What is common terms agreement?
Common Terms Agreement An agreement between the financing parties and the project company which sets out the terms that are common to all the financing instruments and the relationship between them (including definitions, conditions, order of drawdowns, project accounts, voting powers for waivers and amendments).
What the bank need to check before financing the project?
The banks will generally demand the following documents:
- Company Profile.
- Management Profile.
- Last Three Years’ Audited Financial Statements.
- Certificate of Incorporation of the Company.
- Copies of MOA & AOA.
- Copy of Business Bank Statement.
- Detail of Existing Loans from Other Banks.
- Project Feasibility Report.
What is the advantage of universal banking?
Under one roof:Universal banking offers all financial products and services under one roof. It save transaction cost and time.It also increase the speed of work. Hence it is beneficial to bank as well as customer. Investors trust: Universal banks hold equity shares of many companies .
What are Loan Terms?
A loan term is the length of time it will take for a loan to be completely paid off when the borrower is making regular payments. The time it takes to eliminate the debt is a loan’s term. Loans can be short-term or long-term notes.
What factors do banks consider when giving loans?
7 Factors Lenders Look at When Considering Your Loan Application
- Your credit.
- Your income and employment history.
- Your debt-to-income ratio.
- Value of your collateral.
- Size of down payment.
- Liquid assets.
- Loan term.
What are the popular methods of project financing?
There are three methods in Project Financing: 1. Cost Share Financing or Low interest loan financing….Stages in Project Financing.
| Project identification | Pre Financing Stage |
|---|---|
| Technical and financial feasibility | |
| Equity arrangement | Financing Stage |
| Negotiation and syndication | |
| Commitments and documentation |