Question for bank loans
Kollipara Sundaraiah (B.com) (2963 Points)
12 November 2021overdraft
cash credit
working capital loan
term loan.
Kollipara Sundaraiah (B.com) (2963 Points)
12 November 2021
CA Aakarsh Jain
(CA)
(10429 Points)
Replied 12 November 2021
Kollipara Sundaraiah
(B.com)
(2963 Points)
Replied 12 November 2021
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 13 November 2021
As per the funding, the banks need projected balance sheet. This could have been outdated but I am not sure how trade credit is offered in banks now a days
1. Maximum permissible loan = 0.75* (Current assets-C. liabilities)
2. Maximum permissable loan = (0.75*C.Assets)-C. liabilities trade credit and you have to take a bank long term loan of the rest 0.25*Current assets.
3. Maximum permissible loan = `.75*(c Assets-Core current assets)-C.Liabilities.
These methods could be invalid as banks have their own practices. I just now read the RBI norms and its turnover based. Making the above policies redundant because you have to fund 5% and the bank will allow upto 20-25%. It is better you make a call to the banks. They will provide much better info.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 13 November 2021
Cash Credit Loan Eligibility, Interest rates, Calculator (bankbazaar.com)
Since your pledging, some banks can give any amount. But not sure if they need turnover or assets.
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