With Sobha Realty in Dubai aggressively pushing its 20:80 payment plan – pay 20% now, 80% on handover – many Thane home seekers are asking if a similar easy-entry scheme could come to the local market.
On paper, it sounds attractive : low upfront payment, no EMI till possession, and builder bears the interest burden.
However, for Thane – and Maharashtra – experts say the answer is : unlikely in the same format.
What is Dubai’s 20:80?
It is a post-handover payment plan designed to attract investors. In Dubai’s freehold market. developers can offer longterm payment plans even after possession, backed by strong rental yields and investor-friendly regulations.
Why it won’t work as-is in Thane/Maharashtra:
1. RBI and NHB Ban on Subvention: What in Dubai’s property market is known as 20:80, India knew as the subvention scheme. In 2013, the RBI banned 80:20 and similar schemes where the builder pays interest on behalf of the buyer till possession. The central bank flagged it as risky – if the builder defaults, the buyer is still liable to the bank. RERA also views such schemes with caution as it can amount to diversion of funds.
2. RERA Escrow Rule:
Under MahaRERA, 70% of collections must be deposited in an escrow account and used only for that project’s construction. A true 20:80 model where only 20% is collected during construction creates a funding gap, making projects dependent on external debt, which RERA discourages.
What Thane Offers Instead:
Thane developers under CREDAI-MCHI Thane have adopted RERA-compliant flexi plans that mimic the benefit without the risk – like 20x5, 10:90 with no pre-EMI till OC, and deferred payment plans backed by bank guarantees. These are not tripartite subvention loans, but construction-linked plans where the buyer’s EMI starts later, yet money is drawn as per construction progress.
So while Dubai’s headline 20:80 will not come to Thane in its original avatar, its intent – to lower the entry barrier during the festive season – is very much being offered through safer, MahaRERA approved structures.
Kamlesh Pandya
Consulting Editor
THANE REALTY NEWS
