Most businesses face difficulties while creating a project report for bank loans. Often, a project report also refers to a business plan that is required when asking for a bank loan. Writing a report is not that easy a task. However, entrepreneurs find it complicated to write a project report on their own.
It gives a complete project proposal to know the expectations of new business activity. Finance is the essential requirement of every business, be it a new start-up business or expanding existing units. Businesses with great idea areas are sometimes unable to execute the project due to a lack of funds. In such scenarios, business owners look for a loan from banks or financial institutions. Wherein project report for bank loan stands.
There are certain documents required by the bank to process project loans, one such document is the project report which plays an important role in determining applicant eligibility.
Below is a detailed description of how to create a report, what are the factors that need to be considered and what is the standard format of a project report for bank loan.
To know how to prepare a project report, the following is the information that needs to be included in your report.
1. Introduction: This portion summarizes the project details in short and up to the point.
2. Project Summary: Usually, it consists of project objectives, historical information, analysis and conclusions.
3. Scope of the Project: You have to describe the scope of the project, whether you are offering any product or service.
4. Promoter Details: Promoter plays a key role in setting up the business, promoter details include his/her qualifications, work experience and areas of expertise.
5. Product/service: Include what product or service your business is going to offer and explain its features, how customers can benefit from using a product or service.
6. Location Details: Mention where you are going to start the enterprise and its specialty. General areas where the work is performed.
7. Plant & Machinery Details: Make a list of tables and include details related to plant and machinery.
8. Raw Materials (if any): If you are a business engaged in manufacturing goods, including the input of goods or inventory.
9. Marketing Potential & Marketing Strategy: Marketing strategy also refers to a game plan for reaching a targeted audience into consumers. It contains the company value proposition, key branding and other elements.
10. Consumer Details: Details of consumer's qualification and work experience.
11. Project Cost: The sum of the amount required to complete the project. Project costs include expenditure, financial obligations and other estimated project costs. Remember, the total cost includes your share for building projects.
12. Application of Fund: You have to elaborate the usage of funds in a detailed manner, on each portion of spending.
13. Means of Financing: Make sure you source the fund from where you can enlist the use of cash balances and other transactions.
14. Balance Sheet: It’s a financial statement that represents a company’s assets, liabilities and shareholder equity. Usually, financial statements are used to evaluate business performance.
15. Profit and Loss Statement: The profit and loss statement reports the company revenue, costs and other expenses.
16. Cash Flow Statement: It provides the data regarding all cash inflows a company receives from its ongoing operations, investing activities and financing activities.
17. Break-even Point Evaluation: A break-even point known as a financial calculation that weighs the cost of a new business against the selling price to estimate the point which you will break even.
18. Conclusions: This portion requires you to summarize the entire report and make it an actional report for the lending institute.
Ensure your project report is prepared in such a way that it accurately reflects your business model, idea, USP in a positive manner so that the bank can easily able to understand and fund your project.
If it seems difficult to create project reports on your own, you can use the financeseva is an easy way to create the report by referring to sample reports. However, the reports are accepted by all banks including Private, govt banks and NBFCs.
Also Read:- A Complete Guide on Project Report for Bank Loan