Finnect Capital | Project Funding

Project Funding

Funded on what the project will earn, not only on what you already own.

Project finance is a different discipline from business lending. The lender appraises the project itself; its costs, its timeline, its contracted revenue and its downside, and lends against those cash flows. Sponsors still matter, but the project carries the case.

65–90%

Loan-to-cost*

Milestone

Linked drawdown

Moratorium

Through construction

Cash-flow

Matched tenure

What you get

Drawn down as you build, repaid as it earns

The money does not arrive in one tranche. It is released against certified construction milestones, which protects both sides, and it is why the project report and the cost schedule matter so much at sanction.

Typically 65–90% of project cost, with the balance as promoter contribution
Disbursement against certified milestones rather than in a single lump sum
Moratorium through the construction period, when the project earns nothing
Repayment tenure matched to the project’s cash-flow profile
Commercial real estate, warehousing, industrial and hospitality projects
Infrastructure, roads, power, water, logistics and social infrastructure

Talk to an Advisor

Typical Structure

65–90% loan-to-cost*

Milestone-linked drawdown
Moratorium during construction
Tenure matched to project cash flows

Is this the right loan for you?

For projects with a defined cost, timeline and revenue

Commercial real estate, warehousing, industrial parks, hotels, roads, power, water and logistics all fall in scope. What they share is a bankable structure: approvals in place, costs quantified, and a credible path to revenue.

A good fit if

You have land or site control and the statutory approvals in hand or in train
The project cost is properly quantified with a detailed project report
You can fund the promoter’s contribution, typically 10–35% of cost
There is contracted or clearly forecastable revenue once complete
You have delivered projects of comparable scale before

Worth a rethink if

Approvals are speculative or the land title is unresolved
The promoter’s contribution is itself to be borrowed
Costs are indicative rather than tendered, so the funding gap is unknown
The revenue case depends on assumptions no lender will underwrite

What you’ll need

Documentation requirements

Have these ready and we can put a complete file in front of a lender the same week. Missing documents are the single most common reason a good application stalls.

Identity & address

PAN and Aadhaar of promoters/directors
Constitution documents
Shareholding pattern
Group structure, where relevant

Income

Audited financials of the sponsor entities
Last 12 months’ bank statements
ITRs of the company and promoters
Net-worth statements of promoters

Project

Detailed project report with cost and timeline
Land title documents and approvals
Tendered cost estimates and contractor agreements
Revenue contracts, offtake or lease commitments

Where we add value

Bankability is decided long before the application

Most project proposals are declined for reasons that were fixable at the outset, an unresolved approval, a cost schedule that does not reconcile, a promoter contribution that is not demonstrably available.

Appraisal

We stress the case before a lender does

Better to find the weakness in your own conference room than in a credit committee.

Structuring

Drawdown and moratorium that fit

A schedule mismatched to the build creates a funding gap precisely when you can least absorb it.

Lender fit

Appetite varies by sector

Banks and NBFCs have very specific sectoral appetites at any given moment. We know which are actually writing.

Questions borrowers actually ask

Project funding, answered honestly

How is this different from a business loan?+

A business loan is underwritten on your existing trading history and balance sheet. Project finance is underwritten primarily on the project; its cost, build timeline and forecast cash flows, with sponsor strength as support rather than as the main case.

How much must I put in myself?+

Promoter contribution is typically 10–35% of project cost, corresponding to a 65–90% loan-to-cost. Lenders will want to see that it is genuinely available, and generally that it is invested ahead of or alongside their drawdown.

When do I start repaying?+

Usually after a moratorium covering the construction period, when the project generates nothing. Interest may still accrue and in some structures is capitalised. The exact treatment is negotiated at sanction and materially affects your cash flow.

What is milestone-linked drawdown?+

Funds are released in tranches against certified progress, foundation, structure, finishing, rather than in one payment. It protects the lender and imposes useful discipline on the build, but it means your contractor payment schedule must align with it.

Which sectors are financed?+

Commercial real estate, warehousing, industrial parks and hospitality, alongside infrastructure such as roads, power, water supply, ports and logistics. Appetite shifts with the market, which is why lender selection matters.

What makes a proposal bankable?+

Clear land title, approvals in place, tendered rather than estimated costs, a demonstrable promoter contribution, credible contracted revenue and a sponsor with a delivery record. Weakness in any one is usually where a decline originates.

All rates, limits and timelines on this page are indicative, vary by lender and by your profile, and do not constitute a loan offer or a commitment to lend. Finnect Capital is an authorised Direct Selling Agent and referral partner, not a bank or NBFC. Every credit decision rests solely with the partner Bank/NBFC. Ask any lender for the Key Facts Statement (KFS) setting out the all-inclusive APR before you sign. See our DSA Disclosure.

Bring us the project at concept stage, not at crisis stage.

The earlier we see it, the more we can do about how it is structured and where it is placed.