Builder Inventory Finance
Unlock stuck capital from unsold flats and units. Get 50%–60% of inventory value as loan to improve liquidity and fund new ventures.
Overview
Builder Inventory Finance is a specialized loan given to real estate developers against unsold flats or units (inventory) in completed or near-completion projects. Instead of waiting for buyers, the builder pledges unsold inventory as collateral and gets immediate funds — unlocking stuck capital, improving liquidity, and supporting new projects or debt repayment. Loans typically cover 50%–60% of inventory value, with interest rates of 12%–18%. Tenures range from 1 to 7 years. Repayment is structured as sales-linked, bullet, or installment-based. Ideal for established developers with completed inventory in good locations.
Key Features
Unlock Stuck Capital
Convert unsold flats into working capital without waiting for buyers.
50%–60% LTV
Loan up to 50%–60% of inventory market value.
Sales-Linked Repayment
Pay back the loan as flats sell — flexible repayment structure.
Multiple Inventory Types
Completed, near-completion, and rental yield-based funding.
Tenure 1–7 Years
Aligned with expected sales velocity and project cycle.
Improves Cash Flow
Funds can be used for new projects or debt restructuring.
Other Services
Eligibility Criteria
- Established real estate developer with strong delivery track record
- Completed or near-complete project (RERA registered)
- Clear title to project land and unsold units
- Demonstrable sales velocity and market demand
- Audited company financials and clean credit profile
- Promoter contribution and additional collateral may be required
Documents Required
- Company registration and audited financial statements
- Past project portfolio and delivery track record
- RERA registration certificate
- Occupancy certificate (if completed) or status report
- List of unsold inventory units with pricing
- Independent valuation report of inventory
- KYC of directors/promoters
Application Process
Share project status, unsold inventory list, and company financials
Lender conducts inventory valuation and market demand assessment
Sanction issued; mortgage of unsold units and additional collateral (if any)
Funds disbursed (lump sum or in tranches); repaid as units sell
Best Tips for Builder Inventory Finance
Approach lenders only after RERA registration and OC are in place.
Provide an honest sales velocity projection — lenders verify against market data.
Use funds for productive purposes: new projects or debt reduction, not bridging losses.
Maintain transparent communication on inventory sales for repayment scheduling.
Compare HFC and NBFC rates — HFCs are typically cheaper for completed projects.
Avoid over-leveraging — keep total project debt below 60% of inventory value.
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Builder Inventory Finance FAQs
Common questions about builder inventory finance services.
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