Business loan requirment

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Rahul Srivastava (Querist)
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12 September 2016 Am going to apply for a Business loan of Rs 15,00,000/- but the banker is asking income tax returns and balance sheet and profit and loss account , If i want Business loan Rs 15,00,000/- how much turnover i want to show in my profit and loss account and how they will calculate the loan amount based on the turnover and please provide the calculation procedure and my business is small business

Amol S Joglekar

Amol S Joglekar (Expert)
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13 September 2016 the thumb rules could be......3 to 4 times of average profit for last 3 years.
subject to security offered, based on projections, the loan may be granted..
Another criterion is 1/6th of turnover....this is normally for cash credit...
That is to say, it is a fairly complex process which is based on RISK analysis of the client.... So better take the help of some financial consultant

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