Real Estate is India's rapidly developing business segment and multiple financial institutions including banking and non banking are offering Loans for New Construction i.e., construction finance under project finance / loan.
Loan sanctioned 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. An individual or a firm or company engaged in the business of real estate development or construction (Builder) can avail this construction finance 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. This Construction loans / finance are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow. This Construction finance is typically secured by all of the project assets, including the revenue-producing contracts. Project finance lenders are given a lien on all of these assets, and are able to assume control of a project if the project company has difficulties complying with the loan terms.
CFPL are specialized in Arrangement of Project Finance to Builders & Developers through banks and financial institution which CFPL has developed through trust and experience over decades.
Customizing our services to your unique requirements, we will develop and execute a financing that will maximize the economic value of your project. Project finance is the long term finance based upon the projected cash flow of the project.
CFPL offers customize service to customers according to their requirements based upon their projects and experience.
• No private Investor Required
• Better rate of Interest
• Financial Support
• No Extra collateral required
1. Project Report.
2. Company Profile.
3. Valuation & legal Report.
4. Evaluation Report on Format.
5. Past & future Projection.
6. Credit history of the client.
8. Personal Discussion with the client.
Construction Finance Documents can be classified in two Parts
Property Documents -
1. Project Report
2. Evaluation Report on format
3. Legal & Technical verification
4. Company profile
5. Past & future Projects
6. Property Related Documents
1. 3 yrs Financial of the firm(complete set)
2. 3 yrs individual financial paper(Director/Partner/ Proprietor)
3. One year bank statement of the Firm
4. One year bank statement of Director/partner/ Proprietor
5. All loan sanction letters
6. KYC of the firm(Gumastha Licensce/Registration certificate)
7. KYC of the Partners/Directors/Proprietor
8. Directors Report if PVT LTD
9. Auditors Report if PVT LTD
11. Share Holding Pattern on company letter head
12. Annual return with ROC copy
14. Processing fee cheque
The general factors taken into account while determining the eligibility of project finance are listed below:
1. The promoters should have proven track record and have successfully completed minimum 3 projects
2.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 :If land is a private land of the developer then salable portions of the construction cost Can be financed.(COMMENCENT CERTIFICATE OF THE SALEABLE PORTION MUST)
Redevlopment project : In redevelopment project only saleable portion of the construction cost can be financed if commencement certificate of the saleable area is available
• Project Report on CFPL format (Download it from our website)
• Project Evaluation
• Profile of the builder/developer
• Property Valuation
• Personal discussion
• Sanctioning of the Loan
• Disbursement (slab wise)
The Process may vary from bank to bank in which they will do your verification of documents, residence, office, and a cibil check
There are no fixed tenure it Depends upon the completion of the project
1. Application form with photograph
2. Identity and Address Proof
3. Proof of business existence
4. Last 3 years ITR
5. Last 3 years P&L and Balance Sheet
6. Bank Statements (Last 12months)
7. Processing fee cheque
1 Relevant Property Papers
2. Profile of the builder
3. Project Report
4. Valuation report
Please refer the complete list of documents on our website in the document section of Construction Finance
The value of the property would be determined through a valuation conducted by the bank
Yes , property has to be insured varies from bank to bank
It takes 45 working days from the day of completion of documents and it may vary from bank to bank
The loan will be repaid through the capitalization/prepayment stipulated. It also be repaid through the principal component of EMI whenever EMI starts (after the moratorium period)
The loan can be prepaid although there are prepayment penalties stipulated. It varies from bank to bank.