Projects Reports & CMA Data for Bank Loans

Project Report and CMA Data for Bank Loans :

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 for business loan or any other aspect.

Most Banking and Financial institutions request the applicant (Business Loan Applicant) to prepare a Credit Monitoring Arrangement report (CMA report) to understand the flow and application of funds in a business. A CMA report which is professionally designed can enhance the chances of obtaining a bank loan.

Documents/Information required to prepare CMA project report :

  • Previous 2 years Audited Financials
  • Latest Sanction letter (in case of renewal)
  • Provisional Financial for the current year
  • Term Loan Repayment Schedule,( if any)
  • Details of proposed enhancement (if any) along with the terms and conditions

ADCA has over the period of time built expertise in preparing the project report for bank loan 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.

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