A post-handover payment plan is one where part of the price is paid after you receive the keys. Instead of settling everything on handover day, you keep paying instalments for months or years. Some developers offer it on some projects.
How it is structured
There is usually a down payment, payments during construction and a final portion that is spread after handover in instalments. The exact split changes by project. Payments before handover go into the RERA-regulated escrow account. Always ask how the post-handover portion is secured and formalised.
When it can make sense
- If you plan to rent the unit and want the rent to cover much of the instalment.
- If you prefer not to tie up so much capital before handover.
- If you have stable income that lets you keep paying comfortably.
The risks
You still carry a debt. If rents fall or your situation changes, the instalment does not go down. Check what happens if you fall behind: penalties, loss of what you paid, the option to assign. And check that the total price is not higher than on a plan without post-handover payments. Sometimes it is.
How to compare properly
Put two scenarios side by side: classic plan and post-handover plan. Add up everything you pay in each, month by month, and subtract expected rent, with vacant months. That shows which one leaves you lighter and which costs more.
A reading example. If the monthly post-handover instalment is higher than the rent you expect to collect, the difference comes out of your pocket every month. That is not bad if you know it and planned for it. It is bad if you find out after you get the keys.