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Unsecured Loans / Bridge Loans: Key Points

Private financing involves contracting private firms to complete and manage capital projects for up to 30 years, with the government making annual payments. Unsecured loans are provided without security or mortgage based on the borrower's repayment history and capability. Private financing can provide more capital than public financing with lower administrative costs and improve management incentives and investor involvement. Various private funding facilities are available from ₹10-30 lakhs with interest rates of 2.5-3% per month and terms of 3-12 months, requiring document submission and verification followed by investor feedback and approval.

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373 views2 pages

Unsecured Loans / Bridge Loans: Key Points

Private financing involves contracting private firms to complete and manage capital projects for up to 30 years, with the government making annual payments. Unsecured loans are provided without security or mortgage based on the borrower's repayment history and capability. Private financing can provide more capital than public financing with lower administrative costs and improve management incentives and investor involvement. Various private funding facilities are available from ₹10-30 lakhs with interest rates of 2.5-3% per month and terms of 3-12 months, requiring document submission and verification followed by investor feedback and approval.

Uploaded by

corporatecredit2014
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Unsecured Loans / Bridge loans

Private Finance is a method of providing funds for major capital investments where private
firms are contracted to complete and manage the projects. These contracts are typically given
to construction firms and last a long time, sometimes up to 30 years. The public services are
leased to the public and the government authority makes annual payments to the private
company.
Unsecured loans are the loans provided to the individuals or companies depending on their
details which are required to analyze their history and capability of repayment without any
security or mortgage.
KEY POINTS

One advantage of private financing is that private investors may infuse the company with
more capital than was available to it from public financing.
Private financing also saves on administrative costs of being a publicly traded company.
Private financing can improve incentives for management, and increase
investor involvement.
Facilities Provided
There are different type of interest rates and term depending on amount on loan. As follows:
Example:
Nature of Facility

Private Funding

Amount

25Lac To 30Lac

Repayment Mode

EMI

Rate Of Interest ( upfront )

2.50% to 3.00% P.M

Feature

Unsecured

Tenour

3months, 6 Months,8 Months,10 Months and 12


Months

Consultancy Fees

Variable

Facility 2
Nature of Facility

Private Funding

Amount

15 Lac To 20 Lac

Repayment Mode

EMI

Rate Of Interest ( upfront )

2.50% to 2.75% P.M

Feature

Unsecured

Tenour

3months, 6 Months,8 Months,10 Months and 12


Months

Consultancy Fees

Variable

Facility 3
Nature of Facility

Private Funding

Amount

10 Lac To 15 Lac

Repayment Mode

EMI

Rate Of Interest ( upfront )

2.75 % to 3.00% P.M

Feature

Unsecured

Tenour

3months, 6 Months,8 Months,10 Months and 12


Months

Consultancy Fees

Variable

Procedure followed :
1.
2.
3.
4.
5.
6.
7.

Documents to be submitted according to the list provided.


Analysis and verification of the documents.
File to be passed to investors for their study.
Feedback provided by investors in 2 working days (Rejected or Accepted).
Term sheet and Mandate sent to the client for approval.
Meeting of client with investors.
Payment released.

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