Developer Finance: Overview
Developer Finance program is a solution for real estate developers who seek funding for residential and commercial projects. Bajaj Housing Finance extends appropriate financial solutions at competitive interest rates to developers, with a fast sanction turnaround time, relationship manager led model, and flexible repayment option.
Developers can avail of funding through three different loan types:
- Construction Finance Programme
- Inventory Funding Scheme
- Loan Against Property
Developer Finance: Features and Benefits
With the Bajaj Housing Finance Developer Finance option, borrowers benefit from an array of features.
Sizeable Loan Sanction
Eligible developers seeking funding for residential projects can benefit from a substantial loan sanction basis their application and financial standing.
Competitive Interest Rate
Eligible developers stand to gain and save substantially, as Bajaj Housing Finance offers Construction Financing at attractive interest rates.
Comfortable Repayment Options
Bajaj Housing Finance allows Developer Finance borrowers to opt for flexible payment options in sync with their construction and payment schedule. Developers can prepay parts of their loan depending on their project’s cash flow to make for easy repayment.
Principal Moratorium Facility
Developers can even avail of a moratorium on the principal amount for the initial tenure of their loan to assist in effective cash flow management in their project.
Principal Amount Adjustment
Bajaj Housing Finance allows borrowers to reschedule the scheduled principal amount payment if partial prepayment is done as per the product programme.
Developer Finance: Products Offered
Bajaj Housing Finance offers three loan types under the umbrella of Developer Finance, tailoring each loan type to meet common real estate funding requirements. Ensure you choose the one that suits your financial needs.
1. Construction Finance Programme
The Construction Finance Programme facilitates the completion of upcoming/ongoing residential projects. However, this is only valid for RERA approved projects.
2. Inventory Funding Scheme
The Inventory Funding Scheme is for residential/commercial projects that are completed or nearing competition. It helps developers with their working capital requirement and meeting project costs at the last leg of their project completion. The developers must meet the following eligibility parameters:
- The developer must show a clean track record in project execution
- Assessment of the project sales and cash flow velocity
- Assessment of end-use of the funds
3. Loan Against Property
Loan Against Property is available for self-occupied residential or commercial spaces. Developers can benefit from flexible repayment options, a tenure of up to 15 years, and competitive interest rates.
Bajaj Housing Finance offers competitive rates on Developer Finance loans and ensures speedy disbursal from the time of loan approval. The loan option is ideal for developers seeking funds to complete their residential/commercial projects. The loan can be sought during any phase of construction provided they meet our internal assessment parameters. Apply today, and our representative will guide you through the application process to ensure a seamless borrowing journey.
Developer Finance: Interest Rates, Fees, and Charges
Bajaj Housing Finance offers competitive interest rates on Developer Finance.
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Developer Finance | 9.25%* to 15.00%* |
For a complete list of interest rates, click here.
The Rate of Interest for each loan is determined considering several factors which includes but not limited to, your profile including employment/profession type, age, industry segment and other details, your credit score, overall indebtedness and repayment track record as provided by Credit Information Companies (‘CIC’), cost of borrowed funds by the Company, credit and default risk in the related business segment in which you operate, historical credit performance of similar homogeneous clients, secured or unsecured loan being sought, ticket size/quantum of loan sought, tenure of loan, location delinquency and collection performance, your existing relationship with BHFL and repayment history, your declared and verified income, borrower group financial strength, nature and value of primary collateral security, etc. The above mentioned variables are considered as key underwriting variables for assessment and risk gradation. The aforesaid is dynamic and gets revised periodically as per the existence and performance of the past portfolio, and hence is subject to change.
Charges** Applicable for Developer Finance Loans
| Charge Type | Charges |
|---|---|
| Part Prepayment Charges | 2%* on the Part-payment amount |
| Full Prepayment Charges | Up to 4%* on Principal Outstanding amount |
**GST as applicable will be paid by the Borrower in addition to the Prepayment Charges.
Other Fees and Charges
| Fee | Charge Applicable |
|---|---|
| Processing Fee | Up to 4% of the loan amount + GST as applicable |
| EMI Bounce Charges | Refer to the table provided below for the full break-up |
| Penal Charges | Click here to know about the penal charges |
EMI Bounce Charges
| Loan Amount | Charges |
|---|---|
| Up to Rs.15 Lakh | Rs.500 |
| More than Rs.15 Lakh and up to Rs.30 Lakh | Rs.500 |
| More than Rs.30 Lakh and up to Rs.50 Lakh | Rs.1,000 |
| More than Rs.50 Lakh and up to Rs.1 Crore | Rs.1,000 |
| More than Rs.1 Crore and up to Rs.5 Crore | Rs.3,000 |
| More than Rs.5 Crore and up to Rs.10 Crore | Rs.3,000 |
| More than Rs.10 Crore | Rs.10,000 |
For a complete list of fees and charges, click here.
*Terms and conditions apply
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