Whether you are planning for a new project loan or want to expand ongoing projects. Here are the absolute project loan credit solutions especially designed for project owners. This type of credit facility is available for project finance as well as project export.
Be it a long-term infrastructure, industrial project or public services, getting a source of funds to keep up project running, and implementation are an integral part of the entire process.
Based on the cash flow generated at the end of the project and borrower can arrange a bank loan, while using the assets, right and interest of the concerned project as a collateral.
Key features of Project Loan -
Capital Intensive Financing Scheme: Being more expensive than a corporate loan, this type of project loan financing scheme drives costs higher while reducing liquidity.
Risk Allocation: Under the financing scheme, some of the risks associated with the project loan interest rate shifted towards the lender. Therefore, the sponsor prefers to benefit from this financing scheme as it helps them to mitigate some of the risks while on the other hand, from the lender's perspective, they can receive a better margin on project financing.
Loan Repayment with Project Cash Flow: Based on certain terms on project loan, the excess cash funds received by the project should be used be used to pay off the outstanding debts received by the borrowers.