What is the meaning of Project Loan:
Project finance is the funding of long-term infrastructure, industrial projects, and public services using a non-recourse or limited recourse financial structure. The debt and equity used to finance the project are paid back from the cash flow generated by the project.
The project financing process includes three phases, including:
- Pre-financing stage: The pre-financing stage involves conducting a risk assessment before actual financing.
- Financing stage: The financial stage involves raising capital for project initiation and legal issues.
- Post-financing stage: Release the loan amount.