Project Report for Loan
Project Report for Loan
For availing of a business loan from the bank or financial bodies for a new start-up business, the borrower must submit a detailed project report for loan. All the necessary requirements and official documents have to be provided with the project report.
Make sure that the project report for bank loan is structured in such a way that it represents the idea of the whole business and can be easily understood by the lender.
Further, discussed are the components of the project report required to be submitted in order to avail business loan.
Scope of the Project
The scope of the project should have below mentioned below:
- Promoter’s details
- Product and services
- Plant & Machinery /equipment
- Market potential & strategy
- Manpower requirements
- Risk and mitigation strategy
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. However, 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:
- Current ratio
- Quick ratio
- Interest coverage ratio
- Debt equity ratio
- Gross profit Sales Percentage
- Net profit Sales Percentage
- Return On Capital Employed