India, Aug. 31 -- At first glance, the No EMI till possession schemes may appear attractive, but the risks are for homebuyers to bear. Once possession is given, they must start paying the full equated monthly instalments (principal + interest). Worse, if the developer defaults on payments due to financial trouble, the loan is still in their name, meaning the bank will come after them and not the real estate developer.

A Reddit user has warned that subvention schemes like No EMI till possession trap lakhs of homebuyers. Though the home loan is in their name, builders often delay or abandon projects, forcing buyers to pay EMIs (and rent) for undelivered properties, damaging credit scores and financial stability

As the name suggests, No EM...