A 20:80 payment plan lets you pay 20% of a property’s price when you book and the remaining 80% later, usually close to registration or handover. Developers in Bengaluru use it to make plots and new homes easier to buy, because your upfront cost is much smaller.
How a 20:80 plan works
Take a villa plot priced at ₹1.29 Cr, like the 30×50 plots at Arvind Orchards in Devanahalli. On a 20:80 plan you pay about ₹25.8 lakh in the first stage. The balance of about ₹1.03 Cr is due later, when the developer finishes the layout or the plot is ready for registration.
Under RERA, a developer cannot collect more than 10% of the price before you sign a registered agreement for sale. So the 20% is usually split into a booking amount and a second payment when the agreement is signed.
20:80 vs a construction-linked plan
- 20:80 plan: two big payments, one at the start and one near the end. Your money is free in between, but the second payment is large.
- Construction-linked plan: you pay in many smaller stages as work progresses. Each payment is smaller, and you start paying EMIs earlier if you take a loan.
Who should choose a 20:80 plan
It suits buyers who expect a lump sum in the next two to four years, such as a bonus, a maturing investment or the sale of another property. It also suits investors who want to lock in today’s price with less money upfront.
It is riskier if you will need a loan for the 80%. Banks usually fund only part of a plot’s value, so plan for a larger own contribution, and check your loan eligibility before you book.
Costs to plan for beyond the 80%
- Stamp duty and registration charges, which add several percent to the price in Karnataka.
- Preferred location charges for corner or park-facing plots.
- Clubhouse, legal and maintenance charges, if they are not already included.
- For a plot, the cost of building your house, which is separate from the land price.
Before you sign
Read the payment schedule in the agreement for sale, note the exact trigger for the 80% payment, and confirm that the project is RERA registered. For a current example of a 20:80 offer, see the Arvind Orchards villa plots in Devanahalli.
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