LOANSBAZAAR INDIA | PROJECT FINANCE
Project Finance Interest Rates in India – Compare Banks, NBFCs & SFBs
Explore indicative project finance amounts, repayment tenures, interest rates and processing fees for eligible industrial, manufacturing, infrastructure and commercial projects.
Last reviewed / page date: 24 October 2026
1. Commercial Banks – Public & Private
Commercial banks may consider eligible greenfield and brownfield projects, manufacturing facilities, industrial expansion and infrastructure proposals. Funding limits and repayment periods depend on lender policy and project appraisal.
| Bank | Indicative Loan Amount | Indicative Tenure | Indicative Interest Rate | Processing Fee | Action |
|---|---|---|---|---|---|
| State Bank of India (SBI) | ₹10 Crore onwards; no stated upper limit under consortium lending | Up to 15–20 years | 8.35%–9.75% p.a. | 0.50%–1.00% + GST | Apply Now |
| Bank of Baroda (BoB) | ₹5 Crore onwards, subject to single/group exposure limits | Up to 12–15 years | 8.40%–10.50% p.a. | 0.50%–1.25% + GST | Apply Now |
| Punjab National Bank (PNB) | ₹5 Crore onwards | Up to 15 years | 8.50%–10.25% p.a. | 0.50%–1.00% + GST | Apply Now |
| HDFC Bank | ₹10 Crore–₹500+ Crore | Up to 10–15 years | 8.75%–11.50% p.a. | Up to 1.00%–1.50% + GST | Apply Now |
| ICICI Bank | ₹10 Crore onwards | Up to 12–15 years | 8.65%–11.25% p.a. | Up to 1.25% + GST | Apply Now |
| Axis Bank | ₹5 Crore onwards | Up to 10–12 years | 8.85%–11.75% p.a. | Up to 1.50% + GST | Apply Now |
2. Non-Banking Financial Companies (NBFCs)
NBFCs may offer structured debt, secured business finance, construction finance or specialised project funding for qualifying proposals. Product availability varies by lender.
| NBFC | Indicative Loan Amount | Indicative Tenure | Indicative Interest Rate | Processing Fee | Action |
|---|---|---|---|---|---|
| Aditya Birla Finance | ₹5 Crore–₹250+ Crore | Up to 7–10 years; construction finance stated up to 84 months | 10.50%–14.50% p.a. | 1.00%–2.00% + GST | Apply Now |
| Tata Capital | ₹3 Crore–₹100 Crore | 3–7 years | 10.75%–15.00% p.a. | 1.00%–2.50% + GST | Apply Now |
| Bajaj Finserv | Up to ₹80 Lakh unsecured; secured large-project financing stated at ₹50+ Crore | Secured term loans up to 15 years | 10.00%–16.00% p.a. | Up to 2.00%–3.00% + GST | Apply Now |
| Piramal Capital & Housing Finance | ₹10 Crore–₹300+ Crore | Up to 5–10 years | 11.50%–16.00% p.a. | 1.50%–2.50% + GST | Apply Now |
| L&T Finance | ₹15 Crore onwards | Up to 15 years | 9.50%–13.50% p.a. | 1.00%–2.00% + GST | Apply Now |
3. Small Finance Banks (SFBs)
Some SFBs may consider eligible MSME expansion, plant and machinery, warehousing or smaller commercial funding proposals. The larger project amounts listed below require direct confirmation and should not be assumed to be available under standard SFB products.
| Small Finance Bank | Indicative Loan Amount | Indicative Tenure | Indicative Interest Rate | Processing Fee | Action |
|---|---|---|---|---|---|
| AU Small Finance Bank | ₹25 Lakh–₹25 Crore | Up to 7–10 years | 11.00%–15.50% p.a. | 1.00%–2.00% + GST | Apply Now |
| Equitas Small Finance Bank | ₹20 Lakh–₹15 Crore | Up to 5–8 years | 11.50%–16.00% p.a. | 1.25%–2.00% + GST | Apply Now |
| Ujjivan Small Finance Bank | ₹15 Lakh–₹10 Crore | Up to 5–7 years | 12.00%–16.50% p.a. | 1.50%–2.50% + GST | Apply Now |
| Jana Small Finance Bank | ₹20 Lakh–₹10 Crore | Up to 5–7 years | 12.50%–17.00% p.a. | Up to 2.00% + GST | Apply Now |
Key Project Finance Requirements
Promoter Contribution
A 20%–30% contribution is a general indicative planning assumption supplied for this page, not a universal lender rule. Actual equity or margin requirements vary by project.
Debt Service Coverage Ratio (DSCR)
A DSCR of 1.25x or higher may be used as an indicative planning benchmark. The required ratio depends on lender policy, sector, project risk and cash-flow projections.
Security & Collateral
Lenders may seek a charge over eligible project assets, land or building, hypothecation, guarantees or additional collateral, depending on the financing structure.
Estimate Your EMI & Compare Options
Use the LoansBazaar India EMI calculator to estimate repayments for a selected loan amount, interest rate and tenure. Project finance may use staged disbursements, moratoriums or customised repayment schedules, so a standard EMI calculator is only an estimate.
Project Finance in India for Business & Industrial Projects
Planning a new project, setting up a manufacturing unit or expanding an existing business? Explore project finance options, understand the documentation process and compare suitable funding opportunities with LoansBazaar India.
Financing is subject to project feasibility, lender eligibility, documentation and final lender approval.
Explore Project Finance Options
Project finance can help eligible businesses evaluate funding for capital-intensive investments, new facilities and expansion plans. The structure, funding amount, repayment terms and security requirements depend on the project and the financing institution.
Industrial Project Finance
Explore funding for eligible industrial facilities, new production units and planned capacity expansion.
Manufacturing Projects
Assess funding structures for manufacturing setup, plant development and associated capital expenditure.
Energy & Infrastructure
Explore suitable financing routes for eligible renewable energy, utility and infrastructure projects.
Commercial Development
Review project-based funding possibilities for eligible commercial developments, subject to lender policy.
Business Expansion
Plan financing for a new facility, expansion project or major upgrade backed by realistic financial projections.
Institutional Projects
Explore potential project finance options for eligible healthcare, hospitality and other institutional developments.
What Is Project Finance?
Project finance is a financing structure used for qualifying projects where the lender evaluates the project's expected cash flows alongside the sponsor's financial strength, project assets, contracts, approvals and proposed security arrangements.
It can differ from a conventional business loan because the project plan, implementation schedule, projected revenue and repayment capacity may be central to the lender's assessment.
Who May Explore Project Finance?
Potential Applicants
- Registered companies and eligible business entities
- Manufacturers planning a new unit or expansion
- Businesses with a clearly defined project proposal
- Eligible project developers and infrastructure sponsors
- Established businesses planning significant capital expenditure
What Lenders May Assess
- Project cost and detailed implementation plan
- Promoter contribution and source of funds
- Business and promoter financial profile
- Projected revenue and cash flow for repayment
- Land rights, approvals, contracts and proposed security
This is a general checklist, not a universal eligibility rule. Lenders may apply different minimum project sizes, sector restrictions, experience requirements and financial criteria.
Documents Commonly Required for Project Finance
Prepare available documents for initial assessment. The exact list will depend on the type, size and stage of your project.
1. Business & KYC
- PAN and identity/address proof, as applicable
- Company or firm registration documents
- Ownership and shareholding details
- Promoter and director profiles
2. Financial Records
- Available audited financial statements
- Income tax returns and GST records, as applicable
- Business bank statements
- Existing borrowing and repayment details
3. Project Documents
- Detailed Project Report (DPR)
- Project cost and means of finance
- Projected cash flows and financial model
- Land, lease, quotations, contracts and relevant approvals
Some projects may require feasibility or techno-economic viability studies, specialist reports, regulatory clearances, promoter equity evidence and additional legal or technical documents.
How to Apply for Project Finance
Share Your Project Requirement
Provide your project type, location, estimated project cost and proposed funding requirement through the enquiry form.
Prepare Project Information
Organise available business financials, project reports, promoter contribution details and applicable approvals.
Review Suitable Funding Options
Explore potential financing routes and compare available terms, eligibility criteria, fees and security requirements.
Proceed with the Relevant Lender
Submit requested documents and complete the lender's appraisal, verification and sanction process if you choose to proceed.
Project Finance Interest Rates, Fees & Repayment
There is no single interest rate or repayment tenure applicable to every project. The financing institution determines the offered rate and terms after assessing project viability, borrower profile, risk, security and other relevant factors.
- Compare the quoted interest rate and whether it is fixed or floating.
- Check processing, appraisal, legal, valuation and other applicable charges.
- Review promoter contribution, collateral and guarantee requirements.
- Understand repayment milestones, disbursement conditions and any moratorium.
- Request the complete written terms before accepting a financing offer.
Tip: Compare the overall borrowing cost and repayment structure, not just the advertised interest rate.
Frequently Asked Questions About Project Finance
What is project finance in India?
Project finance is a financing structure for eligible projects where the lender assesses project feasibility, expected cash flows, sponsor strength, contracts, assets and security arrangements to determine the terms.
Can I apply for a new project?
You may submit a new-project enquiry. Funding depends on the project's viability, promoter contribution, sector, approvals, lender criteria and other relevant conditions.
What is the minimum project finance amount?
There is no single minimum applicable to all lenders. Some institutions focus on large corporate or infrastructure projects, while others may consider smaller eligible projects. Confirm the relevant lender's criteria.
Is collateral required for project finance?
Security requirements vary by project and lender. Project assets, property, guarantees, promoter support or other security may be required depending on the proposed financing structure.
How much interest will I pay?
The interest rate and fees depend on the lender's assessment, project risk, borrower profile, tenure and applicable terms. Request a written quotation to compare the total cost.
Does LoansBazaar India directly approve project finance?
LoansBazaar India provides loan enquiry and application assistance. Any financing offer, sanction, interest rate and final approval are determined by the relevant lender.
How can I submit my project finance enquiry?
Use the Apply Now link to visit the LoansBazaar India application page and share your funding requirement for further assistance.
Planning a New Project or Business Expansion?
Share your project details to explore potential project finance options and compare relevant funding terms.
LoansBazaar India
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LoansBazaar India provides loan enquiry, comparison and application assistance; it is not a guarantee of financing or loan approval. The availability of any product, lender, rate, loan amount, fees and repayment terms is subject to lender policies, eligibility, documentation and final approval. Any lender names or financing options discussed are for informational purposes and do not imply a partnership or endorsement.