Banking and non-banking lenders are offering loans for New constructions as real Estate is India's rapidly developing business segment and multiple financial institutions. Loan is given to construct or develop a new real estate project including both residential as well as commercial is known as Construction Loan under Project finance department. This construction finance can be used by an individual or a firm or company engaged in the business of real estate development or construction (Builder) under Project finance / loan department. Project finance / Construction Finance is the long term financing of infrastructure based upon the projected cash flows of the project rather than the balance sheets of the project sponsors.

Builders or developers with minimum 3 projects/1lac sqft experience can avail this facility

The general factors taken into account while determining the eligibility of project finance are listed below:

• The promoters should have proven track record and have successfully completed minimum 3 projects
• The developer or the builder should have the land ownership in their name or firms name.

Vacant Land : Land ownership in firms or promoters name.
: Development agreement with the land owners
SRA Project : Salable portions of the construction cost Can be financed.(COMMENCENT CERTIFICATE OF THE SALEABLE PORTION MUST)
Redevelopment project : In redevelopment project only saleable portion of the construction cost can be financed if commencement certificate of the saleable area is available