Having made up your mind, to get started in the lucrative crushing industry, it is important to understand how the dynamics of the finances work. The first time buyer has to be prepared to invest between 10% and 40% of the plant cost.
The amount of loan provided by the financial institutions depend on multiple factors.
Ten factors that matter the most
- CIBIL score
- Net worth
- Balance sheet
- Goodwill
- Not being a defaulter
- Asset for Mortgage
- Security
- Best Interest rate
- Credit risk
- Government Licence (Quarry/crusher/mining/pollution license)
The financial investment can be made jointly by the institution and the individual or by either of the two sides.
| Institution and individual |
This is a general scenario. Percentage of investment differs from case to case |
| Institution |
Based on many factors |
| Individual |
Personal strength |
Does your kit to the bank have these documents?
- Business plan or project plan
- Duly-filled application form
- Passport-sized photographs
- Pan card of the primary applicant
- Know your customer (KYC) forms of applicant, partners, co-applicants and promoters.
- Voter ID, passport, driving license and Aadhar card are accepted by the bank as identity proof.
- Driving license, voters ID, passport, Telephone bill, electricity bill (not older than 3 months), sale agreement/bank statement (not older than 3 months), registered lease deed are accepted by the bank as address proof.
- Ownership proof of either residence or office, either in the name of the applicant or jointly with family members, must be produced
- It is important to submit proof of business continuity. Bank statement or ITR or certificate of incorporation or shops and establishment certificate or partnership deed or sales tax challans can be submitted for the same.
- Financial documents of the business such as profit and loss statement and balance sheet, duly audited by the registered auditors, must be submitted.
Step-by-step guide for first time buyers
A word of caution
First time buyers cannot go for a fully funded project. This is possible only for corporates and other long-term infrastructure, Industrial and public service projects.
Know about project finance
Project finance is a method of financing very large capital intensive projects, with long gestation period, where the lenders rely on the assets created for the project as security and the cash flow generated by the project as source of funds for repaying the dues.
Once the financial aspects are taken care of, it is possible to place one 2 stage plant into operation in 39 days provided the techno/commercials are cleared at the time of civil drawing release.
Our projects team leaves no stone unturned, work in tandem to ensure that work is completed within the stipulated time.
We are proud of our clients because
They pay the easy monthly instalments (EMI) to the bankers on time and have emerged as zero defaulters, despite the challenges caused by COVID 19.
How is this possible?
- The overall operation and maintenance cost of Propel products is comparatively lesser as we make every part indigenously.
- Propel Industries is able to provide cost-effective spare parts.
- Propel Industries has a pan India sales and service network which work round the clock.
The return on investment in the crushing industry is very good and so bankers go all out to fund Propel plants. Long-time viability, significant financial stability and no stress-equation of Propel products make both the customers and the bankers smile.
