How the "Zero EMI" Scheme Works for Kathmandu Apartments

For families and professionals in Kathmandu buying an apartment that is still being built can be very tough on the wallet. You have to pay a lot of money upfront to book your apartment. Then your bank loan starts and you have to pay monthly installments. At the time you are still paying rent for the place you are living in now. This can be very hard on people and many who want to buy an apartment decide not to because of this.

Now there is a new way of buying apartments that is changing the way people buy homes in Kathmandu. This is called the Zero EMI Scheme. It is a way of buying an apartment where you do not have to pay installments until the apartment is finished and you can move in.

So how does the Zero EMI Scheme work? It is a plan that involves the buyer, a bank and the developer. Here is how it works:

•  The buyer pays some money upfront to book their apartment. This is usually 30% of the price of the apartment.
• The bank lends the buyer the rest of the money, which's about 70% of the price of the apartment.
• While the apartment is being built the bank pays the developer the money in parts as the work is being done. The developer or the bank pays the interest on the loan during this time.
•  When the apartment is finished and the buyer can move in they start paying their installments.

This way of buying an apartment is very good for buyers. They do not have to pay installments while the apartment is being built which can take two to three years. This means they can save a lot of money which they can use for things.

There are benefits to the Zero-EMI Scheme. For example:

1. If the developer takes longer to finish the apartment the buyer does not have to pay money. The developer is responsible for the delay so they have to pay the money.

2. The buyer can buy the apartment at the price and when they move in the apartment will be worth more.. They will still only have to pay the original price.

3. For people who are renting now this scheme makes it easy to buy an apartment. They do not have to pay money while the apartment is being built so their budget does not change.

Is the Zero EMI Scheme safe? To make sure it is safe buyers have to check some things. They have to make sure the project has an agreement with the bank and that the bank is a good and reputable bank. The banks agreement to lend money for the project is, like a guarantee that the developer's trustworthy and has enough money to finish the project.