Machinery Loans
Machinery Loans and Working Capital Loans from Banks

Project Loans in Hyderabad

Project Loans in Hyderabad from Banks contact us. We are providing services since a decade. For both Manufacturing and Service sectors requirement for Loans . That is to say, We prepare Project Reports our Clients. Because, Entrepreneurs are not much aware of bankable project reports. however, on the other hand they may not know how to present themselves and their business details. Entrepreneurs domain expertise are different. Therefore, as a result, they are unable to present what banker requires.

Types of Project Loans in Hyderabad

Project Loans are generally of two types Term Loans and Working Capital Loans

Term loan:

A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last five years to seven years in SME sectors. However, Depending upon line of activity it may extend. Term loan will paid to bank every month as per repayment schedule. Interest may be fixed or floating rate. But, however, Starup or Established Business should have sound financials. Term loan requires promoter’s contribution. The Promoter’s contribution would be like 25% to 35%. Depending upon the business line of activity and banker’s policies.

How Bank Sanctions Term Loans:

  1. Term loans are given for acquiring land and constructing buildings. Installing Plant and Machinery. Further for equipments or buying commercial vehicles.
  2. Term Loans tenure is (5 to 7 years).
  3. Term Loan is for manufacturing and service oriented business and for traders.
  4. Therefore, depending on project technical and economic viability may sanction term loans.
  5. The interest rate would depend on factors. Like riskiness of the project, amount of loan, credit history and structure of the debt.
  6. Banks offer rupee as well as foreign currency term loans.
  7. Moratorium period is up to 6 months. Depending upon the project and line of activity it may differ.

Working Capital Loan :

That is to say that working capital loan meant to meet company’s everyday operations. But, however, this loan is not for buying long-term assets or investments. To clarify, Working capital loan is only for company’s short-term operational needs.

How a Working Capital Loan Works :

For instance Company may not have adequate cash on hand or asset liquidity to cover day-to-day operational expenses. For example, for instance Companies that have high seasonality or cyclical sales. Therefore, as a result, so, consequently rely on working capital loans to help with periods of reduced business activity.