Construction Project Financing
Construction Project Financing refers to specialized funding offered to real estate developers and infrastructure companies to execute large-scale construction projects such as residential towers, commercial complexes, townships, and industrial parks. These loans ensure smooth cash flow across all project phases.
Key Features
- High-value funding for approved construction projects
- Structured disbursal in tranches based on project milestones
- Loan tenure typically ranges from 1 to 7 years
- Can include working capital, term loan, and overdraft elements
- Interest-only during construction, EMIs post-completion
Eligibility Criteria
- Real estate developers, builders, or infrastructure companies
- RERA registration and valid project approvals
- Track record of timely project completion preferred
- Proof of land ownership or valid development agreement
Required Documents
- Project plan, cost estimate, and approval certificates
- RERA registration and land documents
- Financials and bank statements of the promoter/company
- Detailed project cash flow and sales strategy
- Agreement with contractors/vendors (if available)
Benefits
- Ensures steady cash flow for project execution
- Improves project delivery timelines
- Flexible repayment linked to project completion/sales
- Enhances buyer and investor confidence
Top Lenders Offering Construction Financing
Major lenders such as SBI, ICICI Bank, HDFC, Axis Bank, L&T Finance, and real estate-focused NBFCs provide funding for approved construction projects.
Important Notes
- Loan disbursement is milestone-based and subject to verification
- Project compliance with local and central authorities is mandatory
- Promoter margin and equity contribution may be required upfront