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1800-270-7000
Aditya Birla Housing Finance Limited
ABC Solutions
About the Loan
About ABHFL Micro Construction Finance (CF)
ABHFL Micro Construction Finance recognises that in the dynamic world of real estate development, time is critical. Our solutions are designed to accelerate residential project construction, ensuring cost-effective and timely completion. With seamless funding and flexible repayment options, we empower you to build thriving communities efficiently and effortlessly.
Used for:
- Purchase of plots for residential development
- Construction of residential projects
- Expansion and completion of ongoing construction
- Refinancing of existing project loans
Why Choose ABHFL Micro Construction Finance (CF)?
Key Benefits:
- Quick Fund Access – Hassle-free financing with fast approvals to keep your project on track.
- Flexible Loan Tenure – Choose a repayment tenure upto 7 years or 5 years with 1 year of principal moratoriumChoose a repayment tenure of up to 5 years, including a 1-year principal moratorium.
- High Loan Amount – Get funding up to ₹5 Crore to support your construction needs.
- Sales-Linked Repayment – Repay the loan conveniently from project sales receivables, ensuring better cash flow.
- Plot & Construction Funding – Finance both land purchase and project construction with tailored loan solutions.
Additional Advantages:
- Minimal Documentation – Streamlined process with simple paperwork requirements.
- Transparent Terms – No hidden charges, ensuring complete clarity in loan processing.
- Dedicated Support – Expert guidance to assist you through the loan process.
ABHFL Micro Construction Finance (CF): Eligibility Criteria
Ensuring you meet the eligibility criteria helps in a smoother application process.
General Criteria:
- Completion History: Minimum 1.5 lakh sq. ft. of real estate development completed.
- Project Experience: Successfully completed and delivered at least 10 projects.
- Timely Delivery Record: Proven track record of on-time project completion.
Note: Meeting these criteria does not guarantee loan approval. Final eligibility is determined based on various factors, including financial assessment and project evaluation.
Step-by-Step Guide: How to Apply for a Micro Construction Finance (CF)?
Securing Micro Construction Finance (CF) with ABHFL is a simple and efficient process:
1. Check Eligibility
- Ensure you meet the minimum project completion and financial track record criteria.
- Use our loan eligibility calculator to assess your qualification.
2. Prepare Documentation
- Gather necessary documents, including:
- Project completion records (minimum 1.5 lakh sq. ft.)
- Financial statements & sales receivable details
- KYC documents (ID proof, address proof, business registration proof)
- Project approvals & land ownership documents
3. Submit Application
- Complete the online loan application form with accurate business and project details.
4. Document & Project Verification
- Our team will review submitted documents and conduct project evaluation to assess feasibility.
- Additional information may be requested if necessary.
5. Loan Offer & Acceptance
- Once verified, receive a sanction letter with details on the loan amount, tenure, and repayment terms.
- Review and accept the offer to proceed further.
6. Loan Disbursement
- After final approvals, funds are disbursed in phases as per construction milestones.
Documents Required for Micro Construction Finance (CF)
Having the right documents ready ensures a seamless approval process.
Personal Documents:
- Identity Proof – Aadhaar Card, PAN Card, Passport, Voter ID
- Address Proof – Utility Bills (not older than 3 months), Passport, Aadhaar, Rent Agreement
- Passport- Size Photographs
Financial Documents:
For Developers & Builders:
- Audited financial statements (Profit & Loss Statement, Balance Sheet) for the last 3 years
- Income Tax Returns (ITR) for the last 3 years
- Bank statements for the past 12 months
- Business Registration Certificate (if applicable)
- Sales receivables & cash flow projections
For Project Evaluation:
- Details of previously completed projects (minimum 1.5 lakh sq. ft.)
- Proof of at least 10 completed & delivered projects
Project & Property Documents:
For Plot Purchase & Construction:
- Title Deed of the property
- Approved Building Plan & project approvals
- Encumbrance Certificate (EC)
- Sale Agreement or Development Agreement
- No Objection Certificate (NOC) from relevant authorities
Micro Construction Finance (CF) Questions
If the sales receivables fall short, you are still required to make the loan repayment. You will need to pay the difference through alternate funding sources or ensure that the project is completed, and additional units are sold to generate the required income for loan repayment. It is advisable to have a contingency plan in place to avoid such situations.
While a strong credit score is typically beneficial for loan approval, Micro Construction Finance is more focused on the viability of the project and the builder’s track record. If you have a history of successful project completions, your loan application may still be considered, even with a low credit score. Lenders may also offer solutions like lower loan amounts or stricter terms based on your credit history.
No, there are no hidden charges or fees in Micro Construction Finance. All costs, including processing fees, interest rates, and any applicable charges, are fully disclosed at the time of loan approval. Make sure to read the loan agreement carefully to understand the repayment terms and associated costs.
The approval process for Micro Construction Finance is typically faster than traditional loans, especially if all the required documents are submitted correctly. On average, it may take a few days to a few weeks, depending on the complexity of the project and the documentation provided. For quicker approval, ensure your application is complete and accurate.
To be eligible for Micro Construction Finance, you should have a minimum of 1.5 lakh square feet of completed construction history and at least 10 successfully completed projects. The applicant must also be an experienced developer or builder, and the loan is available for both salaried and self-employed individuals.
You can avail a loan of up to ₹5 Crore under Micro Construction Finance. The exact loan amount will depend on your project's scale, the land's market value, and the construction cost, as well as your repayment capacity.
The applicant must be between the ages of 21 and 58 years to be eligible for Micro Construction Finance. This age range ensures that the applicant has the necessary experience and time to complete the construction project.
The loan amount is determined based on the project’s total cost, including plot purchase and construction costs. For plot purchase, up to 50% of the market value is financed, and for construction, up to 70% of the total construction cost can be provided. The overall loan-to-value (LTV) ratio is based on the sales receivables of the project and other financial assessments.
The interest rate for Micro Construction Finance typically ranges from 12% to 19% per annum, depending on the loan amount, project size, and the applicant's profile. The rate may vary based on the applicant’s creditworthiness and the specifics of the project.
The interest on Micro Construction Finance is generally calculated on a reducing balance method, meaning interest is charged on the outstanding loan amount after each disbursement. This method helps reduce the interest burden as you repay the loan over time.
The repayment schedule is flexible, with EMIs starting from the first disbursement. The loan is repaid from project sales receivables, and builders are required to make proportionate prepayments upon the sale of each floor/unit in the project.
Yes, Micro Construction Finance offers a 1-year principal moratorium period, allowing you to focus on the construction phase without the immediate burden of principal payments. However, interest will still be charged during this period.
Yes, prepayment of the loan is allowed. However, builders are expected to make proportionate prepayments upon the sale of each unit or floor. It’s important to discuss the prepayment terms with the lender, as there may be conditions on how and when prepayments should be made.
The key documents required for Micro Construction Finance include proof of identity, project cost breakdown, title deeds for the plot, proof of previous project completions (minimum 1.5 lakh sq. ft.), financial statements (such as bank statements and profit/loss statements), sales receivables statement, and any necessary approvals or permits from local authorities.
The processing time for Micro Construction Finance typically ranges from a few days to a few weeks, depending on the complexity of the project and the completeness of the documentation. Ensuring that all required documents are submitted promptly can speed up the approval process.
Yes, there is usually a processing fee associated with Micro Construction Finance. The fee is typically a small percentage of the loan amount and covers the administrative costs of reviewing and processing your application. Make sure to inquire about the specific fee details during the loan application process.
If you default on your Micro Construction Finance loan, the lender may initiate a recovery process. This can include charging late payment fees, revising the loan terms, or in extreme cases, taking legal action to recover the outstanding amount. It is essential to communicate with the lender as soon as you anticipate any payment issues to explore possible solutions like restructuring or extension.
In case of default, the lender will typically recover the outstanding amount through various measures, such as selling the property or project units under construction. If the project involves sales receivables, the lender may also recover the dues from the sales proceeds of the units. Any collateral provided as security may also be liquidated to settle the outstanding loan balance.
The loan is typically disbursed in stages based on the progress of the construction project. The first disbursement is made once the loan is approved, and subsequent disbursements are made as per the construction milestones. The builder or developer will need to submit progress reports or inspections to ensure the proper use of funds before each disbursement.
Yes, there are specific property requirements for Micro Construction Finance. The property must be legally registered and have clear title deeds. The plot must be suitable for the planned construction, and the land must be in a location approved for construction by local authorities . The property should also be free from any legal disputes or encumbrances.
Yes, an under-construction property can be used as collateral for Micro Construction Finance, provided that the project is viable and has a clear title. The lender will evaluate the progress of the construction and sales receivables to ensure the property can generate sufficient funds for loan repayment.
Fees and Other Charges
Transactions & Charges
0.25% onwards of the loan amount plus applicable GST, may vary depending upon the risk profile of the customer.
1. Floating rate term loans sanctioned to individual borrowers, with or without co-borrowers(s):
- Other than business purpose – NIL.
- Loan for business purpose up to 50 lakhs* – NIL.
- Loan for business purpose above 50 lakhs* – 4 % of principal outstanding.
2. Floating rate term loan sanctioned to Micro and Small Enterprises (MSEs) borrowers, with or without co-borrowers(s):
- Other than business purpose* – NIL.
- Loan for business purpose up to 50 lakhs*- NIL.
- Loan for business purpose above 50 lakhs* – 4 % of principal outstanding.
3. Floating rate term loan sanctioned to non-individual borrowers other than MSE borrowers:
- Housing Loan – NIL
Non-housing Loan - 4% of principal outstanding
4. Fixed interest rate housing loan given to Individual/ Non-individual borrowers:
- Closure from own sources – Nil
Closure from other sources – 2% of principal outstanding
5. Fixed interest rate non-housing loans (LAP/LRD/CP/GPL/Top-up) given to Individual/Non-Individual borrowers (closed from own/other source): 4% of principal outstanding
Explanation:
1. In case of Semi-Fixed Loans (fixed for initial period and then floating), the Foreclosure/ Part payment norms will be applicable as per the status (fixed/floating) of the loans as on that particular day.
2. “Own sources” means any source other than by borrowing from a bank/ HFC/ NBFC and/or a financial institution.
3. “Fixed rate loan” means a loan where the Rate of Interest is fixed either for a particular period or for entire duration of the loan.
4. “Business purpose loan” shall mean:
- Loan against any property/ Top up loans availed for Business use such as working capital, business debt consolidation, repayment of business loans, expansion of business, acquisition of business asset,
- Loan for purchase/ renovation/ construction/ extension of Non-residential property,
- Lease Rental Discounting.
5. “Micro and Small Enterprises (MSEs) borrowers” shall have the same meaning as defined in Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
* Applicable for all Loans sanctioned or renewed on or after January 01, 2026.
| Penal Charges: | |
|---|---|
| Late Payment Penalty | 12% p.a. above current applicable interest rate (aggregate not exceeding 24% p.a. plus GST as per applicable laws) |
| Non- submission of Critical Post Disbursement Documents like Title document / Security perfection documents / Mortgage Deed / charge creation with MCA (wherever applicable) or non-adherence to any terms and conditions, representations and covenants as defined in the loan agreement / sanction letter within the targeted date of submission. | Rs. 3000/- per month |
| Cheque bouncing charges/NACH failure charges/Bounce charges | Rs 750/- per instance |
| Non-submission of revised NACH / ECS Debit Mandate registration wherever existing mandate is invalid / inactive / bank account closed or frozen / other technical issue for a period of 30 days | Rs. 1000/- per month in case of secured loans |
Rs 750/- per instance per loan account
As applicable based on actual delayed status or as communicated by the lender from time to time
CERSAI charges (You may visit the website of CERSAI for all such charges at www.cersai.org.in)
When facility amount is equal to ₹.5 lacs or lesser – ₹.50 per propertyWhen facility amount is greater than ₹5 lacs – ₹100 per property
₹1,000/- per instance
₹750/- per instance
₹200/- per instance
₹750/- per instance
₹50/- per instance for Consumer and ₹500/- for Commercial CIBIL
0.5% of principal outstanding plus applicable GST
0.25% + GST on principal outstanding, capped at 7500 /- per instance
Rs 500/- per instance
2% of principal outstanding plus applicable GST
As per actual, where applicable
Disclaimer:Above charges constitute the rack rate for all customers. Actual charges for any customer, if different, will be as communicated at the time of loan sanction and disbursal and would be subject to changes from time to time.
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