Executive Summary
- Proposal mistakes fall into three categories: documentation, financial modelling, and process
- Mismatched figures across documents are the single most common documentation error
- DSCR miscalculation often understates a genuinely viable proposal's strength
- Professional preparation differs primarily in internal consistency, not raw content
Documentation-Level Mistakes
Incomplete checklist
Missing a single required document — often a supporting annexure rather than a primary document — causes the entire file to be returned.
Mismatched figures across documents
Revenue or cost figures that differ between the DPR, CMA data, and supporting quotations are the most frequent single documentation error we encounter.
Financial Modelling Mistakes
Unrealistic capacity utilisation assumptions
Projecting aggressive Year 1 utilisation that does not match industry norms invites scrutiny rather than confidence.
DSCR miscalculation
Computing DSCR using only net profit rather than net profit plus depreciation plus interest understates a viable business's actual repayment capacity.
Process Mistakes
Wrong bank or branch selection
Submitting to a branch with limited CGTMSE experience extends timeline regardless of file quality.
How a Professionally Prepared Proposal Differs
The difference between a self-prepared and professionally prepared proposal is rarely about access to information — most of what's required is publicly documented. The difference is internal consistency: every figure in the DPR matching the corresponding figure in the CMA data, DSCR computed correctly per the standard formula, capacity assumptions benchmarked against actual industry norms for the sector and Karnataka district in question, and the document set complete against the specific bank's checklist rather than a generic one. See our companion piece on why banks reject applications for the broader set of rejection triggers beyond proposal preparation itself.