Possession linked payment plan (PLP) is a payment plan that is directly linked to the possession of the property. It has been said to be one of the most beneficial payment plans that are offered by developers to home buyers. With this plan, a home buyer has the option of making payment of property in two parts, usually 20:80. It means 20% as a booking payment advance and 80% payment during the time of possession.
It is mostly thought of that possession linked payment plan helps to reduce the risk of project delay. Possession linked payment plan is a desperate attempt from builders to offload inventory.
In case of a new and upcoming project, builders are offered
most times a 15:85 and 20:80 PLP plan, but for projects at the middle stage of
construction, it’s usually 25:75 and 40:60. PLP plans that are deemed more fit.
To spice it up these days, certain builders these days are even allowed to pay
the first part in small installments.