Posted by
Mayank Arora 30 Mar 2016
It seems that a new type of real estate financing scheme has been launched by the brokerage firm Investor Clinic which defies all logic and not sure how this will benefit people. The scheme is called Byaaj Mukt Awas Yojna (www.bmay.in) wherein they are offering interest free loans for 100 months or 8.33 yrs to purchase specific properties.
Here are my pointers on this.
1. Is this a recognized scheme by the finance departments of the govt or will this just another of those NBFC ponzi schemes to rope in gullible investors.
2. I am sure this financing will be recovered by the additional per sqft rate on the said property. Who will govern the additional rate being charged as that can be any amount and thus converting into an additional 15-20% cost of the property which being higher than the current going interest rates.
3. Will the buyer be able to get tax benefits for the installment being paid even on the principal repayment.
4. What is the recognition or the authenticity and the clearance that builder has to develop the project which is normally done by banking institutions before they approve a project.
5. Is the company Investor Clinic or the builder authorized to offer such a scheme
Friends let me have your views on this...
