How to get Project Funding?

 

Project funding in India

Project Funding

A lot of us have a dream of making our project successful and known to the world. All we need is a little push, it could be motivation, it could be one missing bit of a brilliant idea, or it could be the lack of funds. Project funding in India is one of the most important yet not widely known aspects of aspiring entrepreneurs. Before going ahead with the process to get a project financed, it is essential to understand what exactly project funding means.

What is Project Funding?

There are different kinds of requirements at the time of starting a project. Project funding is among the most basic yet significant parts of any business venture. These are the funds that are generated in order to pay for the initial labor, capital, and other requirements. A project loan is provided for new business setups, reconstruction, or expansion of an existing business enterprise.

What are the Criteria for Project Funding?

Project finance is provided considering certain important aspects on which the amount is decided. The criteria that matter at the time of proposing project finance are as follows:

1. Project Viability Analysis:

The viability of the project is decided based on its economic merits and demerits. If whatever benefits are to be made from the project economically are higher than the costs and expenditure, then the project is considered viable. Such an analysis will allow the funding agency to know if the project is worth financing and if the proposing entity is capable of paying off the loan.

2. Mortgage Available:

In the case of project funding, the mortgage is generally the project itself and the revenue to be generated from it. A loan is provided by the concerned financial institution if there is enough mortgage available on the project. The lender has to see potential in the venture to be able to sanction the loan.

3. Payback Period of The Project:

If the project seems to take too long and there is no sooner way to generate revenue, there are chances that the proposal may even get rejected. There are certain professional consultants who will help you in drafting a proposal that will increase your chances of obtaining project funding.

4. Personnel Profile and Experience:

In other words, the businessperson’s ratings are considered at the time of deciding the amount of funding that can be provided. If the proposing personnel has considerable experience in the commercial world, the chances of getting the project finance sanctioned are quite high. If there are any issues found with the personnel or the project, the project may get rejected. Acquiring professional assistance can help you get through to the funding agencies conveniently and help get your project approved.

Location and Market Demand for Product

The location and the requirement of the product or the service the project seems to sell must be well enough to give the lenders assurance that the project will be successful and the borrower will be able to repay the loan in time as well. If the product is common and easily available, there are chances that this can get the proposal rejected.

Who can provide Project Funding in India?

Even though there are multiple agencies operating in the debt market, there are limited sources to acquire project funding. Mainly, the government and the cooperative banks are the ones that provide such kinds of finances if your project is pleasing enough for them. Else, there are quite limited project funding agencies in India. It is essential to find a trustworthy yet providing funding agency for the project proposal in India as these generated funds are the backbone of your dream project.

Project Funding at Terkar Capital

Terkar Capital provides services of project finance in India. It is known to provide maximum finance with minimum collateral letting even the young and beginner entrepreneurs build an eminent commercial organization. The funds can be generated as per the requirement, be it periodically or all at a time if the project proposal has influenced the provider enough.

Services are confidential and the level of integrity in the utilities is well-maintained. The processes are not hidden from the customer and the services are in the best interests of the clients including HNIs, SMEs as well as startup companies. The safety of the transactions is ensured by helping the seekers build a future for themselves.

How to qualify for a business loan in India?

 

FAQs to qualify for a business loan in India

Business loans are loans taken by businesses or corporations without collateral. These loans are convenient for businesses to manage emergency monetary requirements. The procedure to get Business Loans in India is easier and quicker. Thus your loan will be sanctioned faster. Here are some frequently asked questions by our customers:

What are Business Loans?

Businesses today face several challenges. One of those challenges is the requirement of collateral for getting a loan from financial institutions. Many small and medium-scale businesses today do not have collateral for loans. These businesses can take a Business Loan. An unsecured business loan is given solely upon the creditworthiness of the businessman borrower. To be eligible for an unsecured business loan, the borrower should have a good credit rating, a good credit history, and a good cash flow.

Why should you take a Business Loan?

• Helps your business grow at a faster pace

By taking a business loan your business can grow at a faster rate. You can also finish any stagnant projects or ventures with the help of a business loan.

• The value of the loan is not dependent on the collateral

When applying for a secured loan, the amount of the loan is dependent on the collateral being used. But while taking an unsecured loan, you may get a bigger amount of money because the lender is making decisions on the basis of your cash flow, credit profile, the health of your business, and so on.

• Faster Disbursement of Loans

As a business loan does not require collateral, the disbursement of the business loan is faster. The financial institution checks your documentation, proposal, and track record and then sanctions the loan. Less paperwork is required for unsecured business loans.

• Repayment in EMI

You can repay the business loan in the form of EMIs. The interest rate will be applied to the EMIs over the term of the loan.

• No risk to your assets

An unsecured business loan is a loan where no collateral is necessary. Thus, all your assets are safeguarded from any risks.

Eligibility Criteria for Business Loans

The Eligibility criteria for a business loan may differ depending on various financial institutions and the situation of the business. Here is a list of the general eligibility criteria for a business loan:

1. The business must have its previous year’s financials duly audited by a CA.
2. Borrowers must have a good credit rating in order to qualify for an unsecured business loan.
3. The business should have a vintage of at least 2 years.
4. The business needs to have its Income Tax returns filed for at least the past 1 year

How do you get a Business Loan in India?

Business Loans can be defined as loans given to businesses and corporations against any kind of collateral. It is one of the most convenient financial products for businesses to manage the emergency conditions of the business.

• Assessing the requirements of the client

We at Terkar Capital will first understand the requirements of the client. We will also talk to the client about the future of their business, their plans to expand, restructure so on, and so forth. After assessing the requirements of the client, we will make an application for the business loan.

• Application and Documentation

Many business people have experienced the tedious nature of the documentation that needs to be done for the bank loan process. We at Terkar Capital take care of the documentation. We understand what stakeholders require to disburse the loan to our clients.

Once we receive the required documents we analyze the financials of the company and choose the financial institutions that best suit the client's requirements. This helps to avoid unnecessary inquiries to cibil and mess up while raising the finance.

 

Get your loan

After your proposal and documentation have been reviewed by the financial institution, your loan will be sanctioned. During the process, whenever the financial institution is in need of any clarification or any documentation we arrange for them. Our association with the client doesn't stop with the disbursement of the amount, rather it starts. We make sure the client should not have any problems while dealing with the respective financial institutions during the loan tenure.

 
What are the Documents Required for Business Loans?

Business loans are one of the most convenient types of loans for growing businesses. The documents required for Business Loans differ from one financial institution to another and as per the constitutions of the business. Reach out to us for documents usually required for a Business Loan.