After you have made the decision to purchase a home, you will have to decide on which option you will want to use to finance it. Customers have three options for making payments towards a home.

• Installment Scheme ( Customer Financed ) :
  Under this scheme, the customer pays a percentage of the total price of the home initially and then makes progress payments as the building construction progress e.g. a customer puts 20% as down payment when he books the flat and then pays 10% when the first floor is constructed, 10% when the 3rd floor is constructed and so on. The payment made by the customer are linked to the progress of the building and all payments are financed by the customer himself.
  
  
• Installment Scheme ( Bank Financed ):
  Under this scheme, the customer opts for a home loan at the time of making the booking and the bank makes the payments on behalf of the customer. The payments are linked to the progress of the building just like the previous scheme. The customer repays the bank over a longer period of time e.g. 20 years.
  
  
• Advance Disbursement Facility (ADF) Scheme (Bank Financed) :
  Under this scheme, the bank, on instructions from the customer, pays Supreme the entire value of the apartment upfront when the customer makes the booking. In effect, Supreme discounts all the future payments due from the customer at an interest rate that is higher than the rate of interest of the home loan. Therefore, the customer ends up getting a discount on total price of the home. Consider an example of customer booking a flat of 1000 square foot area at the rate of Rs.2700 per square foot. If he is paying entire money upfront while booking, then he gets Rs.100 as ADF Discount and his costing will be Rs. 2600 per sq.ft. So instead of Rs. 27,00,000 which is the cost of the flat, the flat cost in the ADF scheme will be Rs. 26,00,000, a saving of Rs. 1,00,000. This facility is made available by banks only to reputed builders.