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+91-9537-124 124
care.f@livanity.com
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A-504, Rajnigandha Apartment
VADODARA-390021,GUJARAT,India.
Project Finance for Builder
For a builder in India, project finance involves securing funds for construction projects by creating a separate legal entity solely for that project. This entity, often called a special purpose vehicle (SPV), is responsible for managing the project's finances, risks, and operations. The financing is usually structured in a way that limits the financial liability of the builder's main company to the assets and cash flows generated by the specific project.
Project finance for builders in India often involves collaboration with lenders such as banks, financial institutions, or even government agencies. The funding is typically repaid from the project's cash flows over a defined period, which can extend over several years or even decades, depending on the project's scale and complexity.
Following are the procedure steps:
1. Project Identification and Feasibility Study:
Conduct a comprehensive feasibility study to assess the technical, financial, legal, and environmental aspects of the project.
2. Formation of Special Purpose Vehicle (SPV):
The SPV isolates the project's liabilities and risks from those of the builder's main company.
3. Project Structuring and Financing Plan:
Determine the optimal mix of debt and equity financing based on the project's risk profile and cash flow projections.
4. Due Diligence:
Identify potential risks and develop mitigation strategies to address them.
5. Engage Financial Advisors and Lenders:
Approach potential lenders, including banks, financial institutions, development finance institutions, and investors, to secure financing commitments.
6. Negotiation and Documentation:
Prepare and finalize legal documentation, including loan agreements, security documents, project contracts, and regulatory approvals.
7. Obtain Regulatory Approvals: 8. Financial Closure:
Disburse funds from lenders and investors according to the agreed-upon financing structure.
9. Project Implementation and Monitoring:
Implement robust project monitoring and reporting mechanisms to track progress, costs, and compliance with financing agreements.
10. Revenue Generation and Debt Servicing:
Service debt obligations by making periodic interest and principal payments to lenders from project cash flows.
11. Project Completion and Exit:
Exit the project by selling or transferring ownership stakes to investors, refinancing debt, or other exit strategies as per the project's objectives.
Here are a few reasons for you to apply for a Project Finance for Builder at Livanity:
Fast assistance: At Livanity, you can contact us at any official working hours of the day.
Customer needs in forefront:
Your needs are our priority. We promise to deliver you with services that are best on our capabilities. By handpicking loan offers based on customer profile, we try to give you the most personalized experience.
Compare Offers Online:
With more than 100 lenders as partners, you can compare the different offers of financial institutions to make the right decision. In fact, we help you find the best lender as per your eligibility requirements. There is a personalized relationship lender for every customer who helps him/her select the bank of his/her choice.
Real-time customer support:
Our customer support team is fast and efficient to clear all your doubts regarding loan eligibility, procedures, offers, documentation and repayment options. We even contact with the respective lender on behalf of you.