Funding for your business in India, from working capital to builder finance.

Yes. An Indian company, LLP or firm borrows in its own name, based on its own financials, even if some or all directors or partners are NRIs. Lenders assess the business: its track record, audited accounts, tax returns, cash flows and security. NRI promoters are usually asked to give a personal guarantee or be co-applicants, and lenders check their KYC and credit history too. Some lenders have extra conditions for companies with foreign shareholding, and foreign investment rules also apply to the company. Your advisor checks the structure with the lender first.

No. Builder or project funding is given to the developer entity, the company, LLP or firm that owns or develops the project. Indian foreign exchange rules do not allow rupee loans to NRIs personally to be used for real estate business, and lenders also need a borrower that holds the land, RERA registration and approvals and receives the sale proceeds. NRI promoters can support the loan through guarantees or by bringing in equity into the developer entity, subject to foreign investment rules and lender policy.

It depends on the facility. Term loans and loan against property are usually secured by a mortgage on commercial or residential property. Working capital limits are secured by a charge on stock and receivables, often with additional property or fixed deposits as collateral. Builder funding is secured by the project land and building, a charge on project receivables through an escrow account, and personal guarantees of promoters. Lenders may also ask for corporate guarantees or pledged shares. Security cover required is [X times], subject to lender policy.

Working capital limits such as cash credit and overdraft are usually sanctioned for 12 months and then reviewed and renewed each year. At renewal, the lender looks at your latest financial statements, stock and receivables statements, how the account has been run, and your projections for the next year. The limit can be increased, reduced or restructured. Keep monthly stock and debtor statements up to date during the year, as they decide how much you can draw.

Once all documents are complete, typical timelines are about [X to Y working days] for a loan against property or term loan, [X to Y weeks] for a new working capital limit, and [X to Y weeks or longer] for builder or project funding, which needs legal, technical and project appraisal. Delays usually come from missing documents, title queries or valuation. We check your papers before they go to a lender to avoid back-and-forth. Timelines are set by the lender and are not guaranteed.