Project Report for Bank Loan

1. What is a project report?

The project report is a document, which gives an account of the project proposal to ascertain the prospects of the proposed plan/activity. The project report contains detailed information about:
  • Land & building required
  • Manufacturing Capacity per annum
  • Manufacturing Process
  • Machinery & equipment along with their prices and specifications
  • Requirements of raw materials
  • Power & Water required.
  • Manpower needs
  • Marketing
  • Cost of the project and production.
  • Financial analyses & economic viability of the project.


2. How is a Project Report Prepared?

A project report is prepared with the help of prescribed guidelines available with MSMEDI’s, DIC’s & financial institutions. Information about prices of machinery & equipment, raw material and other various inputs required for setting up an enterprise need to be collected from the market.


3. Is there any standard model for preparing the project report?

A model proforma for preparing the project report is available with MSMEDI’s, DIC’s & financial institutions. Every institution has its own model proforma. However contents of all the proforma are almost similar.


4. Is a model project report available?

Yes, Model project profiles are available with the MSMEDIs(formerly Small Industries Service Institute’s) & DIC’s for the guidance of entrepreneurs.. However, these project profiles have to be recast in accordance with specific needs of the entrepreneurs and the current prices of inputs.


5. Which agency assists in preparation of Project Report?

MSMEDIs, NSIC and State Govt. agencies viz. DICs, SFCs can help you in preparing the Project Report. You can also prepare the Project Report yourself by collecting detailed information on various points.


6. What details are required for preparation of Project Report?

Information in detail is required about the technical process, requirements of plant and machinery, raw materials, manpower requirement, market information and statutory representations (like pollution control and public safety) etc. The details of power and water tariff, land/shed/building and selling prices etc. needs to be collected as prevalent in the market.


7. Who can help in selecting production process, equipment etc?

Micro, Small & Medium Enterprises Development Institute’s (formerly Small Industries Service Institutes), Design and Development Centers like MSME Technology Development Center’s (formerly PPDC’s) /Tool Room’s, Research and Developmental agencies such as NRDC’s and Regional Research Laboratories can help you in selecting the right production process, suitable equipment’s etc.