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The actual amount of credit extended to the builder may be based on the value of the homes the builder has sold and may be about 50 percent of the home's intended sale price

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15y ago

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Construction Finance or Loans to builders is a finance to real estate players to complete their ongoing or future projects. These types of LOANS are normally required heavy funds from banks like Rs.10 crores to 2000 crores. Normally banks sanction these types of loans after completing a long loan process and due diligence. Normally established players are eligible for these types of loans. This loan repayments tenure stands normally between 3- years with a moratorium period of 2-3 years. Adequate collateral security is an essential to cover this loan. Builders can use these loan funds for completing their new or old real estate projects. Normally land purchase under construction finance to builders are not allowed in normal course. The disbursal also takes 2-3 years time to the borrowers builders as these loans normally disbursed in trenches after getting the satisfactory on going reports by the bank time to time. Yes Monei Matters a delhi based company is helping its client to take these loans from several banks.


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Anything of value can be used to finance a construction if it equals the amount or more than the cost of the construction. Most people use their homes as collateral.


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