Development-value underwriting
We value the TDR or premium FSI against the right receiving-zone rates and build the utilisation case that sets your LTV.
Financing the area before you build it.
TDR Funding & Premium FSI Finance
TDR and premium FSI are large upfront cash costs no home loan or bank construction facility will touch — so they’re funded by NBFC-HFCs and Category-II AIFs against the saleable area they unlock. We value the potential, build the case, and bridge the facility into cheaper construction finance. CA + ex-banker led. ₹4,250 Cr+ facilitated since 2011.
TDR + premium FSIBanks-can’t capitalBridged into CF
A track record since 2011, in numbers
₹4,250 Cr+
Capital facilitated across sectors₹550 Cr
Largest single facility structured2 pools
NBFC-HFCs · Cat-II AIFsSince 2011
Advising developers & promotersTDR (Transfer of Development Rights) and premium FSI let a developer add buildable area — but both are paid upfront, in cash, before a rupee of construction debt is drawn. Banks don’t fund them; NBFC-HFCs and Category-II AIFs do, against the development potential they unlock. Getting the valuation and utilisation case right is what sets your LTV.
Finnova Advisory is an advisory firm — we structure the file and negotiate terms; the lender sanctions and disburses.
The facility at a glance
What TDR & premium funding looks like
Indicative parameters for financing TDR and premium FSI. Both are typically structured as a short bridge that folds into the construction facility once approvals are in place.
Loan-to-value (LTV)~50–65%Of development potential value
Interest rate~13–17% p.a.Pre-approval stage pricing
Tenor1–3 yearsUntil bridged into construction
ExitBridge to CFRefinanced once approvals land
Funded byNBFC-HFC / AIFBanks barred at this stage
CoversTDR + premium FSIThe upfront intangible costs
Indicative only — not an offer. TDR and premium values are anchored to the receiving zone’s Ready Reckoner rates and vary by location and the prevailing DCPR/UDCPR rules. We confirm the fundable figure at diligence.
How it works
From a development right to drawn capital
TDR and premium FSI are intangible — they have no building, no sales, no cash flow yet. Funding them is about proving the saleable area they create, and planning the exit.
1. Value the potential. TDR is valued against the Ready Reckoner rate of the receiving zone, and premium FSI against the authority’s premium formula. The lender lends a percentage of that marketable development value — so a clear, documented utilisation plan is everything.
2. Place it with the right pool. Only NBFC-HFCs and Category-II AIFs fund this stage. We approach the ones with live appetite for your micro-market and structure the facility around the area it unlocks.
3. Bridge into construction. TDR/premium debt is short and relatively expensive by design. The moment RERA and approvals land, we refinance it into a cheaper bank construction facility — so it’s a bridge, not a burden.
Why Finnova
A specialist stage, run by specialists
Few lenders fund TDR and premium, and the valuation is technical. Six reasons developers run it through us.
Access to the active pool
We know which NBFC-HFCs and AIFs are funding TDR and premium in your micro-market right now.
The bridge planned upfront
The facility is structured to fold into construction finance the moment approvals land — so you’re not stuck paying pre-approval rates for years.
DCPR/UDCPR fluency
The rules that govern TDR and premium FSI are technical and local. We structure to them, not around them.
CA + ex-banker on the file
The people valuing the potential and negotiating the facility have sat on both sides of a credit committee.
One advisor, whole lifecycle
TDR and premium today, construction and inventory later — sequenced under one desk.
Consultation
Tell us about the rights & the project
One conversation tells you what your TDR or premium FSI can be funded against, at what LTV, and how to bridge it into construction finance. No pitch — a straight read from people who structure these deals every week.
Thank you — your enquiry has been submitted
We’ve received your details. A senior member of our team will review them and get back to you within one business day. Everything you’ve shared stays strictly confidential.
FAQ
TDR & premium funding, answered
Yes. We arrange capital to buy Transfer of Development Rights (TDR) against the incremental development potential they unlock, typically at 50–65% LTV over 1–3 years. As with land, banks are barred from funding this pre-construction stage, so TDR funding comes from NBFC-HFCs and SEBI Category-II AIFs — and is usually bridged into construction finance once approvals are in place.
TDR value is anchored to the Ready Reckoner (ASR) rate of the receiving zone where the rights will be used, not where they were generated. Lenders assess the marketable development potential the TDR adds and lend a percentage of that value. A clear utilisation plan — which project, which zone, what saleable area it creates — is what gets the file funded at a sensible LTV.
Premium FSI is additional buildable area a developer buys from the planning authority by paying a premium (in Mumbai, linked to a percentage of the Ready Reckoner rate). Like TDR, it is a large upfront cash cost that home loans and bank construction finance don’t cover, so it is funded by NBFC-HFCs and AIFs — often as part of the same facility as TDR, then bridged into construction.
Indicatively 13–17% p.a. over a 1–3 year tenor — priced above construction finance because it is an earlier, pre-approval stage, but below pure equity. The exact terms depend on the receiving zone’s values, your utilisation plan and how quickly the facility can be bridged into cheaper construction debt.
It is most active in Mumbai and the rest of Maharashtra under the DCPR/UDCPR framework, where TDR and premium FSI are central to how projects add area. Similar development-rights and premium mechanisms exist in other states under their own rules, and we structure funding for them too — the principle (financing an intangible development right against the saleable area it unlocks) is the same.
We are an advisory firm, not a lender. We value the development potential, build the utilisation case, place the file with the NBFC-HFCs and AIFs active in this space, negotiate LTV and pricing, and plan the bridge into construction finance — the lender sanctions and disburses.
Further reading
Guides on TDR & development rights
How TDR and premium FSI work, and how developers finance them.