Project Loan (For Project Financing)

Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights and interests held as secondary security or collateral. Project finance is especially attractive to the private sector because companies can fund major projects off balance sheet. Mortgages that are given to finance multi-family residential accommodation, medical treatment facilities and other developmental projects. Such loans are backed by HUD (Department of Housing and Urban Development) and insured by FHA (Federal Housing Administration). Generally from PrismERP this loan can also be managed through Loan Menu tab. just selecting the project loan as a type of loan. The Screenshot is given below: