Project Loans for New Business

It’s undoubtedly a tough job to assure capital for your start up. Reason behind; first you being an entrepreneur is new to the business and so are the business to you, also its tits and tats are not much familiar to you. Secondly, hardly any financial institution would willingly lend their hand to a start up as repayment of the fund depends on the growth of the business, and thus is has no certainty. But, this never means that there is no way out for this, it’s all about correct knowledge you need to have related to positives and negatives of each funding strategies, rate of interest and repayment of fund, exact amount of fund required to your business and financial position along with the forecasted graph of your business.

There are many corporate banking consultants in India who can guide you and embrace you with all the loan concerns and their formalities. Small and medium enterprise loans cater to the concerned business and are planned by almost all the financial institutions and banks.

Project loan are the biggest and most crucial loans funded to a new project or a venture. Acquiring it in the appropriate amount is advised by most consultants. It assists the long term projects and other industrial projects to get them well up to their expected result. Repayment of such loans is done by project assessment and the revenue earned in it. Project loan provider’s demand concerned documents like a layout of the project, commencement date and concluding time, budget plan expected to execute the project, members involved in it and lastly some mortgage.

SIDBI provides SIDBI revolving fund for technology innovation for promoting technology based projects through scaling up, demonstration and commercializing it. Maximum assistance does not exceeds more than Rs. 1 crore per project on which interest rates are decided by the project approval committee (PAC) that is not more than 5% per annum.

Project loans for new business are tough in the initial stage and for the first time you apply for it but, with the fulfilling parameters from your side it becomes a stipulation for growth of your company. Following counts your further journey with the project loan providers –

• Timely repayment of loan amount
• Zero percent legal actions on the loan formalities
• Growth of the project and revenue generated through it

If you follow all above points and have immense knowledge of the same, it’s your way towards success.

Hello Friends, I am a senior content writer at Ark Advisors. I love to write.