Project Loan

Project loans are provided for large-scale business ventures or infrastructure projects. These loans cover expenses related to new business establishments, expansion, and modernization. Project finance is a specialized method of funding large-scale, long-term infrastructure and industrial projects.

• Project finance involves structuring the financing of a project based primarily on the project's projected cash flows, rather than the general creditworthiness of the project sponsors.
• This often involves the creation of a Special Purpose Vehicle (SPV), a separate legal entity created specifically for the project.
• Lenders primarily rely on the project's future revenue to repay the debt.