Purpose of Project Loan

Published: 11th February 2011
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To provide finance to all types of projects in state & private sector viz. generation, transmission, distribution, renovation & modernization, uprating, environment upgradation, metering, etc. The infrastructure projects having forward and backward linkages with power projects are also covered. The entities engaged in generation, transmission, trading, distribution of power or any combination of these activities including captive / co-gen power producers. The entities engaged in the infrastructure projects with forward / backward linkages to power projects.

Project financing is an innovative and timely financing technique that has been used on many high-profile corporate projects. It is a method of financing very large capital intensive projects, with long gestation period, where the lenders rely on the assets created for the project as security and the cash flow generated by the project as source of funds for repaying their dues. Increasingly, project financing is emerging as the preferred alternative to conventional methods of financing infrastructure and other large-scale projects worldwide


All business man paper

Project Name

Project report


Property paper

Project Loan in Noida is given by the lending institution or banks to the borrower for the purpose of business expansion, reconstruction etc. Project loan is also available to acquire the fixed assets like land & building, plant & machinery etc. Project Loans are available to the existing business or industrial houses for growth purpose and equally available to the new business entrants in form of seed or startup capital. Projects loans are generally mid or long term period loans but lending institutions may consider the short term loan applications depending upon the feasibility of the project. The short term Project Loan can be availed for one year whereas the mid and long term project loans can be obtained for up to 10 years.

The rate of interest is quite competitive as the loan term is longer and may be affected by the periodic changes made by the lending institutes. Construction & Infrastructure, Engineering, Automobile, Power, Gas & Petrochemical industries are some of the business domains generally leverage on the Project Loans.

The aspirants should have the detailed project report ready as it is the very basis of getting project loan sanctioned. The lending institutions seek good credit, strong solvency ratio, strong management systems, technology penetration etc. as granting criteria for project loans.

Suresh, for information on Home Loan Consultant, Project Loan, Loan against Property and Finance Consultant.Please visit our site : http://ronakconsultant.com

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