What is the main difference between a fixed asset loan and a project finance loan please? Thank you!

The main differences between the two are:

1, the scope is different:

Fixed asset loans include: capital construction, technological transformation, development and production of new products and other activities and the related purchase of housing, engineering construction, purchase and installation of technical equipment.

Project financing loans include:: project operating rights, project property rights and special government support (with documentation), etc.

2, the lending institutions to examine the different contents of the loan approval:

Fixed asset loans can examine the borrower's overall repayment ability.

Project financing generally pay attention to the repayment ability of the project itself, of course, does not exclude other mortgages, guarantees and other second repayment sources.

3, the amount of different ranges:

Fixed asset loans is a big concept, while project financing is part of it.

Loans for project financing: larger amounts. For example, highways, airports, power grids, power stations, nuclear power, reservoirs, etc. usually use project financing side of a single equipment purchase, etc. generally use fixed asset loans.

Fixed asset loans are a big concept of which project financing is a part.

Expanded:

Baidu Encyclopedia - Project Loan