Project Loan
Project Loans are granted by most banks and financial institutions for the purpose of business expansion, renovation, diversification..etc. To acquire fixed assets like land and building, plant and machinery are obtained. Moreover, these loans come with the flexibility of new entrepreneurs who are seeking capital requirements. Based on project flexibility and credibility, the term of the loan are considered, it can be mid-term or long term but however lenders consider for the short term. Usually, the duration of a short-term loan can be 1 year while for mid-term, the repayment period goes up to 10 years.
The project loan comes with an attractive interest rate and depends on applicant profile and creditworthiness. These loans can be granted to the following businesses:
- Construction and Infrastructure
- Engineering
- Automobile
- Gas and Power
- Petrochemical Industries
The following are the documents that need to be met before applying for project loans:
- Detailed Project Report
- Must maintain a Good Credit Record
- Public & Private both sector companies are eligible
- At least 3 years of business continuity with profit in last audited financial years
Project Loans are of huge scope in India and due to present scenario, its importance has all the more increased. It is in 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 the eligibility of applicants.