These loans are generally availed by builders of a residential and commercial buildings. These loans can be of two types; 

1.  Bridge finance of stop-gap loan; In this category of loans the builder while negotiating a long-term loan with a bank or a group of banks, request a loan for the intervening period from a bank which is usually of short-term/temporary nature. When the long-term loan is approved this short-term loan is adjusted with the proceeds of the long-term loan.

2.  It may be a long-term loan from a bank requested by the builder against the pledge of land and collection of proceeds of the sale of units.