🔑 Key Features
| Feature | Details |
|---|---|
| 💰 Loan Amount | ₹1 crore to ₹100+ crore (depending on project size) |
| 🔒 Collateral | Typically the project land/property or other assets |
| 📈 Interest Rate | ~9% to 16% p.a. (may vary by lender and risk profile) |
| 📅 Loan Tenure | 1 to 7 years |
| 🧾 Repayment Mode | Interest-only during construction, full EMI post-completion |
| 🧮 Disbursement | Usually in stages (linked to project milestones) |
🧾 Purpose of Real Estate Development Loans
These loans can be used to finance:
🏢 Residential housing projects (apartments, villas, row houses)
🏬 Commercial projects (malls, office parks, retail space)
🏗️ Mixed-use development (commercial + residential)
🛣️ Infrastructure within real estate sites (roads, sewage, water)
Apply Loan
📋 Documents Required
Company registration & promoter KYC
Approved project plan, layout, land documents
RERA registration (if applicable)
Project feasibility report and cash flow projections
Cost estimates and contractor details
Bank statements and audited financials of the company
List of past completed projects
✅ Eligibility Criteria
Registered real estate developers or firms
Valid licenses and approvals from RERA and local authorities
Clean financial and credit record
Experience in handling similar-sized projects
Proper project feasibility and cost report
💡 Example
A developer in Hyderabad is building a 100-apartment housing project.
He applies for a loan of ₹20 crore from a housing finance company.
The loan is disbursed in 5 tranches as the construction progresses.
Repayment begins after 2 years, once apartments start getting sold.
⚠️ Risks & Considerations
Heavy documentation and due diligence
Regulatory approvals (RERA, municipality) are mandatory
High exposure to market demand and real estate cycles
Delays in construction/sales can affect repayment schedule
Requires professional financial and project planning
🏘️ Related Loan Types
Construction Finance (for project buildout)
Bridge Loan (short-term financing until permanent loan/sales)
Land Acquisition Loan
Home Loan (for individual buyers)