Finnova arranges stage-linked capital across the full project lifecycle — from land acquisition and TDR purchase through development premium, construction finance and inventory refinance. Banks, NBFC-HFCs and Category-II AIFs — matched to stage, LTV and speed.
Real estate funding is stage-linked debt — what a project can raise, from whom, and at what cost changes as the project moves from raw land to OC. Banks cannot fund land, TDR or development premium payments under RBI norms; that capital comes from NBFC-HFCs (NHB-regulated) and Category-II AIFs (SEBI-regulated). Once RERA is registered and approvals are in place, construction finance from banks and HFCs takes over at sharper pricing. At stabilisation, refinance into long-tenor bank debt compresses the cost of capital. Getting the right lender at the right stage is the entire game — and the reason most developer capital stacks leave money on the table.
Capital needs change as a project moves from raw land to OC. Finnova covers every stage.
Six stages, three lender types, one coherent stack.
| Stage | Typical Use | Who Funds | LTV / Ticket | Rate Band | Tenor | Notes |
|---|---|---|---|---|---|---|
| Land Acquisition | Buying land parcel for development | NBFC-HFC, AIF | 40–55% of land value | 14–18% p.a. | 2–4 yrs | Banks barred by RBI |
| TDR Purchase | Buying Transfer of Development Rights | NBFC-HFC, AIF | 50–65% of TDR cost | 13–17% p.a. | 1–3 yrs | Bridge to construction |
| Development Premium | FSI / additional area premium to authority | NBFC-HFC, AIF | 60–70% of premium | 13–16% p.a. | 2–3 yrs | Often bridged |
| Construction Finance | Build-out of sanctioned project | Bank, NBFC-HFC | 60–65% of project cost | 10–14% p.a. | 3–5 yrs | RERA + approvals mandatory |
| Inventory / Last-Mile | Unsold post-OC or stalled completion | NBFC-HFC, AIF, SWAMIH | 50–60% of inventory | 11–14% p.a. | 2–3 yrs | Unlocks stuck capital |
| Refinance | Replace expensive debt at stabilisation | Bank, HFC | Up to 70% | 9–11% p.a. | 7–12 yrs | Cost compression |
Indicative — varies by lender, sponsor profile and micro-market.
NBFC-HFC and AIF capital to acquire land parcels ahead of approvals, with a structured exit to construction finance.
Finance TDR purchases from certificate holders against the project's development potential.
Bridge capital for FSI / additional area premium to authorities, unlocking sanctioned buildable area.
Milestone-linked funding through build-out with RERA-compliant escrow and cash-flow waterfalls.
Working capital against unsold post-OC inventory, or completion capital for stalled projects.
Mezzanine and Cat-II AIF capital for acquisitions and special situations, refinanced to bank debt at stabilisation.
Full lifecycle coverage — land, TDR, premium, construction, inventory and refinance under one advisor.
Banks-can't capital — NBFC-HFC and AIF access for pre-RERA stages where banks are barred.
Stage-correct lender matchmaking — project stage decides who funds it, not the other way around.
RERA-compliant structuring — escrow, cash-flow waterfalls and drawdown discipline by design.
Cash-flow underwriting — debt sized to receivables and saleable area, not just security cover.
Refinance optimisation — AIF/NBFC debt replaced with cheaper bank lines at stabilisation.
Requirements vary by stage — land/TDR stages need lighter packs; construction finance needs full approvals.
Land title documents, title search report and encumbrance certificate
TDR certificate and transfer agreements (if applicable)
RERA registration / approval roadmap (for pre-RERA cases)
Sanctioned building plans and statutory approvals (once obtained)
Project report with stage-wise cash-flow projections
Last 3 years' audited financials of the developer entity
Existing sanction letters, lender NOCs and escrow arrangements (if any)
KYC of developer, promoters and authorised signatories
From diligence to first drawdown — we manage the full mandate.
Title, approvals, cash-flow and sponsor review.
3-5 days
Match project stage to bank, NBFC-HFC or AIF that fits.
2 days
Compile CAM-ready pack, financial model and project note.
7-10 days
Negotiate rate, tenor, LTV, covenants and security.
3-6 weeks
Legal, escrow, security creation and first disbursement.
2-3 weeks
Yes — through NBFC-HFCs and Cat-II AIFs. Banks are barred by RBI from land funding. We structure acquisition debt with a clear exit to construction finance post-RERA.
We finance the TDR purchase against the incremental development potential it unlocks. Typical LTV is 50–65% of TDR cost, tenor 1–3 years, usually bridged into the construction finance line once the project is sanctioned.
Premium is the payment to civic authorities for FSI, additional area or fungible FSI — often 10–25% of project cost in metros. It's paid upfront before construction can start, so it needs its own bridge capital until construction finance kicks in.
Banks/HFCs price at 9–12% but need RERA, full approvals and conservative LTVs. AIFs step in where stage, LTV or speed makes banks uncomfortable — at 14–18% for 2–4 year tenors. The discipline is refinancing AIF debt into bank debt the moment the project qualifies.
₹25 Cr and up for construction finance and inventory. Land / TDR / premium funding typically ₹50 Cr+. Structured AIF deals ₹50–500 Cr.
Yes — last-mile finance and AIF special-situations capital. We underwrite the completion plan, remaining saleable area and approvals status. NCLT and SWAMIH-adjacent situations handled case-by-case.
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