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  • Medium Term Loans

    • Medium term loans refer to loans extended for a period of between 2-5 years. The different purposes for which these loans are generally sought include:
      • Short gestation projects: The short gestation projects could be for purchase of balancing equipment, for incremental expansion of capacity.
      • Refinancing of loans in case of very long projects where the repayment of the term loans might occur prior to sufficient cash flows being generated by the project.
      • For meeting any other medium term shortfall in funding arising out of an acquisition or bulleted repayment of a large loan, etc
    The procedures for availing medium term loans, where required for short gestation projects, is largely similar to those required for project finance. In case of meeting a medium term mismatches not linked to a project or equipment, the financing decision would be on the basis of a cash flow analysis indicating the need for such medium term funding and an analysis of overall profitability and financial to the business to provide lender comfort. Other than these aspects, the procedures for availing Medium Term loans follows the requirements sought by the lenders in case of Project financing/ Long term lending.

    Back to Financing from FIs (Index 1)

    Back to Medium Term Debts (Index 2)

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