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image  Union Residential Real Estate Inventory Support Scheme

S. No


Scheme Guidelines

  1. 1.


The scheme will be operational through Mid-Corporate Branches (MCBs) and Industrial Finance Branches (IFBs) in Metro Centers &viz. Mumbai (including MMR), Delhi (including NCR), Bengaluru, Chennai, Kolkata, Hyderabad, Ahmedabad & Pune and State Capitals

  1. 2.


i. Repayment or substitution of high cost debt 

ii. Payment of overdue sundry creditors

iii. Payment of statutory dues/overdues in respect of the any projects of the builder.
However, priority to be given to project charged to bank.

  1. 3.


  1. a. Business Enterprises under the following categories are eligible for loan under this scheme – 
  • Proprietorship firms
  • Partnership firms 
  • Corporates 
  • Limited Liability Partnerships (LLP)

  1. b. The above enterprises should be engaged in business activity of development of residential housing projects for atleast 3 years.
  2. c. The borrower entity should have completed minimum 5 lakh sq. ft of construction of residential housing projects.
  3. d. Units should have in place all necessary statutory approvals / NOCs from respective authorities.
  4. e. Satisfactory track record of the builder to be verified. Minimum two of their projects (of the same / higher size and scale of now proposed project) should have completed on time.
  5. f. Internal Credit Rating of the borrower should not be below UBI-5 in case of existing credit customers.
  6. g. The banking arrangement should be Sole Banking for this scheme. Borrower may have existing loans under Consortium/ Multiple Banking Arrangement. However, exclusive security by way of unencumbered ready for sale inventory shall be obtained for this loan with proper NOCs from the existing lenders, wherever required. This security cannot be linked with any other loan/ product by way of either Pari-passu / second charge etc.
  7. h. Only those projects to be considered for financing in which at least 75% flats are already sold out.
  8. i. High cost existing debt should not be NPA / SMA-2/SMA-1.
  9. j. The schematic funding shall not be used for purchase of land/speculative purpose
  1. 4.


  • Term Loan
  1. 5.


Minimum Rs.50 crore and maximum Rs.250 crore per project, with a cap of Maximum Rs.500 crore per builder.

  1. 6.


Maximum- 50% of realisable value of security (i.e., Ready for sale inventory- Ready to occupy).

Higher LTV up to 60% can be considered in case of Lower value flats (Up to Rs. 3.00 Cr in MMR, Rs.1.80 Cr in NCR and Rs. 0.90 Cr for other specified places).

Projected cash flows for three years (i.e., till loan is fully repaid) for fixing the limit and tenor of the loan.

Statement of RERA and other operative accounts and cash flow of the borrower are to be obtained from the commencement of the project to ascertain the sources and uses of funds.

Details of pre booked flat to ascertain the encumbrances, if any

Visibility of cash flow and demand supply position of ready built flat in that area should also be examined apart from discreet analysis and enquiry by assessing branch.

  1. 7.


Stipulated LTV should be maintained throughout the tenor of the loan

  1. 8.


Primary: Nil 


a. Value of the flat proposed to be given as collateral security shall not exceed Rs.5 crore in MMR, Rs.3 crore in NCR and Rs.1.50 crore in other specified areas. 

b. However, 10% of the security offered may consist of higher value flats / units with a cap of 160% of the above specified value (i.e.Rs.8 crore in Mumbai, Rs.4.80 crore in Delhi and Rs.2.40 crore in other specified areas) in the same project. 

c. SARFAESI compliant/RERA registered/Security unencumbered ready for sale inventory of Residential Housing Projects will be the collateral security. Ready for sale inventory means residential flats which are at ready to occupy stage.

d. Other security related guidelines as per the scheme.

  1. 9.


Personal guarantee of the Promoters/ Partners/ Directors/ Guarantors, Corporate Guarantee of Holding company in case of SPVs and beneficial owner in case of closely held companies shall be mandatory