Project loan Interest Rate
A project loan is a funding of long-term infrastructure, public services using limited resources or non-resource financial structure. The equity and debt that are utilized to finance the project are paid off from the cash flow generated by the project.
It is offered to corporate borrowers for the objective of capital expenditure which includes construction, setting up new and existing facilities, etc. Also available to get fixed assets such as plant and machinery, land and building, etc.
The borrower can take 85% of the project cost as a maximum loan amount with an affordable Project loan Interest Rate of @5.50% onwards with flexible repayment tenure.
Interest rate & processing fees by various banks
Bank name Interest rate Processing fee
Bank of India 8.00% 1%
Bank of Baroda 7.50% 1%
Canara Bank 8.75% 1%
Central Bank of India 7.50% 1%
Indian Bank 7.50% 1%
Karnataka Bank Ltd. 9.00% 1%
Indian Overseas Bank 9.00% 1%
Punjab National Bank 8.00% 1%
Punjab& Sind Bank 9.00% 1%
Bank of Maharashtra 8.00% 1%
United Bank of India 9.00% 1%
UCO Bank 10.00% 1%
State Bank of India 7.50% 1%
South Indian Bank 9.00% 1%
Union Bank of India 9.00% 1%
There are three different stages of project loan
- Pre-financing stage
It consists of Identification of the Project Loan plan, recognizing risks, Checking project Feasibility.
- Financial stage
Arrangement of Finances, Loan Negotiation, Documentation and Verification, Payment.
- Post-financial stage
Timely Project Monitoring, project closure, loan repayment
