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Project Loan - Fast Approvals, Simple Process. Your Growth, Our Commitment .

A Project Loan usually refers to financing provided for setting up, expanding, or modernizing a business project. It is different from a personal or working capital loan because it is specifically tied to a particular project and its expected cash flows.

What is a Project Loan?

A project loan is funding given to businesses, entrepreneurs, or organizations for starting a new venture, expanding an existing project, or setting up a large-scale business unit. Repayment is generally linked to the revenues generated by the project.

Purpose of Project Loan

  • 1 Setting up a new manufacturing unit / factory
  • 2 Expansion of business operations
  • 3 Purchase of machinery & equipment
  • 4 Construction of infrastructure (plant, building, etc.)
  • 5 Power, renewable energy, & large industrial projects
  • 6 Modernization & technology upgrade

Who Can Apply?

  • 1 Entrepreneurs & startups
  • 2 Small & medium enterprises (SMEs/MSMEs)
  • 3 Large corporate houses
  • 4 Infrastructure developers
  • 5 NGOs / Trusts (for specific eligible projects)

Key Features

  1. Loan Amount – Depends on project cost & applicant’s profile (can range from lakhs to crores).
  2. Tenure – Medium to long-term (3 years to 15 years, sometimes more).
  3. Interest Rate – Usually lower than personal/working capital loans; based on risk & project viability.
  4. Security/Collateral – Land, building, plant & machinery, project assets, or personal guarantee.
  5. Disbursement – Often released in stages (based on project progress).
  6. Repayment – Structured in EMI or milestone-based repayment linked with project revenue.

Documents Required

• Detailed Project Report (business plan, financials, expected revenue, repayment plan)
• KYC of promoters / directors
• Company incorporation documents (if applicable) • Balance sheets, ITRs, bank statements
• Collateral documents (property papers, valuation reports, etc.)
• Approvals / licenses (depending on project type)

Popular Schemes in India

  • PMEGP (Prime Minister’s Employment Generation Programme) – up to ₹25 lakhs for manufacturing & ₹10 lakhs for service projects
  • Stand-Up India Scheme – loans from ₹10 lakhs to ₹1 crore for SC/ST and women entrepreneurs
  • MUDRA Yojana – up to ₹10 lakhs for small business projects
  • SIDBI Project Finance – for MSMEs
  • Bank Project Loans – SBI, PNB, HDFC, ICICI, etc.
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