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Real Estate & Infra sector · Residential, commercial, retail

Debt advisory for Real Estate.

Construction finance for residential and commercial development, LRD on completed Grade-A commercial assets, and inventory finance for post-OC unsold stock. RERA-compliant structures across all major Indian metros.

₹100 Cr+ mandates RERA-compliant structures All major metros
WORKING CAPITAL TERM LOANS PROJECT FINANCE STRUCTURED DEBT ECB NCD REAL ESTATE & INFRA REAL ESTATE SECTOR

How does BIG LOANS work with real estate developers?

BIG LOANS arranges ₹100 crore-and-above debt for Indian real estate — across residential (greenfield projects, mid-construction, last-mile), commercial (Grade-A office, IT-parks, retail malls), and specialty (warehousing, data centres). Three product structures dominate: construction finance with tranche-based disbursement against milestones (RERA-compliant); lease rental discounting on completed commercial assets with long-term lease income; and inventory finance against post-OC unsold residential stock. The lender universe is real-estate-focused: HDFC Capital, Piramal, Kotak Real Estate, PNB Housing on the NBFC side; private banks for top-tier developers; AIF credit funds for last-mile and structured deals.

Section 01 — Real Estate debt landscape

Specialized lender universe, RERA-driven structuring.

Indian real estate debt is dominated by specialist NBFCs and AIF credit funds rather than mainstream banks. PSU banks largely exited construction finance after 2018; private banks fund only top-3 developers in each metro. The bulk of construction-finance lending sits with HDFC Capital, Piramal, Kotak Real Estate, PNB Housing, Edelweiss, Brookfield India, Indiabulls Housing legacy book holders.

RERA (Real Estate Regulation Act) mandates escrow of 70% of project receivables, which aligns with lender requirements. Construction finance now uniformly uses RERA escrow as the cash-flow waterfall mechanism. LRD on completed assets is the cleaner product — strong tenant covenants, contractually committed cash flow, longer tenor.

Sector GDP
~7%
Top metros
MMR, NCR, BLR
RERA scope
Pan-India
CF lender mix
NBFC-led
LRD growth
Strong
Section 02 — Common funding situations

When real estate businesses approach us.

Common funding situations in Indian real estate.

01

Greenfield residential project

New residential project on freehold or leasehold land with RERA registration. Senior construction finance from sanction to OC, ₹100-800 Cr.

02

Grade-A commercial development

IT-park, business park, office complex with pre-lease commitments. Lower pricing because cash-flow visibility is higher.

03

Retail mall construction

Mall with anchor tenant pre-commitments. Combined with LRD on completion for long-tenor refinance at substantially lower pricing.

04

Last-mile / top-up finance

Existing project 70-95% complete, original loan exhausted. Last-mile finance to OC, often at premium pricing from specialty NBFCs and AIFs.

05

Inventory finance (post-OC)

Loan against post-OC unsold inventory at 50-60% of realisable value. Refinances higher-cost construction debt.

06

LRD on completed asset

Long-tenor LRD on completed Grade-A office leased to tier-1 tenants. Up to 90% of net rentals, 15-year tenor.

Section 04 — Lender appetite

Specialist NBFC-led universe.

Real estate debt is dominated by specialist NBFCs and AIF credit funds. Banks participate selectively for top-tier developers.

01

Real-estate NBFCs (dominant)

HDFC Capital, Piramal Capital, Kotak Real Estate, PNB Housing, LIC Housing — anchor most Indian RE debt.

02

AIF credit funds

Brookfield India, Apollo India, Edelweiss, ASK, KKR Credit — active for last-mile, structured deals, distressed acquisitions.

03

Private banks (top-tier developers only)

HDFC Bank, ICICI, Axis — fund only top-3 developers in each metro (Prestige, Brigade, Sobha, DLF, Godrej, Lodha-level).

04

PSU banks (limited)

Largely exited construction finance post-2018; participate selectively in LRD and inventory finance for AAA-rated developers.

05

Family offices

Active for smaller construction finance and last-mile deals (₹100-300 Cr), particularly in NCR and Mumbai.

Section 05 — Our process

How real estate mandates close.

Same 5-stage process for any large-ticket corporate debt mandate, applied to real estate specifics.

01

Discovery & sector diagnostic

NDA, then a short call to understand the business model, key financial drivers, capital need. Sector-specific risk factors mapped early.

Week 1
02

Structuring & lender shortlist

Optimal facility mix, tenor, security. Lender shortlist tuned to sector appetite — banks for vanilla, NBFCs / AIFs for specialty structures.

Week 2 – 3
03

IM + lender outreach

Sector-grade Information Memorandum, financial model, market analysis. Pitched to shortlisted lenders in parallel.

Week 3 – 8
04

Competing term sheets & sanction

Multiple sanctions negotiated in parallel on pricing, covenants, security. Final lender(s) selected.

Week 8 – 12
05

Documentation & drawdown

Loan agreement, security creation, CPs satisfied, drawdown. Sector-specific compliances (RERA, FEMA, SEBI, etc.) handled along the way.

Week 12 – 16
Section 06 — FAQ

Real Estate debt — FAQs.

Post-2018, after IL&FS / DHFL and the broader real-estate stress, PSU banks largely exited construction finance. Private banks tightened to top-3 developers only. The space is now anchored by real-estate-focused NBFCs and AIF credit funds.
Closely aligned. RERA requires 70% of project receivables in escrow; lenders typically require 100% of receivables. The single escrow account satisfies both — RERA monitors the 70% requirement; lender controls the waterfall.
100-300 bps wider. Last-mile is risk-concentrated (project 70-95% complete, single risk event = OC), so lenders price accordingly. NBFCs and AIFs are the active lenders.
Yes — and standard practice. Construction finance funds the build; on OC, project refinances into LRD (if commercial, tenant-leased) or inventory finance (if residential, unsold stock). LRD pricing is 200-400 bps below CF.
25-35% of total project cost, including land. Higher for first-time or smaller developers; lower (20-25%) for top-tier developers with strong execution track record.
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Bigger Support, Brighter Future. India's specialist debt advisor for ₹100 Cr+ corporate funding mandates. Pan-India. Confidential. Senior banker-led.

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BIG LOANS is the trade name of [Legal Entity Pvt. Ltd.], CIN: [xxx], registered at [address]. BIG LOANS is a debt advisory and loan facilitation firm. It is not a bank, NBFC or any other lending institution registered with the Reserve Bank of India, does not accept public deposits, does not lend money on its own books, and does not issue any loan, credit facility or financial product directly. All loans, limits and credit facilities are sanctioned, disbursed and serviced solely by the relevant banks, NBFCs, AIFs and other regulated lenders, in accordance with their internal policies and applicable RBI / SEBI / IRDAI guidelines. BIG LOANS is empanelled as a Direct Selling Agent / Channel Partner with various banks and NBFCs and may earn sourcing fees from such lenders for successful disbursements. Any borrower fees are governed exclusively by a written engagement letter. Information on this website is general in nature and not financial, legal or tax advice. Please consult your CA / advocate before acting.

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