⚡ Quick Answer
In a 20:80 payment plan, you pay about 20% of the flat’s value during construction and the remaining 80% at or near possession. In a construction-linked plan (CLP), you pay in stages as the building rises. The 20:80 plan is lighter on your cash flow now; the CLP spreads payments evenly and links them to visible progress.
- 20:80 suits buyers who want to keep money free until possession.
- CLP suits buyers who prefer steady payments matched to construction.
- Compare the total cost of each plan, not just the timing.
- Ask for the plan, schedule and any bank tie-up terms in writing.
When you book an under-construction flat, the price is only half the story. When you pay matters just as much – it affects your savings, your home loan interest and your peace of mind.
Two of the most common options in Mumbai are the 20:80 payment plan and the construction-linked plan. This guide compares them side by side in simple language. If you want a detailed explainer of the first, read our article on what a 20:80 payment plan is.
Table of Contents
- What Is a 20:80 Payment Plan?
- What Is a Construction-Linked Plan?
- Side-by-Side Comparison
- A Simple Example for Every ₹100
- Which Plan Suits You?
- Questions to Ask Before You Choose
- Payment Plan at L&T The Gateway Sewri
- Related Guides
- Frequently Asked Questions
- Conclusion: Pick the Plan That Fits Your Cash Flow
What Is a 20:80 Payment Plan?
Under a 20:80 plan, the buyer pays roughly 20% of the agreement value in the early stages – usually the booking amount and one or two instalments. The balance 80% is paid when the project is close to completion or at possession.
Some 20:80 offers are linked to a home loan tie-up, where the bank pays part of the money to the developer and the developer bears the interest until possession. These are sometimes called subvention schemes. Banks have become more careful with such schemes in recent years, so the exact terms matter a great deal.
What Is a Construction-Linked Plan?
In a construction-linked plan, payments are tied to construction milestones. You pay the booking amount, then a part on signing the agreement, and the rest in instalments as each stage is completed – foundation, slabs, brickwork, finishes and possession.
Each payment is triggered by a demand letter from the developer. Our guide to tracking construction progress shows how to check that each demand matches real progress on site.
Side-by-Side Comparison
| Point | 20:80 plan | Construction-linked plan |
|---|---|---|
| Paid before possession | About 20% | Most of the value, in stages |
| Cash flow now | Light | Steady and spread out |
| Paid at possession | About 80% | A small final instalment |
| Home loan interest during construction | Low or none for the buyer (depends on terms) | Pre-EMI on each disbursement |
| Link to visible progress | Weaker | Strong - you pay as you see work done |
| Price | May be slightly higher in some projects | Often the base price |
| Main thing to check | Bank tie-up terms and who pays interest | Each demand letter vs actual progress |
General guidance only. Terms differ between projects and banks - ask for them in writing.
A Simple Example for Every ₹100
To keep it simple, imagine the agreement value is ₹100 (multiply by your actual price later). This is only an illustration – the real schedule will be in your cost sheet.
| Stage | 20:80 plan | Construction-linked plan |
|---|---|---|
| Booking and agreement | ₹10 to ₹20 | Up to ₹10 before the registered agreement, then the agreement instalment |
| During construction | Little or nothing more | Balance paid in stages as slabs and work are completed |
| At possession | About ₹80 | Final small instalment |
Under RERA, a developer cannot take more than 10% of the cost before a registered agreement for sale.
Add stamp duty, registration and GST to these figures. Our guides to the down payment for a flat in Mumbai and the true cost of buying a flat list every cost.
Which Plan Suits You?
- Choose 20:80 if you are paying rent now, want to keep savings free, expect funds (such as the sale of an old flat) closer to possession, and are comfortable with a large final payment.
- Choose CLP if you prefer to pay gradually, want each payment linked to real progress, and are fine paying pre-EMI interest during construction.
- Be careful if your income is uncertain - a large 80% payment at possession needs a firm plan, often a home loan sanctioned well in advance.
Selling an existing home to fund the purchase? Our guide on selling an old flat to buy a new one explains how buyers time the two deals. You can also check how much home loan you can get.
Questions to Ask Before You Choose
- Is the price the same? - ask if the base price differs between the two plans.
- What exactly is due and when? - get the full schedule with percentages and stages.
- Is there a bank tie-up? - if so, who pays interest until possession, and what happens if possession is delayed?
- Is it in the agreement? - the payment schedule should be part of the agreement for sale.
- How does my loan work? - read about pre-EMI vs full EMI and plan your home loan early.
Payment Plan at L&T The Gateway Sewri
A 20:80 payment plan has been reported for L&T The Gateway Sewri by a marketing partner. Payment plans and offers can change, so please confirm the current options, the exact schedule and the price for each plan with the sales team before booking. Prices are on request.
Related Guides
Frequently Asked Questions
What is a 20:80 payment plan?
It is a plan where you pay about 20% of the flat value during construction and the remaining 80% at or near possession. The exact split and terms vary by project.
What is a construction-linked plan?
A plan where you pay in stages as construction milestones are completed, each triggered by a demand letter from the developer.
Which is better, 20:80 or construction-linked?
Neither is better for everyone. 20:80 helps cash flow now; a construction-linked plan links payments to progress. Compare the total cost and your own finances.
Is the price higher under a 20:80 plan?
In some projects it can be slightly higher. Ask the developer whether the base price differs between plans and get it in writing.
Do I pay pre-EMI under a 20:80 plan?
It depends on the terms. In some bank tie-ups the developer bears the interest until possession. Read the tripartite agreement carefully.
Does L&T The Gateway Sewri offer a 20:80 plan?
A 20:80 plan has been reported by a marketing partner. Please confirm the current plan and terms with the sales team on +91 80503 63647.
Conclusion: Pick the Plan That Fits Your Cash Flow
A 20:80 plan keeps more money in your hands until possession; a construction-linked plan spreads payments and ties them to visible progress. The right choice depends on your savings, your loan and how comfortable you are with a large final payment. Whichever you choose, compare the total cost and get every term in writing.
Want the current payment plan for L&T The Gateway Sewri? Call +91 80503 63647 or contact us.
L&T The Gateway, Sewri
MahaRERA No. P51900054969
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