A record 5.83 crore loans worth Rs 3.23 lakh crore were disbursed by Micro Units Development and Refinance agency or MUDRA, a public financial institution. MUDRA was formed under the aegis of Pradhan Mantri Mudra Yojana (PMMY) in 2015 to provide credit support to small businesses in the non corporate sector. A wholly owned subsidiary of the Small Industries Development Bank of India, also known as SIDBI, MUDRA is a non- banking financial company( NBFC) that not only helps those embarking on their entrepreneurial journey by helping them start a new business but also provides capital for expansion of existing businesses.
Loans worth Rs. 1.62 crore have been distributed till March 2020 under the MUDRA Shishu Yojana, a scheme that provides financial support of less than Rs. 50,000 to non corporate companies. Firms engaged in manufacturing, allied agricultural activities, services, retail and so on can avail MUDRA loans to fund their various needs. Micro units and entrepreneurs who apply for MUDRA loans can get a loan amount up to a maximum of Rs. 10 Lakhs with comparatively lower interest rates, which vary from one bank to another. Submitting a project report for a MUDRA loan to the lender apart from the necessary documents at the time of application is crucial to getting your loan approved.
In order to get a MUDRA loan, the borrower needs to submit a project report to the public sector undertaking from whom the loan is requested. Important information related to your business such as company background, nature of activities, procurement of raw materials, number of employees, profit, return of interest should be mentioned succinctly in the project report for MUDRA loan.
The report should be to-the-point, concise, understandable and cover all necessary data about the start-up or business. This is because it gives the lender the first impression about your business. Concealing facts or giving false information or any other kind of misrepresentation can not only lead to your loan application getting rejected but also reduce your Credit Score. If you are applying for a loan under the PMMY, it is advised that you create a meaningful project report elucidating your personal and professional details to make you an attractive candidate for MUDRA loans.
How do I write a project report for a loan?
Below is the sequence of standard format which should be followed while preparing new business project report:
● Background of the business
● Customer's profile
● Long and short term objectives.
● Market Analysis
● Financial Assessment
● Marketing Assessment
● Operational Plan
● Financial Plan
How do you write a business project report?
Keys to an effective business project report:
● Submit the report on time. A status report is time sensitive and sending it late defeats the purpose of such a report.
● Giving complete but inaccurate information is just as bad as giving accurate but incomplete information.
● Do not cover up bad news or adverse reports as these are all part of the transparency of the status report.
● Be proud of the team’s accomplishments, after all, this is what the clients and the stakeholders will want to know about.
Anticipate questions from the clients or stakeholders and be prepared to answer them.
How do I create a project report for an MSME loan?
● Decide the objective. Take some time to think about the purpose of the report.
● Understand your audience. Writing a formal annual report for your stakeholders is very different from a financial review.
● Be cautious about report formatting.
● Gather the facts and data effectively.
● Structure the report correctly.
● Make sure it’s readable.
How do you prepare a project report?
Normally a bank would have a template which they would expect you to complete. It would include questions such as:
● How much do you want to borrow?
● What do you want to do with the money?
● How and when will you pay it back?
● What security will you offer for the loan?
● What experience do you have in the business you are proposing?
● What other resources will be involved, partners, directors, key staff?
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