What is Builder Finance?
Builder Finance is a specialized project loan for real estate developers and builders to fund the construction of residential, commercial or mixed-use projects. It typically covers land acquisition (in select cases), construction costs and other project-related expenses, and is disbursed in tranches linked to construction progress. Repayment is generally structured around the project's sales velocity and cash inflows from unit bookings.
We help builders and developers access funding from banks and NBFCs experienced in real estate project finance, with structuring support to align disbursement and repayment with the project's construction and sales timeline.
How Builder Finance Benefits You
- Funds construction costs in tranches linked to project progress
- Repayment structured around project sales and cash flow
- Helps maintain construction pace without over-relying on customer advances
- Access to lenders experienced in real estate project appraisal
- Supports both residential and commercial development projects
Basic Eligibility for Builder Finance
- Clear land title and requisite project approvals (RERA, municipal, etc.)
- Developer's track record of completed and delivered projects
- Detailed project cost estimate and construction timeline
- Adequate promoter contribution/equity in the project
- Viable sales plan and pricing for the project
Loan Details
| Parameter | Details |
|---|---|
| Rate of Interest | 11% to 16% per annum |
| Professional Segment | 10.5% to 14% per annum |
| Minimum & Maximum Loan Amount | ₹1 crore to ₹200 crores+ |
| Minimum Business Vintage | Minimum 3–5 years as a developer/builder preferred |
| Age Limit | Min 25 years – Max 65 years (at loan maturity) |
Documents Generally Required
- Project approvals (RERA registration, municipal sanction)
- Land title and ownership documents
- Detailed project report and cost estimate
- Developer's past project track record