When you buy an under-construction apartment in Medavakkam, the price on the brochure is only half the conversation. The other half is the payment plan: the schedule by which you transfer money to the builder over the construction period. Most buyers focus entirely on the per-square-foot rate and the floor plan, and sign the payment plan schedule without reading it carefully. That is a mistake, because the payment plan affects your total cash outflow, the interest you pay on your home loan before possession, and how much financial risk you absorb if the project is delayed.

Prestige Medavakkam and other under-construction projects in the Medavakkam area typically offer one of four payment structures. This guide explains each one plainly so you can ask the right questions before booking. Confirm the exact terms with the builder's sales team and verify the schedule clause in your agreement before signing.

Payment Plans at a Glance

The table below covers the four main payment plan types, how each works, who it suits best, and the key risk to watch for.

Construction Linked Plan: The Standard Choice

The Construction Linked Plan (CLP) is the most widely used and most straightforward payment structure for under-construction flats. You pay in stages as the building rises: a booking amount to reserve the unit, then tranches at foundation, plinth, successive slab castings, brickwork, finishing and finally at possession. Your bank disburses the loan in matching tranches, and pre-EMI interest is charged only on the amount disbursed so far, not on the full loan. This keeps your interest outflow proportional to the actual construction stage and limits your financial exposure if the project is delayed at any point. The key question to ask on a CLP is how precisely each milestone is defined in the agreement. Some agreements use vague language such as "completion of superstructure" without specifying which floor or percentage; a well-drafted CLP names the specific slab and a minimum construction level before the tranche falls due. Our home loan & EMI guide covers how bank disbursements work alongside a CLP schedule in detail.

Bottom line: CLP is the default choice for most buyers: interest runs only on what is disbursed, and payment tracks actual progress rather than calendar dates.

Down Payment Plan: For Buyers with Surplus Funds

A Down Payment Plan requires paying 80–90% of the flat's price at or shortly after booking, with the balance due at possession. Builders offer this option because receiving most of the payment upfront improves their construction cash flow, and some pass part of that benefit on to buyers as a price discount (indicative, confirm with the builder's current offer). The trade-off is significant: your bank disburses the full loan amount immediately, and pre-EMI interest runs on the entire principal from day one of disbursement, through the entire construction period. If construction takes three years, you are paying interest on the full amount for three years before you move in. This plan suits buyers who have the cash flow to absorb that interest or are buying without a bank loan, and who are confident in the builder's ability to deliver on schedule. A project delay is proportionally more damaging on a Down Payment Plan than on a CLP, because you have already paid nearly everything and have less financial leverage to push for progress.

Bottom line: A Down Payment Plan may come with a price benefit, but it concentrates your interest exposure from day one; only choose it if you are confident in the builder's delivery record.

Flexi and Subvention Plans: Read Before You Sign

A Flexi Plan splits the difference: a larger early tranche (often 30–40%) at booking gives the builder some early funding while the rest follows construction milestones. It avoids the full interest burden of a Down Payment Plan while still offering a moderate price benefit in some cases. Check the cancellation and refund clause on the upfront tranche carefully; in most agreements, the booking and first tranche are non-refundable if you cancel after a defined period. A Subvention Scheme is more complex: the builder agrees to pay the pre-EMI interest charged by your bank on the disbursed loan amount until possession, so your EMI starts only at handover. This sounds attractive but introduces a third-party risk: if the builder defaults on the pre-EMI payments, the bank's charge falls on your loan account, affecting your credit record even though you had no hand in the default. RERA regulations have restricted some forms of subvention schemes in recent years; confirm the current legal position and the specific scheme terms with a TN-RERA-registered broker or legal advisor before signing a subvention agreement. Our ready to move vs under-construction guide covers when under-construction risk is worth accepting overall.

Bottom line: Flexi plans are generally safe if the refund clause is clear; subvention schemes require extra due diligence on the builder's financial standing and the specific scheme terms.

How the Payment Plan Affects Your Home Loan

Your bank's role changes depending on the payment plan. Under a CLP, the bank disburses tranches as you submit builder demand letters against each milestone; you pay only pre-EMI interest on the cumulative disbursed amount. Under a Down Payment Plan, the bank releases most or all of the loan at the outset, and full pre-EMI interest runs immediately. The payment plan also affects how quickly you reach the principal repayment stage: on a CLP, you typically convert from pre-EMI to full EMI at or after possession; on a Down Payment Plan, some banks convert you to full EMI earlier since the full amount is already disbursed. Discuss your specific bank's policy with your loan officer before committing to a payment plan. Our first-time home buyer guide covers the broader buying timeline from budget-setting to possession, which helps you see where the payment plan fits in. For a checklist of what to confirm at the handover stage, see our apartment possession & handover checklist.

Bottom line: The payment plan determines when your bank disburses and when full EMI starts; confirm your bank’s specific policy alongside the builder’s plan terms before signing.

Conclusion

The payment plan is one of the most important financial decisions in an under-construction purchase, yet most buyers give it less attention than the floor plan or the price per square foot. A Construction Linked Plan is the safest default for most buyers: your interest outflow tracks construction progress and your financial exposure at any point is limited to what has actually been built. A Down Payment Plan may offer a price benefit, but the full interest burden runs from day one. A Flexi Plan sits in between; a Subvention Scheme requires extra care in checking the builder's financial standing and the scheme's specific terms. Whichever plan you consider, read the milestone definitions and the cancellation clause in the agreement, discuss the disbursement timeline with your bank, and confirm all payment schedule terms in writing before you sign.

To learn about the payment plan options currently available at Prestige Medavakkam, contact the sales team directly.