Project loans are also generally given in the form of acquisition of land, buildings, and machinery, purchase of vehicles etc. and working capital finance in the form of joint loans.
Project loan is given for both industrial and non-industrial borrowers ie construction / procedural / repair and commercial/business activities etc.
Project loans in various formats, such as rupee loans, foreign currency loans and deferred payment guarantee/acceptance facilities (other than foreign currency loans obtained from foreign banks or Indian banks located abroad without bank ups of deferred payment guarantee issued by banks in India. )
The Project loan repayment schedule will be de projectined on the basis of debt service coverage ratio, cash flow, and repayment capacity. Repayment will be made through periodic installments, with appropriated repayment holiday during the execution of the project.
The deProjectination of the interest rate on Project loans depends on various elements such as the nature of the project, loan volume, risk rate, repayment period and loan structure.
The security for Project loans will automatically be as per the normal lending norms of the bank and will depend on the risk information of the account.
