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Erudite AfricaCenter of Excellence
← Project Appraisal Level 1: Project Finance Foundations

What Project Lending Is and the Project Cycle

Module 01 / 5 · 50 min · Free preview

A project loan is repaid by a business that does not exist yet, so the bank judges the plan, the people and the structure instead of a track record.

In this module you will learn to

  • Explain why a project loan is repaid from future cash flow rather than an existing trading cycle
  • Compare project loans and working capital loans on repayment source, evidence, tenor, risks and disbursement
  • Name and describe the seven stages of the project cycle
  • Apply a typical Ethiopian bank manual's rules on long-term loans, grace periods and project loan eligibility

Built on

  • Erudite Africa training module: Project Appraisal Level 1: Project Finance Foundations (October 2026)
  • A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
  • NBE directives as listed in the lessons: FXD/01/2024 and NBE/INT/13/2026
  • Ethiopian laws as cited: Environmental Impact Assessment Proclamation No. 299/2002, Movable Property Security Right Proclamation No. 1147/2019, Insurance Business Proclamation No. 746/2012
  • Erudite Africa: Ethiopian context for banking training (39 topics, October 2026)

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.