How to Make a Project Profile for a Bank Loan in Bangladesh

When you approach a bank in Bangladesh for a business loan—whether it’s for a small enterprise, medium factory, or large industrial project—the first thing they will ask for is a Project Profile.

This document works like your project’s “CV.” It explains what you want to do, why it’s viable, how much it will cost, and how you’ll repay the loan. A well-written profile reduces the bank’s risk perception and increases your chances of approval.

Below is a detailed, step-by-step guide to creating a professional project profile that aligns with the expectations of Bangladeshi banks.

1. Executive Summary – Your First Impression

The Executive Summary is the opening section, but it’s usually written last because it summarizes the entire profile. Banks use this to decide if they should read further.

It should clearly state:

• Project Name & Nature: e.g., “ABC Dairy Farm & Milk Processing Unit.”
• Business Type & Legal Status: proprietorship, partnership, or limited company.
• Location: land size, mouza, district, transport accessibility, availability of electricity and water.
• Project Objective: what gap or demand it fills (e.g., rising demand for pasteurized milk in urban areas).
• Products & Capacity: how much you will produce annually.
• Project Cost & Financing: total investment, how much from your own equity, and how much loan you are seeking.
• Key Financial Indicators: projected revenue, profit, break-even point, payback period, Internal Rate of Return (IRR).

📌 Tip: Keep it short (1–2 pages). Banks love clarity.

2. Company & Project Background

Here you explain who you are and why you can run this project.

• Sponsor/Owner Profile: education, business experience, management capacity. If you already run a business, highlight past successes.
• Industry Overview: explain the current state of the industry. For example, if it’s a poultry farm, note Bangladesh’s annual chicken consumption growth, import dependency, and government incentives.
• Project Rationale: why this project is necessary. Show demand, shortage in the market, or export potential.

📌 Example: “Bangladesh currently imports 30% of dairy products. Establishing a modern dairy farm will reduce import dependency while meeting local demand.”

3. Technical Aspects – Showing Feasibility

Banks want to know if your project is technically feasible. Include:

• Site Description: location, topography, soil condition, availability of utilities (electricity, gas, water).
• Land Ownership: whether land is owned, leased, or mortgaged. Provide supporting documents.
• Infrastructure: factory building, warehouse, shed, cold storage, or office space.
• Machinery & Equipment: list of machines, supplier quotations, capacity, country of origin.
• Utilities: electricity load requirement, water consumption, gas connection, waste management.
• Implementation Schedule: timeline showing when you’ll purchase land, install machines, start trial production, and reach full operation.

📌 Tip: Banks expect realistic timelines, usually 6–12 months for SMEs and 12–24 months for industrial projects.

4. Market & Demand Analysis

This section proves that your project has a ready market and can generate sales.

• Products & Services: describe the main product(s), their quality standards, and unique selling points.
• Target Market: urban consumers, wholesalers, retailers, or export buyers.
• Demand Forecast: estimate demand for the next 3–5 years using statistical data, government reports, or industry surveys.
• Gap Analysis: compare local demand vs current supply, showing that there is room for your project.
• Competition: list competitors, their strengths, and how you will differentiate (better price, higher quality, unique features).
• Marketing Strategy: sales channel (retail, online, distributor), promotional activities (advertising, trade fairs), and pricing strategy.

📌 Example: A rice mill project could show that local demand is 10 million tons annually, but only 7 million tons are supplied, leaving a 3-million-ton gap.

5. Financial Plan – The Heart of the Profile

Banks focus heavily on this section because it tells them whether you can repay the loan.

Include the following Projections:

1. Project Cost Estimate e.g. Land & site development, Civil construction, Machinery & equipment, Vehicles, Furniture & fixtures, Pre-operative expenses, Working capital
2. Means of Finance e.g. Sponsor’s equity contribution (your own money) or Bank loan (term loan + working capital loan)
3. Revenue Projections e.g. Expected sales volumes, unit prices, gross revenue.
4. Operating Expenses e.g. Raw materials, salaries, utilities, repairs, admin expenses.
5. Profit & Loss Projection e.g. Gross profit, operating profit, net profit.
6. Cash Flow Forecast e.g. Monthly/annual inflows and outflows.
7. Balance Sheet Forecast e.g. Assets, liabilities, and equity.
8. Financial Ratios e.g. Break-even point, Payback period, Internal Rate of Return (IRR)

📌 Tip: Banks generally expect a DSCR of 1.25 or higher to feel comfortable.

6. SWOT & Risk Analysis

Show that you understand risks and have strategies to manage them.

• Strengths: location advantage, low labor cost, government support.
• Weaknesses: dependence on imported raw materials, high capital requirement.
• Opportunities: rising middle-class demand, export market access.
• Threats: price fluctuation, disease outbreak (for livestock), competition.

📌Tip: Suggest mitigation, e.g., long-term supplier contracts, insurance, diversification.

7. Management & Human Resource Plan

Banks want to know who will run the project.

• Organizational Structure: chart showing management hierarchy.
• Key Management Team: general manager, production head, marketing manager, finance/accounting officer.
• HR Plan: number of workers, skill requirements, salary expenses, and training programs.

📌 Example: “The project will employ 25 full-time staff including 2 engineers, 1 quality control officer, 5 sales executives, and 17 skilled/unskilled workers.”

8. Legal & Regulatory Considerations

Banks prefer projects that comply with laws and policies. Include:

• Company Legal Formation (Company/ Partnership/ Sole Proprietorship)
• Trade license
• E-TIN
• VAT registration.
• Environmental Clearance (if applicable).
• Import Registration Certificate (if applicable).
• Export Registration Certificate (if applicable).
• Land ownership documents.
• Any special permits (e.g., for pharmaceuticals, agro-based industries).

9. Annexures & Attachments

At the end, attach supporting documents:

• Machinery quotations
• Land deed or lease agreement
• Maps or site layout
• Sponsor’s financial statements
• Photos of project site
• Agreements with suppliers or buyers

📌 Things to keep in mind when creating a strong project profile

• Follow Bangladesh Bank’s recommended format where possible.
• Be realistic in numbers—inflated sales projections or underestimated costs weaken credibility.
• Provide updated quotations for machinery, construction, and raw materials.
• Focus on repayment ability—show how loan installments will be covered by profit.
• Highlight government support—like tax benefits, subsidies, or special economic zones.
• Keep the document neat and professional—clear fonts, tables, graphs, and headings improve readability.

A project profile is more than just paperwork—it’s your business plan presented in a way banks can evaluate quickly. By covering executive summary, background, technical details, market analysis, financial plan, risk assessment, HR strategy, and compliance documents, you build confidence in your project’s success.

In Bangladesh, where banks are cautious about loan defaults, a well-structured and data-backed project profile can make the difference between loan approval and rejection.

✍️ Author:
Gias Uddin CAP, ITP
🛡 Professional Accountant, Income Tax Lawyer
📲 01734-008136 (WhatsApp)