What is EMD Full Form?

The EMD full form is Earnest Money Deposit. It is the type of deposit in which the buyers pay sellers in good faith as an assurance of interest to purchase high-ticket items or to make a significantly large transaction. This deposit enables the buyers to have the time required to sort the finances, evaluate the investments and conduct an inspection prior to closing the deal. In the context of the real estate market in India, this earnest money deposit is referred to as a ‘token amount.’ Once the sellers accept the money, the buyers have a certain time period to make a deposit.

Also Read: MBA Real Estate

What are the Eligibility and Documents Requirements for EMD Schemes?

The following are the required documents and eligibility for EMD schemes:

Eligibility: 

• The candidate should be a resident of India
• Must be at least 21 years old 
• The candidate must also fulfil all the other eligibility criteria of Urban Development Authorities (UDA)

Documents

• The candidate is required to provide an ID and address proof
• PAN card, income proof documents such as salary slips, bank statements, balance sheets, ITR, TDS certificate and other bank-specific documents

Also Read: How to Career in Commercial Real Estate?

What are the Available EMD Schemes in India?

In India, Government housing agencies sell residential plots and built houses. Now consider, if the government is selling a flat, for that one flat there will be multiple buyers. However, in order to be a buyer for the flat, the applicant must bid for it. Other buyers get their deposit back. Many banks in India issue loans for this scheme to enable people a chance to bid. The bank issues the whole amount at the nominal interest rate. The following are the features of an EMD loan:

• 100% disbursement of the loan amount 
• Low processing fees and interest rate
• No or minimum pre-payment penalties
• Repayment tenure up to a year

Also Read: Banks Giving Education Loan in India

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