Project finance
Project Finance and Working Capital
Term loans for new units and expansion, cash credit and working capital limits, bank guarantees, promoter and guarantor documentation, and coordination with public and private sector lenders.
A bank proposal is read by a credit officer who has to defend it in a committee. It has to answer, in the order the appraisal note asks them, the questions about the promoters, the project, the security, the cash flows and the ratios. We prepare proposals in that order, from the same assumptions used in the subsidy working, and stay with the file through queries, sanction and documentation.
We work with public and private sector banks, regional rural banks and NBFCs across Chhattisgarh, for new project term loans, expansion and modernisation finance, cash credit and working capital limits, bank guarantee limits and enhancement of existing limits.
Problems this service addresses
- Proposals written for the promoter rather than for the appraisal note, so the bank reconstructs the numbers itself.
- Project cost and means of finance that do not reconcile with quotations, land cost or promoter contribution evidence.
- DSCR and current ratio projections that fail the lender's benchmarks because the assumptions were never stress-tested.
- Promoter and guarantor net worth not documented in the format the bank accepts.
- Subsidy assumed in the means of finance without the policy basis to support it.
- Queries answered piecemeal over months, with each answer changing a number elsewhere in the file.
Scope of assistance
- New project term loans
- Expansion and modernisation finance
- Cash credit and working capital limits
- Bank guarantee and letter of credit limits
- Enhancement of existing limits
- Promoter contribution and means of finance planning
- Promoter and guarantor net-worth statements
- Financial projections, DSCR, sensitivity and ratio analysis
- Bank proposal and covering note preparation
- CGTMSE guarantee cover where eligible
- Coordination with public and private sector lenders
- Query responses, sanction terms review and documentation support
Typical clients
- Promoters setting up a first manufacturing unit
- Operating units adding capacity or a new line
- Rice and dal mills, steel and rolling units, agro-processing plants
- Contractors needing working capital and bank guarantee limits
- Warehouse, cold storage and hospitality projects
- MSMEs moving from informal to bank finance
Eligibility and assessment factors
- Promoter background, experience and contribution capacity.
- Project cost reasonableness against quotations, estimates and comparable units.
- Debt-equity and promoter margin against the lender's norms for the sector.
- Year-wise and average DSCR, with sensitivity to lower capacity utilisation or margin.
- Working capital cycle and the resulting limit under the lender's method.
- Security available: primary and collateral, and CGTMSE eligibility.
- Existing credit history of the promoters and group entities.
Documents and information usually required
- KYC and net-worth statements of promoters and guarantors
- Entity constitution documents and registrations
- Land papers, allotment letter or lease
- Quotations for plant and machinery and building estimates
- Detailed Project Report and CMA data
- Audited financials and bank statements of existing business, if any
- Orders, offtake or customer indications where available
- Utility sanctions and approvals obtained so far
How the work proceeds
Facility design
Term loan, working capital and guarantee requirements sized from the project and the operating cycle.
Documentation
DPR, CMA data, net-worth statements and the proposal prepared from one assumption set.
Lender selection and submission
Lender chosen for sector appetite and the scheme fit; the proposal submitted with a covering note that anticipates the appraisal.
Query handling
Queries answered from the file, with any changed assumption updated across every document.
Sanction and documentation
Sanction terms reviewed; documentation, security creation and disbursement conditions coordinated.
Post-sanction
Interest subsidy workings, renewal of limits and compliance with sanction conditions.
Common documentation issues we see
- Promoter contribution shown but not evidenced by bank trail.
- Collateral valuation and legal search not aligned with the sanction requirement.
- CMA data where the current year's estimates contradict the audited figures just filed.
- Capacity utilisation assumed at a level the plant cannot physically reach in year one.
- Subsidy shown as promoter contribution before any approval exists.
Frequently asked questions
Can you get a collateral-free loan for my project?
Collateral-free credit may be available for eligible micro and small enterprises under CGTMSE cover, within the scheme's limits and subject to the lender's appraisal. We do not guarantee it, and neither does the scheme.
Which bank should I approach?
It depends on the sector, the size, the existing relationship and the lender's current appetite. We suggest options with reasons and prepare the file so that it can be presented to more than one lender if needed.
Do you guarantee the interest rate or the loan amount?
No. These are decided by the lender on appraisal. We prepare the file so that the project is presented at its best and the terms are negotiated from a position of clarity.
How long does sanction take?
Lender-dependent. A complete file reduces the back-and-forth that usually causes delay, but the timeline remains the lender's.
Official references
- CGTMSE (cgtmse.in)
- Udyam Registration portal (udyamregistration.gov.in)
- Ministry of MSME (msme.gov.in)
Official portals and notifications are the authority on current conditions. Links are provided for reference and may change.
Discuss your project requirements
Start with a structured review of the project, the financing, the applicable incentives and the approvals it will need.