Project Loan

Project loan is granted by banks or financial institution for purpose of business diversification, expansion or reconstruction etc. It is available for purposes like To acquire fixed assets like land and building, plant & machinery. These loans are available to both existing industrial houses and new entrepreneurs who need seed capital or start up capital. They can be mid term or long term loan but lenders consider short term loan only if project is feasible and truly worthwhile. The tenure for short term loan can be 1 year but for mid year the tenure may vary upto 10 years.  The rate of interest is quite competitive and may be affected depending upon economic conditions.

Business

These loans can be granted to following businesses

·         Construction and infrastructure

·         Engineering

·         Automobile

·         Power & Gas

·         Petrochemical Industries

These are some of businesses that leverage on the project loans.

Eligibility

Before applying to project loan you need to fulfill following eligibility criteria

·         Detailed Project Report based on that bank or financial institution will grant the loan.

·         Good credit record

·         Brawny Solvency ratio

·         Strong management

·         Technology penetration etc

Are some of the benchmarks against which you will be provided loan.

Project Loan in India

Project Loans are of huge scope in India and due to present scenario its importance has all the more increased. It is of huge demand where funds are required by new entrepreneurs to start a new venture or for further development of their business.  The nature and feasibility of the project determine eligibility of applicants.

Moreover, these loans are granted hassle free and at competitive interest rates. So, anyone can take this loan provided you fulfill the eligibility requirements. But you must plan for the loan installment monthly otherwise banks may charge penalty fees.

Use online calculator for calculating loan installments.