What is a projected balance sheet for a bank loan?

A projected balance sheet of a bank loan demonstrates what your business is likely to look like in terms of finances in the future. It includes estimated values of assets, liabilities, and equity, enabling banks to assess your repayment capacity. It is essential for startups and MSMEs during the loan application process.

How to prepare a projected balance sheet for a bank loan?

Start by forecasting your assets (cash, inventory, equipment), liabilities (loans, payables), and owner’s equity. Use your business plan to guide the financial assumptions. Ensure the balance sheet follows the formula: Assets = Liabilities + Equity. Tools like Finline can help streamline the process.

What is the format of a projected balance sheet for a bank loan?

A projected balance sheet typically includes current and non-current assets, short and long-term liabilities, owner’s capital, and retained earnings. It is usually formatted in two columns—assets on one side and liabilities plus equity on the other. It can be created using Excel, Word, or specialized software.

What is the difference between provisional, estimated, and projected balance sheets?

Provisional balance sheets are based on actual but unaudited data. Estimated balance sheets are approximations when no actual data is available. Projected balance sheets are forward-looking and based on assumptions and forecasts, commonly used for planning and loan applications.

How to make a projected balance sheet in Excel?

To create one in Excel, list assets, liabilities, and equity in a structured layout. Input forecasted values based on your business plan. Ensure totals on both sides match (Assets = Liabilities + Equity). Use formulas for automatic calculation and easy updates.

November 18, 2025
3 Minutes

How to Prepare a CMA Report for Bank Loans

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Author : Farzana | Founder of Finline

Author : James | Founder of Finline

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Want to apply for a business loan? The CMA report for bank loans is one of the important documents needed by the banks. RBI guidelines suggest that more than 85% of business loans with an amount of 2 crores and above will need a proper submission of CMA data. This report (Credit Monitoring Arrangement) assists banks to evaluate the financial status of your business, your capacity to repay loans and the growth of your business. It contains the history of your business, present status and future financials. It might sound technical but it is easy to prepare a CMA report when you know what to put in there. In this blog, we will take you through the step by step process of coming up with a professional CMA report for bank loans that banks will trust.

What is the CMA Report of Bank Loans?

A CMA report for bank loans (Credit Monitoring Arrangement report) is a detailed financial report that banks insist on before deciding to give a loan to a borrower, particularly term loans and working capital. It gives historical, present and future financial accounts, which assist the banks in determining the repayment capacity of the borrower.

It is also referred to as a CMA project report and is normally composed of income statements, balance sheets, cash flow statements and loan repayment schedules.

The CMA Data for Bank Loan is made in a tabular form called the CMA data format in banking which is in accordance with the RBI norms. This includes:

Audited financials of the last 2-3 years of performance
Current financials
Projections (3-5 years)
Loan demand and utilization scheme
Assumptions and ratio analysis

Thus, when you ask yourself, what is CMA data format , the answer is that it is merely the standard format that is used to arrange financial data to evaluate the loan, and it allows the banks to analyze your application in an effective way.

How can Finline assist you to generate CMA reports for bank loans?

A CMA report for bank loans is an important requirement in obtaining finances to fund your business. An accurate and clear report assists the banks in determining your financial stability and it increases your chances of getting a loan. However, in case you do not know how to start or you need to format it properly, you should not be worried as Finline is here to help.

Finline is a simple platform that assists you to generate professional, bank ready CMA reports within a few clicks. Finline is trusted by thousands of entrepreneurs in India, and your report will correspond to all banking standards. Give it a go today and be a step nearer to your loan approval. Create your CMA Report for Bank Loans Today!

CMA Report for Bank Loans FAQs

What is a CMA Report and why is it required for a bank loan?

A CMA (Credit Monitoring Arrangement) Report refers to a financial report requested by banks when you are applying to take a business loan. It presents your future, present and past financial information. This assists the bank to determine whether your business is in a position to repay the loan. It is particularly required in cases of large loans that are more than 2 crores.

How can I prepare a CMA Report for securing a bank loan?

To prepare a CMA report, you should prepare your old financial statements (2-3 years), present financial statements and estimates of the following 3-5 years. You should add your income, expenses, assets, loan plans and repayment mode. That may sound difficult but with the aid of platforms such as Finline, you can easily make a complete CMA report.

What information is included in a CMA Report for bank loan approval?

A typical CMA report will include:

Historical revenues and costs

Present economic condition

Future business plans and income

The amount of loan required and the purpose of use of the loan.

Your lending strategy on how to repay the loan

This report presents the bank with an entire picture of your business.

Is it possible to create a CMA Report using Excel? If so, how?

Yes, you can prepare an Excel-based CMA report. You will have to draw up sheets for income, balance sheet, cash flow, loan needs, and repayment schedule. But for this, one also needs a lot of time and knowledge of accounting. Using Finline would certainly be an easier option as it gives you a ready-to-use report accepted by banks.

What is MPBF in banking and how is it calculated within the CMA Report?

Maximum Permissible Bank Finance (MPBF) refers to the highest allowable lending amount that a bank can give to a businessman on the basis of business possibilities. It is computed by analyzing the assets of the business which may collateralize the facility, the amount of current debt outstanding, and the amount required by the business concerned to carry on operations.

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