Builder Finance

Builder Finance

Builder Finance or Builder Funding is a specialized funding for Builders and developers for the construction & development of residential or commercial real estate projects, which ensures high selling potential and good profits.

Real estate projects situated in prime, marketable locations have the potential to attract buyers and provide solid returns for investors eligible for financing.

This loan facility is available across all major cities in India, with loan amounts starting from Rs. 5 crores and extending to any amount required. Whether for newly launched projects, mid-way to last-mile projects, or even stalled or stuck projects, we provide flexible solutions.

We also take over existing loans, regardless of whether they are running smoothly or have irregular repayments, offering additional funding to ensure project completion.

Our team assesses the project details to determine the best financial solutions and extend loans with customized repayment options that meet your needs.

If you are looking for a Project Loan for Builders, don’t hesitate to contact us for the best financial facility to bring your dream project to life.

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Types of Builder Funding We Offer

  1. Project Finance – For new & ongoing real estate developments
  2. Last-Mile Funding – For completing projects near delivery
  3. Land Purchase Loan – For acquiring prime real estate for development
  4. Bridge Finance – For urgent capital needs before permanent finance kicks in
  5. Restructuring/NPA Funding – For builders with distressed or stalled projects

Key Features of Builder Funding/Finance

 

 

 

 

 

Feature

     

           Description

Loan Amount

₹1 Crore to ₹200+ Crores

Funding Type

Construction Finance, Bridge Loan, Mezzanine Funding

Eligible Projects

Residential, Commercial, Mixed-Use

Repayment Options

EMI-based, Bullet Repayment, or Linked to Sales

Collateral

Project Land, Under-construction Assets, Receivables

Tenure

1 to 7 Years (Depending on Project Stage)

Disbursement

Tranche-wise, as per construction progress

 

Our Other Loans for Builders

                                           (All of our services comply with RBI -Reserve Bank of India guidelines and are available throughout India)

Construction Loans for Builders

We offer construction loans for builders to complete ongoing construction projects or for starting new projects in marketable areas of demand that promise good returns. This loan can be utilized for the project construction purpose, paying the outstanding authority fees, and buying land for the next project. The loan must be secured by the project land & building, along with the project receivables.

The construction loans can be disbursed in parts/tranches as per the construction stages of the project that require satisfactory delivery (construction) of each part to receive disbursement of the next installment of the loan.

Repayment can be taken pro rata basis through the sale of project units, and

Benefits of Construction Loans for Builders

  • The loans are available for launching a new project or completing an ongoing real estate project
  • Any previous loan running on the project can be taken over, and additional funds are infused to complete the construction work
  • In the second stage, an ample moratorium period is provided, so the client can focus on the development of the project without worrying about the repayment 
  • Lastly, a repayment plan is provided as per the sale proceeds of the project units.
  • The project itself serves as collateral, so no additional collateral is required.

 

Construction Loans for Builders are Available in the following Cities:

  • Delhi NCR
  • Mumbai
  • Bangalore
  • Pune
  • Hyderabad
  • Chennai

Private Funding for Construction Projects in India

We are pioneers in providing Private Funding for Construction Projects to real estate builders & developers to support their funding requirements through our private lending team which specializes in raising private funds. 

In the past few years, real estate developers have faced difficulties in arranging loans for their construction projects from conventional banks so our private funding services help the builders to arrange funds from private lending platforms. Our private funding is available for construction projects in their different stages of development from raising a fund for the launch of the project to funding requirements in finalizing the project for fit-outs. Our private funding services enable the developers to focus on their construction development and arranging the finance will be our responsibility. Our private funding process is very simple just share the following documents with us & you will get the private funding for your construction project in a short period of time. Document required to initiate the transaction

  • Company/Group Profile
  • Project Report
  • Promoter KYC

Project finance for redevelopment projects

We offer project finance for redevelopment projects for constructing, renovating, or general working capital against inventory, like multi-family units or residential developments. 

We offer tailored loan services to support builders and developers in creating quality homes that meet market demand. Our solutions are designed to accommodate each project’s unique cash flow and repayment needs, with competitive interest rates and flexible repayment options. 

We pride ourselves on a streamlined application process that allows quick access to funds. Our dedicated financial experts work closely with you to assess your project’s requirements, ensuring a smoother and more transparent loan application experience and helping you bring your vision to life efficiently.

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Interest Rates (ROI)

Our rate of interest varies from 12 to 14% on the reducing balance

Repayment Tenor

As per the project completion time, with a one-year cushion period.

End Use of Funds

Construction Cost, Admin & Sales Cost

Process Time or Turnaround Time

20 to 30 days

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Benefits of Choosing Us

  • Expertise: With years of experience in the real estate financing sector, we understand the drawbacks of the industry and provide tailored solutions.
  • Flexible Financing: Our financing options are designed to be flexible, accommodating the diverse needs of different projects and developers.
  • Quick Approvals: We value your time. Our streamlined processes ensure quick loan approvals and disbursements, helping you avoid unnecessary delays.
  • Competitive Rates: Our interest rates are competitive, enabling you to manage costs effectively and maximize profitability.
  • Personalized Approach: We believe in personalized service. Our team works closely with you to understand your goals and create a financing plan that works for you.

Ready to Take the First Step?

Don’t let financial burdens hold you back. Contact us today to schedule a consultation and take the first step towards a debt-free future.

Reach out to Vineet Kumar, our Financial Expert, at +91 9810218215 or vineet@fundsource.in. Connect with Vineet on LinkedIn to stay updated with expert insights.

Schedule an Appointment

Are you ready to take your real estate project to the next level? Schedule an appointment with our experts today! We’re here to discuss your financing needs and provide solutions that propel your projects forward.

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FAQs

How to Fund a Big Project?

In the current market, a lot of foreign & Indian companies are interested in lending a big bunch of funds to big/large projects, their minimum ticket size starts from Rs.25 Crores and goes up to thousands of crores. They can fund groups of projects or real big-cost projects located in high-volume areas that promise high returns on investments.

Do banks give loans to builders?

Banks are highly stringent on financing real estate or builders due to an internal mandate issued by RBI in the year 2019 to banks saying not to fund any new real estate project or builder except extending a previously running loan facility of a real estate developer.

Can we get a Loan for Real Estate?

In the year 2023, it is not a difficult task to get a loan for real estate projects or builders. A lot of NBFCs and fund houses came into the market, especially for real estate financing, these are specifically evolved for extending loans to real estate sectors. They can only fund the real estate sector in the way of construction loans, inventory funding & last-mile funding to support the real estate in every possible way. They extend the funds in the form of debt finance, NCD, or even in equity format.

How much loan is given for construction projects?

As per the standard lending policies, about 80% of the total project cost is given as a loan for construction projects. And, balance 20% needs to be invested by the promoters.

Does the projects without RERA registration are also eligible for this loan?

The only projects on which RERA is not applicable are eligible for this loan. Otherwise, RERA certification is mandatory for applying construction project loan.