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Project Finance
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Key Features
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Eligibility
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Charges
Project Finance : Key Features
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The scheme aims at providing finance for setting up of a new unit, expansion of existing activities and long-term requirement of any other general corporate purpose
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For the construction of business premises, factory sheds, etc. and purchase of machinery and equipment, etc. and long-term requirement of any other general corporate purpose
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Loan amount: Depending on the cost of project (in addition, working capital limits may also be considered)
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Period: Up to 7 years
Project Finance : Eligibility
- Security: Mortgage or assignment of project property/possessory pledge/personal guarantee, etc.
Project Finance : Charges
- Rate of interest*: Competitive rate of interest prevailing at the time of sanction
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What is project finance and how does it work?
Project Finance loans are designed to fund the establishment of new units, support the growth of existing operations, and meet a company's long-term requirements. This project loan involves lenders evaluating the feasibility and risks of a specific project before issuing the funds.
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What type of projects are eligible for project finance loans?
Project finance loans can fund large projects like infrastructure development, renewable energy, oil and gas exploration, mining, and real estate development. These projects typically require significant capital investment and generate predictable cash flows to repay the loan gradually.
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What documents do I need to apply for a project finance loan?
When applying for a project finance loan, prepare documents including:
- Project reports
- Financial statements
- Feasibility studies
- Business plans
- Relevant permits and licenses
Specific requirements can vary based on the lender and project nature.