If an entrepreneur wants to start new business or want to expand its existing business, then he needs money for capital expenditure as well as for working capital requirement. The fund requirement can be met from internal sources like past year savings, loans from friends/ relative and may be arranged from external sources like loans from bank, Investments by Angel investors etc. But, in India, the most favourite way of external funding is by way of loans from Bank. The government of India is also giving loans to MSME Enterprises in the form of Mudra Loan. But, getting loans from bank is not an easy task.

Due to financial frauds with bank in past few years, now banks are taking many precautionary measures to save their funded amount. While granting loans many factors are checked by credit team of bank like credit score of borrowers, past repayment track record, Income source, fund requirements and how the borrowed funds will be utilized. The main base on the basis of which big loans are granted is DPR – Detailed Project report, which is like a future forecast of enterprises which will be built after taking funds from bank. In this article, we will discuss the essentials points that must be considered while drafting a Detailed Project Report.


In this part, we have to give introduction about the business which we are going to start. Its history and future prospects will be described in brief along with founder/ owner profile related to education background, experience related to this industry etc.

Scope of Business and its SWOT Analysis

In this part, we have to describe about the future of this business backed with figures (If available). The scope of business will be explained with the help of SWOT Analysis. The bank will finance your business only, if they find positivity in your project report. Presentation in your project report matters a lot because in mostly cases no face-to-face interaction is done between the borrower and credit rating team. You Project report must be self-explanatory.

Technical Feasibility Report

In this part, we have to described about the location of plant/ project. We have to described about our dream project and how we can convert our dream project into reality. In this part, we will describe about the raw material, transportation and electricity related facility that are available near our project location that give us competitive advantages in comparison to our competitors. Here, we have to justify the required funds that will be covered under financial feasibility report, by describing about the machines and other infrastructure that will be installed in factory to give us competitive advantage.

Describe the process of Conversion of raw material to finished Product

If we need funds for capital investments like purchase of machinery, latest technology equipment then we may give a comparative process flowchart between current process of producing the final product and the new process that will we followed after installation of new machines. What will be the advantages, if new technology is installed will be explained in detail so that we can justify the funds requirements.

Financial Feasibility Report

This is the main part of project report. This part must be prepared with adequate care, so that we can justify our banker that if they provide fund to our organisation, then it is risk free and interest and principal amount will be repaid on time.

Here, we have to use comparative cost analysis, has to prepare projects reports and has to use ratio analysis so that we can easily explain our dream project into financial figures.

To prove our financial figures, we may take the help of past data collected from reliable sources.

Use of Pictures to explain our project

As we all know, pictures and videos create more impact on the mind in comparison to written content. We may use pictures to justify our project and financial figures.

Brief explanation of Marketing Strategies to generate Business

In this competitive market, it is not easy to start and run a business. As per past survey’s approx. 90% business will close within 5 years. As the banks are giving loan to us and thousands of loan application received in banks on daily basis, so we have to justify the bank that, if loan is given to us, then we will achieve our goal. We have to give them brief of our marketing strategies that helps us to generate business leads and revenue.

Note: As there is no fixed format for project report, it vary from case to case basis but It must be prepared and designed in such a way that it is unique and self-explanatory to overcome your loan application from crowd.

To do list before Filing Loan Application

√ Having Valid GST Registration

√  Filing of GST Returns on regular basis along with good Turnover

√  Atleast 3 Years ITR Copy with Computation

√  Audit Report (If Available)

√  Good CIBIL Score

√  Udyam Registration

√  6 Months Bank Statements

√  KYC of Owner 


This article is for the purpose of information and shall not be treated as solicitation in any manner and for any other purpose whatsoever. It shall not be used as legal opinion and not to be used for rendering any professional advice. This article is written on the basis of author’s person experience. Adequate attention has been given to avoid any clerical/arithmetical error, however; if it still persists kindly intimate us to avoid such error for the benefits of others readers.

The Author can be reached at mail [email protected] and Mobile/Whatsapp – 9911303737/ 9716118384

Author Bio

Qualification: CA in Practice
Company: Shiv Kumar Sharma & Associates
Location: Delhi, Delhi, India
Member Since: 03 Dec 2018 | Total Posts: 69
My Self CA. Shiv Kumar Sharma. I am a member of "The Institute of Chartered Accountants of India" since 2012. I have Qualified my B.Com (H) in 2010 And Cleared CS- Executive Exam in June 2013. Currently, I am in Practice and dealing in Direct and Indirect taxation along with ROC Compliances. View Full Profile

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May 2021