Construction Finance Credit Policy & Eligibility Rules
Construction and project finance eligibility, LTV and disbursement norms.
How lenders evaluate applications
Construction finance funds project development. Lenders assess project viability, developer track record, LTV and phased disbursement.
Eligibility includes land title, approvals and pre-sales or cash flow.
Eligibility at a glance
| Parameter | Typical Requirement |
|---|---|
| LTV / LTC | As per lender; often 60–75% of project cost |
| Pre-sales / cash flow | Often required for disbursement |
| Approvals | RERA, municipal and other clearances |
| Developer vintage | Track record and net worth |
Policy rules
Typical construction finance parameters.
LTV/LTC
Loan to cost/value; cap and disbursement linked to milestones.
Security
Mortgage, assignment of receivables.
Eligibility
Project approvals, developer profile and cash flow.
Example eligibility scenario
Sample borrower
Example inputs
- Project cost: ₹20 Cr
- Loan required: ₹12 Cr
- LTC: 60%
Result
Within typical LTC range
60% LTC is common. Final terms depend on project and developer.
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