Mudra Bank loan offers loans at affordable rates to new companies. Registered company owners and entrepreneurs for setting up small & medium businesses can benefit. To get a Mudra loan the first and foremost requirement is to submit a Project Report to the Bank.
The Project Report should include all business-related financial, economic, managerial, and technical aspects of the project or business. The report should be easy to understand and in a neat format. Applicants can create the project report on their own or with the help of an outsider like CA’s, tax consultants, or a private company who has particular knowledge.
What are the contents of a project report for Mudra Loan?
The project report consists of all business-related details. It should cover both the technical and financial aspects of the particular business. Below are the components of the project report.
- Introduction – Description of the business.
- Aim/Vision – Focus or target for which the enterprise shall work.
- Objective: Just as the aim, the objective of the enterprise should also be mentioned.
- Area of Expertise – Key areas or skills on which employees have expertise shall work.
- Details about the Promoters and Executive: Profile descriptions like education qualification, experience, etc.
- Source of Funds: Explain in detail how you are planning to raise funds for the business, owned, borrowed, etc.
- Financial Budget – Complete financial information on expenditure inquired like machinery cost, total cost, furniture cost, and working capital required.
- Financial Statements: These should the financial statements like profit & loss statements, cash flow statements, and balance sheets.
- Estimation: The report should include a projected estimation of sales, purchases, expenses, incomes, etc.
- Business Equipment Details – Exhaustive list of equipment, parts, plants and machinery to be used in the project
- Commercial Aspects – Plans to be executed related to commercializing the project
- Company Profile – Details on the company’s background, launch, initiation, milestones, and achievements
- Export Orders – Information on export orders, whether domestic or international, if any
- Information about Employees – Total number of employees working on the project with their details
- Information of Products and Services: Details of all the products and services to be used in the project
- Logistics Details: Information on transportation costs to be incurred whether private or commercial
- Manufacturing Processes: Details of types of manufacturing processes to be used in the project
- Market Potential: Information about the target market, target customer, market demand of the product, etc.
- Advertising Strategies: Advertising strategies to be applied or executed for the project
- Ratio Analysis: Computation and analysis of different ratios and their implications.
- Space or Land Requirement: Information on space or land requirements, if required
- Third-Party Details: Details of the third party engaged with the project if any like raw material suppliers, traders, manufacturers, etc.
- Break-Even Analysis: Specify the break-even point of the project; and its viability in terms of cost and profit.
- Conclusion: All project reports should have a conclusion at their end
About Finline!
Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline will help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. All public and private sector banks working in India accept our project report. Click to create your report.