What is a project loan?

• Machinery/equipment loan is a type of business loan that helps business owners to secure the necessary funding to get the machinery/equipment required to streamline their business processes and scale up production. Increased productivity will lead to higher output, in turn, higher sales and revenue.

• Many lenders provide machinery/equipment loans at attractive interest rates based on the applicant’s business profile, profitability, and necessity. As per the regulations specified in India, businesses that obtain machinery loans to purchase machinery can enjoy tax benefits.

• In this case, the ownership of the machinery you purchase with the loan amount will be held by the lender as long as you repay the loan entirely. No other collaterals are required to get the loan.

• A construction loan (also known as a “self-build loan") is a short-term loan used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding. Because they are considered relatively risky, construction loans usually have higher interest rates than traditional mortgage loans.