A loan proposal is a detailed document which outlines request of the writer to the recipient for a loan for financing his business needs. An effective loan proposal should present the writer, his business, need of loan in exact perspective so that the reader may find in convenient to analyze and evaluate the proposal favorably. A loan proposal is used as a tool to extol the writer’s virtues for convincing the reader for granting loan. Key content on a loan proposal should include description of writer’s business or needs, amount of loan required, strategy for success, projected profit and loss ratios, repayment of loan, collaterals etc. A loan proposal should be drafted in proper format with a well designed title page and enough information about the writer.
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