Project Report for Bank Loan

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Project Report for Bank Loan present a diverse range analytical challenges to its clients and shareholders. Hence, a comprehensive Bank Loan Project Report requires a detailed analysis of the bank's fiscal transactions that identifies its distinctive risks.

Banks accumulates capitals from the interest and forfeits interest at a calculated rate on some accounts. They transfer these capitals to the borrowers and in turn receive interest on the loans. They accrue revenues from the interest they forfeit for capital and interest they are entitled for from the borrowers. Their competence to accumulate deposits from several sources that can be provided to borrowers helps in generating the capital flow that is an intrinsic part of the banking system. By controlling their capital influx, banks accrue revenues, simply by playing the role of the agent and undertaking the risks of providing finance to individuals.

Project Report Format For Bank Loan

Mentioned below is the standard format for preparing Project Report for Bank Loan:
  1. Introductory Page
  2. Summary of the project
  3. Details about the Promoters, their educational qualifications, work experience, etc.
  4. Current Status of the Bank, its products and services, target market, and activities.
  5. Employees, details about the top management, their educational qualifications, work experience, etc.
  6. Infrastructure facilities, tools deployed, operational premises, machinery, etc.
  7. Customers, details about them as well as prospective customers
  8. Regional Operations
  9. Fiscal acquisitions and tie-ups
  10. Means of Financing
  11. Balance Sheet
  12. Profit and Loss Statements
  13. Fund Flow Statement
  14. Chief Ratios
  15. Break Even Point Evaluations
  16. Conclusions

Things to consider while Evaluating Bank Loan Project Report

Mentioned below are certain factors in banking industry, which every investor should consider before opting for bank loan from a respective bank:

Risks and Control:

Like other industries, banking activities are closely monitored by its watchdogs who guarantee the solvency of each bank and its administration. The controller concentrates on the agreement with specific conditions, constraints and rules, aiming to preserve the reliability and veracity of the banking system.

Being one of the most highly controlled industries, banking investors require a decree of assertion in the dependability of the system so that they can concentrate on their endeavors and observations on the performance of the bank in diverse trends.

As agents, banks manage two different kinds of risks - Interest rate risk and Credit risk. While the former indicates to the risk anticipated between the interest forfeited on deposits and interest received on loans, the second indicates to probability that a borrower will fail to pay interest on the loan and the bank might incur a loss. Hence, every investor must understand these two basic factors while evaluating the bank loan project report.

Bank's Balance Sheet:

While evaluating the project report, the investor must scrutinize the bank's balance sheet. It not only offers an analytical structure to identify bank's fiscal ranking but also reveal its average revenue for a specific time frame.

Interest Rate:

Consider the rate of interest while accessing the bank's performance, for its may influence the other risk factors encountered by the bank. In an escalating interest market, the loan clients many not be able to fulfill the banks requirements due to the hike in the payment structure or a decline in incomes. This will lead to greater level of trouble loans. Hence, a brief review of the bank's current interest rate on loans helps a borrower in its banking endeavors.

Last Updated on: January 17th, 2019