A Complete Guide on Project Report for Bank Loan

What is a project report?

A project report is a document that includes all the details about the project. Project reports are in the form of written documents that are interconnected to a particular project or investment. 

It contains documents that are used to assess and establish if it was realistic. The project report contains complete information on the required machinery and equipment prices, water and power requirements, land and building, raw material requirements, manufacturing process, manpower requirements, project marketing costs, financial assessments, efficiency, economic viability, etc.

The project report includes the estimated date on:

• Financial
• Technological
• Economical
• Managerial, and
• Manufacturing issues

Which might or might not happen during the project is being built. 

Also Read:- Project Report for New Business

Advantages of project report:

There are important appliances of communication to shareholders to make the upgrade on its progress. Few projects report differentiating the actual attempt to keep the project on track and line up on its schedule. In the project method, the management of costs is very delicate. But with well-ordered reporting, it is quite simple to see the disbursement easily and it is very convenient to manage a budget. The report allows the business person, shareholders, and members of their team to track their progress in the project. Tracking encompasses:

• Risks
• Budget
• Schedule
• Tasks
• Issues, and
• whole project health

Elements of project loan

• General information
• Project description
• Rationale
• Sources of finance
• Assessment of working capital necessities
• Government approvals
• Social variables
• Financial factors, etc.

Detailed Project Report

The detailed project report is a very large–scale and detailed outline of a project which contains the necessary information like the tasks to be accomplished during the project grow into a success.

It can be said that a detailed project report is the final representation of the project report by which the accomplishment project can occur.

Given below are some points which play a vital role in determining if projects turn into success or not.

• Finalization of the project within fixed limits of the rise of costs.
• Preference is given to an applicant’s satisfaction by handover the excellent product on the lookout for the completion of the product.
• Completion of the project in less than the fixed period.

Table of Content

A detailed project report contains the following information:

• Details about the project
• Approval by the government
• Needed raw materials
• Reference of financing
• Project finance
• Skills of the people that are included in the endorsement of the project.
• Information about the collateral should be given to several financial institutions.
• Details of the management team
• Information about the machinery, land, and building.

Also Read:-  Project Report for MSME Sector

Project report for Bank Loan - FORMAT

A project loan is commonly known as a business plan. Creating a project report for a bank loan is not easy for the businessperson.  It is an important document when applying for a business loan.

• Introduction page- Needs, possibilities, funds, etc. 
• Scope of project- enlargement of the activity which you are going to do
• Information about the promoters – work experience, educational qualification, etc.
• Raw materials –Information about raw materials used
• Location details – From where you are starting.
• Information about plant & machinery – Information of plants and machinery used
• Services- What you are presenting to the public
• Employees' details – Work experience, educational qualification, and information about the employees.
• Cost of project – Money for building your project
• Profit and loss statements
• Balance statements – reserve and surplus, loans, current assets, deposits, bank and cash
• Interest schedule- interest, principal, installment
• General ratio- current ratio, quick ratio, cash ratio, debt-equity ratio
• Cash flow statement-inflow and outflow in business, either the figure for cash flow is negative or positive.
• Break-even point estimation- fixed cost, variable cost, contribution.
• Means of financing – funding for a company may come from a financial corporation.
• Market strategy - details of goods selling online and the size of the market.
• Fund flow statement – information about the application of funds involved.
• Conclusions- about weakness, strength, threats, and opportunities about the project.
• Application of funds – you should write all the details with whom you formed the company in the project.

Creating a well-structured project report seems difficult for entrepreneurs of their own, that's why Financeseva comes with a team of industry experts; who will be drafting a clear project report for specific business modules.