Can you imagine how difficult is to start a new business in this challenging world, a lot of things needs to planned & project funding plays an crucial role in determining business profit & loss.
A stable cash flow is essential for any Business to survive, where most business cannot start-up at their own backup hence left with the option of Project Loan.
Understanding the participation of entrepreneur, government has introduced various beneficial schemes & funding programme for their growth. Before applying for project loan, make sure you know about it well & its process to obtain.
What is Project Loan?
Project loan is taken for the any New project and the existing firm. A project loan is a long-term loan provided for the improvement of infrastructure, industrial projects, and public service, new construction and renovation. Small Project Loan finance is used in oil extraction, power production, and infrastructure sectors.
A project loans offers a great opportunity for the company’s growth process and shares its profits. The given below-mentioned sources for project financing are crucial for new companies.
Many of you have questions like who can avail project loan? It can be availed by those categories whose have involvement of automobile, construction & infrastructure, engineering, power & gas & other similar business.
What are the types of Projects?
Generally, there are majorly 4 types of projects as below given: -
- Manufacturing Projects
- Construction Projects
- Research Projects
- Management Projects
What is Project Loan Cost?
Project loan is determined on the basic of project cost which included overall cost & expenses required for completion of project, In most cases lenders fund upto 80% of project cost. Is working capital part of project cost? Yes Working capital is a part of project cost it defines the differentiate between current company assets from measuring working capital financial health to know its capacity.
Also Read:-Home Loan Process
Why Project loan is important?
Project loans is important for any business. It helps to buy new equipment for business, generally a big project require new equipment and good quality of equipment. Equipment is equally necessary as the workforce. Through this loan, you can purchase equipment of your choice. It helps to set up high infrastructure.
Get project loan for new business or existing business by comparing & choosing the ideal banking partner through the help of financeseva, save your time & money both at the same time.
What are the documents required for project loan?
Project loan documents list are below given: -
Identity Proof (Any one of the following)-
- Aadhar Card
- Voter ID
- PAN Card
- Driving License
Address Proof (Any one of the following)-
- Electricity Bill
- Water Bill
- Ration Card
- Lease Agreement
- Company Documents
- Latest 2-year bank statement
- ITR with computation balance sheet
- Profit & Loss statement
- Audited Financial by CA
How does a project loan work?
MSME Project Loan works like other loans, Project implementation require much funds where not all business start with their own back up & left with the ideal option of loan. While approaching for loan lenders want to confirm whether your project loan Eligibility match with their requirements or not, if all set well the lenders move further. Even you can use Project Loan Calculator to know monthly payable EMI is affordable or not as its aids to pre-plan & stronger financial management.
The repayment period & loan amount is classified on applicant financial track record & other credit history basis. when applicant borrow loan from any bank or financial institutions, they used to pay monthly EMI in the form of repaying borrowed amount. As much as EMI you pay ultimately it helps to reduces principal amount parallelly.
Apply Now:- MSME Loan