Project Report for Bank Loan to Boost Your New Business

Every businessperson is looking out for the development of their business for which they need funds, these funding can be obtained from banks and financial institutions. 

A project report is a essential document required for bank loans or any other investment. A DPR is a final, detailed appraisal report on the project and a blue print for its execution and eventual operation. 

The success of project is measured on the basis of:- 

• Whether the project was completed on time.
• Whether actual cost of project was within reasonable limits of escalation.
• Whether after completion of the project it was able to deliver the products of desired quality and in adequate quantity to clients satisfaction at profitable costs.
• Whether the project development period was within planned duration.

Project report for a bank loan contains details of economic, financial, technical viability of the project.  

It contains detailed information about manufacturing capacity per annum, requirements of raw materials, land, and buildings, equipment and machinery with their quantity and price, manpower needs, production, marketing cost of the project, the need of electricity and water, the economic viability of the project, and financial analysis. 

Format of a Project Report for a Bank Loan 

1.Enterprise: It specifies the name of the borrower and other basic details. 

2.Profile of group: In this section, you need to brief out about promoter profile such as years of existence, field of expertise. 

3.Project Proponent: Examine the entity that has primary responsibility for a specific project within the grant proposal. Details of promoter & director include each qualification, work experience, field of expertise and so on. 

• List
• Details of promoter & director

4.Proposed Shareholding: List down the details of promoter/director or alternative person with following number of shares, amount and percentage. 

5.Associate Concern: In this section, information related to any parent company will be briefed. 

6.Proposed Management Team: This portion includes details of a particular person of the organization who will be contributing to the growth of the business. 

7.Executive summary: It summarizes an entire report in short documentation for business proposal. 

8.Description of the Project: Briefly describing business model, addressing all the objectives required for a project plan execution. 

• Brief Description of the Project
• Importance to the Country and the Region
• Need of Project
• Details of Raw Material along with Mode of Transportation
• Transportation of Finished Products & Raw Materials
• Storage Facilities
• Air Emissions
• Noise Pollution
• Water Consumption, Waste Water Generation & Disposal Details
• ETP plant
• Solid and Hazardous Waste Identification, Quantification, Storage and Disposal

9.Statutory Clearance: This section should elaborate the statutory clearances to be obtained from the various authorities. Statutory approvals as per bye laws, master plan, fire safety norms, environmental clearance etc. as applicable for the project are to be taken. 

• Environmental Clearance
• Forest & Wildlife Clearance
• Other Applicable Statutory Permissions

10.Security offered to bank /FI: Define the security that you will be offering to banks and financial institutions. 

11. Description of the product:  

Product history captures statistics of what products are being purchased most often, its standard and specification of the product and uses and application of the product. 

• History
• Properties of product
• Standard and specification of the product
• Uses and application of the product

12. Location of the Project: Project location refers to where materials, equipment and any other energy related to equipment are installed and the general area where the work is performed. 

• General Location of the Site
• Map Showing Location of Project Site
• Co-ordinates of the Project Site
• Google Earth Image of the Project Site
• List of Major Industries within 50 KM radius of Project Site
• Approach to the Project Site
• Project Site Specific Environmental Sensitivity Details
• Photographs of Existing site

13.Market Survey: You need to examine the target set of audience to understand their characteristics, expectations and requirements. 

• Present Market Position (Demand & Supply) 
• Market opportunity
• Statistics of Import & Export
• Export Prospect
• Marketing Strategy
• Competitor Analysis
• Name & Address of Existing Units (Present manufacturer)

14. Technical Feasibility: You should plan every part of your operation, starting from sourcing your production materials all the way to tracking your sales. This process figures out how you’re going to produce your product or services. 

• Land & building
• Plant & Machinery
• Miscellaneous fixed assets
• Manpower Requirement
• Raw material
• Power
• Water
• Steam
• Effluent disposal
• Pollution control
• Inspection and quality control

15.Technology & Process Description: Raw materials are transformed into finished products through manufacturing engineering or the manufacturing process.  

• Technology Requirement
• Manufacturing Process

16.Commercial Viability: It ensures that adequate revenues from project services and from other dedicated sources will cover project capital costs and operations and maintenance. 

• Environmental aspect
• Environmental cost benefit analysis
• Social aspect
• SWOT Analysis
• Subsidy

17. Proposed Schedule for Approval & Implementation: A well-structured proposed implementation schedule identifies and describes what unique and solutions will deliver within certain set of timeframes. 

18.Size of Magnitude of Operation: Capacity planning is a process of determining the production required by an organization to meet changing demands and estimating the total funds needed to complete the project. Elaborate your project cost required for business setup. 

• Proposed Production Capacity
• Cost of the Project

19. Associated Activities required for the Project: Establish the source required to execute work of the project. 

• Resource Requirements

20. Identification of Project: The purpose of project identification is to develop an initial proposal of interventions and course of action, within specific time and budget frames. 

• Identification of the Project as per Environmental impact assessment notification

21. Financial Viability: Financial viability is the ability to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while maintaining service levels. 

Need for the project report for a bank loan 

If you want to start a new project or a business or want to enlarge your existing business, funding is necessary for any business.  

When you have everything planned for the business, but you do not have funds to execute, then you should go for the bank loans from banks and financial bodies. 

Although, there are several needs to take a loan from banks and the requirements differ from bank to bank depending on the amount and type of loan you opt for. 

Importance of project report 

• Project reports help to forecast the threats and grow proper steps to recover.

• It assists an entrepreneur to get an accurate idea about the original inputs required for the business.

• The project report makes it easy and smooth to control the budget and the cost other than the budgeted cost.

• It can be a source of information to respond to the quality of work, stagnation, success, quality of work, or team results.

• This assists in getting funding and certain loans from several banks, financial institutions, Venture capital funds, Private equity, Government schemes like MUDRA loan, MSME loan in 59 minutes, etc.

• The project report needs accuracy and appropriateness and makes certain analysis of all the dimensions of the project.

Who will make the project report? 

A project report is an important document that requires professionals in terms of experience and qualifications such as Ex-bankers, Chartered Accountants, and other finance professionals with the help of engineers. 

Many entrepreneurs find difficulty in making a project report on their own, therefore financeseva came to help you in preparing the best possible detailed project report. 

Generate project report for a project loan through Financeseva 

• A project loan is offered to entrepreneurs and business owner for the function of capital expenditure.
• Make project reports with the data & insights you need to track projects.
• Project loans are provided to get fixed assets such as plant and equipment/machinery, land, and building, etc.
• Project finance includes the financing of capital-intensive projects and long-term infrastructure
• These reports are majorly used by micro-small medium enterprises (MSMEs) Sector.
• Financeseva help you to create a customized project and fulfill each business requirement.

Get your project report in 3 straightforward steps 

LOGIN:  

Financeseva allows you to prepare the project report on your own or get an assisted service. Visit the official website, fill in the inquiry form to start the process. 

MAKE PROJECT REPORT: 

Once you have submitted the inquiry form, you will be asked to submit certain documents.

Thereafter, a dedicated representative will get in touch with you to discuss your business model and other specifications in detail. With your shared input, a detailed project report will be drafted. 

DELIVERY: 

You can review all the information in the report before finalizing it. Once you are self-satisfied with the project report you can download it by making the payment, and if needed hard copies will be delivered to you in 3 to 4 working days. 

Financeseva has built a web application especially for project report creation. You can create a project report to apply for bank loan, it is a 100% risk-free tool. 

Also Read: A complete guide on project report for bank loan