DPR Readiness
DPR for Bank Term Loan
A DPR for a term loan has one job: to let the bank's appraiser understand the project and test its ability to repay, without having to come back to you for basic information. These are the sections we build and what each needs to show.
Contents of a bank-loan DPR
| Section | What it needs to show |
|---|---|
| Executive summary | The project, the ask, the security offered and the key ratios on one page. |
| Promoters and entity | Background, experience, net worth, existing businesses and the constitution of the borrower. |
| Project and technology | Product, capacity, process, machinery, utilities, location advantages and approvals status. |
| Market | Demand, customers, competition, pricing and sales plan, with evidence where available. |
| Cost of project | Every head with quotations or estimates: land, building, plant & machinery, pre-operatives, contingencies, working capital margin. |
| Means of finance | Promoter contribution, term loan, unsecured loans and any subsidy, with the timing of each. |
| Projections | Capacity build-up, revenue, costs, profitability, cash flows and balance sheets over the loan tenure. |
| Repayment and ratios | Moratorium, repayment schedule, average and minimum DSCR, interest coverage, break-even and sensitivity. |
| Implementation schedule | Milestones from land and approvals to trial production and commercial operation. |
Where DPRs usually fail appraisal
- Cost of project not supported by quotations, or machinery quotes that do not match the capacity claimed.
- Capacity utilisation and prices that are optimistic compared with the industry and the promoter's own track record.
- Working capital ignored or underestimated, leaving the unit short of cash after commissioning.
- A back-ended subsidy counted as day-one funding.
- No sensitivity analysis, so the bank cannot see how the project behaves if things go wrong.
Pair the DPR with CMA data and a term loan proposal in your bank's format.
Want a structured view of your project?
Share the outline. We review it against our five-step approach and come back with the incentive scope, viability risks and capital gaps we see.