Each definition is a short summary as of October 2026. Where a rule or figure is involved, follow the link to the guide or calculator that explains it with its sources. Lenders' own policies decide the final terms.
0–9
33(7)(B) and 33(9)
Redevelopment regulations in Greater Mumbai's DCPR 2034. 33(7)(B) gives incentive built-up area, without premium, to authorised residential housing society buildings 30 years or older whose members are re-housed on the same plot, with in-situ FSI capped at 4. 33(9) covers cluster development over at least 4,000 sq m in the Island City and 10,000 sq m in the suburbs.
Guide: Funding society redevelopment as a developer · Calculator: Redevelopment feasibility
B
Balance transfer
Moving an outstanding loan to a new lender, usually for a lower rate: the new lender pays off the old loan, takes over the property documents and registers a fresh mortgage. It pays only if the interest saved over the remaining tenure clearly exceeds the one-time switching cost, which in Maharashtra includes the processing fee and stamp duty on the new mortgage.
Calculator: Home loan balance transfer · Guide: Home loan balance transfer and top-up
Bank guarantee (BG)
A bank's irrevocable promise to pay a beneficiary if its customer fails to meet an obligation. Contractors commonly need a bid bond at tender stage, a performance guarantee for completing the work, an advance payment (mobilisation) guarantee against an advance, and a retention money guarantee; a financial guarantee secures a payment obligation. It is non-fund based, but it uses up your guarantee limit and usually needs a cash margin; insurance surety bonds are an alternative where the tender accepts them.
Calculator: Bank guarantee cost · Guide: Working capital for contractors · Service: Working capital
Bill discounting
Getting cash now against a bill or invoice for a credit sale, instead of waiting until the buyer pays on the due date. RBI calls it bill purchase for sight bills and discounting for usance bills, and requires banks to finance only genuine trade bills. Bills backed by a letter of credit are easier to discount.
Guide: Trade finance for MSMEs · Service: Working capital
C
Carpet area
Under section 2(k) of RERA, the net usable floor area of a flat: it excludes external walls, service shafts and exclusive balconies or terraces, but includes internal partition walls. Agreements state the carpet area, so compare flats on it rather than 'super built-up' area; GST's affordable-housing test also uses it.
Guide: Home loan for an under-construction flat · Calculator: Maharashtra stamp duty
Cash credit (CC)
A running working capital account in which a business draws and repays as needed, up to its drawing power, against stock and receivables hypothecated to the bank (the bank holds a charge while you keep the goods). Interest is charged only on the amount used, the outstanding is repayable on demand, and the limit is reviewed every year.
Guide: Term loan vs cash credit vs overdraft · Calculator: Drawing power & working capital limit · Service: Working capital
CGTMSE
The Credit Guarantee Fund Trust for Micro and Small Enterprises, which guarantees collateral-free loans to micro and small enterprises, up to ₹10 crore per borrower from 1 April 2025. It covers 75–90% of the amount in default depending on the category, is used at the lender's option and carries an annual guarantee fee.
Guide: Working capital for contractors · Guide: How to fund a hospital or clinic
Channel finance
Also called dealer or distributor finance: a short-term limit a bank or NBFC gives the dealers of a large manufacturer (the anchor) to buy stock from that anchor. The lender pays the anchor against each invoice and the dealer repays each invoice by its due date; credit periods of up to 90 days are common, and some programmes allow 120.
Guide: Dealer and distributor finance · Service: Inventory funding
Cluster development
Redevelopment of several adjoining buildings or plots together as one larger scheme, with its own FSI and minimum area rules. In Greater Mumbai it falls under regulation 33(9) of DCPR 2034; in Thane it runs as the Urban Renewal Scheme under UDCPR regulation 14.8, with a minimum of 10,000 sq m in non-congested and 4,000 sq m in congested areas.
Guide: Funding society redevelopment as a developer
CMA data
Credit Monitoring Arrangement data: the standard set of forms banks use to assess and monitor working capital limits, covering the operating statement, balance sheet analysis, current assets and liabilities, the eligible bank finance, funds flow and key ratios. A DPR justifies a term loan; CMA data sizes a working capital limit, and a new project often needs both.
Guide: What lenders want in a DPR · Calculator: Drawing power & working capital limit
Collection, Separate and Transaction accounts
The three bank accounts MahaRERA Order No. 56/2024 requires, in one scheduled bank, for projects registered from 1 July 2024. Buyers pay 100% into the Collection account, at least 70% is auto-swept to the Separate account (land and construction cost, interest on project loans) and up to 30% to the Transaction account. The Collection and Separate accounts must be free of liens and cannot be escrow accounts.
Guide: The MahaRERA 70% account · Calculator: RERA separate account withdrawal
Commencement certificate
The planning authority's permission to start construction under an approved plan. A project needs it to be registered with MahaRERA, and lenders release construction finance only once required clearances like this are in place. In Greater Mumbai it follows the IOD; for redevelopment, the sale component needs its own valid commencement certificate before it can be registered and sold.
Guide: How lenders assess construction finance · Service: Construction finance
Construction finance
A loan to a builder or developer for a specific real estate project, released in stages against certified construction progress and repaid mainly from sales collections. RBI bars banks from funding land purchase by private builders, so land usually comes from promoter equity or, where their policies allow, NBFCs and housing finance companies.
Service: Construction finance · Calculator: Construction finance requirement · Guide: How lenders assess construction finance
Corpus fund
In a redevelopment, a one-time sum the developer agrees to pay members or the society under the development agreement, in addition to rent and the new flats. In a new building, it also means the corpus or sinking-fund deposit a buyer pays towards the society's future upkeep, so ask for it in the builder's written list of charges.
Calculator: Redevelopment feasibility · Guide: The real cost of buying a home in Thane and Badlapur
Credit score (CIBIL score)
A three-digit score from 300 to 900, built from your credit report at a credit information company such as CIBIL, that lenders use to judge repayment history. Lenders now report to the bureaus at least every fortnight, and each bureau must give you one free full report with your score every year; disputed errors must be resolved within 30 days, or you are owed ₹100 for each day of delay.
Guide: Why loan applications get rejected
D
Date of commencement of commercial operations (DCCO)
The date a financed project is expected to start commercial operations (for real estate, the expected occupancy certificate date), which must be written into the loan agreement before disbursement. Under RBI's Project Finance Directions, 2025 it can be deferred by up to 3 years for infrastructure and 2 years for other projects, including commercial real estate, without the loan being downgraded, subject to conditions and extra provisions.
Guide: What lenders want in a DPR
Debt service coverage ratio (DSCR)
The cash a project or business generates compared with what it must pay lenders each year: commonly (profit after tax + depreciation + interest on the term loan) ÷ (principal repayment + interest on the term loan). Lenders look at the average and the lowest year; RBI sets no single minimum, so each lender's policy decides, and below 1.00 the cash does not cover the instalments.
Calculator: Project DSCR · Guide: What lenders want in a DPR · Service: Project funding
Detailed project report (DPR)
The business case for a term loan or project funding: project description, market, technical feasibility, cost of project, means of finance, projected financials, repayment schedule with DSCR, sensitivity analysis and security. Every cost line should be backed by quotations or estimates, and the means of finance must add up exactly to the cost.
Guide: What lenders want in a DPR · Service: Project funding
Direct selling agent (DSA)
An agent engaged by a bank or NBFC to source loan applications and collect documents on the lender's behalf. A DSA does not decide your loan: sanction, rate and terms are always the lender's decision, and the loan agreement is with the lender named on your documents.
Guide: Bank, NBFC or financial institution?
Drawing power (DP)
The amount you can actually draw from a cash credit limit on a given day: paid stock (stock less unpaid creditors) and eligible book debts, each after the margin in your sanction letter, capped at the sanctioned limit. RBI requires it to be based on a stock statement no more than three months old; an account that stays above its limit or drawing power for 90 days is out of order and can become an NPA.
Calculator: Drawing power & working capital limit · Guide: Term loan vs cash credit vs overdraft
E
Escrow account
An account whose withdrawals are controlled by an agreement with the lender, so that collections such as sale proceeds, rent or fees pay the loan before the borrower gets the balance. It is standard in LRD, inventory funding and many construction loans, but in Maharashtra the RERA Collection and Separate accounts cannot be escrow accounts.
Guide: The MahaRERA 70% account · Service: Lease rental discounting
External benchmark lending rate (EBLR)
A floating interest rate linked to an external benchmark such as the RBI repo rate, plus the bank's spread. Banks must link floating-rate retail loans (including home loans) and loans to MSMEs to an external benchmark and reset the rate at least once every three months, so rate changes reach your EMI faster than under MCLR.
Guide: Home loan balance transfer and top-up · Guide: Term loan vs cash credit vs overdraft
F
Fixed obligation to income ratio (FOIR)
The share of your monthly income that goes to all EMIs, including the new loan. RBI sets no single figure; each lender caps it in its credit policy, so the same income supports different amounts at different lenders. Business, vehicle and personal loans in your name all count against it.
Guide: Home loans for the self-employed · Service: Home loans
Floor space index (FSI)
The ratio of total built-up floor area allowed on a plot to the plot's area: a 1,000 sq m plot with FSI of 2 can carry 2,000 sq m of built-up area. It is set by DCPR 2034 in Greater Mumbai and by UDCPR in most of the rest of Maharashtra, including Thane, and can be raised through incentive FSI, premium FSI and TDR within the regulations.
Calculator: Redevelopment feasibility · Guide: Funding society redevelopment as a developer
Foreclosure and pre-payment charges
Fees for repaying a loan early, in part or in full. For loans sanctioned or renewed from 1 January 2026, RBI bars all regulated lenders, including NBFCs and HFCs, from charging them on floating-rate loans to individuals for non-business purposes; banks have been barred on floating-rate term loans to individuals since May 2014. Fixed-rate loans can carry a charge only if it was disclosed in the sanction letter, agreement or Key Facts Statement.
Guide: Home loan balance transfer and top-up · Calculator: Home loan balance transfer
Form 1, Form 2 and Form 3
The MahaRERA certificates needed for every withdrawal from the RERA separate account: Form 1 from the architect (percentage of work completed), Form 2 from the engineer (actual cost of construction) and Form 3 from a practising chartered accountant who is not the statutory auditor. Form 3 sets the maximum withdrawal as the total estimated cost × the proportion of cost incurred, less what has already been withdrawn.
Calculator: RERA separate account withdrawal · Guide: The MahaRERA 70% account
Fungible FSI
Additional built-up area, over and above the FSI, that a developer can build on paying a premium to the planning authority, in exchange for features such as balconies that were earlier left out of FSI. Fungible area under DCPR 2034 (or ancillary area under UDCPR) adds to the sale area in a redevelopment, so it needs to be in the feasibility from the start.
Calculator: Redevelopment feasibility
H
Hardship and displacement rent
The monthly rent, deposit and shifting costs a redevelopment developer pays members for alternative accommodation from the day they vacate until they get their new flats (or transit accommodation in its place). It is paid years before any sales, and Maharashtra's Housing Policy 2025 names developers who stop paying rent as a major cause of stalled projects.
Guide: Funding society redevelopment as a developer · Calculator: Redevelopment feasibility
Housing finance company (HFC)
A non-banking financial company that specialises in housing loans. HFCs are regulated by RBI under the Housing Finance Companies Directions, 2025 and supervised by the National Housing Bank; many are more flexible on income assessment than banks, often at a higher rate.
Guide: Home loans for the self-employed · Service: Home loans
I
Intimation of Disapproval (IOD)
In Greater Mumbai, the municipal corporation's approval of building plans subject to listed conditions, after which the developer applies for the commencement certificate. Most of the rest of Maharashtra, including Thane-district towns, grants building permission under UDCPR instead.
Guide: How lenders assess construction finance
Inventory funding
For developers, a loan against unsold flats in a completed or nearly complete project, repaid from their sale through an escrow, with the lender issuing an NOC to release each unit as it is sold. For dealers and distributors, the same term means a working capital limit to hold stock, sized on drawing power.
Guide: Inventory funding for builders · Service: Inventory funding
L
LBT surcharge
A 1% local body tax surcharge on property transfers in municipal corporations, including Thane, collected with stamp duty. In municipal council areas such as Kulgaon-Badlapur, a 1% council surcharge under section 147A of the Municipal Councils Act applies instead.
Calculator: Maharashtra stamp duty · Guide: The real cost of buying a home in Thane and Badlapur
Lease rental discounting (LRD)
A loan against the future rent from a commercial property already leased to a tenant, such as an office, shop, warehouse or mall, with the rent routed to the lender through an escrow or tripartite agreement. Bank schemes commonly lend around 75% of the net rent receivable over the residual lease or loan tenor (after TDS, property tax and deposits), subject to a cap on the property's value.
Calculator: Lease rental discounting · Guide: LAP vs lease rental discounting · Service: Lease rental discounting
Letter of credit (LC)
A bank's undertaking, issued at the buyer's request, to pay the seller when the seller presents documents that comply with the LC's terms. A sight LC pays on presentation and a usance LC on a later date; most are issued under UCP 600, under which banks deal in documents, not goods, so a document discrepancy can block payment.
Guide: Trade finance for MSMEs · Service: Working capital
Loan against property (LAP)
A secured loan against a residential, commercial or industrial property you own, which you keep using, for almost any legitimate business or personal purpose. Lenders assess your repayment capacity and the property's title and value; buildings without an occupancy or completion certificate, unauthorised structures and open or agricultural plots usually don't qualify.
Service: Loan against property · Guide: Which properties qualify for LAP · Guide: LAP vs lease rental discounting
Loan-to-value ratio (LTV)
The loan as a share of the property's cost or value. RBI caps home loans at 90% for loans up to ₹30 lakh, 80% above ₹30 lakh up to ₹75 lakh and 75% above ₹75 lakh, and stamp duty and registration are left out of the property cost except for homes costing up to ₹10 lakh. For LAP, each lender sets its own LTV; published bank schemes range from about 50% to 65% of the property's value.
Calculator: Maharashtra stamp duty · Guide: The real cost of buying a home in Thane and Badlapur · Service: Home loans
M
MahaRERA
The Maharashtra Real Estate Regulatory Authority under the Real Estate (Regulation and Development) Act, 2016. A project must be registered before it is advertised or sold unless it is small (land up to 500 sq m or up to eight apartments across all phases); buyers can check the registration, completion date, extensions and complaints on MahaRERA's website.
Guide: Home loan for an under-construction flat · Guide: The MahaRERA 70% account
Marginal cost of funds based lending rate (MCLR)
A bank's internal benchmark lending rate, used for floating-rate loans until RBI required new floating-rate retail loans to be linked to an external benchmark from October 2019. A loan still on MCLR or base rate can be moved to the external benchmark for no more than reasonable administrative or legal costs where prepayment is free. In Maharashtra, RERA delay interest is SBI's highest MCLR plus 2%.
Guide: Home loan balance transfer and top-up
Maximum permissible bank finance (MPBF)
The Tandon Committee's method of sizing working capital. Under Method II, MPBF = 75% of current assets − current liabilities other than bank borrowings, so the borrower funds at least 25% of current assets from long-term sources. RBI no longer mandates it: banks may use MPBF or any other Board-approved method.
Calculator: Drawing power & working capital limit · Guide: What lenders want in a DPR
Metro cess
A 1% surcharge on stamp duty for property transactions in areas notified for metro projects, including Mumbai and Thane. It is why buyers in Thane city generally pay 7% (5% stamp duty + 1% LBT + 1% metro cess) and in Mumbai 6%; notifications change, so confirm on the GRAS e-challan.
Calculator: Maharashtra stamp duty · Guide: The real cost of buying a home in Thane and Badlapur
Moratorium
A period at the start of a loan when principal repayment is deferred, usually while the project is being built or set up. Interest during the moratorium is either paid as it falls due or capitalised (added to the loan), which makes the later instalments larger.
Calculator: Project DSCR · Guide: How lenders assess construction finance
Mortgage by deposit of title deeds (MODT)
The usual way a home loan or LAP is secured: the borrower deposits the property's title documents with the lender. In Maharashtra the agreement attracts stamp duty under Article 6(1) of the Stamp Act of 0.1% for loans up to ₹5 lakh and 0.3% of the whole loan above that, capped at ₹20 lakh, and a notice of intimation is filed with the Sub-Registrar.
Guide: Which properties qualify for LAP · Calculator: Home loan balance transfer
MSMED Act delayed payment interest
Under section 15 of the MSMED Act, a buyer must pay a micro or small supplier by the agreed date, never more than 45 days from acceptance, or within 15 days if there is no written agreement. If it pays late, section 16 makes it liable for compound interest with monthly rests at three times the Bank Rate notified by RBI, whatever the contract says. Only suppliers registered on Udyam when the contract was made can claim.
Calculator: MSME delayed payment interest · Guide: Working capital for contractors
N
No-objection certificate (NOC)
A written confirmation that a party has no objection to a transaction. In real estate lending the key one is the project lender's NOC releasing a sold flat from the builder's mortgage: RBI requires banks to make financed builders state in their brochures that the bank's NOC will be provided for sale of flats where required. Society NOCs (for resale, LAP and transfers) and fire NOCs are other common examples.
Guide: Inventory funding for builders · Guide: Which properties qualify for LAP
Non-banking financial company (NBFC)
A company registered with RBI that lends but does not take ordinary demand deposits the way banks do. NBFCs usually cost more than banks but are often quicker and more flexible, and the bank bar on funding land purchase by private builders does not apply to them in the same way.
Guide: Bank, NBFC or financial institution?
O
Occupancy and completion certificates (OC / CC)
Certificates from the planning authority that a building has been completed as per the approved plan and can be occupied. Lenders want one for ready-home loans and LAP (the Supreme Court in December 2024 directed lenders to verify it before lending against a building), and a flat bought with the entire price paid after the certificate carries no GST.
Guide: Which properties qualify for LAP · Guide: Home loan for an under-construction flat
Overdraft (OD)
A facility to withdraw more than your current account balance, up to an agreed limit, paying interest only on the amount used. Unlike cash credit, it is usually secured by property, fixed deposits or securities rather than stock, so there is no monthly drawing power calculation.
Guide: Term loan vs cash credit vs overdraft · Service: Working capital
P
Packing credit (PC / PCFC)
Pre-shipment finance for an exporter to buy, make and pack goods, normally against an LC or confirmed export order, repaid from export proceeds. It must be adjusted by export documents within 360 days; packing credit in foreign currency (PCFC) is priced off the benchmark for that currency, for up to 360 days, and leaves the exporter with the currency risk.
Guide: Trade finance for MSMEs · Service: Working capital
Permanent alternative accommodation agreement (PAAA)
The registered agreement between a redevelopment developer and each society member that sets out the member's new flat, rent and other entitlements. Under the Co-operation Department's order of 30 September 2026, PAAAs must be registered within three months of the development agreement, and members vacate only after all approvals are in place and their PAAAs are registered.
Guide: Funding society redevelopment as a developer
Pre-EMI
Interest-only payments on the part of a home loan disbursed so far, paid monthly while an under-construction flat is being built; full EMIs start after the final disbursement. Pre-EMI keeps the monthly outgo low, but the loan does not reduce, and if possession is delayed you can pay interest for years.
Calculator: Pre-EMI vs full EMI · Guide: Home loan for an under-construction flat
Premium
A payment to the planning authority for additional FSI, fungible area or other concessions under the development control regulations. Premiums are paid at the approval stage, before sales begin, and whether a bank will fund them depends on its own policy and legal view.
Guide: Funding society redevelopment as a developer · Calculator: Redevelopment feasibility
Primary and collateral security
Primary security is the asset created from the loan itself, such as the machine bought with a term loan or the stock funded by cash credit. Collateral security is extra, such as property, deposits or guarantees. Banks should not take collateral for loans to micro and small enterprises up to ₹20 lakh sanctioned or renewed from 1 April 2026.
Guide: Term loan vs cash credit vs overdraft
Priority sector lending
RBI's requirement that banks direct a set share of their lending to specified sectors, which makes banks keener to lend to them. Loans to MSMEs registered on Udyam qualify, as do bank loans of up to ₹12 crore per borrower for building health care facilities in Tier II to Tier VI centres.
Guide: How to fund a hospital or clinic · Service: Hospital funding
Processing fee
A one-time fee the lender charges to appraise and sanction a loan, usually a percentage of the loan with a minimum, plus 18% GST. It is set by each lender, so compare it alongside the rate, legal and valuation charges, and stamp duty on the mortgage.
Calculator: Home loan balance transfer · Guide: Home loan balance transfer and top-up
R
Ready reckoner rate
The government's benchmark property values for each location, published in Maharashtra's Annual Statement of Rates. Stamp duty is charged on the higher of the agreement value and the ready reckoner value; Maharashtra kept the rates unchanged for 2026–27.
Calculator: Maharashtra stamp duty · Guide: The real cost of buying a home in Thane and Badlapur
Redevelopment
Demolishing and rebuilding an old co-operative housing society building, with members getting new flats and the cost met by selling the extra flats the higher FSI allows. In Maharashtra the procedure is set under section 79A of the Maharashtra Co-operative Societies Act; the order of 30 September 2026 requires at least 51% of all members to approve both the decision and the choice of developer.
Guide: Funding society redevelopment as a developer · Calculator: Redevelopment feasibility · Service: Construction finance
Registration fee
The fee for registering a property document with the Sub-Registrar in Maharashtra: ₹100 for the first ₹10,000 of value and ₹10 for every further ₹1,000, which works out to about 1%, capped at ₹30,000. Any home worth more than about ₹30 lakh pays the flat ₹30,000.
Calculator: Maharashtra stamp duty · Guide: The real cost of buying a home in Thane and Badlapur
RERA 70% separate account
Section 4(2)(l)(D) of RERA requires 70% of the amounts realised from buyers to be deposited in a separate account in a scheduled bank and used only for land and construction cost. Withdrawals must be in proportion to completion and certified by an architect, an engineer and a chartered accountant; once the completion certificate is received, the balance can be withdrawn.
Guide: The MahaRERA 70% account · Calculator: RERA separate account withdrawal
S
Section 37(2)(g) (formerly 43B(h))
The income-tax rule that lets a buyer deduct an amount owed to a micro or small enterprise beyond the MSMED Act's time limit only in the year it is actually paid. Section 37(2)(g) of the Income-tax Act, 2025 replaced section 43B(h) of the 1961 Act, with no grace period up to the return due date; interest paid under the MSMED Act is never deductible.
Calculator: MSME delayed payment interest
Self-redevelopment
Redevelopment in which the housing society itself plans, finances and builds the project through an architect, project management consultant and contractor it appoints, keeping the surplus instead of a developer. The State Co-operative Bank is the statewide nodal lender, with Mumbai District Central Co-operative Bank for Mumbai and the MMRDA region; the society carries the cost, sales and loan risk.
Guide: Self-redevelopment funding · Service: Construction finance
Special mention account and NPA (SMA / NPA)
RBI's early-warning tags for overdue loans: SMA-0 up to 30 days overdue, SMA-1 31–60 days and SMA-2 61–90 days. A loan overdue for more than 90 days becomes a non-performing asset (NPA), and is upgraded only when all arrears are paid; a cash credit or overdraft out of order for 90 days, or not renewed within 180 days of its due date, can also become an NPA.
Guide: Why loan applications get rejected · Guide: Term loan vs cash credit vs overdraft
Stamp duty
The state tax on property documents, charged in Maharashtra on the higher of the agreement value and the ready reckoner value. Basic duty is 5% in cities and towns, and surcharges generally take the total to 7% in Thane city and 6% in Mumbai and in municipal councils such as Badlapur; women buying a home alone or with other women pay 1% less.
Calculator: Maharashtra stamp duty · Guide: The real cost of buying a home in Thane and Badlapur
T
TDS on property purchase
When the price or stamp duty value of a property is ₹50 lakh or more, the buyer must deduct 1% tax at source, on the higher of the two, from the payment to a resident seller. From 1 April 2026 this falls under section 393(1) of the Income-tax Act, 2025 (formerly section 194-IA) and is reported in Form 141, which replaced Form 26QB.
Calculator: Maharashtra stamp duty · Guide: The real cost of buying a home in Thane and Badlapur
Techno-economic viability study (TEV)
An independent check of a project's technology and financials by a consultant on the lender's panel, usually for large, new or technically complex projects and consortium loans. Each bank's credit policy decides when one is required, typically by loan size, sector or complexity.
Guide: What lenders want in a DPR · Service: Project funding
Term loan
A fixed amount, disbursed at once or in stages, repaid in instalments over an agreed period, often after a moratorium. It funds assets that earn over several years, such as machinery, buildings and expansion, and is sized mainly on whether future cash flows can service it.
Guide: Term loan vs cash credit vs overdraft · Calculator: Project DSCR · Service: Project funding
Top-up loan
An additional loan to an existing home-loan borrower, secured on the same property, often taken along with a balance transfer. The home loan and top-up together are limited by the property's current value and the lender's LTV policy, lenders want a clean repayment record, and the money cannot be used for speculation.
Guide: Home loan balance transfer and top-up · Service: Home loans
Trade Receivables Discounting System (TReDS)
RBI-authorised online platforms where invoices that an MSME's buyer has accepted are discounted by banks and NBFCs bidding for them, without recourse to the MSME seller. Large companies and central public sector enterprises must be registered, so it helps most when your buyer is one of them.
Guide: Working capital for contractors · Guide: Trade finance for MSMEs
Tranche disbursement
Releasing a loan in instalments as construction progresses instead of all at once. RBI requires home loans for under-construction property to be closely linked to construction stages with no upfront disbursal (NHB applied the same rule to HFCs in November 2025), and construction finance is released against the lender's engineer's certificate of progress.
Calculator: Pre-EMI vs full EMI · Guide: Home loan for an under-construction flat
Transferable development rights (TDR)
Floor area that the planning authority grants as a certificate, for example in return for surrendering land for a road or reservation, which can be sold and used on another plot within the limits the regulations allow. Developers buy TDR to load extra buildable area onto redevelopment and new projects, and its cost is an early outflow in the feasibility.
Calculator: Redevelopment feasibility · Guide: Funding society redevelopment as a developer
Turnover method
RBI's guidance for sizing working capital of micro and small enterprises with fund-based limits up to ₹5 crore: the requirement is taken as 25% of projected annual turnover, of which the borrower brings 5% and the bank finances at least 20%.
Calculator: Drawing power & working capital limit · Guide: Working capital for contractors
U
Udyam registration
The online registration that classifies a business as a micro, small or medium enterprise. It is the gateway to MSME benefits: priority sector status for bank loans, CGTMSE cover, collateral-free loans for micro and small enterprises up to ₹20 lakh and delayed-payment protection under the MSMED Act.
Guide: Working capital for contractors · Calculator: MSME delayed payment interest
W
Working capital demand loan (WCDL)
A short-term loan for a fixed amount and tenor carved out of a working capital limit, often cheaper than cash credit for a known, time-bound need. Borrowers with fund-based working capital limits of ₹150 crore or more from the banking system must take at least 60% of the sanctioned fund-based limit as such a loan component, with a minimum tenor of seven days.
Guide: Term loan vs cash credit vs overdraft · Service: Working capital
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