Project Loan Overview
A project loan is a type of loan provided by financial institutions to businesses for financing specific projects, such as infrastructure development, construction, or expansion. Here's an overview of its features, eligibility criteria, and required documents:
*Features
1. *Loan Amount*: The loan amount is typically based on the project's cost and viability.
2. *Interest Rates*: Interest rates can be fixed or floating, depending on the lender and loan terms.
3. *Repayment Tenure*: Repayment tenure is often aligned with the project's cash flow and can range from 5 to 15 years.
4. *Disbursement*: Loan disbursement is often tied to project milestones.
*Eligibility Criteria
1. *Project Viability*: The project should be viable and have a clear revenue stream.
2. *Business Experience*: The borrower should have relevant experience in the industry.
3. *Creditworthiness*: A good credit history and financial stability.
4. *Project Plan*: A detailed project plan, including timelines and budgets.
*Documents Required*
1. *Project Proposal*: A detailed project proposal, including project scope, timelines, and budgets.
2. *Business Plan*: A comprehensive business plan, including market analysis and financial projections.
3. *Financial Documents*: Financial statements, including balance sheets and profit-loss statements.
4. *Project Cost Breakdown*: A detailed breakdown of project costs.
5. *Environmental and Regulatory Approvals*: Relevant approvals and permits.
Rate of Interest 3% Tenure 20 Years
