Finance · 10 min read

How to Make a CMA Report for Bank Loan — Format, Statements & Common Mistakes (2026)

Step-by-step guide to preparing CMA (Credit Monitoring Arrangement) data for Indian bank loans: 7 statement format, what data to fill, common mistakes banks catch, and how to check your MPBF.

7 CMA statements explained
Data sources for each statement
5 mistakes that get CMA rejected

Who this guide is for

  • Business owners preparing CMA data for the first time
  • Existing businesses applying for CC/OD limit enhancement
  • Accountants and CAs assisting MSME clients
  • PMEGP and MUDRA Tarun applicants (₹5L–₹10L)

Bank-loan checklist (use this before you submit)

  • Statement 1: Operating Statement (P&L) — 2 years actual + 3–5 years projected
  • Statement 2: Analysis of Balance Sheet — current and projected
  • Statement 3: Comparative Statement of Current Assets and Liabilities
  • Statement 4: MPBF Calculation (Tandon Method II) — verify limit matches loan request
  • Statement 5: Fund Flow Statement
  • Statement 6: Ratio Analysis (Current Ratio, DSCR, TOL/TNW, etc.)
  • Statement 7: Details of Assets (fixed assets and depreciation schedule)
  • Ensure historical actuals match ITR/GST return data exactly
  • Year 1 projected growth rate is defensible with market evidence
  • DSCR ≥ 1.25 across all projection years

FAQs

Which format do Indian banks accept for CMA?

All major public sector banks (SBI, PNB, BOB, Canara, Union Bank, Indian Bank) accept the IBA (Indian Banks' Association) standard CMA format. Private banks may have proprietary formats but accept IBA CMA too. The 7-statement structure is universal. Our reports generate CMA in this exact format.

How many years of data does CMA need?

Standard CMA data covers 2 years of actual historical financials (from audited accounts or ITR) and 5 years of projections. For new businesses with no history, only projected data is required — clearly marked as estimates. Banks prefer 3 years actual data when available.

What is the biggest mistake in CMA reports?

The top three mistakes: (1) historical actuals don't match ITR/GST filed returns — banks cross-verify this. (2) MPBF calculated incorrectly — loan amount exceeds MPBF ceiling. (3) Revenue growth projections are too aggressive (>40% YoY) without market justification. These cause rejection or delay while banks request corrections.

Do all loans need CMA data?

MUDRA Shishu (up to ₹50K): no. MUDRA Kishor (₹50K–₹5L): sometimes requested. MUDRA Tarun (₹5L–₹10L): usually required. MSME loans ≥ ₹10L: almost always required. Working capital (CC/OD) ≥ ₹5L: required. Term loans above ₹25L: always required. When in doubt, include it — a good CMA strengthens the application.

Want a project report that banks actually accept?

Generate a report with 5-year projections, DSCR, and CMA-aligned data in minutes.