Project Construction Finance

Project Finance / Construction Finance is given by banks /financial institutes to builders/developers for his routine working capital requirements for his project.


Basis Features of such type of Finance

  • These are secured advances for construction of residential or commercial project
  • Collateral is usually the project being constructed. Existing property can also be put up as security.
  • Interest rates are flexible being either Fixed, Floating or a combination of fixed and floating.
  • Interest rates depends on client's profile, financial details and the collateral which he is offering.
  • Amount offered depends on the cost of construction,normally it is around 50 -75 % of construction cost.
  • Repayments are made in EMIs (Equated Monthly Instalments).
  • Pre-payments are allowed, to reduce liability.
  • They are short term in nature for particular project
  • Non-interest charges include processing fees, pre-payment charges, inspection fees, documentation fees etc.
  • Co-applicants/joint-applicants are allowed.

Every lender assesses a customer differently but, by and large, the basic criteria a borrower should satisfy to be eligible for a loan are outlined below:


  • Employment: Borrowers can be only Builders/ Developers doing business for at least 2-3 years.
  • Income: A minimum income varying between Rs.5 - 7 lakhs would be required.
  • Credit Rating: A good credit score is required (a score of 750-900 from CIBIL is considered good). Besides this, a healthy financial background is vital for approval and to determine the interest rate and loan amount.
  • Current Obligation: The payment track record of any Loan which had been taken by the customer in the past, even though currently closed and EMI of any existing loan is may be considered while calculating loan ligibility
  • Age: The minimum age at the time of application should be 21 years. Repayments have to be completed before the age of 60 or 65.
  • Security: The Collateral offered by the borrower like type of property- commercial/residential or industrial and usage pattern of same.

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Finance Market

805, Akshat Complex, Besides Pakwan Restaurant, Bodakdev, S.G.Highway,

Ahmedabad 380054

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Phone : 079 40022171

Mobile : Kamal Thakkar- 9825642171

Reema Kapoor- 7600011579