Project Finance

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Srinivas

Srinivas (Querist)
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12 December 2008 What is ment by margin money in project finance? could you explain me with example?

Ravikumar.G

Ravikumar.G (Expert)
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12 December 2008 Its the money a person need to invest through his pocket out of total money of any property.

Ravikumar.G

Ravikumar.G (Expert)
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12 December 2008 Margin Money : Ex
a)In case the project construction and execution is done by the Promoters under hisresponsibility, the Margin money (Bank Guarantee) shall be 33% of the cost of the project.
b)In case the project construction and execution is done by CAFM, the Margin Money (Bank Guarantee) shall be 25% of the cost of the project

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Srinivas

Srinivas (Querist)
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12 December 2008 margin money incase of project cost(equity) and working capital?