A PROJECT REPORT ON (BANK LOAN PROPOSAL)
BY
(VIDYA V. MANKAR) (BBA) (2011-2012)
IN PARTIAL FULFILLMENT OF Bachelor of Business Administration UNIVERSITY OF PUNE
MITSOM College PUNE: 4110
CERTIFICATE
This is to certify that Miss VIDYA V. MANKAR of MAEERs MITSOM College has successfully completed the project work titled BANK LOAN PROPOSAL in partial fulfillment of requirement for the award of Bachelor of Business Administration prescribed by the University of Pune
This project is the record of authentic work carried out during the academic year 2011-2012.
Project Guide Mr. Hemant Bhise
Principal Dr R.M.Chitnis
Internal Examiner
External Examiner
DECLARATION
I, MISS VIDYA V. MANKAR hereby declare that this project is the record of authentic work carried out by me during the academic year 2011-2012 and has not been submitted to any other University or Institute towards the award of any degree.
VIDYA V. MANKAR
ACKNOWLEDGEMENT
This project bears imprint of all those who have directly or indirectly helped & extended their kind support in completing my project. I am very grateful to my brother Vijendra, without his guidance, I could not have finished this project. At the time of making this report, I express my sincere gratitude to him. I express my heartfelt & sincere gratitude, to my project guide Prof. Hemant Bhise for his constant guidance who has been a continuous source of inspiration & encouragement. I also thank my sister for her help throughout the project. At this moment, I also thank my parents & lastly the almighty god for the blessing shown upon me & also my friends for their valuable suggestions who have been supportive in the completion of this project.
Mankar Vidya Vinayak
ABSTRACT
This project of Bank Loan Proposal includes hypothecations of the Dairy Farm Business. The proprietor intends to start a business project that is a dairy farm in Raigad district of Maharashtra & for the same her investment is Rs. 35, 60,000. She had applied to bank to grant a loan which would satisfy 40% investment needs. The term loan is having 12% interest to be repaid in 10 years i.e. in 120 installments. Also, 50% investment need will be fulfilled with the help of scheme of NABARD ( National Agricultural Bank for Agricultural & Rural Development). The name of scheme is Dairy Venture Capital Fund Scheme which will provide the proprietor with 50% investment need of project in form of Interest Free Loan from Revolving Fund of NABARD which to be repaid in period of 5 years. Due to this scheme, the proprietor has to pay insurance premium at 2.5 % of cost of animals. The remaining 10% investment needs will be proprietors contribution. The project details reveal the annual proposed expenses incurred by the firm. The Depreciation statement reveals the depreciation on the various assets. The Profitability statement gives the profit earned by the firm on an estimated basis. The Cash Flow statement gives a brief idea of the cash inflows & outflows. Also, a Balance Sheet is prepared which shows the financial position of the company. Lastly, The Debt Service Coverage Ratio is also calculated which shows that the project is financially viable as the ratio is positive.
PROJECT REPORT
Background:
Mrs. Vijaya Vinayak Mankar , The proprietor of Dairy Farm is a successful farmer running a dairy farm from past five years in Raigadh. She has now decided to open a new dairy farm in Mangaon, dist. Raigadh. The proprietor herself is a competent farmer, well educated, creative & talented business person who is involved in the above business & possesses dynamic management skills & leadership qualities. She will be responsible for carrying out dayto-day activities of the business.
Business Prospects:
The Milk Production is a business which nourishes the development of rural area. The total milk production in country for year 2008-09 was estimated at 108.5 million metric tonnes & demand is expected to be 180 million tonnes by 2020. To achieve this demand annual growth rate in milk production has to be increased from the present 2.5% to 5%. Thus, there is a tremendous scope for increasing the milk production through profitable dairy farming.
