The project Loan is a term loan that is borrowed for the purpose of setting up economic ventures. It is provided to corporate borrowers for the purpose of capital expenditure including setting up new or additional manufacturing facilities, construction, etc. Project Loans are also available to acquire various things or fixed assets like land & building, plant & machinery, etc.
Project Loan is offered for Mid and Large corporates having turnover of more than Rs.500 Crores or Projects outlay of Rs.500 Crores OR minimum exposure (Funded + Non-Funded) of Rs.25 Crores.
Companies (including SPVs) executing various infrastructure projects in sectors such as power- hydel/thermal/solar, roads, highways, bridges, ports, dams, airports, rail systems, water supply, irrigation, sanitation, and sewerage system, telecommunication, housing, industrial park or any other public facility of a similar nature, construction relating to a project loan involving agriculture processing, supply of agricultural inputs, preservation and storage of processed agriculture products, educational institutions and hospitals as may be notified by RBI (Reserve Bank of India) from time to time, Commercial Real estate projects like hotels, residential/commercial complexes, setting up new plant/manufacturing facilities, etc.
Who can apply for a project loan
Small & medium enterprises
Farmers, aggregators & processors
To apply for a project loan, there are the following steps:
Step 1: Identify the Project
Step 2: Determine the Feasibility of the Project
Step 3: Identify Sources of Technology
Step 4: Identify Sources of Project Finance
Step 5: Mitigate the Project Risk