Project finance at ₹50 Crore and above is evaluated on the strength of the project itself, not just the promoter's balance sheet. Lenders build their own view of viability before they look at anything else. Here is what actually drives that view.
This is the single most important number in the appraisal. Lenders want to see that projected cash flows comfortably cover principal and interest — most look for an average DSCR of 1.25–1.5x or higher over the loan tenure, depending on the sector. A project with thin or volatile DSCR gets structured with a longer tenure, a moratorium, or additional security — not rejected outright, but repriced.
Lenders typically expect promoters to fund 25–40% of the project cost from their own sources — equity, internal accruals, or promoter capital support. A higher promoter stake signals commitment and directly improves the terms you're offered.
Total Outside Liabilities to Tangible Net Worth is checked both at entity level and post-project. Most lenders prefer this to stay under 3:1–4:1 depending on industry norms; a project that pushes leverage well beyond that needs a stronger justification or additional equity infusion.
For larger tickets, lenders commission (or ask you to commission) an independent techno-economic viability (TEV) study covering technical feasibility, market demand, cost estimates and financial projections. This report often becomes the backbone of the credit committee note.
A clear breakup of how the total project cost is funded — term loan, promoter equity, unsecured loans, internal accruals — with a contingency margin for cost overruns (commonly 5–10%) is expected upfront, not added later.
Environmental clearances, land conversion, RERA registration (for real estate), pollution control board consent — lenders will not disburse against a project with pending statutory approvals relevant to its stage.
Most ₹50 Crore proposals that get stuck don't fail on the numbers — they fail on structuring. A project with a genuinely thin DSCR can still get funded with the right tenure, moratorium and security mix; a strong project with a poorly structured means-of-finance statement gets repeated queries. Getting the structuring right before approaching lenders saves months.
Share your loan size and purpose — get a straight answer on structure, eligibility and next steps.
Most lenders look for an average DSCR of 1.25x–1.5x or higher across the loan tenure, though this varies by sector and project risk profile.
Typically 25–40% of the total project cost, funded through promoter equity, internal accruals or promoter capital support.
For larger tickets it is usually required or strongly preferred, since it forms the basis of the lender's independent viability assessment.
Tell us your requirement — we'll map it to the right lender in our network and call you back with a clear next step.
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