The subvention scheme is a tripartite agreement entered into by the buyer, the seller and the financial institution that provides the loan. The scheme benefits both the buyer and seller in a way that the buyer starts to pay the EMI only when he gets possession of the property, while the buyer benefits from the demand for homes due to this facility. In reality, the buyer pays 15-20% upfront, and the bank interest is borne by the developer, till the project is ready. The bank in the meantime pays the amount in full to the developer on behalf of the buyer.