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A bank loan proposal is crucial for obtaining financing, as lending is a core revenue-generating activity for banks. The lending decision is based on the information provided in the loan proposal, which must include essential details about the borrower to enable the sanctioning authority to make an informed decision. The proposal is also known as an appraisal memorandum in some banks. Typically, it is divided into two main parts: the executive summary and the detailed proposal. The executive summary, usually one or two pages long, offers a concise overview of the entire proposal, which may span 40 to 50 pages, allowing for quick comprehension of the key points.
