How kisto schemes work
Private developers sell some colonies on installments: a booking amount, then fixed monthly payments for one to a few years, then the registry once the balance is paid. The price is fixed at booking, which helps if rates rise, but the developer holds the land until registry.
The risks
- No ownership until registry. If the project stalls or the developer defaults, you are an unsecured creditor.
- Approval problems. Some installment colonies are not JDA approved. Read how to check a JDA approved plot.
- Penalties. Late-payment and cancellation clauses can cost you much of what you paid.
- Changing plans. Plot numbers, sizes or amenities can change between booking and registry.
Check before you pay
- JDA layout approval, the 90-A conversion order and the jamabandi in the developer's or landowner's name.
- RERA Rajasthan registration if the project is on more than 500 sq m or has more than 8 plots, and the project's RERA page.
- A written agreement to sell that states the plot number and size, total price, installment schedule, possession and registry date, late fees and refund terms.
- Payment only by bank transfer or cheque, each one receipted.
- The total price compared with the area rate. Installment prices are often higher than a one-time payment.
Installments vs a bank plot loan
With a plot loan, the bank pays the seller and you register the plot straight away, so you own it from day one and repay the bank. Banks lend only on plots whose papers they accept, which is itself a useful check. With an installment scheme you need no bank approval, but you own nothing until the end. If a bank will lend on the plot, that is usually the safer route.
Work out the full cost, including stamp duty, in the plot cost calculator.
This guide explains how things generally work. It is not legal advice. Have a property lawyer check the documents before you pay.