CMA Data & Bankable DPR Consultant
Quick answer: Banks assess loans on a specific six-form CMA format and a DPR built to their questions, not a generic project description. We prepare both to your bank's actual template, with the DSCR, sensitivity and break-even analysis a credit officer will check before sanctioning.
CMA data — what's actually in a bank-ready report
| Form | Contents |
|---|---|
| Form I | Particulars of existing and proposed credit limits |
| Form II | Operating statement — sales, cost of production, profit — two past years, current estimate, projections |
| Form III | Analysis of balance sheet in the bank's defined liability/asset groupings |
| Form IV | Comparative chart of current assets vs. current liabilities, with holding levels in months |
| Form V | Maximum Permissible Bank Finance (MPBF) computation for working capital |
| Form VI | Funds flow statement |
Banks add their own key-ratio sheet (current ratio, TOL/TNW, DSCR, interest coverage) and, for term loans, a repayment schedule with DSCR projections. The turnover method (roughly 20% of projected turnover, 5% promoter margin) typically applies for smaller MSE limits up to around ₹5 crore; larger limits use the MPBF/holding-level method, and seasonal businesses sometimes use a cash-budget method instead. We always build to the specific bank's own CMA template rather than a generic format.
Bankable DPR vs. a subsidy-application DPR
A subsidy DPR (like the ones filed under PMFME) is built to prove scheme eligibility — eligible cost heads, the subsidy calculation, beneficiary category — and is often thinner on sensitivity testing and market evidence than a bank wants to see. A bankable DPR has to additionally cover:
- Evidence-backed demand and pricing assumptions, not just asserted figures
- Cost of project backed by actual vendor quotations
- Means of finance with a realistic promoter margin (commonly 15-25%)
- 5-7 year projected profit & loss, balance sheet and cash flow
- Debt Service Coverage Ratio (DSCR) — lenders typically want an average around 1.25-1.5 or higher
- Break-even and cash break-even analysis
- IRR/NPV and payback period
- Sensitivity analysis — commonly ±10% on price, volume and cost
- A repayment schedule that actually matches projected cash flow, not a flat assumption
- Security/collateral position and CGTMSE eligibility where relevant
Best practice we follow: build one reconciled financial model that produces both the subsidy-format DPR and the bank-ready version, so the numbers you show MoFPI and the numbers you show your bank never contradict each other — a common, easily-avoidable reason both applications stall.
Talk to us before you file anything
Frequently asked questions
What is a CMA report?
A bank-format set of financial statements — particulars of limits, an operating statement, balance-sheet analysis, a current asset/liability comparison, MPBF computation and a funds-flow statement — covering two past years, the current estimate, and projections. Banks use it to assess working-capital and term-loan limits.
Who prepares a CMA report?
Usually a chartered accountant or a project consultant, working from your audited financials and projections, formatted to the specific bank's own template — banks vary in exactly how they want the six standard forms presented.
How is my working capital limit actually calculated?
For smaller MSE limits, most banks use the turnover method — roughly 20% of projected turnover, with a 5% margin from the promoter. For larger limits, the MPBF (Maximum Permissible Bank Finance) method based on inventory and receivable holding levels applies instead.
What makes a DPR 'bankable' rather than just descriptive?
A bankable DPR answers a credit officer's actual questions: evidence-backed demand and pricing, a realistic cost of project with quotations, the promoter's margin, 5-7 year projected financials, a DSCR that clears the lender's comfort level (commonly around 1.25-1.5 or higher), break-even analysis, sensitivity testing, and a repayment schedule that actually matches projected cash flow — not just a description of the business.
Can my PMFME subsidy DPR be reused for the bank loan application?
It can be the starting base, but banks typically need fuller projections, a proper DSCR and sensitivity analysis than a subsidy-format DPR usually includes. We build one reconciled financial model that produces both the subsidy-application DPR and the bank-ready version, so the numbers never contradict each other across the two filings.
What DSCR do banks typically look for?
Lenders commonly want to see an average Debt Service Coverage Ratio of around 1.25 to 1.5 or higher across the loan tenure — a DPR with a DSCR below that range needs either restructured financing assumptions or a stronger case before a bank will sanction it.