These days subvention plan is a new type of home loan which attracts home buyers. Under this plan, individuals need not to pay any EMI till fixed period of time, all the interest till fixed time or possession will be paid by the builder. So, fundamentally you buy a property without having to give any interest for the fixed time! Under this scheme banks pay 80% of the BSP to the builder, and builder pays the PRE – EMI (interest) part to the bank on behalf of the clients for the fix period as said by the scheme. In this scheme builder will only pay the interest and not the principal amount.