PROJECT REPORT FOR BANK LOAN
Added: (Thu Sep 08 2022)
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PROJECT REPORT FOR BANK LOAN
Finance is the lifeline of any organization, whether you want to launch a new venture, complete a project, or grow an already successful enterprise. If you have a brilliant idea but lack the funds to put it into action, you can consider applying for a loan from a bank or other financial organization. There are numerous conditions to obtain a loan from a bank, and these requirements differ from bank to bank as well as depending on the kind and amount of loan you are seeking. In this article, we'll talk about how to put together a project report for bank loan purpose.
Every businessman is in need of funding and when they approach banker for funding for their business, the banker usually asks for project report. The project report is a document which provides a complete overview of the proposed project.
Since it is one of the most crucial documents for bank loans, as a business owner, one could find it challenging to write a project report that correctly explains every financial aspect. Proper drafting of project report for bank loan for their business is challenging for about 86% of business owners.
The majority of people believe that a project report for a bank loan is just a document with projections for profitability, cash flow, and a balance sheet. Technically speaking, though, a project report is a socio-techno-economic feasibility report that evaluates a venture's viability from all angles. Therefore, the report should be comprehensive and include every part of the company; this illustrates the significance of the document.
While drafting a project report for bank loan, following elements shall be included:
1. Introduction Page – Brief introduction about the project, about the company, the potential, necessity, possibility, amount of funding required, etc.
2. Project's scope: It will provide a summary of all the work you'll be doing under such project
3. Information on the Promoters, including their backgrounds in education and employment, total experience relating to the proposed project or similar line of business.
4. Nature of goods or services: What goods or services are you providing to the general public?
5. Entity details: Information on the unit's starting location, specialization, branches, warehouses, etc., if any
6. Plant and machinery details: Information on types of plant and machinery required for the execution of the project, from where it will be procured. Complete list of all the items need to be provided.
7. Raw materials: Information on the raw materials used, if any, availability of raw material in your area or from where it will be procured
8. Marketing strategy: How big is your market and what is your marketing strategy? How do you intend to market the product or services? Whether market is within India or also overseas.
9. Employee information, including facts about each employee's background, training, and experience, etc.
10. Project cost is the total cost of the project, including any contributions you made.
11. Application of Funds: Your project's financial allocation strategy.
12. Financing Methods: Where You Get Your Money
13. CMA Data
14. Account Statement
15. Profit and Loss Statements
16. Payables Statement
17. Evaluations of General Ratios Break-Even Point
18. Conclusions
It is important that project report for bank loan is written in a manner that it accurately and favorably conveys your business strategy, concept, and USP so that the bank can easily understand and support your project. Accordingly, it is advisable to take assistance of an expert while drafting a project report.
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