Project loan Interest Rate

1
Project loan Interest Rate
2

• A project loan is a funding of long-term
  infrastructure, public services using limited
  resources or non-resource financial structure.
  The equity and debt that are utilized to finance
  the project are paid off from the cash flow
  generated by the project.
• It is offered to corporate borrowers for the
  objective of capital expenditure which includes
  construction, setting up new and existing
  facilities, etc. Also available to get fixed
  assets such as plant and machinery, land and
  building, etc.
• The borrower can take 85 of the project cost as
  a maximum loan amount with an affordable Project
  loan Interest Rate of _at_5.50 onwards with
  flexible repayment tenure.

3
Interest rate processing fees by various banks

• Bank name                  Interest rate         
               Processing fee
• Bank of India                  8.00             
                    1
• Bank of Baroda               7.50               
                  1
• Canara Bank                   8.75             
                     1
• Central Bank of India      7.50                 
                1
• Indian Bank                     7.50           
                      1
• Karnataka Bank Ltd.       9.00                 
                1
• Indian Overseas Bank     9.00                   
             1
• Punjab National Bank      8.00                 
               1
• Punjab Sind Bank          9.00                 
              1
• Bank of Maharashtra       8.00                 
                1
• United Bank of India         9.00               
                1
• UCO Bank                       10.00           
                     1
• State Bank of India           7.50             
                    1
• South Indian Bank           9.00               
                   1
• Union Bank of India         9.00               
                   1

4
There are three different stages of project loan

• Pre-financing stage
• It consists of Identification of the Project Loan
  plan, recognizing risks, Checking project
  Feasibility.
• Financial stage  
• Arrangement of Finances, Loan Negotiation,
  Documentation and Verification, Payment.
• Post-financial stage
• Timely Project Monitoring, project closure, loan
  repayment