Standard Project Report Format for Bank Loan For New Business

Updated: 16-05-2024 06:26:45 AM

For taking a business loan from the bank for a new start-up business, the borrower must represent the project report of their business. All the necessary requirements and official documents have to be submitted with the project report. The project report should be such that it should represent the idea of the whole business and can be easily understood by the reader. Further, discussed are the components, feasibility ratio and scope of the project report required to be submitted in order to avail a business loan.

Components of Project Report

Let’s discuss the standard format for the project report for bank loans of new businesses.

Introductory page

On this page, the introduction of your new business is to be given
The aim of the business and on what purpose you have chosen this business all these points should be mentioned in this introductory part

Summary of the project

Summary of the project should consist of the overall status of the business
Time to be consumed in working or manufacturing something should be there
The budget of the whole business should also be mentioned

Scope of the project

Scope of your business should be clearly described
It should contain the percentage of work that you planned and the percentage of planned work that has already been completed
Quick overview of results and planning of next steps should be included

Apply for Business Loans for Small Businesses Apply Now

Details of Promoters

The promoters are the mediator for the business which helps for the promotion of the business
The details of the promoters and their educational qualifications and work experiences etc. should also be given in the report

Details of Employees

The details about the employees working this business should be written
Their educational qualifications should also be mentioned
The work experiences and details about the top management should also be written

Infrastructure Facilities

Information about infrastructure facilities should also be mentioned like whether the tools have been deployed or not
Also, write about the conditions of the operational premises and what all are used
Types of machinery used in the business should also be mentioned

Customer Details

Information about customers should be well written like, what are the types of customers you have targeted for selling your business items
The prospective customer’s details should also be mentioned like is they from a big organization and also what is their capacity of buying goods in this business

Regional Operations

Many times a company opens branches in different areas or regions. The branches may be set up nationally and internationally, as per the requirements
When you make a project report you have to write about the different setups you made in which region and also write about the operation teams

Apply for Business Loan @ low interest rate Apply Now

Fiscal Acquisitions and Tie-ups

You have to write it down in the project report with whom you have done tie-up or which stock or acquisition you have taken and all details of it should be mentioned in the report

Means of Financing

The financing in the business can be done by the financial corporation or the business partners or somewhere else
So, it is very important that from where the funding is coming, so this all should be mentioned in the report

Balance Sheets

Balance sheets tell about where the money has been spent
Also in what areas and fields the spending has been done is also noted. Thus all the accounts of the business will be seen in this balance sheet
It is important to show the balance sheets of your company to the bank and it should also be mentioned in the report

Profit and Loss Statements

How much the profit will company make and how much profit is making the business has to be in the report
Whether the business is making any profit or loss the statements should be shown to the bank and also being mentioned in the report

Fund Flow Statement

The funding given by any corporate or government and where it is used and in what fields of business the funding is flowing should be mentioned in the project report

Break-Even Points Evaluations

Give the evaluations of the whole project report in even points and mention everything about your whole business
Project Feasibility Ratio: Deciding on the ratio of cost, discounts, and revenue

Conclusion

In this conclude your whole project report in the short paragraph not more than two pages

Also Read: How to make a project report for taking a Mudra loan from Bank?

Get Business Loan for Startups at Lowest Interest Rates Apply Now

Also Check: Which bank has lowest interest rate on business loan?

Comparison of Business Loan Interest Rates offered by Top Banks/NBFCs

Bank/NBFCs	Interest Rate
Axis Bank	10.75% p.a. onwards	Apply Now
Flexiloans	1% per month onwards	Apply Now
HDB Financial Services Ltd.	8% - 26% p.a.	Apply Now
HDFC Bank	10.75% - 25% p.a.	Apply Now
IDFC First Bank	10.50% p.a. onwards	Apply Now
Indifi	1.50% per month onwards	Apply Now
Kotak Mahindra Bank	16% - 26% p.a.	Apply Now
Lendingkart	12% - 27% p.a.	Apply Now
Mcapital	2% per month onwards	Apply Now
NeoGrowth Finance	15% - 40% p.a.	Apply Now
Tata Capital	12% p.a. onwards	Apply Now
UGRO Capital	9% - 36% p.a.	Apply Now

Project Feasibility Ratio

Project Feasibility Ratio is basically deciding on the ratio of cost, discounts, and revenue of an enterprise. It can be presented in the form of a graph by mentioning the year-on-year comparison between revenue and expense. The project report should also contain the expense split-up graph.

The components of Project Feasibility Ratio are below mentioned that are required to be displayed as per year-on-year comparison: