The document discusses project loans designed for project owners looking to finance new or ongoing projects, highlighting credit solutions available for various project types. It outlines key features such as capital-intensive costs, risk allocation to lenders, and loan repayment based on project cash flow. Additionally, it emphasizes the importance of maintaining a source of funds for project implementation.

1. Project Loan
Whether you are planning for a new project loan or want to expand ongoing
projects. Here are the absolute project loan credit solutions especially designed for
project owners. This type of credit facility is available for project finance as well as
project export.
Be it a long-term infrastructure, industrial project or public services, getting a source
of funds to keep up project running, and implementation are an integral part of the
entire process.
Based on the cash flow generated at the end of the project and borrower can
arrange a bank loan, while using the assets, right and interest of the concerned
project as a collateral.
Key features of Project Loan -
Capital Intensive Financing Scheme: Being more expensive than a corporate loan,
this type of project loan financing scheme drives costs higher while reducing liquidity.

2. Risk Allocation: Under the financing scheme, some of the risks associated with the
project loan shifted towards the lender. Therefore, the sponsor prefers to benefit
from this financing scheme as it helps them to mitigate some of the risks while on the
other hand, from the lender's perspective, they can receive a better margin on
project financing.
Loan Repayment with Project Cash Flow: Based on certain terms on project loan,
the excess cash funds received by the project should be used be used to pay off the
outstanding debts received by the borrowers.