A useful loan proposal explains what the money will fund and how the business expects to service the borrowing. The numbers should connect to the project, the operating cycle and evidence the lender can review.

Useful for: Businesses planning a new project, machinery purchase or expansion

Separate the project cost from working capital

List the machinery, premises, installation and other project costs with supporting estimates or quotations. Show the proposed promoter contribution, borrowing and any other funding separately.

Also assess the cash required between paying suppliers and collecting from customers. Stock levels, customer credit periods and supplier terms can affect this working-capital need.

Make the assumptions visible

Distinguish actual results from estimates and projections. A lender should be able to see what is supported by historical records and what depends on future performance.

  • Explain projected sales through capacity, pricing, orders or a clear market assumption.
  • Include operating expenses, taxes, interest and the repayment schedule.
  • Prepare financial projections and lender-required CMA or appraisal statements consistently.
  • Review a slower-sales or delayed-collection scenario to identify a possible cash shortfall.

Use the lender's current requirements

SIDBI publishes official information on MSME finance. For any lender or product, obtain the current eligibility criteria, document list, costs and terms directly from the lender. The lender makes the credit decision; preparing a report does not establish eligibility or guarantee sanction.

Official guidance: SIDBI: finance for MSMEs

BEFORE YOUR CONSULTATION

Records to have ready

  • Business profile and constitution or registration records
  • Available financial statements, ITRs, GST records and bank statements
  • Existing loan details and repayment schedules
  • Machinery quotations, project estimates, orders and funding assumptions

The final document list depends on your circumstances and the agreed service.

HOW WE CAN HELP

Discuss your requirements
with our office.

M H Consultancy prepares project reports, financial projections, CMA data and loan documentation, and assists with lender queries for new projects and business expansion.

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General guidance published on 9 September 2026. Applicability, forms and dates depend on your circumstances and reporting period. Confirm the current requirements before filing or making a financial decision.