Project financing loans work as a vital financial tool for expanding businesses, particularly in CAPEX heavy projects. The loans are specifically designed to fund project – related expenses facilitating the procurement of necessary materials, and sustaining ongoing operations crucial for project completion and success.
This is why we at SafEarth provide our partners project financing loans in order to help accelerate their growth.
Below are some of the basic terms and conditions to these loans:
Definition and Purpose of the Project Financing Loan
Project Financing Loans are specifically designed to cover long term projects. These loans are particularly used for projects like capital intensive projects, energy projects and real estate development.
Standard Terms and Conditions to Check
- Loan Amount: The loan amount is primarily dependent on the cost of the project and the repayment ability of the borrower. In particular they vary between 70% – 90% of the project cost. A company’s financial health and intentions shape the loan amount, but for project-related loans, the project’s value takes center stage in deciding how much can be borrowed.
- Collateral: Project Financing loans on the SafEarth platform are collateral free and are primarily provided on the basis of the company’s projected savings from the project in the near future.
- Tenure : At SafEarth, we offer loans varying from 3 years to 12 years for solar power projects.
- Interest Rates: Interest rates are determined on a case by case basis and depend on the riskiness of lending to a particular business. We at SafEarth have a floating interest rate ranging between 10.5% to 14%, making the financing especially lucrative for our customers.
- Repayment Terms: Interest repayments are charged on a monthly basis
- Disbursal Period: Our average disbursal period is 1 week, once we have received the complete documentations from the Partner.
Conclusion
Understanding the detailed terms and conditions of your solar loan is key to ensuring that you are able to derive the best returns from the project, while also reducing potential hassles down the line. This is why, we at SafEarth have made the process simple, easy and fast so that you can derive the best value out of this switch.
Sign up on SafEarth today to explore multiple financing options for your power projects.