Project Funding Overview
India is full of talented and aspiring young minds. Among these are the blooming entrepreneurs and the visionary ones looking forward to expanding their enterprises.
This has made project funding in the country quite ordinary and necessary. Since there are multiple agencies for funding, you must choose the right funding agency for the project proposal in India. There are several perks to project financing in India given the number of blooming businesses in the country.
What is a Project Funding?
Project finance involves funding viable and practical projects, and facilitating business growth, reconstruction, or new ventures.
Indian entrepreneurs are increasing day by day. India also has half a billion SMEs. They are looking forward to the expansion of their businesses. Project financing aims at helping not only start-ups but also well-established businesses including SMEs. So, If you are looking for funding to help your business, you can approach the project financing agencies in India.
How to get Project Financing?
Multiple financial institutions are operating in the Indian Debt Market. However, not all of these organizations take exposure in project funding. The ones who are knee-deep in project funding are the government and the cooperative banks. So, each of them has its eligibility criteria for the sanctioning of the project finance. It differs as per the changes in the macro and micro scenarios.
Before applying for a project loan, the applicant must have a cost baseline to support the financing proposal. Getting project funds can be complex, so choosing a reliable funding agency is crucial.
Requirements
As the name suggests, this kind of funding will be available only for projects. So, the project can start any new or existing business unit. Below are a few basic considerations for raising finance through project financing:
- Project Viability Analysis.
- Future Cash Flow.
- Mortgage Available.
- Payback Period of The Project.
- Key Personnel Profile and Relevant Experience.
- Location of The Project.
- Market Demand of The Product.
- And others depending on the project.
Proposal
Drafting a proposal need certain things. Some of the pointers are given as follows:
a. Goals and Objectives
The intentions and the goals that you have for the project that you are proposing must be mentioned clearly in your report. Thus, the objectives of your enterprise will make stakeholders believe or trust your project even more.
b. Assets and Liabilities
You must be able to mention the liabilities. The assets of the project in a way that stakeholder sees potential in your project. So, the assets must make an impact as the stakeholder is looking to provide funds to a project that has the capacity to generate enough revenue.
c. Interest Rate
It is an essential factor to consider. As it will also affect your repayment plan. Thus it is important that you provide an impressive project financing proposal. The rate of interest for project finance depends on several factors. They are as follows:
- Credit Score of Company
- Credit Ratings
- Risk Factors in the Project
d. Traceable required proof
The proof and the documents that you provide to support your project financing proposal must be traceable and it must also be –
- Measurable
- Consistent
- Complete
- Acceptable
These are some of the aspects that will make your proposal looks good. And therefore increase your chances of getting the project finance. So, you must be careful with the way you spend your funds when you have them.
Repayment Process
The bank will provide the needed amount after the submission of the documents. The amount may be sanctioned periodically. And not all at once depending on the kind of project.
- The repayment of project finance is retrieved from the revenue generated by the project.
- Repayment begins after the first loan instalment is paid.
- In some cases, only the interest is paid for the first few days.
- In other cases, the interest is paid along with the principal amount.
- The interest rate on project funding is predetermined based on certain factors.
- The complete repayment structure is shown at the time of instalment.
Learn more about the process of project funding through the case study.
Project Funding Agencies in India
Funding for projects in India is crucial for entrepreneurs and existing businesses. Government and cooperative banks are major funding providers. To secure funding, present a clear proposal and ensure it matches the agency’s criteria. Tailored repayment plans based on project profitability.
While planning for project finance, one of the most important decisions to make is to find a trustworthy funding agency for project proposals. So, Terkar Capital is one such agency that is known for its legitimacy and reliability.
I am looking for project finance for jewelry manufacturing unit I will require 20 million USD for this project can you fund me.
Hello Francis,
Thank you for the input. We request you reach out to us directly here OR engage a call with us.
Thank You.
Adam Public School in Kochi is a 28 yearold Public school. It requires 10lacks for maintenance before new year. Comouter lab, science lab revamp.
Dear Sir / Ma’am,
Thank you for sharing the input. Definitely, we can explore the options to raise the funds. Request you to kindly share your contact details here – email id yes@terkarcapital.com / Reach out contact us page.
We will connect with you shortly.
Thank you.
Best Regards,
Team – Terkar Capital
Dear sir
Adam Public School Angamaly requires a revamp of labs and maintenance of school
I have revealed a project called Quantum Motors Pvt.Ltd. a new Startup Company.It will produce high power dc motors and new efficient alternators .I need loan.
Dear Mr. Krishna,
Thank you for sharing the input. Definitely, we can explore the options to raise the funds. Request you to kindly share your contact details here – email id yes@terkarcapital.com / Reach out contact us page.
We will connect with you accordingly.
Thank you.
Best Regards,
Team – Terkar Capital
I appreciate you sharing your insightful thoughts on this platform. At India IPO, we are dedicated to assisting businesses in navigating the challenges associated with generating capital through initial public offerings. We are one of the top IPO consulting firms in India. We are aware of how crucial strategic preparation and adherence to regulations are to the success of a public listing we are very grateful for this
I require a funding for my real estate project where I want to built 100 room for renting purpose. Its a developing locality of greater Noida West.
Spinning mill mfg project finance In India Please contact us
Dear Mr. Shah,
Thank you for writing to us. Definitely, we can work out the project funding for Spinning mill. Our operations team will connect with you shortly.
Thank You.
Best Regards,
Terkar Capital – Operations Team
We need project funding for our pvc manufacturing unit
Dear Mr. Singalaa,
Thank you for writing to us. Definitely, we can work out the project funding for pvc manufacturing unit. Our operations team will connect with you by email shortly.
Thank You.
Best Regards,
Terkar Capital – Operations Team.
Dear Shanky,
Thank you for writing to us. We sent you the details on the email. Kindly share the contact number there, so we can discuss further and take it ahead.
Best Regards,
Team – Terkar Capital