PROJECT REPORT FOR BANK LOAN
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.
For any information, clarification or
feedback, kindly contact www.ezybizindia.in or call +919899217778
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