What is Project Finance?

Project Finance is a specialized funding solution designed for large-scale infrastructure and development projects. Unlike traditional loans, project financing is structured around the project's cash flows and assets rather than the borrower's balance sheet. This allows developers and companies to undertake major projects without significantly impacting their existing credit capacity.

Key Features

  • Non-Recourse Financing: Loan repayment is primarily from project cash flows, limiting sponsor liability
  • Long Tenure: Extended repayment periods aligned with project lifecycle (typically 10-20 years)
  • Structured Repayment: Customized schedules based on project milestones and revenue generation
  • Large Ticket Size: Funding from ₹10 Crores to ₹100+ Crores based on project requirements

Project Funding Calculator

Typical Loan Amount ₹10 Cr - ₹500 Cr+
Interest Rate 9% - 13% p.a.
Loan Tenure 10 - 20 Years
Moratorium Period 1 - 3 Years
Processing Time 45 - 90 Days

Types of Projects We Finance

🏗️

Infrastructure

Roads, bridges, highways, ports, and transportation infrastructure projects

🏭

Industrial Projects

Manufacturing plants, processing units, and industrial facilities

Power & Energy

Solar farms, wind energy, power plants, and renewable energy projects

🏢

Real Estate

Commercial complexes, residential townships, and mixed-use developments

🏥

Healthcare

Hospitals, diagnostic centers, and healthcare infrastructure

🏫

Education

Schools, colleges, universities, and educational institutions

Project Finance Process

01

Project Evaluation

Comprehensive analysis of project feasibility, market demand, technical viability, and financial projections.

02

Documentation

Preparation of detailed Project Report, TEV Study, financial models, and regulatory approvals.

03

Lender Discussions

Presenting the project to multiple banks, negotiating terms, and securing sanction letters.

04

Financial Closure

Finalizing loan agreements, security documentation, and disbursement arrangements.

05

Monitoring & Support

Ongoing project monitoring, compliance reporting, and disbursement management.

Project Documentation

📊 Financial Documents

  • Detailed Project Report (DPR)
  • Techno-Economic Viability (TEV) Study
  • Financial Projections (10+ years)
  • Sensitivity Analysis
  • Debt Service Coverage Ratio (DSCR) Calculations

📋 Legal & Regulatory

  • Project Approvals & Clearances
  • Environmental Clearance (EC)
  • Land Documents & Title Deeds
  • Contract Agreements
  • Statutory Compliance Certificates

🏗️ Technical Documents

  • Detailed Engineering Reports
  • Project Timeline & Milestones
  • Technical Specifications
  • Contractor Details & Experience
  • Equipment & Vendor Quotations

👥 Company Documents

  • Company Financials (3-5 years)
  • Promoter/Shareholder Profiles
  • Experience & Track Record
  • Existing Loan Statements
  • Credit Reports

Planning a Large-Scale Project?

Speak with CA CS Nini Agarwal to discuss your project financing requirements. We help structure funding solutions tailored to your project's unique needs.

Common Questions

What is the minimum project size for project finance?

Typically, project finance is viable for projects requiring ₹10 Crores or more in funding. However, this can vary based on the project type and lender requirements.

How is project finance different from term loans?

Project finance is non-recourse or limited recourse, meaning repayment comes from project cash flows rather than the sponsor's other assets. It also involves more complex structuring and longer tenures.

What is a TEV Study and why is it required?

A Techno-Economic Viability (TEV) Study is a comprehensive analysis that assesses the technical feasibility and economic viability of a project. Banks require this to evaluate project risks and repayment capacity.

How long does project finance approval take?

The entire process typically takes 45-90 days, depending on project complexity, documentation readiness, and lender processing times. Larger projects may take longer due to multi-bank consortium arrangements.