RATIOS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 January 2011 I hereby request every one who know
that what are the financial requirements(ratios) for a bank to sanction a business loan

kindly

answer my query

CA Sanat Pyne

CA Sanat Pyne (Expert)
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18 January 2011 CURRENT RATIO
TOL/TNW
PBIDT/INTT.
PAT/NET SALES (%)
ROCE (%)
INV.+REC./SALES (DAYS)

Further some points for consideration.

1) Ensure that Current ratio must be at least 1.33.

2) The amount sales must at least 5 times that of the loan amount. Every bank has different rules of granting loans, however generally 20% -25% of the sales amount is considered as loan.

3) While preparing Projected b/s, consider any major changes planned by management, like any major purchase of asset, raising of capital, settlement of any existing loan etc..

I hope it will help you a little.....

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

11 November 2011 thank you

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