How you pay for an apartment matters almost as much as what you pay. Two buyers committing to identical units at the same price can experience very different financial outcomes depending on the payment plan they choose, the timing of their cash flows, and how the plan interacts with their home loan. L&T Thanisandra is expected to offer multiple payment plan options at official launch, each with its own logic, advantages, and trade-offs.
Final payment plan terms will be confirmed alongside RERA approval, currently under process and expected by May 2026. The discussion below covers the structural mechanics of each option so prospective buyers can think clearly about which suits their financial situation.
Construction-Linked Plan (CLP)
The Construction-Linked Plan is the standard, most widely used payment structure across premium residential real estate. Under CLP, buyers make payments in tranches tied to defined construction milestones. A typical structure involves 10 percent at booking, with the remaining 90 percent spread across structural and finishing milestones, and the final 5 to 10 percent payable on offer of possession.
The advantage of CLP is alignment between payment and progress. You pay as the developer delivers, which protects against delays. If construction slows, your payments slow correspondingly. For most buyers, this structure feels most natural and provides the most psychological comfort.
The trade-off is that home loan EMI begins early and runs through the construction period. If you fund the purchase through a home loan, you start paying EMI on the disbursed portion from the first tranche onward, meaning you are paying any existing rent (if you currently rent) plus an under-construction EMI for the duration of the build.
Subvention Scheme
Under a subvention scheme, the developer services your home loan EMI during the construction period. Your EMI obligation begins only after possession. This eliminates the double burden of paying both rent and an under-construction EMI. For buyers who currently rent and would face significant cash flow pressure during the build, subvention can be a meaningful advantage.
The trade-offs are real and worth understanding. Subvention units are sometimes priced at a slight premium over CLP units, since the developer pre-funds interest costs. Subvention is also subject to RBI guidelines that have evolved over time. Subvention typically requires a home loan from a participating bank with whom the developer has a tie-up, which reduces lender choice. And if construction is delayed beyond the agreed period, subvention obligations may not extend automatically. The fine print matters.
Down Payment Plan (DPP)
A third option, less commonly chosen but worth considering, is the Down Payment Plan. Under DPP, you make a substantial upfront payment of approximately 90 to 95 percent of the unit value within the first few months, with the small remaining balance at possession. The advantage is meaningful: developers usually offer a price discount on DPP, often 3 to 6 percent off the base price, because of the cash flow benefit to them.
DPP is suitable only for buyers with substantial liquid funds available immediately, or for those funding the purchase from a property sale that is being timed to coincide. For most buyers funding through a home loan, DPP requires the loan to be largely disbursed upfront, which means significant interest accrual through construction. The discount may or may not offset this depending on tenor and rate.
Which Plan is Right for You
There is no universal answer. The right plan depends on your cash flow situation, your loan structure, and your risk tolerance. As a guideline, choose CLP if you are funding through a home loan, can comfortably manage EMI plus rent during construction, and want the alignment between payment and delivery. Choose subvention if your cash flow during construction would be stretched by EMI plus rent, and you are comfortable with the slight premium and bank tie-up restrictions. Choose DPP only if you have liquid funds available for an upfront commitment and the upfront discount makes financial sense relative to your alternative use of those funds.
Bank Tie-Ups and Home Loans
L&T Realty projects in Bangalore have historically been pre-approved by major Indian banks and housing finance companies. Pre-approval means the bank has reviewed the project documentation, regulatory standing, and developer credentials, and is willing to fund qualifying buyers. Major banks expected to extend loans for L&T Thanisandra include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, LIC Housing Finance, and Bajaj Housing Finance.
Loan-to-value ratios of 75 to 80 percent are standard for qualifying buyers. Tenor options range from 15 to 25 years subject to age at maturity. Interest rates vary with prevailing RBI policy but are typically in the 8.5 to 9.5 percent range for premium residential property. Processing fees apply at 0.5 to 1 percent of loan amount.
Tax Benefits Across Plans
- Section 24(b) Interest deduction up to Rs 2 lakh per year for self-occupied property. Pre-EMI under CLP can be claimed in 5 equal instalments starting from the year of possession.
- Section 80C Principal repayment deduction up to Rs 1.5 lakh per year (within the overall 80C limit).
- Stamp Duty Deduction Stamp duty payment qualifies for Section 80C deduction in the year of registration.
Frequently Asked Questions
Will subvention be available at L&T Thanisandra?
Final payment plan options will be confirmed at official launch. L&T Realty projects in Bangalore have historically offered both CLP and subvention options at major launches.
Which banks fund L&T Thanisandra?
L&T Realty projects are typically pre-approved by major Indian banks. Specific bank tie-ups for L&T Thanisandra will be confirmed at official launch.
Can I switch from CLP to subvention later?
Plan switches mid-project are not always possible and depend on the developer’s policies. The decision is best made at the booking stage based on careful evaluation of cash flow over the construction period.