20:80 vs 10:90 Payment Plan: Which Suits a Mumbai Buyer?

Mumbai remained one of the biggest residential property markets in India with over 1.5 lakh property registrations in 2025. If you are a buyer considering buying a home which is still under construction, the way you will pay for the home is as significant as the choice of the home itself. Whether you’re looking at a 20:80 payment plan or a 10:90 payment plan, knowing the upfront investment, loan timing and cash flow consequences is key to making a better-informed purchase decision. 

A quick summary:

• 20:80 payment plan refers to an upfront higher payment with lower payments thereafter.
• 10:90 payment plan will allow you to buy your home without a heavy upfront payment.
• The best option will depend on your finances, home loans, construction period, and risk-taking ability.
• Do check the authenticity of the builder, their RERA compliance, payment schedule and the cost involved.

What Does a 20:80 Payment Plan Mean?

Under the 20:80 payment plan, the buyer will be expected to pay only 20% at the time of booking and the remaining 80% on or near possession as per the agreed payment schedule. The approved projects include “no EMI till possession”, which is offered by the developer under the scheme and helps reduce the financial strain of customers till the property is completed.

What Does a 10:90 Payment Plan Mean?

The 10:90 Plan is one type of payment plan where the buyer will be required to make a payment of only 10% at the time of booking and the remaining 90% on or near possession, according to the agreed payment schedule. The small down payment makes it easy for the buyer to purchase the premium properties.

Read Also: Understanding the 20:80 Payment Plan: A Smart Way to Own Your Dream Home

20:80 vs 10:90: How Do They Compare?

While both 20:80 and 10:90 schemes make it easy financially in terms of the process, the difference lies in how the payments would be made. The real estate value in India had gone up by 10% annually during Q4 2025 due to the increased need for good houses and flexible payment systems.

Which Plan Suits Which Buyer?

The ideal buyer profile depends on the finances, strategy, and intended use of the house. The 10:90 plan will suit Investors and people who need maximum liquidity, since the initial capital invested in construction is minimal. However, the 20:80 payment plan will work best for End-Users who have high capital to invest, as it reduces the possession balance as well as the capital at the time of handover.

Read Also: Financial Planning for a Luxury Home Purchase: What Buyers Need to Know

How Do Home Loans and Pre-EMI Work With These Splits?

A home loan is granted based on the agreement value, but GST, stamp duty, and registration fee are borne individually by the buyer. Release of loan money is done in a phased manner, depending on the stage of construction.

Where a developer offers a subvention scheme, it pays the applicable interest during the agreed period, subject to participating bank approval. After that, the buyer pays pre-EMIs or regular EMIs as per the loan agreement.

What Are the Risks and Things to Check? 

After you have reviewed the details of the registration with MahaRERA, construction schedule, payment plan and loan availability, confirm that your no-EMI offer is covered by the subvention offered by the builder and accepted by the partnering financial institution. It would be wise to look into the conditions under which you can withdraw from the agreement. 

Also check whether the payment plan includes any price premium over the standard schedule. 

Do These Plans Work for NRI Buyers?

Both payment schemes can be good for an NRI Buyer where funding will take place through FEMA-compliant banking channels.

• Encourage staged remittance rather than a one-time huge remittance.
• The 10:90 Scheme involves minimum initial cross-border fund movements.
• Higher amounts can be tied to possession and loan release.
• A proper record of remittance should be kept, and NRE/NRO/FCNR accounts should be used.

Read Also: Benefits of Buying Property in Under-Construction Project

What Happens to Your Plan If Possession Is Delayed?

Delay risk in the possession timeline affects your payment scheme as well as home delivery, hence making delay risk an important criterion in selecting the Payment Scheme. As of early 2026, there were more than 52,500 projects registered under MahaRERA, making it crucial to verify the timeline of the project.

• The deferred amount is due only on possession being offered.
• Home delivery is delayed alongside the new possession date.
• The MahaRERA deadlines and the delay compensation system need to be verified.
• Check whether your home loan sanction remains valid if possession is delayed. 

Which Rustomjee Homes Offer These Plans?

Major projects offered by Rustomjee in Mumbai follow the 10:90 system, which involves paying 10% at booking, with the balance payable as per the project's agreed payment schedule.