Banking
This query is : Resolved
09 April 2009
We are enjoying working capital limits of Rs 25 crore (fund based + non fund based) from consortium bankers. The bankers are insisting to get the rating done and telling us that it is made compulsory by RBI. So we would like to know whether really it is mandatory or the banks are insisting the rating for their own risk exposures. We have been informed that it is not compulsory by RBI but since the bankers are likely to save capital if they get their loan portfolios rated.So what are the norms and ceiling for rating
CA. B.SRINIVASULU
(Expert)
09 April 2009
Rating is not compulsory as per RBI guidelines.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
CA. B.SRINIVASULU
(Expert)
09 April 2009
Rating is not compulsory as per RBI guidelines.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
CA. B.SRINIVASULU
(Expert)
09 April 2009
Rating is not compulsory as per RBI guidelines.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
CA. B.SRINIVASULU
(Expert)
09 April 2009
Rating is not compulsory as per RBI guidelines.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
If rating is there Bankers can depend on the same for further processing of loans and since your limit is more.
Furthter if you have rating you can also discount in the rate of interest by 0.5% to 1% depending on Bank.
You have think both pros and cons and cost and adminsitration time required to get it.
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