Project report for an MSME unit in another sector: what banks expect

A complete bank-format report in which the description and the figures agree. For an MSME unit in another sector the descriptive part should walk through the process (procurement of the inputs required for the activity from established suppliers, through to delivery to customers, billing and collection), the inputs (the inputs required for the activity), the utilities and the approvals. The financial part then shows the cost of project, means of finance, projected profitability, cash flow, balance sheet, loan repayment, debt service coverage and break-even. Customers choose on quality, reliability, service and price.

Besides Udyam registration, GST registration where turnover or the type of supply requires it, and the power and local-body approvals for the premises, the sector notes in our DPR library list: Licences specific to the activity from the relevant department, where applicable; Consent from the State Pollution Control Board, where the activity falls within its consent categories; Fire safety no-objection certificate, where required for the building. These are typically required where applicable; whether each applies depends on the size, location and activity of the project, and our expert team confirms it for a specific unit.

Lower sales than projected, met by close contact with customers and a broad customer base; Increase in input costs, met by more than one supplier and periodic price review. A report that names its risks and shows how each is handled reads as more credible than one that lists only strengths, and the same points feed the SWOT section of the DPR.

Our catalogue lists three open Haryana and Central schemes tagged for every sector, mainly loan and credit guarantee schemes such as Credit Guarantee Fund Trust for Micro and Small Enterprises and Pradhan Mantri Mudra Yojana. Whether a unit qualifies depends on its activity, size, location and stage, so run the eligibility checker before counting on any of them; Punjab, Rajasthan and Uttar Pradesh schemes are matched there too.

No. They are assumed lines put through the same cost and loan arithmetic as our free DPR builder, to show how the statement is built: contingency at 5% of building and machinery, a term loan of 70% of the cost, 10% interest over 7 years with a 6-month moratorium. Your own report should use your quotations, rent or land figures and the bank's terms.

Yes. The free DPR builder asks for the project details and costs, pre-fills the general sector's descriptive text, and produces all 24 sections with the projections, which you can download in Word, PDF or Excel. Before it goes to a bank or a department it should be reviewed by a Chartered Accountant; our expert team can review it or prepare it with you.