Fund the project the way it actually gets built.
Structured finance for developers, contractors and manufacturers building from the ground up: land acquisition, construction, plant and infrastructure — sanctioned as one project and drawn in tranches against certified progress.
Project finance is appraised on the project, not the promoter alone
Beyond a certain scale, lenders move away from balance-sheet lending and appraise the project itself: land and title, approvals, cost estimate, contractor credentials, off-take or sale visibility, and the DSCR the project can sustain once operational. The promoter's track record still matters, but the project's own economics carry most of the weight.
Disbursal is tranched against a quantity surveyor's certification of completed work, not released upfront. Interest is paid only on drawn amounts through construction, with principal beginning after a moratorium set to realistic completion plus a buffer — projects overrun timelines more often than not, and a tight moratorium is a common cause of early stress.
Approvals are pre-disbursal conditions, not paperwork to complete alongside construction. Land title and mutation, building plan sanction, environmental clearance where applicable, and RERA registration for real estate projects must be in hand before the first tranche in most structures.
Indicative pricing in 2026
Projects with clear approvals, fixed-price contracts and demonstrated off-take price meaningfully better than speculative development.
Public Sector Banks
Tier-1 Private Banks
NBFCs & HFCs
Where project files run into trouble
Cost estimates with no contingency
A cost estimate that assumes nothing goes wrong is the single biggest red flag in a project file. A contingency of at least 5–10% signals realistic planning; its absence signals the opposite, and shortfalls discovered mid-construction are far harder to fund.
Approvals sequenced after construction begins
Starting work before land conversion, plan sanction or RERA registration risks the whole structure being unfundable, since surveyors and lenders certify only sanctioned, compliant work. Sequence approvals first, always.
Moratorium set to the optimistic timeline
Projects slip. A moratorium calculated to the best-case completion date, with no buffer, routinely results in EMIs beginning on an asset that is not yet generating revenue. Negotiate the buffer at sanction.
Documents required
Incomplete files cause most multi-week delays. We assemble the full set upfront, in the order credit teams read it.
KYC & constitution
- PAN & Aadhaar of all promoters / partners / directors
- Certificate of incorporation, MOA-AOA or partnership deed
- Board resolution or partners' authority letter
- GST registration & trade licence
Financials
- 3 years ITR with computation of income
- Audited balance sheet, P&L and schedules
- 12 months' bank statements of all operating accounts
- GST returns for the last 12 months
- Existing loan sanction letters & repayment track record
Project papers
- Title deed, mutation and land-use conversion order
- Sanctioned building plan / RERA registration for real estate
- Detailed cost estimate, BOQ and contractor agreement
- Off-take agreements, pre-sale or pre-lease documentation
- Environmental and other statutory clearances as applicable
How project finance is structured
Project appraisal
Title, approvals, cost estimate and off-take tested rigorously before the file goes anywhere.
DSCR modelling under base and stress cases
Post-completion cash flow tested against a range of scenarios, not just the promoter's base case.
Sanction with tranche and covenant structure
Drawdown schedule, moratorium with buffer, and DSCR covenants negotiated with headroom, not just the sharpest headline rate.
Certified drawdowns to completion
Tranches released against surveyor certification, tracked through to conversion into term debt or exit.
Related facilities & deep-dive guides
Every facility below is placed through the same 80+ lender panel. The long-form guides carry the working numbers, worked examples and lender-by-lender detail.
Frequently Asked Questions
The questions our advisory desk is asked most often about Project & Construction Finance.
Broadly ₹5 Crore and above, though the threshold varies by lender. Below that, standard construction finance is usually the more efficient route with lighter structuring.
Above ₹5–10 Crore, dedicated project appraisal — DSCR modelling, tranche structuring, covenant negotiation — typically produces better terms than a generic term loan application.
In tranches against a quantity surveyor's certification of completed work, not upfront. You pay interest only on what has been drawn at each stage.
The number of tranches and the milestones triggering each are agreed at sanction and form part of the loan documentation.
Lenders typically require 1.25 to 1.75x on the project's post-completion cash flow, tested under both a base case and a stress case with lower assumed revenue or occupancy.
A DSCR that only just clears the covenant in the base case leaves no room for a slow quarter. We model stress cases before submission so the sanction has genuine headroom.
Yes. The appraised value of unencumbered land you already hold is typically credited towards the 25–35% promoter contribution expected on most project facilities, reducing the fresh cash needed at the outset.
The land must have clear title and the correct land-use classification for the project.
Cost overruns are the promoter's responsibility under most project finance structures. This is exactly why a contingency line of 5–10% belongs in the original cost estimate rather than being added later.
Where an overrun does occur, options are typically promoter infusion or a separate top-up facility assessed on its own merits, which takes time.
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