asking before you pay a booking amount, not after.
- What exactly does the booking amount secure, and is it refundable, and under what conditions?
- How is each milestone in a construction-linked plan verified and communicated?
- Are GST, stamp duty, registration and society/maintenance deposits included in the quoted schedule, or additional?
- What is the cancellation policy, and how much is refunded if you withdraw at different stages?
- Is there a written penalty or interest clause for late instalments, and does it apply symmetrically if the builder delays a milestone?
Questions for your lender
If you plan to use a home loan, ask your bank or NBFC how disbursements will align with the builder's payment schedule, since loan disbursement is typically also linked to construction stage. Confirm your eligible loan amount and processing timeline before you commit to a payment date with the builder, to avoid a gap between what the builder expects and when your loan actually disburses.
No financial advice implied
This article lists questions to ask, not a recommendation on how to structure your finances. Loan eligibility, interest rates and suitability depend on your individual circumstances — confirm details directly with your bank or a qualified financial advisor.