For the Indian middle class, buying their dream house is the most important goal of life. But today, this dream is breaking many families financially and mentally. The “No EMI till Possession” schemes of real estate companies attract buyers, but in the long run, they become a huge trap.
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How do these schemes work
In these offers, the buyer has to pay only 10% of the amount in advance. The remaining 70-80% of the amount is directly given to the builder in the form of a bank loan. Under the agreement, the builder promises that he will pay the EMI for a few years. This scheme provides relief in the initial period, but as soon as the builder stops the payment, the responsibility falls on the buyer. The result is that the buyer neither gets a house nor financial relief.
Buyers dilemma
Many people are forced to pay rent and EMI together. Chartered accountant Meenal Goyal gave an example and said that one of her friends is paying Rs 45,000 rent and Rs 32,000 EMI every month for a house that may never be completed. This situation is the reality of thousands of families across the country.
Which cities are facing the most crisis
According to industry data, currently 5.08 lakh housing units are stuck in limbo in 42 cities. Cities like Mumbai, Gurugram, Noida, Thane, and Greater Noida remain the biggest centers of this crisis. In these areas alone, 1,636 projects and more than 4.3 lakh houses have been incomplete for years. Many families had booked flats when their children were in school, but today their children have reached college, and the house is still incomplete.
Why do only buyers get trapped?
The biggest problem is that the loan is in the name of the buyer, not in the name of the builder. That is, if the builder stops paying the EMI, the bank recovers directly from the buyer. Once an EMI is missed, the buyer’s credit history is also spoiled, making the possibility of any loan in the future even more difficult.
Failure of the system
Meenal Goyal says that this is not just a housing crisis but a failure of the entire project financing and regulatory framework. The government has completed about 50,000 units so far through the SWAMIH fund and has set a target of completing 40,000 more by 2025. But this is not even 20% of the total backlog. Lakhs of buyers are still stuck in confusion and a financial crisis.
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Lack of protection for buyers
The sad situation is that buyers are neither getting any compensation nor any legal relief, and no regulatory body can protect them. The solution to this problem is possible only when the government and regulatory bodies together implement strict monitoring and concrete reforms on such schemes.