10 March 2010
Some of the features that banks generally look in CMA are > 1. Current ratio shud be min. of 1.33. Higher is a better. 2. Quick ratio shud be more than 1. 2. Debt Equity ratio should not be more than 1. 3.Loan amount generally not exceed that 20% or 25% of sales depending upon bank to bank. 4. Loans taken from other banks are also considered by banks while sanctioning Loans. 5. Interest coverage ratio must be sufficient to repay debt and installments. 6. Stock mortgage and assets hypothecation are also considered while determining the Loan Amonut. Loan sanctioning are not limited to above points and are dependent on bank to bank requirements.
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