Construction Finance

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SECTORS WE CATER TO

Construction Finance Overview

Construction Finance loan are designed to meet the funding requirement of real estate developers for their proposed or ongoing construction projects against the project sales receivables. Construction Finance is based upon the projected cash flows of the project, secured by the project assets and paid from project cash flow.

Construction Finance can be availed in the following situation:

  • Land Owned by the developer or Joint Venture Partner
  • SRA Project – Construction cost of sale portions
  • Society Redevelopment Project where Society has given mortgageable right over land to the developer – Construction cost of sale portions
We cater to small, medium and large developers for all types of projects comprising duplexes, high-rise apartments, villas, townships, affordable housing projects, and commercial projects.
We help developers & builders to raise their end-to-end project funding requirements of Residential and Commercial projects. Every project is a unique project and we help in getting the finance that helps in faster completion and maximizes the return on investments.
We specialize in arranging Project Finance to Builders & Developers through banks, NBFC and Private Equity institutions. Our past experience in dealing with helps in faster closure at the best possible commercial terms.
We believe in establishing a long-term relationship with developers and we not only help them in meeting their funding needs on a continual basis but also help them in selling their inventory in our circle.

Why take Construction Finance?

Residential & Commercial Project
Funding

Loans are offered to construct or develop both residential and commercial projects, whether they are proposed or ongoing. Loans are usually given up to 50% of the security value.

Developer Friendly Structuring
Model

Construction Finance is usually tailor-made to meet the funding needs based on the project economics and cash flows to ensure the availability of funds during the tenure of construction work and synchronizing repayments with project receivables.

Better Commercial Terms

The interest rates offered by institutions are generally cheaper than the private investors.

Adequate Moratorium

Adequate moratorium period basis stage of construction and estimated completion date.

Expert Support & Services

Work closely with a dedicated team of well-experienced employees who maintain high standards of ethics, integrity, and transparency.

Easy Repayment

The loan is generally repaid through the capitalization of sales. Easy repayment option through escrow mechanism with structured repayment options ensures financial closure with a high degree of certainty of project completion.

Loan Term

• Minimum – 1 year
• Maximum - 5 Year

Security & Title

• Mortgage of the land over which the building is proposed along with superstructure.
• Personal Guarantee of the Promoters

Disbursement of loan

Disbursement of loans happens in multiple trenches as the project progresses
  • Basic Filters for
    Lenders to accept
    the Proposal
  • 1) Minimum 3 projects should have been completed in past
    2) Charge over the security
    3) 15% of the project is completed
    4) 20% of the project is sold
    5) Main Promoters should be Indian