Project Loan is the long term funding of infrastructure and industrial projects based upon the planned cash flows of the project instead of the balance sheets of its patrons. Normally, a project financing structure includes a number of equity investors, known as 'patrons', together with a 'syndicate' of banks or other lending institutions that provide loans to the operation. Project lenders are given a lien on all these assets and are able to assume control of a project if the project business has problems complying with the loan terms.

Typically, a special purpose entity is made for each project, thereby protecting other assets possessed by a project sponsor from the harmful effects of a project failure. As a special purpose entity, the project company has no assets other than the undertaking. Capital contribution dedications by the owners of the project business are occasionally essential to ensure that the project is financially sound or to assure the lenders or the patrons' commitment.

Project Loan is often more complex than alternate funding methods. Traditionally, project financing has been most commonly used in the extractive (mining), transportation, telecommunications and energy industries. More lately, especially in Europe, project financing principles have been applied to other forms of public infrastructure under public-private partnerships (PPP) or, in the UK, private finance initiative (PFI) transactions (e.g., school facilities) as well as sports and entertainment sites.

Risk identification and allocation is a vital element of Project Loan In Bangalore. A project might be subject to several technical, environmental, economical and political risks, particularly in developing countries and emerging markets. Financial institutions and project sponsors may reason the risks inherent in project development and operation are unacceptable (unfinanceable).

To cope with these threats, project sponsors in these industries (such as power plants or railway lines) are typically finished by several specialist companies operating in a contractual network with each other that allocates risk in ways that permits funding to occur. "Several long term contracts such as building, supply, off-take and concession agreements, together with a variety of joint-ownership structures are used to align incentives and deter opportunistic behavior by any party involved in the project." The patterns of implementation are from time to time referred to as "project delivery methods." The funding of these projects should be distributed among multiple parties, so as to distribute the risk associated with the project while concurrently ensuring profits for each party involved.

Project Loan shares many characteristics with marine financing and aircraft financing; nonetheless, the latter two are more specialized areas within the area of asset financing.