Construction financing: what you need to know

Getting funding to start or continue a new project is a daunting idea for many people. That’s because we immediately think about the abusive fees of the banks combined with the concern about not being able to pay off the debt in time.

Despite the facilities that this credit line allows consumers, there are still few options available in the market exclusively for civil construction. Therefore, many resort to personal loans, such as credit with a vehicle or property guarantee, to get enough money to complement the renovation or construction.

There are many doubts about this subject. Therefore, we have gathered in this article all the most relevant information on how to finance construction, the main existing lines of credit and the financial institutions that make it available.

What is funding?

Financing is nothing more than a kind of loan where the bank or financial institution grants the necessary cash value for those who wish to acquire some material asset, such as a vehicle or property.

The main advantage of financing is the low interest rates applied and longer payment terms compared to the amounts attributed to the personal loan. In addition, the bank that offers this line of credit considers the financed asset itself as collateral for the payment. In this way, the customer is easier to organize themselves financially and pay off the debt without abusive amounts.

Therefore, we can conclude that financing is a great option for those who need money faster to invest in their own home and car.

And how to finance construction?

As we know, regardless of the type and size of the work, activities related to civil construction often require a high investment in money. For companies in the industry, opting for financing at specific points of the work can generate significant savings.

When planning the new project, it is necessary to analyze all the phases and the estimated cost to make the construction feasible. If the company intends to carry out a large-scale undertaking that takes longer to complete, getting this line of credit helps a lot in the purchase of machinery, tools, construction material and transport at a lower cost.

In this scenario, financing is a concrete and accessible possibility, where the customer can get a good deal by investing in quality services coming from partner suppliers of banks and finance companies. With good and efficient prior financial planning, the entire membership process will take place in a more practical way, without impacting the total budget.

Here in Brazil, financing for major infrastructure works is provided by the National Development Bank, the BNDES. Learn more about this body below.

BNDES – National Development Bank

Encouraging innovation, regional and socio-environmental development: these are the pillars of the National Development Bank (BNDES).

Created in 1952, the institution aims to contribute to the social, economic and urban development of Brazil by supporting entrepreneurs and individuals to make their expansion, renovation and new business projects viable in various sectors of the economy.

BNDES is currently considered the largest resource of the Federal Government to carry out long and short-term financing. According to the institution itself, the process of granting financing to companies is only allowed after assessing the socio-environmental and economic impact of the project in question in Brazil.

BNDES is linked to the Ministry of Development, Industry and Foreign Trade, and also has two other subsidiaries: BNDES FINAME (Industrial Financing Agency) and BNDESPAR (BNDES Participações).

BNDES FINAME provides exclusive financing for companies for the acquisition of machinery and equipment manufactured in Brazil through registered banks and finance companies. To find out if the material of interest is available for financing, just check the complete list on the BNDES’ website.

Once the request is made, the accredited financial agent (commercial banks and credit unions) will assess the proposal and the applicant’s financial situation. If everything is ok, the request is forwarded to BNDES.

BNDES FINAME is divided into three different lines of credit. Are they:

  • BK Production: Working capital designated for the production of machinery, equipment and automation goods;
  • BK Acquisition and Marketing: Purchase and sale of goods;
  • Moderna BK: Modernization of machines and equipment installed in Brazilian companies.

BNDESPar, on the other hand, acts as an investment fund for the federal government to capitalize private companies that BNDES wants to invest. This operation takes place through the purchase of shares, bonds and participations.

Meet the banks that have lines of credit for construction!

Federal Savings Bank

  • It is possible to finance up to 85% depending on the size of the company and the financed assets;
  • Payment terms: up to 120 months (variable according to the type of investment), with a 24-month grace period.
  • To hire the service, the company must be an active Caixa Econômica customer and present a bank statement for the last 12 months.
  • Construcard Card: the total credit limit is approved after the inclusion of an asset as a guarantee (vehicle, deposit bond, financial investment). With the card, the customer has up to 240 months to pay off the payment, with interest rates of up to 2.5%.
  • To purchase the card, you must be over 18 years of age, be a Caixa Econômica Federal account holder (individual) and have passed the credit risk assessment and the bank’s own registration

Bank of Brazil

  • Payment term of up to 54 times;
  • The maximum value of the purchase is 50 thousand reais with payment of the first installment for 180 days. In non-registered establishments, the term is 48 times, a grace period of 59 days and purchases of up to 10 thousand reais, according to the available credit limit.
  • The contract is made in the Cielo machine of the affiliated merchants at the time of purchase. To do so, simply use Ourocard’s Crediário function and define the number of installments and the due date.
  • The credit is approved after evaluating the client’s financial profile.


  • The customer can pay in up to 48 installments via automatic debit;
  • Up to 59 days to initiate payment;
  • It is possible to finance up to 100% of the asset;
  • The customer can negotiate the values ​​of the machines and tools and the value will be deposited in cash to the supplier company;
  • To hire the service, you need to speak with the relationship manager and assess whether the operation fits your current financial needs.
  • The IOF (Tax on Financial Operations) can be financed or paid in cash upon contracting the financing. The values ​​referring to the CET (Total Effective Cost) and the interest rate will depend on the contracted operation.


  • Installments in up to 48 months to start payment;
  • 62 days to start paying;
  • IOF included in the installments;
  • Minimum amount of BRL 500;
  • To hire, simply present the total value of the machines and tools at the Bradesco branch where you have an account;
  • Bradesco Public Power: 36 to 60 months to pay for machinery and equipment;


  • It is used to finance investments by micro, small and medium-sized companies; individual entrepreneurs and micro-entrepreneurs;
  • Indicated for companies with national headquarters and annual gross income of up to R$ 300 million;
  • Pre-approved credit limit of up to R$2 million;
  • Financing in up to 48 months;

With all this information, we hope you have understood how to finance construction. Remember that before deciding on any line of credit, make a comparative analysis of the interest rates and payment terms established by the finance companies.

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