BUSINESS LOAN ELIGIBILITY CALCULATION

Dear Sir,

We are planning to take Business Loan, our Last year Profit 65000/-,  Depreciation Debited P&L Account 3,00,000/-

Depreciation + Profit  : 3,65,000/-

what is eligibility to take Loan.

Help..

 

Replies (3)
Quick Summary
This discussion explores how to calculate business loan eligibility, considering factors like last year's profit and depreciation. While textbook methods exist, the reality is that banks have their own vetting processes. It's recommended to approach multiple banks to understand their specific criteria and advantages, as loan eligibility can vary significantly.

Banks have their own loan vetting philosophies based on credit scores, dunnng people, word of mouth, etc. But usually text books teach different things about funding SME through Tandon committee method, cash budget method, turnover method, single window schemes etc. nothing is guaranteed because banks lend out recklessly for collateral as well. So contact two three banks and find out what are the advantages within them. Even company management does the same, no one knows everything. It’s always better to approach a bank.

You have to check additional conditions also

Absolutely proven to be true. I left off concentrating too much as my mba books and bank loan is different. Whatever, training will be given if anyone works for capital intensive companies

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