Project Finance to builders / developers

Who can apply? Business entities (Proprietorship / partnership / P.Ltd / Public Ltd companies ) engaged in construction/development of real estate projects.
What should be the purpose? Term Loan & Cash credit facility for completion of real estate development project.
What type of facility can be granted ? Term loan against land and structure thereupon & cash credit against hypothecation of fully paid stocks of building materials
 What will be rate of interest? Cash credit : @13.00% p.a. (on monthly rest)
Term Loan : @13.00% p.a.( on reducing balance )
What will be share linkage 1% of loan sanctioned
What will be the margin ? 40 % on stocks & 50% on Term Loan
What will be the securities?. Hypothecation of stocks of bldg, construction material and all receivable of the project and regd. mortgage of land & structure and adequate collateral securities.
What will be the repayment term? Cash credit shall be fully repaid after 6 months of moratorium or on completion of the project whichever is earlier. Term loan to be repaid by 18EMIs after moratorium Total period not to exceed 24 months
What about guarantors?
  1. Partners to give personal guarantee jointly & severally
  2. Two outside guarantors in addition
How to apply?
  1. Application in prescribed format
  2. Address proof : Passport / telephone / electricity bill, Ration card / Voter identity card etc
  3. Identity proof : Passport/voter identity card/ PAN card telephone/electricity bill etc.
  4. Photographs of borrower & guarantors
  5. Audited Profit & Loss accounts & Balance sheet for last 3 years
  6. Income Tax Return/Assessment order for last 3 years
  7. Latest stock statement
  8. Development agreement, sanctioned plan, commencement certificate, title clearance, all other legal documents
  9. Regd Deed of partnership / Memorandum & Articles of Asscn ( Also copy of Form 32 if there is any change of Director )
  10. Copy of Board Resolution
  11. Search report / valuation report / marketability report 
  12. Consent letter & financial papers of guarantors
  13. Past performance records
What about insurance?

The assets financed shall be fully insured with Bank clause

* The loans upto Rs. 5 lacs against immovable property accepted as Security, bank should create Equitable Mortgage instead of Registered Mortgage.

Concession Rate 0.25% p.a. of Interest to Women borrower for Housing Loan, Education Loan, Gold Loan, Business Loan.

National Co-operative Bank