New Delhi: A viral Reddit post has sparked a heated debate about how builders deceive homebuyers by offering no EMI schemes and forcing them to wait a long time to receive their dream homes. The Reddit post has resonated with many on social media, with several users saying that investing in a ready-to-move-in flat is the best choice.
No EMI till possession trap
Taking to Reddit, a user has shared how builders with their “No EMI till possession” scheme trap lakhs of Indians into paying EMIs for homes that they may never receive. “It starts with a dream, your own home. The builder offers a “No EMI till possession” scheme. You pay 10% upfront, the bank releases 80% of the loan, and the builder promises to cover pre-EMIs for 2–3 years. Sounds safe. But that’s exactly how lakhs of Indians got trapped,” the Reddit user said.
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The Reddit user said that around 4.3 lakh homebuyers across India are stuck paying EMIs for stalled projects. “Builders stopped paying, vanished, or kept dragging construction for years. Meanwhile, buyers are paying both rent and EMIs for homes they’ll likely never receive,” the user said.
The Reddit user explained that the ugly truth is that the home loan “is in your name, not the builder’s. If they default, the bank still comes after you. Even if the house isn’t delivered, you must pay. Miss an EMI? Your credit score takes the hit.”
According to the Reddit user, builders misuse these schemes by diverting funds to other projects, faking milestones and issuing fake completion certificates. “Cities like Noida, Thane, Greater Noida, and Gurugram have tens of thousands of such stalled units,” the user said.
The Reddit user said that for many families, it is a financial nightmare with years of savings lost, future income locked up and nothing to show for it. “Some booked homes when their kids were in school; today, the kids are in college, and the home is still a construction site,” the user said.
Concluding his post the user cautioned homebuyers to “Never fall for “No EMI till possession” traps. Avoid subvention schemes unless you’ve verified every detail; RERA registration, escrow accounts, builder’s financials. In real estate, trust without verification is how dreams turn into debt.”
No EMI till possession: Netizens react to viral post
The Reddit post has touched a chord with many on social media and several users have shared their personal experience with builders.
One user commented, “People have no choice…..they have to take the risk…”
Another user said, “Booking flat before construction is like paying double the amount. Never invest unless the flat is almost ready to move in.”
“Buy Ready-to-move-in houses and whatever you have paid extra, try to cover that by prepayment and Pre-closure. Saving in the interest paid. Do I make sense?” said another user.
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One user commented, “Another reason to rent and not buy.”
“unfortunately in buying land, building or construction Trust plays a great role and there isnt any way one can verify this especially in the space where the players aren’t known or aren’t familiar,” said one user.
One user commented, “So no relief what so ever? Rera, courts fir etc are shams? Asking because My Relative in a similar situation, 200 families affected!”
“It seems India has no strict rules/laws to protect the buyers. If buyers are protected in the West, why can’t they be protected in India? Where are things going wrong? Is somebody going to tell me, India is special, where such rules and laws to protect buyers/consumers cannot be implemented? That is nonsense. It seems nobody cares to do anything the right way!!!” said one user.