Home Loans starting from 5 Crore
For Real Esatate Builders and Developers
Get quick, hassle-free finance for real estate construction and development. Designed exclusively to fulfil the financial needs of real estate developers. Developer Finance contains a suite of products that help you with all the costs of completing a real estate project, from construction to working capital.
Our developer finance suite consists of the following products: Features and Benefits Lending money for construction, particularly new construction, is riskier than many other types of lending. For starters, construction is a complex undertaking with When evaluating potential borrowers for a construction loan, lenders start with the profit test, which determines whether or not your finished facility will be worth more than cost of your project — particularly if you plan to use your facility as loan collateral. Lenders will evaluate how much relevant experience your ownership group has and the experience of your project team. And they’ll consider how invested you are in your project using two measures: 1.The loan-to-value ratio 2.The loan-to-cost ratio LOAN-TO-VALUE RATIO = amount of money borrowed vs. estimated value of facility LOAN-TO-COST RATIO = amount of money borrowed vs. cost of project Today, most lenders dont usually finance more than 75 percent of a project value. Depending on the job, the threshold may be lower than 75 percent. The lower the loan-to-value and loan-to-cost ratios, the less risk your lender is taking and the less need you have for additional collateral or personal guarantees. THE FOUR MAJOR TYPES OF PROJECT COSTS When planning your project and asking for loans, you will need to account for four different types of costs: 1.Hard costs 2.Land costs considered soft costs 3.Soft costs — all the costs you don’t see among others) 4.Contingency reserve
many potential pitfalls. It requires a strong ownership with a defined plan for finished facilities. And it demands a skilled project teamto deliver your build on-time, on-budget and to high quality standards. Lenders want to know your project will succeed, so they’ll take measures to evaluate your project’s viability and their risk.
percent of soft costs
Consider all of these costs before you ask for a loan. If you fail to accountfor all of them, it will be a challenge to secure funding or even complete your project.