Project Report & Its Role in Bank Loan Approval
What is a project report?
A written document related to forecasting of future income & Expenditure and its financial viability, containing information or details proving the worthiness or potential of a project / Business Idea or Business entity is known as the Project Report. It helps the entrepreneur to get an exact idea about the initial inputs required for the business. It also provides records of which helps him to avail certain loans and funding from various banks, NBFC, Private Equity, Venture Capital funds, Govt Schemes such as Mundra Loan, and Financial institutions too. Project Report is required even the business is new and just started.
The project report necessarily contains details about the financial, economic, managerial, production and technical aspects of the business. This also involves in-depth information & analysis about resources requirements such as production, machinery, manufacturing process, manufacturing capacity, the requirement of raw materials, manpower, power and water, and other business-related expenses.
Is it mandatory?
Yes. It is mandatory for a business to present the Project Report for bank loan including business plan, projected financials, viability study, technical analysis, etc, for availing loan or funds from a bank and other financial institutions in order to meet the financial requirements of the business. Even for a Startup, a Project report is the first important documents which they need to be ready whenever they are seeking any kind of funding from VC, Private Equity. The Project report need to be presented in the accepted format such as CMA data format for bank loans. However Project report format for bank loan depends on type of loan as well.For small loan scheme such as Mudra loan Project report is required, However it is just basic form of project report where only Financial projections for three year is required
Who can make it?
The task and process of making an appropriate project report are a crucial one. Therefore, the Project Reports for Bank loan are generally prepared by the experts CAs, Financial Professionals, Ex-Bankers.
Why a Professionally made project report required?
A Project Report is a base document for analysis of the future performance of an entity and it is a very crucial document to form an opinion about the future of a company or business entity
- For availing the working capital loan, term loan and other loans from banks or financial institution.
- For making a presentation to get equity participation of the investor.
- For structuring/restructuring bank loan / financial and business strategies of the firm.
- For buying, taking over or starting a new business.
- For making proper disposal of an existing business.
- For assessing the value of the project or the business.
Does the bank verify the information you have provided?
Of course! The bank verifies the financial details and other information presented in the project report before issuing the loan to the business. Therefore, it is advised to prepare a neat project report for a bank loan with all the necessary details regarding the financial projects of the business. However the data provided in Financial projections are just based on base judgment basis and cannot be verified, However, Bankers need to check the practicability of assumptions made.
What if your project report gets disapproved?
If the submitted project report for the bank loan anyhow gets disapproved by the bank, then the business firm applying for the loan may prepare another project report and reapply or may apply the project report to any other bank or financial institutions. It is important to note that For Disapproval of loan this may not be the only reason.
The Format of project report for Bank Loan:
- The Introduction Page
- Summary of the project
- Details about the Promoters, work experience, their educational qualifications, etc.
- Current Status of the Bank, target market, its products and services, and activities
- Details of the top management and employees, their educational qualifications, work experience, etc.
- Infrastructure facilities and services, operational premises, tools deployed, machinery and. equipment, etc.
- Details of the Customers, as well as prospective customers
- Regional Operation
- Tie-ups and fiscal acquisitions
- Financing Means
- Balance Sheet
- Profit and Loss Statements
- Fund Flow Statement
- Chief Ratios
- Break-Even Point Evaluations
- Conclusions
As above, is the format of the project report for the bank loan. And all project report (for Bank Loans) should be prepared on the basis of the above-mentioned format.
Conclusion: Role of Project Report in Loan Approval
Thus, a Project Report for Bank Loan is necessary for availing funds and loan from financial institutions and banks for the needs business fundings. It is mandatory for the said purpose and must be prepared on the basis of the format as we explained above. Failure in presenting a clear cut project report may result in disapproval by the bank and then you have to reapply or reconsider the information entitled in the reports. So, as now if you have any doubts or any questions in regard to the preparation of the project report of bank loan, then contact us through the comments anytime.
Sir,
will you prepare project report for rs. 12 lakhs to obtain loan under mudra loan
thanks
dharmadhikari
9890214813
Sure, sir, we will connect to you in short period of time.
Dear sir,
Will prepare my project report for mudra loan, please call me @8700688546
Maneesh
Our team will get to you as soon as possible.
What is the procedure to get 2cr make loan under CGTSME scheme for existing business.
Regarding Project report for bank loan.
As this is question requires more clarification please contact us on cs@aktassociates.com for proper advisory or give us a call on 93726 44735
can you guys make a project report for me ?
Yes…We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
looking forward for an expert for Business plan, market research, and business proposal/project report for loaning purpose from banks
We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
Need to prepare a project report for a lounge bar of approximately 60-70lacs. Kindly contact me @ 80010 81777
We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
Loan purpose project report
We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
Dear Sir,
Can you prepare project report with forecast Balance Sheet of 1 year to get the 10 lacks Rs loan under mudra loan.
We are a start up online ecommerce business set up. please confirm
Yes we can .for details please contact us on 9372644735
Can a project report be get prepared under assistance from the office of di msme by the entrepreneur,as per govt policy the di msme authority is assigned this task to assist to help support the entrepreneur to start and run the business SSI etc. Please advise a Delhi based entrepreneur can get project report preparation assistance from which concerned di msme office.the entrepreneur want to start Ball bearings manufacturing project in Delhi or NCR.pl guide
Will prepare my project report for mudra loan, please call me @9999216123
We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
We are a new partnership firm looking for project report for bank loan on grocery supply through distributors.
We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
Sir,
Can you prepare project report for construction work of Rs 25 lacks for MSME . pleas confirm on this contact number 9439920703
We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
Sir,
Can you prepare project report for thermal paper roll making business Rs 7 lacks for MSME . pleas confirm on this contact number 9404637817
ravinkhadke734@gmail.com
Yes…We are expert in preparing project reports/CMA Data for any kind of business for more details please contact us on 9372644735
Hi,
We want to get the project report prepared for a proposed small scale business. initial investment will be around Rs 20 lacks. We have a few queries apart from project report.
We wish to get loan from the bank for this start up business. Please suggest if we will get any help from government under Make in India initiative, help from MSME etc.
How to approach govt to avail Make in india benefits for Indian start up enterprise. We want to bring in completely owned and make in india product in the indian market.
Thanks for sharing this story with me sir
Sir,
Can you prepare project report for Bakery and Biscuit business Rs 25 lacks for MSME . pleas confirm on this contact number 9668209002
shantanujha34@gmail.com
Hello I am Chidanand Huggi from Bijapur Karnataka
I need Perfect 25 lack rupees Project report About flyhash Manufacturing Unit
More details please Contact. 9880804722
Can you prepare project report for Homemade chocolate business Rs 10 lacks for MSME from nationalized bank . pleas confirm on this m.majumdar333@gmail.com
business report / plan cost
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how much do you charge for preparing report?
can you share about project loan report sample copy, i want to know read and understanding, my wish to give a flat for poor and middle class family, because they have no paper work for loan so i can provide easy monthly installment for 8 year’s and they will get a flat easy own budget, can you send me project sample report for project loan.
Hey, Thanks for the good article!
If you have added any sample report, it would be much helpful.
Thanks
Avinash P
I want a project report for submission to State Bank of India for obtaining loan for
Dairy Farm and agricultural forming
What is cost for prepare up to 7 cr project report.please call 9929324768