Construction finance is a specialized funding solution that supports real estate developers, builders, and contractors in managing the costs of construction projects. Whether it’s for residential buildings, commercial spaces, industrial projects, or infrastructure development, construction finance plays a critical role in ensuring the project progresses smoothly from planning to completion.
Construction finance refers to short-term or long-term loans provided to developers or builders to cover various expenses involved in the construction process. This includes land acquisition, raw materials, labor costs, equipment rental, legal clearances, and more. It helps in bridging the gap between project initiation and the time when sales or revenue start to generate.
Lenders such as banks, NBFCs (Non-Banking Financial Companies), and private investors offer construction finance with flexible terms tailored to the needs of the project. The funds are usually disbursed in stages, aligned with the progress of construction, ensuring accountability and proper usage.
