Construction Funding

  • Features:

In market some of the banks are having designed customized financial solutions, ranging from loans for purchase of construction equipment to Fund based and Non-Fund based facilities: Overdraft facility / Cash Credit, Business loans, Working capital finance solutions, Invoice Financing / Bill Discounting, Buyer’s Credit, Bank Guarantees, Letter of Credit, Letter of Credit backed Bill Discounting (LCBD) facility, Securitization of Receivables like Rental Discounting,Inventory Funding and many more. Banks are providing funding for construction and material equipment such as excavators, backhoe loaders, tippers, cranes, forklifts, etc. Banks are providing these facilities tosmall to large contractors, plant hirers, and corporates engaged in wide variety of activities such as:Road/Civil Construction and Development, Power, Irrigation, Mining and Quarry, Oil and Gas Exploration, Ports, Shipping, etc

  • Eligibility:
    • Any individual / partnership firm / company with more than One year of Business Stability
    • Captive customers, Contractors and Plant Hirers
    • The applicant should be a local resident for at least 2 years in the approved location
    • First time owners can be funded at the discretion of the Bank
    • Trade References (2)
    • Guarantee/ Co-borrower
  • Documents Required:

Pre Sanction:

1.       KYC Documents & Photograph

2.       Latest 6 months bank statement

3.       Residential & Office address proof

4.       Certified work order/ contracts in hand

5.       Repayment track records

6.       Latest Loan Position

7.       Work in Hand for “Contractor”

8.       List of Assets for “Plant Hirers”

9.       Past equipment ownership proof with free & finance details

10.    Performa Invoice

11.    Financials along with ITR, for the last 2 years and Provisional Financial Statement / Key figures

Post Disbursement:

1.       PDC/ ECS/ Direct Debit mandate

2.       Invoice of asset funded

3.       Insurance cover note

4.       Disbursement advice

5.       RC with hypothecation

6.       Margin money receipt


  • Tenure: Min 5Years
  • Fees & Charges: Processing Fees/ Documentation charges/ Stamping Charges/ Late Payment Fees/ Pre-Payment fees/ Legal Fees/ Administrative Fees

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