Executive Summary
- Means of finance shows exactly how total project cost will be funded, source by source
- Promoter contribution typically needs to be 10–25% of project cost from owned funds
- Each funding source needs documentary evidence, not just a stated figure
- Inconsistency between this section and the rest of the DPR is an easy, common error
What This Section Must Show
Means of finance is a structured breakup showing every source of funding for total project cost — promoter contribution, term loan, working capital margin, and any other source such as a subsidy or unsecured loan from family — with each source's amount and percentage of total cost clearly stated. This section is typically short, a single table, but it is checked closely because it confirms the funding structure actually adds up to the stated project cost.
Documenting Promoter Contribution
Most PSU banks require promoter contribution of 10% to 25% of project cost from genuinely owned funds — see our detailed guide on why promoter contribution matters for the full reasoning. In the means of finance section specifically, this contribution should be backed by supporting evidence — bank statements, sale proceeds documentation, or audited financials showing retained earnings — referenced or attached as an annexure.
The Term Loan and Working Capital Split
For projects requiring both capital expenditure and initial working capital — common in greenfield manufacturing — the means of finance section should clearly separate the term loan portion from the working capital portion, since these are typically sanctioned and tracked as distinct facilities even when applied for together as a composite loan.
Keeping This Consistent With the Rest of the DPR
The total project cost stated in means of finance must exactly match the project cost stated elsewhere in the DPR — in the executive summary, in the financial projections' opening balance sheet, and in any machinery or construction cost annexures. A mismatch here, even a minor one, is a common and entirely avoidable inconsistency that triggers an immediate bank query.