Project Finance

"We have a vast experience (about 14 years) of arranging Finances for our Client on best Terms and Conditions since we have deep knowledge and strong face value in various Banks so you be rest assured for the best deal. Please note that we deals with anything above 2 Cr only to upto any amount on professional terms, For further discussion please call us on 0161-5087007"
Definition
Project financing is an innovative and timely financing technique that has been used on many high-profile corporate projects.Project Financing discipline includes understanding the rationale for project financing, how to prepare the financial plan, assess the risks, design the financing mix, and raise the funds

Project finance is finance for a particular project, such as a mine, toll road, railway, pipeline, power station, ship, hospital or prison, which is repaid from the cash-flow of that project.
Objective:
To provide short and long term finance for the establishment of new industrial, infrastructure, agri-horticulture, fishery and animal husbandry projects as well as expansion, diversification and modernization of existing ones.

Types of Assistance:
Term loan, direct subscription/underwriting of equity and debt instruments, provide financial guarantee and participate in deferred payment guarantee.

Project Cost:
Minimum assistance: Mudra Finance ordinarily arranges finances for projects with loan component of Rs.1 Crore and above. However smaller projects in innovative fields and in the hill states are also considered.

Nature of assistance: Rupee Term Loan Promoters' contribution: 30-40% of the total project cost. However, in the case of consortium financing it will be at par with the norms of All India Financial Institutions.

Debt Equity Ratio: Ordinarily 1.5 : 1

Security: First charge on movable and immovable fixed assets.

Documentation: 1. Loan Agreement.
2. Deed of hypothecation.
3. Personal guarantee from main promoters, wherever required.
4. Undertaking from the promoters for o Meeting overrun/shortfall in the project cost/means of financing o Non-disposal of shareholdings by the promoters
5. Undertaking from MD for non-receipt of commission, if company is in default to NEDFi.
6. Resolution under Section 293 (1)(a) and 293(1)(d) of the Company's Act.

Project Financing Products

Mudra Finance offers a wide range of products to the target customer segments to satisfy their specific financial needs for project finance. The product range includes following credit products:
• Short-term Loans (upto two years) for different short term requirements including bridge loan, Corporate Loan etc
• Medium-term Loans (more than two years to eight years) for business expansion, technology up-gradation, R&D expenditure, implementing early retirement scheme, Corporate Loan, supplementing working capital and repaying high cost debt
• Long-term Loans (more than eight years to upto 15 years) - Project Finance for new industrial/ infrastructure projects Takeout Finance, acquisition financing (as per extant RBI guidelines / Board approved policy), Corporate Loan, Securitisation of debt
• Structured Products: acquisition finance, pre-IPO investment, IPO finance, promoter funding, etc.
• Lease Financing
• Takeover of accounts from Banks / Financial Institutions / NBFCs
• Financing promoters contribution (private equity participation)/subscription to convertible warrants

The product mix offering varies from one business/ industry segment to another. We customizes the product-mix to maximize customer satisfaction. It's domain knowledge and innovativeness make the product-mix a key differentiator for building enduring and sustaining relationship with the borrowers.

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