The 80/20 Scheme is a builder's biggest sales tool — and ThynkFin helps you unlock it correctly.
Builders Finance
What is 80/20 Scheme?
The 80/20 (or 75/25) Subvention Scheme is a tripartite arrangement between the builder, buyer, and bank. The buyer pays 20% upfront; the builder gets the 80% loan amount and services the interest (EMI) on behalf of the buyer until possession. Post-possession, the buyer takes over the full EMI.
How It Works
- Buyer pays 20% of property value to builder
- Builder applies for bank tie-up under subvention scheme
- Bank disburses 80% home loan in buyer's name to the builder
- Builder pays pre-EMI interest to bank during construction
- On possession, buyer takes over full EMI repayment
Key Requirements
| RERA | RERA registration mandatory |
| Bank Tie-Up | Formal banker agreement for subvention scheme |
| Builder Eligibility | 2+ completed projects with positive track record |
| ThynkFin Role | Facilitates bank tie-up, drafts tripartite agreement, coordinates buyer loans |
| Banks | We have affiliation with more than 30 Banks/FIs |
Benefits for Builders
- Attracts buyers with 'No EMI till possession' proposition
- Faster project sales and improved cash flows
- Reduces builder's dependence on own equity during construction
- Competitive advantage in a crowded market
