₹42 Cr Construction Finance & BG Line for a 38-Year-Old Housing Society Redevelopment in Thane West
A mid-sized Thane developer executing a 52-member cooperative housing society redevelopment under Maharashtra UDCPR needed ₹36 crore in construction finance and a ₹6 crore performance Bank Guarantee required by the society's Development Agreement. Their existing banker asked for a 50% cash FD margin on the BG and refused to fund ancillary FSI premium tranches.
Published: 23 October 2026
Deal Tombstone #BC-2026-01Construction Finance
Sanctioned
₹42.00 Cr
Location
Thane West (MMR)
Lender Category
PSU Bank + Private Bank BG Line
Pricing / Rate
10.65% p.a. (CF) · 1.10% p.a. (BG)
Tenor & Moratorium
48 Months (incl. 30-Mo Moratorium)
Key Coverage / Ratio
1.78x Receivables & Security Cover
1. Borrower profile & initial credit bottleneck
The housing society's Development Agreement required a ₹6.00 crore irrevocable Bank Guarantee before vacating the 38-year-old building, alongside 24 months of advance transit rent.
The developer's primary bank offered the BG only against a 50% fixed-deposit margin (locking up ₹3.00 crore of equity needed for IOD/CC and UDCPR ancillary FSI premium instalments).
Without phasing the municipal FSI premium and MahaRERA 70% Separate Account cash-flow waterfall, projected cash flows showed an artificial ₹7.40 crore deficit in Quarters 2 and 3.
2. How the file and cash-flow waterfall were structured
Recast the project cash-flow model into 10 quarterly milestones aligned with TMC's municipal premium instalment schedule and MahaRERA Order No. 56/2024 three-account directions (Collection Account, 70% Separate Account, 30% Transaction Account).
Structured a ₹42.00 crore composite sanction with a public-sector bank: ₹36.00 crore stage-disbursed Construction Finance at 10.65% p.a. and a ₹6.00 crore Performance BG sub-limit with only 15% FD cash margin (secured by the free-sale FSI mortgage).
Demonstrated a 1.78x security and receivables cover using pre-launch bookings on 28% of the free-sale carpet area, satisfying the credit committee's minimum 1.50x cover norm.
3. Before vs. after sanction comparison
Comparison of initial position vs. final sanctioned terms (BC-2026-01)
