Most project and expansion finance requires promoters to bring in their own contribution — often 25–40% of project cost. When that contribution itself needs to be funded, promoters have debt-based options that don't require selling equity.
Structured specifically to fund the promoter's equity stake in a new project, typically secured against personal or group assets rather than the project itself. Lenders assess this alongside the main project loan, since it directly affects the project's leverage and DSCR.
A short-to-medium-term facility used when promoters expect an equity infusion (from investors, internal accruals, or asset sale) but need funds before that materialises — commonly used to meet a construction milestone or a lender's equity-first disbursement condition without delaying the project.
Promoters with listed shares, mutual funds or other property can raise funds against these to inject as equity — often faster to arrange than a fresh project-linked facility, since the underlying security is straightforward to value.
In many structures, promoters raise a personal loan and infuse it into the company as an unsecured loan (not equity) — this preserves shareholding while still meeting the lender's minimum-contribution requirement. Company law and RBI norms around related-party unsecured loans should be checked with your CA before structuring this route.
A project lender doesn't just check whether the promoter contribution box is ticked — they check whether it's genuinely at risk. Contribution funded through debt that is itself secured against the same project assets is viewed less favourably than contribution from independent sources, because it dilutes the effective skin-in-the-game. Structuring this correctly upfront avoids renegotiation later in the appraisal.
We structure promoter contribution funding alongside the main facility — so the two are presented to lenders as one coherent capital structure, rather than a project loan with a contribution gap still to be solved.
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Yes, through promoter contribution loans, equity bridge finance, or loans against personal assets/securities — each suited to different situations and timelines.
It can — lenders assess whether the contribution is genuinely at risk. Structuring the funding source independently of the project's own security strengthens the overall proposal.
Commonly 25–40% of total project cost, though this varies by sector, lender and project risk profile.
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