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Project Finance

This query is : Resolved 

What is ment by margin money in project finance? could you explain me with example?


Its the money a person need to invest through his pocket out of total money of any property.

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

margin money incase of project cost(equity) and working capital?


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