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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- EPF ECR NEW FILE SEP 17TH 2026
- PTRC Show Cause Notice on Email
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Capital Gail Exemption Certificate
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- TAX AUDIT ON PROFESSIONAL INCOME
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Import of Software Service.
- EPF ECR NEW RULES Sep 17th 2026
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Unable to File TDS Q2 Return – New TRACES Portal Error
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
