Project loans in India are special financial solutions designed to fund large capital-intensive projects. They are mainly offered to corporates and MSMEs to help them set up new manufacturing units, purchase fixed assets (like land, buildings, and machinery), or finance large-scale construction projects.
These loans are also widely used for infrastructure projects such as:
➢ Power plants (hydel, thermal, solar)
➢ Roads, highways, and bridges
➢ Ports and airports
➢ Water supply, irrigation, and sanitation projects
➢ Telecommunication systems
With Anthony Associates Project Loan, businesses can get long-term financing support to
successfully complete their projects without financial stress.
Best suited for projects requiring heavy investment in equity and debt. It supports both industrial and infrastructure ventures, even in developing regions.
Risks are transferred to the lender, which helps project sponsors reduce their financial exposure.
Large-scale projects often involve many stakeholders who handle different aspects, ensuring smooth execution.
A Special Purpose Vehicle (SPV) usually manages the project. Once completed, ownership is transferred to the sponsor or entity as per the loan agreement.
Lenders focus on the project’s feasibility and future cash flow rather than the borrower’s balance sheet. This reduces delays and simplifies approvals.
Repayment is made using the cash flow generated by the project itself, lowering the risk for lenders.
Project finance often allows better tax treatment for both the project and its sponsors.
The project’s creditworthiness is judged separately from the sponsor’s, making it easier for businesses with weaker credit profiles to secure funding.
Project Finance is a type of long-term loan used to fund large economic ventures. It is usually provided through term loans, bank guarantees, or letters of credit. The loan repayment depends on the future cash flow of the project rather than the borrower’s credit
history.
Funding can come from issuing shares, debentures, retained profits, and loans from financial institutions. Short-term needs can be met through banks, trade credit, or instalment credit.
The timeline depends on the project’s complexity, due diligence, and legal checks. In some cases, funding may be secured in a few weeks, while more complex projects may take several months.
Corporate borrowers, MSMEs, and businesses involved in infrastructure or large industrial
projects can apply for project financing.
Projects related to manufacturing, power generation, real estate development, infrastructure (roads, bridges, airports, ports), and telecommunication are commonly financed under project loans.
