Construction Finance Overview
In India, the real estate sector is the second-highest employment generator, after the agriculture sector. Real estate sector in India is expected to reach US$ 1 trillion by 2030. By 2025, it will contribute 13% to country’s GDP. Emergence of nuclear families, rapid urbanisation and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail. Rapid urbanisation in the country is pushing the growth of real estate. >70-75% of India’s GDP will be contributed by urban areas by 2020. According to India Ratings and Research, the Indian real estate sector may stage a sharp k-shaped recovery in FY22. However, the overall sales in FY22 could still be ~14% below the FY20 levels. Construction finance required collateral. Collateral can be provided in the form of hypothecation of the project receivables or through the mortgage of the property. Loan amounts can go up to 100 Crore but loan amounts offered at the time of availing the loan will depend on evaluation of the construction cost.Multiple financial institutions including banking and non-banking are offering loans for new construction i.e., construction finance under project finance. Finanza Advisory has specialized in arrangement of project finance to Builders & Developers through banks and financial institution and provide customized services to the developers as per theirs requirement based upon their completed projects and past experience.
Construction Finance Process
Criteria for Construction Funding
Documenst required for Construction Funding