Project lending: a form of commercial bank lending. This kind of lending is usually used for large-scale construction projects with high risks and high costs, such as smelting, pipelines and mining facilities. The amount of project loans is equivalent to 80%-90% of the investment capital. In the process of granting such loans, lending banks have to bear a variety of risks, such as credit risk, construction delay risk, interest rate risk and country risk. Banks may require guarantees for loans. It is usually a common type of guarantee for a parent company to provide a guarantee for a subsidiary. In order to spread risks, each lending bank can also provide loans for a certain project in the form of a bank syndicate or syndicate.

What are the requirements for applying for a project loan from a bank?

What are the requirements for applying for a project loan:

To apply for a project loan, you need to open a basic deposit account at a commercial bank. . It must be noted that the loan project must comply with national industrial policies, credit policies and bank loan investment intentions, and the loan project must have a capital ratio specified by the state. Of course, for projects that require approval from relevant government departments, the borrower must hold approval documents in order to pass bank review. The borrower must have a good credit standing, excellent repayment ability, a sound corporate management system, the proportion of foreign equity investment in compliance with relevant national regulations, and the ability to provide legal and effective guarantees.

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What are the characteristics of project loans:

Generally speaking, fixed asset investment projects generally need to go through project establishment, feasibility study, preliminary design and start of construction, etc. After several approvals, construction can begin. After the project is completed, the relevant government departments will organize completion, final accounts, acceptance and other work. Projects applying for project loans require strict approval by relevant government departments. Due to the relatively large scale of project loans, they are often approved once and issued multiple times, and the loan interest rate is fixed every year. Of course, when the project is officially completed and put into production, the borrowing unit must fulfill the repayment agreement as agreed.

To put it simply, the process includes loan application, pre-loan review, financial review, asset guarantee confirmation, and loan disbursement. Conditions: There is a mortgage and guarantee, there is a legitimate purpose for using the money, and there is no bad credit.

In addition to the loan application you are required to submit, if the bank initially agrees to lend you a loan, other matters will be handled by the bank. We will negotiate with you.