Short answer: The key payment plan questions are what type of plan it is, what event triggers each demand, who certifies that stage, how much is due early, how fast your bank pays, and what interest you owe if you're late. A down payment discount has to be large to beat a construction-linked plan once you count the cost of paying early.
- Plans differ in who carries the risk. A construction-linked plan ties your money to progress; a down payment plan hands it over early.
- Break-even: at 8.5%, a down payment plan needs a discount of about 10% to match a three-year construction-linked plan (our estimate).
- Late payment costs you too. Karnataka's interest rate for late buyers is the same as for late builders: SBI's highest MCLR plus 2%.
- No more than 10% before a registered agreement (RERA s.13).
- Our STAGE check: schedule, triggers, amounts, gaps, exit.
- S: What type of schedule is it?
- T: What triggers each demand?
- A: How much is due, and when?
- G: Where are the gaps?
- E: What happens if someone is late, or you exit?
- Worked examples
- Plan types side by side
- The STAGE check (our framework)
- Before you sign
- CA note
- Lawyer note
- Frequently asked questions
- Talk it through with acre&key
- Sources
The payment plan is a page most buyers sign without reading. It decides when your money leaves, what you get for it, and what happens when anyone is late. Here's what to ask before you sign one in Bengaluru.
S: What type of schedule is it?
- Is it construction-linked, time-linked, down payment, or a split like 20:80?
- If time-linked, what happens if construction falls behind the dates?
- If it's a down payment plan, how big is the discount, and what's the price without it?
- Is the plan tied to a subvention or loan offer? See our builder offer questions.
T: What triggers each demand?
- Is each stage defined clearly, for example "completion of 10th floor slab of Tower B"?
- Who certifies that a stage is complete: the builder's architect, an outside engineer?
- Will you get a copy of the certificate with each demand?
- Does the progress in the K-RERA quarterly updates match the stage billed? Our project review method shows where.
A: How much is due, and when?
- What's the most you pay before the agreement is registered? RERA s.13 caps it at 10% (RERA Act); our token checklist covers that first payment.
- What share is due before the structure is complete? A plan that collects most of the price early is front-loaded.
- How much is due on possession, and is it tied to the OC?
- Are parking, club, deposits and maintenance billed in separate stages?
G: Where are the gaps?
- How many days do you get to pay each demand?
- How long does your bank take to disburse? Ask the bank, not the builder.
- Is GST shown separately on each demand? Our full cost guide covers the rate.
- Who deducts TDS on each instalment, and how? Ask your CA.
- Can you carry pre-EMI and rent during construction? See our under-construction questions.
E: What happens if someone is late, or you exit?
- What interest do you owe for a late payment? Karnataka's Rule 16 rate is SBI's highest MCLR plus 2%, for buyer or builder (Karnataka RERA Rules).
- What does the builder owe you if a stage is late? See our delayed possession guide.
- If you cancel, how much is deducted, and how fast is the rest refunded?
Worked examples
Worked example 1: does a down payment discount pay?
Illustrative. A ₹1,00,00,000 flat with possession in three years. Plan A: pay ₹94,00,000 now (a 6% discount). Plan B: construction-linked, ₹1,00,00,000 spread evenly over three years. We value money at 8.5% simple interest, your home loan rate.
| Plan A: down payment | Plan B: construction-linked | |
|---|---|---|
| Paid | ₹94,00,000 at the start | ₹1,00,00,000 over 36 months |
| Average time money is out before possession | 3 years | 1.5 years |
| Cost of that money at 8.5% | ₹23,97,000 | ₹12,75,000 |
| Total by possession | ₹1,17,97,000 | ₹1,12,75,000 |
Plan B comes out ₹5.22 lakh ahead. For Plan A to break even, the discount would need to be about 10.2%. That's our estimate, using simple interest. If your money would otherwise sit in a lower-yielding deposit, the break-even discount is lower. And with Plan A, almost all your money is with the builder before the building exists.
Worked example 2: the cost of paying late
Illustrative. A ₹15,00,000 slab demand is paid 45 days late because your bank's disbursement was slow. At 10.95% (SBI's three-year MCLR of 8.95% from 15 Oct 2026, plus 2%):
| Item | Working | Amount |
|---|---|---|
| Interest | ₹15,00,000 × 10.95% × 45 ÷ 365 | ₹20,250 |
That's our reading of Rule 16; your agreement may set terms too. Ask your bank how long it takes to disburse, and build that into the payment window. Check your EMI budget with our EMI-to-income page.
Plan types side by side
| Plan | When you pay | Who carries the risk | Watch for |
|---|---|---|---|
| Construction-linked | As stages complete | Shared; money follows progress | Vague stage definitions |
| Time-linked | On fixed dates | You, if construction lags | Dates running ahead of work |
| Down payment | Most of it upfront | You | Discount too small for the risk |
| Split (for example 20:80) | Part now, most at possession | More with the builder, unless a tied loan pays it early | Tied loan or subvention terms |
The STAGE check (our framework)
| Letter | What you confirm | Questions |
|---|---|---|
| S: Schedule | Plan type and price without any discount | 1 to 4 |
| T: Triggers | Stage definitions and certification | 5 to 8 |
| A: Amounts | 10% cap, front-loading, possession share | 9 to 12 |
| G: Gaps | Payment windows, bank lag, GST, TDS, carry | 13 to 17 |
| E: Exit | Late interest both ways, cancellation | 18 to 20 |
Before you sign
- [ ] Plan type and the price without any discount, in writing
- [ ] Each stage defined in physical terms
- [ ] Stage certificates promised with each demand
- [ ] No more than 10% before a registered agreement
- [ ] Bank's disbursement time known
- [ ] Late interest and cancellation clauses read by your lawyer
- [ ] Down payment discount checked against the break-even
CA note
GST and TDS on each instalment depend on how demands are raised. Ask a CA.
Lawyer note
Payment, late interest and cancellation clauses are legal terms. Have a property lawyer read the plan and the agreement before you sign.
Frequently asked questions
The plan type, what triggers each demand, who certifies stages, how much is due early, how long you have to pay, and the late-payment and cancellation terms.
A plan where each instalment falls due when a defined construction stage is complete, such as a floor slab. Your money follows progress.
Only if the discount is large. In our example at 8.5%, it needed about 10% to match a three-year construction-linked plan, and you carry more risk.
Up to 10% of the cost. Section 13 of the RERA Act bars a builder from taking more until the agreement for sale is registered.
You may owe interest. In Karnataka, Rule 16 sets the rate at SBI's highest MCLR plus 2%, the same rate builders pay for delays.
The demand is still yours. Ask the bank how long it takes, and ask the builder for a payment window that covers it.
You pay about 20% upfront and the rest at possession. Check whether it's tied to a subvention loan, and who pays interest meanwhile.
Only if the builder agrees in writing. Choose the plan carefully before you sign the agreement.
Sources
Checked 19 Oct 2026.
- Real Estate (Regulation and Development) Act 2016, ss.13, 19(7), K-RERA copy: https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf
- Karnataka RERA Rules 2017, Rule 16: https://rera.karnataka.gov.in/resources/staticpage/FinalRERA_Rules-2017.pdf
- SBI, MCLR effective 15 Oct 2026: https://sbi.bank.in/web/interest-rates/interest-rates/mclr
- GST Council, FAQ on real estate: https://www.gstcouncil.gov.in/sites/default/files/2024-02/faq-real-estate-sector.pdf
- K-RERA project search: https://rera.karnataka.gov.in/viewAllProjects?language=en
