By Sharda Associates | CA Firm, Bhopal
You have decided to start your business. You have your idea, your location, and your plan. Now you need funding. You approach your bank, and the loan officer gives you a list of documents required.
Two documents on that list confuse most first-time entrepreneurs. Project Report. Feasibility Report. You wonder if they are the same thing. You wonder if you need both. You wonder what goes inside each one and who prepares them.
At Sharda Associates, a qualified CA firm in Bhopal, Madhya Pradesh, we prepare CA-certified project reports and feasibility reports starting at Rs.2,999 accepted by SBI, PNB, Bank of Baroda, and all major banks and government scheme portals across India.
What is a Project Report for a bank loan?
A Project Report is a comprehensive business document that tells the bank everything about your proposed business. It is your complete business plan presented in a structured format that bank credit officers can evaluate, appraise, and use to make a lending decision.
A Project Report answers the most fundamental question your bank has about your loan application. What is this business, who is running it, how much money is needed, what will the money be used for, and how will the loan be repaid?
Without a Project Report your loan application is incomplete. Most banks will not even begin processing your file without a properly prepared Project Report from a qualified CA.
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What Does a Project Report Contain
Every Project Report prepared by Sharda Associates contains all the sections banks require for a complete credit appraisal.
Executive Summary
A concise 1 to 2 page overview of your entire business and loan requirement covering business name, total investment, loan amount needed, expected revenue, and repayment period. This is the first thing the bank reads and it sets the tone for the entire appraisal.
Promoter Profile
Covers the background, educational qualifications, work experience, industry knowledge, and personal financial standing of all promoters and directors. Banks assess the person as carefully as they assess the project itself.
Business Description
Explains what your business does, the products or services you offer, your business model, your legal structure, and your proposed location with available infrastructure details.
Market Analysis
Covers your target customers, total market size with verified data, competitor analysis with their pricing, your own pricing strategy, demand-supply assessment, and your realistic market penetration plan for years 1 through 5. Banks use this section to validate whether your revenue projections are actually achievable.
Technical Plan
Covers machinery and equipment specifications with actual supplier quotations, raw material sources and pricing, production capacity per day and per year, plant layout requirements, power and utility needs, and skilled manpower requirements with salary benchmarks.
Cost of Project and Means of Finance
Provides a complete item-wise breakdown of your total investment including land, building, machinery, working capital, and pre-operative expenses. It clearly shows the bank how much is your own contribution versus the loan you are requesting.
5-Year Financial Projections
Covers your complete Profit and Loss Statement, Balance Sheet, Cash Flow Statement, and Loan Repayment Schedule with DSCR calculation for every year of the repayment period.
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What is a Feasibility Report for Bank Loan
A Feasibility Report is a pre-investment analysis that evaluates whether your proposed project is genuinely viable before you invest your money and before the bank invests its lending capital in your venture.
While a Project Report focuses on planning how your business will operate, a Feasibility Report focuses on whether your business should proceed at all based on a thorough structured analysis of all key viability factors.
A Feasibility Report examines your project from five specific angles called the 5 types of feasibility. Every bank and government scheme portal requires all 5 to be covered completely.
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5 Types of Feasibility Explained Simply
Technical Feasibility
Evaluates whether your project can actually be built and operated using available technology and resources. It covers machinery specifications with actual supplier quotations, raw material sources and availability, production capacity assessment, infrastructure requirements, and skilled manpower availability.
Economic Feasibility
The most scrutinised section in any feasibility report. It evaluates whether your project will generate enough revenue and profit to be commercially sustainable and to repay the loan on time. It covers your complete 5-year financial projections including Profit and Loss Statement, Balance Sheet, Cash Flow Statement, Loan Repayment Schedule, and DSCR calculation. DSCR must stay above 1.25 for every year of repayment.
Operational Feasibility
Evaluates whether your project can actually be managed and operated effectively on a day-to-day basis. It covers your management team profile, organisational structure, HR requirements by role with salary benchmarks, supply chain management plan, and production workflow.
Scheduling Feasibility
Evaluates whether your project can be implemented within a realistic and achievable timeline. It covers a detailed month-by-month implementation plan from loan disbursement to commercial production start. Banks verify that your business will start generating revenue before your moratorium period ends and your first EMI becomes due.
Legal Feasibility
Evaluates whether your project can be legally executed. It covers all required licences, permits, and regulatory approvals specific to your business type and location with realistic timelines and costs for obtaining each one.
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Key Differences Between Project Report and Feasibility Report
| Factor | Project Report | Feasibility Report |
| Purpose | Business plan for bank loan | Pre-investment viability analysis |
| Question it answers | How will this business work | Should this business proceed |
| Content | Business plan, market, technical, financial projections | 5 types of feasibility analysis |
| Mandatory for | All business loans above Rs.5 lakh | PMEGP, CGTMSE, NABARD, government schemes |
| Focus | Planning and execution | Viability and risk assessment |
| Risk analysis | Basic overview | Detailed analysis for all 5 feasibility types |
When Do You Need Both Project Report and Feasibility Report Together
For most government scheme loan applications both a Project Report and a Feasibility Report are required and must be submitted together as part of the same loan file.
PMEGP Applications
Require a Project Report in KVIC/KVIB/DIC format and a Feasibility Report covering all 5 types of feasibility analysis. Both must be submitted together to the scheme portal and to the empanelled bank.
CMEGP Applications in Madhya Pradesh
Require both documents in the specific MP state government format. Our Bhopal-based team at Sharda Associates has specific hands-on experience with CMEGP documentation for all districts of Madhya Pradesh.
CGTMSE Collateral-Free Loans
Applications above Rs.25 lakh typically require a Detailed Project Report and a Feasibility Report alongside the CMA Report. Banks need all three documents before seeking the government guarantee cover.
NABARD Applications
For agriculture, dairy, food processing, and rural business projects require both a Project Report or Detailed Project Report and a Feasibility Report in the specific NABARD format.
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Why Both Documents Must Be Consistent
When both a Project Report and a Feasibility Report are submitted together every financial figure that appears in both documents must match exactly.
Your projected revenue in the Project Report must match your economic feasibility projections. Your cost of project must match the project cost in the technical feasibility section. Your DSCR must match across both documents.
Any inconsistency raises immediate questions about the reliability of your entire loan application. The bank’s credit team will return the file for correction before beginning any appraisal.
At Sharda Associates we prepare your Project Report and Feasibility Report as an integrated package ensuring complete consistency between every financial figure before delivery.
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Common Mistakes That Cause Rejection
Based on our experience of preparing 12,500 plus reports at Sharda Associates these are the most common mistakes that cause Project Reports and Feasibility Reports to be returned.
Unrealistic financial projections not grounded in actual market data are identified immediately by bank credit officers who have industry benchmark data for every business type.
Missing feasibility types leave the bank unable to complete their credit appraisal. Any of the 5 feasibility types that is missing or superficially covered results in the file being returned.
Inconsistency between documents raises immediate credibility questions about the entire loan application.
Generic template content is identified by experienced credit officers who have reviewed thousands of reports.
DSCR below bank minimum in any projection year results in automatic rejection regardless of how strong everything else appears.
Wrong format for scheme portals such as PMEGP, CMEGP, or NABARD causes rejection at the portal level before any human reviewer reads the content.
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Documents Required
For Project Report Preparation
- Aadhaar Card and PAN Card of all promoters
- Udyam Registration Certificate
- GST Registration Certificate
- Machinery quotations from authorised suppliers
- Land or premises documents
- Projected revenue and expense estimates
For Feasibility Report Preparation
Additionally you need:
- Last 2 to 3 years ITR with computation sheet if available
- Last 2 to 3 years audited Balance Sheet and Profit and Loss Statement
- Last 6 months business bank account statements
- Industry-specific licences and regulatory requirements details
- Implementation timeline and construction estimates
For new businesses without financial history contact us first. Our CA team will guide you on exactly what to prepare.
How Sharda Associates Prepares Your Documentation
At Sharda Associates every project report and feasibility report is personally prepared by a qualified chartered accountant. Not generated by software. Not outsourced to freelancers. Not copied from templates.
We begin with a free same-day consultation to understand your business, loan amount, specific bank, and government scheme requirements. You send documents by WhatsApp or email, and no office visit is required. Our CA team prepares both documents simultaneously, ensuring complete consistency between every financial figure before delivery.
We are based in Bhopal, Madhya Pradesh. When you call us you speak directly to a CA. We understand the specific requirements of banks across MP, the CMEGP scheme format, and the PMEGP documentation requirements that most national consultants are not familiar with.
Our reports are accepted by SBI, PNB, Bank of Baroda, Union Bank, Canara Bank, SIDBI, and all major banks and NBFCs. Also accepted by PMEGP, CMEGP, CGTMSE, Mudra, NABARD, and Stand Up India portals.
All revisions are completely free unlimited until your bank or scheme portal is fully satisfied and your loan is approved. Project Report starting at Rs. 2,999. Feasibility Report starting at Rs.2,999. Combined package starting at Rs.4,999. Delivery in 3 to 7 working days.
Conclusion
A project report and a feasibility report are two completely different documents serving two completely different purposes in your bank loan application. The project report is your business plan. The Feasibility Report is your viability analysis. Together they form the complete documentation foundation that government scheme portals and bank credit teams need to process and approve your loan.
Getting both documents prepared together by the same qualified CA team ensures complete consistency between all financial figures and gives your application the strongest possible foundation for approval at the first submission.
At Sharda Associates, our CA team prepares your complete loan documentation personally with the banking expertise built from helping 12,500 + businesses across India get their loans approved.
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Frequently Asked Questions
1. Are a project report and a feasibility report the same thing?
No. A Project Report is your business plan showing how your business will work. A Feasibility Report is a pre-investment analysis evaluating whether your project is viable across 5 dimensions. Both are different documents serving different purposes.
2. Do I need both for a PMEGP loan?
Yes. Most PMEGP empanelled banks require both a Project Report in KVIC/KVIB/DIC format and a Feasibility Report. We prepare both as an integrated package ensuring complete consistency between all figures.
3. Is a feasibility report mandatory for all bank loans?
A Feasibility Report is mandatory for PMEGP, CMEGP, CGTMSE, NABARD, and Stand Up India applications. For standard MSME term loans and Mudra loans a Project Report may be sufficient depending on the bank.
4. Can a new business get both documents prepared without an ITR?
Yes. For new businesses without ITR or financial history our CA team prepares complete projections based on real industry benchmarks and market research.
5. Do you also prepare the CMA report along with both documents?
Yes. We prepare your CMA Report, Project Report, and Feasibility Report as a complete integrated package ensuring consistency across all documents.
6. What is the difference between a project report and a detailed project report?
A project report covers loans up to Rs.25 lakh. A Detailed Project Report is required for loans above Rs.25 lakh and goes significantly deeper with multi-scenario projections and complete technical analysis.
7. How much does it cost to get both documents prepared?
Project Report starts at Rs.2,999. Feasibility Report starts at Rs.2,999. Combined package starts at Rs.4,999. Call or WhatsApp +91 89899 77769 for a free same-day quote.
8. What if my bank asks for revisions after receiving both documents?
All revisions are completely free unlimited until your bank or scheme portal is fully satisfied and your loan is approved.