Project loan is the loan provided by banks for a company as a funding expanding their business. . The loan amount can be used for anything like acquiring new sites for the company, buying new building, or buying new machinery etc. This loan can be obtained by any well settled company as well as new aspirants with a solid business project. This loan is provided at a very competitive rate of interest and this loan requires solid collaterals or security. The collateral or security for this loan can be anything. These can be both for medium and long tenures; it basically depends on the nature of your project. Banks normally prefer short tenure project loans. Almost every business domain such as Construction & Infrastructure, Engineering, Automobile, Power, Gas & Petrochemical industries avail this type of loan for their company. Project loan is loan provided to companies already settled in the market or even to new companies with good reputation to expand their company further.
Whenever you opt for a project loan, please keep in mind to compare the exact EMIs or amortization for the project loan, tenure of the project loan and documents required for project loan by the banks to choose from which bank you want to take the loan. If a person asks for fees to get your loan sanctioned, never listen to that man. Always provide document to one bank only and to an authorized vendor and authorized bank employee. Under any circumstances you should never provide banks with false documents or false information as this may lead to you being declared a fraud or even blacklisting you for any future loan approval. Never sign a blank document regarding your loan. There are many frauds looming in the market that can con you of your money, so be careful when you apply for loan and do so with authorized vendors and bank employees.