The types of loans provided by Bank and Financial Institutions to Businesses can be broadly categorized into two categories i.e 1. Term (Project) loans 2. Working capital loans.
Term (Project) Loans are taken for setting up new businesses, expansion of businesses, acquiring new assets. To grant term loans, banks require details of the project, total cost of the project, the amount contributed by promoter or applicant towards cost, and the amount to be funded by bank as loan. Banks need to understand the revenue-generating capacity of the project, whether the same is sufficient for meeting the loan repayment obligation during the term of the project and other details about the project to understand the viability and feasibility of the project. Based on these details, the bank arrive at the decision to provide finance. Project report is a report prepared to present all the relevant aspect of the projects to the bank. All ratios and criteria considered by the banks in sanctioning the loan are to be taken care in preparing such a project report.
ADCA has over the period of time built expertise in preparing the Project Report in a presentable format to the banks and investors. ADCA also co-ordinates with the bank in providing additional details asked for by the banks towards appraising and sanction of the loan proposal.