To illustrate the point, consider a 20-year loan at 8.5% interest for a ₹1 crore home, with a ₹75 lakh loan opted for during the construction phase over four years, with bank disbursements in 15 instalments over four years from 2024. However, the developer has taken the loan on your behalf. So, at the end of four years during possession, the total loan liability is ₹88.14 lakh, comprising the original pre-construction period interest of ₹8.53 lakh, compounded and escalated to ₹13.13 lakh, because the interest was delayed until after possession.
