Business lending will be either Term Loan or Working Capital Finance, or a combination of both.

(A) Term Loan/Project Finance is normally granted for part funding capital assets/purchase of fixed assets either for setting up of industrial units/Commercial ventures, or infrastructure/real estate projects. Term Loans shall also be granted on stand alone basis or for expansion of existing units/commercial ventures & also for its diversification.

(B) Basic purpose of Term Loan/Project Finance is funding the Capital cost/fixed assets/project assets.

(C) A detailed Information Memorandum (IM) prepared by the Project Appraising authorities covering various aspects of the project viz., profile of the promoters, management profile, type of product manufacturing (in case of manufacturing activity), locational advantages, permissions from various statutory authorities, hard cost, soft cost, project out lay, debt component, promoters contribution, project time lines, Date of Commencement of Commercial Operations, technical and financial viability etc shall form the basis for assessment.

(D) Relative project assets created/purchased from out of term loan and the promoters’ share of investment, shall be the primary security and the promoter’s contribution towards project funding shall be the margin.

(E) Term Lending will be generally in the form of consortium/syndication for amounts above $250,000.