Construction-Linked Payment Plans: Collect Instalments on Time
Set up demand letters, reminders and loan-disbursement tracking so construction-linked instalments arrive when milestones are reached.
The slab is cast and the architect's certificate is signed, but demand letters go out ten days later because the CRM team is still checking ledgers. Buyers with home loans then need the bank to disburse, which needs more documents. By the time money arrives, the next milestone is already close.
Collections drive construction cash flow, so every delay pushes the project to borrow or slow down. Meanwhile buyers get inconsistent reminders, interest calculations are disputed, and the finance team ends each month reconciling which payments came from which buyer through which bank.
Can we charge interest on late instalments?
Interest on delayed payments is generally governed by your agreement for sale and applicable state RERA rules. Rates and conditions vary, so check with your legal or compliance team and apply them exactly as the agreement states.
Why do loan-funded buyers pay later than self-funded ones?
The bank must receive the demand, the milestone proof and often a fresh inspection before disbursing. Sending the right documents with the demand and following up with the bank directly removes most of the waiting.
How should we handle disputed demand amounts?
Share a line-by-line ledger showing every instalment, payment, credit and tax. Most disputes come from unclear statements. Resolve quickly, record the outcome, and correct the template if the same question keeps coming up.