📝Project Proposal Submission:
The borrower submits a detailed project report (DPR) or feasibility study to the lender, outlining the project’s scope, budget, execution plan, technical specifications, cost estimates, risk factors, and expected returns.

✅ Due Diligence and Appraisal:
The lender conducts a thorough evaluation of the project’s viability, including technical, financial, and legal aspects. This involves examining projected revenues, environmental clearances, government approvals, promoter background, and risk mitigation strategies.

💰Disbursement:
The loan is typically disbursed in phases or tranches, aligned with the project’s development stages or specific milestones. Each tranche is released upon verification of the successful completion of the previous stage.

🔁Repayment:
Repayment of a project loan begins after the project is completed and starts generating revenue (known as the moratorium or grace period). Afterward, the borrower repays the loan along with interest over an agreed-upon tenure, usually spanning several years.

📊Interest:
Interest is charged either at a fixed or variable rate, depending on the terms agreed upon. It is usually calculated on the disbursed amount, and in some cases, during the moratorium period, only interest is payable.

🔐Security and Collateral:
Project loans are usually secured loans, and the collateral can include project assets, land, buildings, machinery, and sometimes personal or corporate guarantees. This security gives lenders assurance in case of project failure or non-repayment.

📄Loan Closure:
Once the loan and all interest dues are fully repaid, the loan account is closed. If the loan is repaid ahead of schedule, some lenders may offer prepayment incentives or charge a nominal penalty.