MSME Loan - Project Report For Bank Loan
Due to COVID-19 effect, MSME Industries which are the backbone of the Indian economy are facing the situation of Cash Crunch. India's Government is taking measures to boost the Indian economy as soon as possible. The Indian government has approved a large amount for current MSME units as well as for new start-ups to support the MSME Market. Currently, the government's key priority is on making "Atamnirbhar Bharat" for that our noble prime minister makes announcements including no global tender up to Rs.200 Crore for all fresh government projects, etc.
Announcements are given by the government; furthermore, the funds must be released via the banking channel, which requires a Project Report explaining how the ventures should proceed and whether the funds received by the bank will be reimbursed.
The Project Report does not have a set format. I am trying to describe in the points below the essential information that must be included in the project report.
Introduction
It is the starting point for a report regarding the initiative. We have to clarify in this section about the Firm, its creator, its background history, the project for which the fund was needed, and how the funds collected would be used. This is the snapshot of the detailed report on the initiative. This should be planned with appropriate care.
Creator’s Complete Detail
In this, you will have KYC Detail along with their Educational Qualification, Job Experience, previous experience in handling any project with its testimonials and associated records of net worth. Creators with a high cibil score and strong net assets have a better probability of having their project accepted.
Techno Feasibility Report
In this, you need to provide an overview of the project describing the Industry's current situation in which you are going to start your industry and the equipment that you are going to use to start your business and how you are obtaining your capital goods, raw materials and how your project is dealing with industry competition to stay alive.
Techno Feasibility Report
In this, you need to provide an overview of the project describing the Industry's current situation in which you are going to start your industry and the equipment that you are going to use to start your business and how you are obtaining your capital goods, raw materials and how your project is dealing with industry competition to stay alive.
SWOT Analysis
Here, you may give your product's SWOT Comparison with Industry products that are already on the market. You will give proper attention here so that you can convince the banker to support their funding for the project.
Location of Project and facilities available
In this, you provide a thorough description of project location, accessible infrastructure facilities such as road transport, power supply, law and order condition, worker access, raw material delivery network, and raw product and finished products storage facility.
Manufacturing Process
The equipment and raw material required for production must be presented in detail here. Give details of the production mix, if possible. Provide the details in the form of a flow chart where feasible.
Licenses Applicability
In this section, we need to provide information of the licenses required to start the industry, and the issuance and renewal time required there.
Means of Financing
You have to provide information on how the project will be funded. pHow much capital the creator will invest, and how much financing the bank provides. What is the funding model for banks like CC Cap, Term Loan, Etc.?
Financial cost of Project
This is the largest component of the report on the project. After explaining the project, its prediction according to SWOT Analysis, now we must give a detailed report on the cost of the project and its components such as land costs, equipment costs, etc. This expense must be more than the financing we need from the banks for a project.
Profitability Statement
We need to focus now on the revenue and profitability part of the project, here we need to provide a detailed analysis of our sales process, expected sales, associated costs and expected profit that we will earn and how we will repay the bank's loan and interest amount.
Conclusion
The points listed above are obligatory points which need to be explained in a project report. Depending on the design of the project, several more points may be made. Our key objective is to provide the banker the details needed in depth so they can quickly determine whether or not they will receive the return of their lend amount.
Apply Today For MSME Bank Loan !
We provide project report for bank loan on MSMEs so that the entrepreneurs who wants to start their business can register their business with the financial help provided by the Government Of India.
We provide more than 1000+ project reports in detail so that you can avail of the financial aid provided by the Government according to your requirement. Msmeregistrar.org provides you professional assistance through which you can know in detail about the bank loan.
If you have any queries or discussions related to MSME bank loan you can, reach out to us just by filling up the enquiry form and one of our executives will call you through MSME helpline number.
Written by Gazal Gupta
