All you need to know about Loan Subvention Scheme!

Buying a home of their dreams is something every human strives for in their lives. It involves a large sum of money that is accumulated over years of hard work and persistence. It’s almost like putting a piece of your heart into something. Not everyone is capable of paying for their dream house right away. Loans assist you in making the purchase and offer you the benefit of paying back through regular EMIs. It is important to fixate on the type of home you are willing to buy before beginning the process. The government has taken the initiative to boost homeownership in India and has taken several steps to make that possible. After reducing the stamp duty and the loan interest rates are at their lowest, they have also introduced a new type of loan called a subvention scheme. Let’s learn all about the loan subvention scheme.

What is Loan Subvention Scheme?

The literal meaning of the word subvention means a grant of money. A Subvention Scheme is a legal three-party agreement made between the buyer, the seller, and the finance company providing the home loan. According to the agreement, the buyer can avail of a loan to buy a house and doesn’t have to pay interest on the respective loan for a predetermined agreed period as mentioned under the contract. This is an assist provided by the government. Many real estate developers offer subvention schemes. The buyer has to pay 5% to 10% of the cost of the house in advance. The remaining amount of money is paid in the form of a loan. This scheme is beneficial to the people looking to buy homes as they don’t have to pay the loan amount until they have acquired possession of the property.

Benefits of the Loan Subvention Scheme

The Subvention Scheme is highly beneficial to homebuyers. It is also beneficial to the bank and the developer.


  • The person doesn’t have to pay back the loan money to the bank or the finance company unless or until he gets possession of the house and even then, the payment is through EMIs
  • After paying the advance, the construction on the property can begin, and the remaining finances are taken care of using the loan money
  • The scheme helps the buyer with price appreciation during the construction period.


  • The scheme ensures a steady flow of funding towards the project at low risk.
  • Real estate developers only pay the interest amount or the pre-EMI on behalf of the customer


  • The processing time for the scheme is lesser than normal loans
  • Banks attract a larger customer base by offering compatibility with such schemes


At Pyramid Lifestyle, not only do we guide you towards your dream homes, we help you claim them through a smooth and hassle-free procedure. We prioritize the quality of your lifestyle and ensure that our contemporary projects keep up with you. We have tie-ups with many banks that minimize the processing time for home loans and give you the delight of homeownership much quicker. Visit to know more about us and our projects!

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