Is BIG LOANS a bank or NBFC?

No. BIG LOANS is a debt advisory and loan facilitation firm. We are not an RBI-regulated lender and do not lend on our own balance sheet.

What is the minimum and maximum ticket size BIG LOANS handles?

Our focus is ₹100 crore and above. We routinely arrange transactions up to several thousand crore through syndication.

Which industries does BIG LOANS serve?

BIG LOANS is industry-agnostic across manufacturing, real estate, infrastructure, healthcare, energy, IT/ITES, hospitality, NBFC, fintech and more.

What is the typical timeline from mandate to disbursement?

Typically 6–12 weeks for working capital, 10–16 weeks for term loans, and 12–24 weeks for syndicated project finance.

How does BIG LOANS charge its fees?

A modest engagement retainer plus a success fee linked to actual disbursement, governed by a written engagement letter.

Does BIG LOANS guarantee loan sanction?

No. Sanction is the sole prerogative of the regulated lender, based on its credit policy.

Service · Construction Finance

Construction finance, tranches matched to project milestones.

Tranche-based developer finance against escrow of sales receivables. For Grade-A residential, commercial, retail and warehousing projects. Senior, last-mile and inventory finance structures.

Ticket: ₹100 – 1,500 CrTenor: 5 – 7 yearsDisbursement: Tranche-based

Discuss your mandate → See the process

What is construction finance?

Construction finance is a specialised real-estate loan to developers, secured by mortgage of project land and escrow of all sales receivables. Funds are disbursed in tranches against independently certified construction milestones — foundation, plinth, structure, occupancy certificate — rather than in a single lump sum. Indian construction finance typically runs 5 to 7 years, requires RERA registration, and is dominated by real-estate-focused NBFCs and AIF credit funds, though private banks compete for top developers.

Section 01 — Overview

Capital that flows with construction progress.

Unlike a term loan that disburses upfront, construction finance is milestone-linked. The lender breaks the sanctioned amount into 4–6 tranches, each released only after an independent engineer (LIE) certifies the corresponding milestone has been achieved.

BIG LOANS structures construction finance for Grade-A developers across residential, commercial, retail and warehousing projects. We negotiate the milestone schedule, escrow waterfall, security package and cash-flow waterfall — all under RERA compliance.

Tranche-based disbursement linked to construction milestones (foundation, plinth, structure, OC)
Mortgage of project land + escrow of all sales receivables + corporate guarantee
Repayment from project cash flows waterfalled through escrow
RERA-compliant structure with quarterly progress reporting
Senior, last-mile (top-up) and inventory finance (against unsold stock) variants

Typical ticket

₹100 – 1,500 Cr

Tenor

5 – 7 years

LTC

Up to 70%

Promoter contribution

25 – 35%

Pricing

EBLR + 200 – 600 bps

Sanction

10 – 16 weeks

Section 02 — Use cases

Where construction finance fits.

Six common situations where Grade-A developers approach BIG LOANS for construction finance.

Greenfield residential

New residential project on freehold/leasehold land with RERA registration. Senior construction finance from sanction to OC.

Commercial Grade-A development

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

Retail mall construction

Mall projects with anchor tenant pre-commitments. Combined with LRD on completion for long-tenor refinance.

Last-mile / top-up finance

Existing project 70–80% complete, original construction loan exhausted. Last-mile finance bridges to OC.

Inventory finance

Post-OC unsold inventory. Loan against the unsold units (typically 50–60% of their realisable value).

Refinance + cost overrun

Existing higher-cost NBFC loan refinanced into bank construction finance, with additional headroom.

Section 03 — At a glance

Senior CF vs Last-Mile vs Inventory Finance.

Feature	Senior CF	Last-Mile CF	Inventory Finance
Stage	Pre-launch to OC	70–95% complete	Post-OC, unsold
LTC / LTV	Up to 70% LTC	Top-up balance	50–60% of unsold value
Pricing	EBLR + 200–400 bps	EBLR + 300–500 bps	EBLR + 250–450 bps
Tenor	5 – 7 years	2 – 3 years	2 – 3 years
Typical lender	Banks + NBFCs	NBFCs + AIFs	Banks + NBFCs

Disbursements release in tranches as each construction milestone is independently certified.

Section 04 — Our process

How construction finance closes.

Typical 10 – 16 weeks. The complex parts are RERA compliance, escrow setup, and the LIE / valuer empanelment.

Project diagnostic

Land title, RERA registration, approvals, projected cash flows, sales velocity, pre-launch absorption. Eligible loan amount.

Week 1 – 2

Lender shortlist + IM

Project IM with land, approvals, build cost, sales projection, pricing. 4-6 lenders pitched.

Week 2 – 4

LIE + valuation + legal

Lender appoints LIE to validate cost & timeline; valuer for land value; legal for title.

Week 4 – 8

Sanction + escrow setup

Sanction letter with milestone schedule. RERA escrow opened, mortgage registered.

Week 8 – 12

First tranche drawdown

CPs satisfied (RERA escrow, mortgage, corporate guarantee, LIE certification). First tranche disbursed.

Week 12 – 16

Section 05 — Documents

Construction finance documentation.

CF documentation is the heaviest of any real-estate product because it combines property + project + cash-flow + regulatory dimensions.

Land + approvals

Title deeds, encumbrance certificate, RERA registration, IOD/CC, environmental clearance, sanctioned building plan.

Project documents

Architect-certified cost estimate, build schedule, sales projection, EPC contract, specifications.

Developer + corporate

Audited financials of SPV + parent developer, board resolutions, KYC, group-company exposure.

Sales + escrow

Pre-launch booking data, agreement-to-sale formats, RERA escrow letter, draft sales-collection waterfall.

Section 06 — Lender universe

Who funds construction finance.

Dominated by real-estate-focused NBFCs and AIFs. Private banks compete only for top-3 developers in each metro. PSU banks have stepped back since 2018.

01Real-estate NBFCs (HDFC Capital, Piramal, Kotak RE)

02AIF Credit Funds (Cat-II RE funds)

03Private Banks (HDFC, ICICI, Axis — only top-tier developers)

04Foreign Banks (StanChart, DBS — only A+ developers)

05Family Offices (last-mile, smaller tickets)

06Diversified NBFCs (Bajaj, Tata Capital — selective)

Section 07 — FAQ

Construction finance — FAQs.

Difference between Senior, Last-Mile and Inventory Finance?

Senior CF funds construction from pre-launch to OC, up to 70% Loan-to-Cost. Last-Mile CF bridges the final 5-30% when the original loan has run dry. Inventory Finance is post-OC, against unsold stock (50–60% of realisable value).

Is RERA mandatory for construction finance?

Yes — for any project requiring RERA registration, lenders mandate it before sanction. RERA requires 70% of project receivables in escrow, dovetailing with lender requirements.

What is LTC vs LTV?

Loan-to-Cost (LTC) = loan / total project cost. Used in construction finance because no completed property exists yet. LTV compares loan to property's market value — used post-completion.

How are tranches released?

The LIE inspects monthly and certifies physical progress. Each tranche ties to a milestone — foundation (15-20%), plinth (15-20%), structure (30-40%), finishing (15-20%), OC (10-15%).

Typical cost overrun buffer?

Lenders build in 10–15% cost overrun buffer over architect-certified cost. Sponsor contributes the buffer upfront alongside equity, before debt drawdown begins.

Can the loan be refinanced once OC is received?

Yes — standard practice. Post-OC, project transitions from construction risk to leasing/sales risk. LRD (commercial) or inventory finance (residential) refinances at 200–400 bps lower pricing.

Often combined with…

Have a construction project?

Let's structure your construction finance.

Share the project brief and approvals status. We respond with eligible loan amount, indicative pricing and lender shortlist within one working day.

Discuss your mandate → mandates@bigloans.in

Core Lending

Asset-Backed

Specialty & Markets