how to calculate loan eligibility in it returns how to prepare income tax return for loan perpos ..
wich is consider to loan....
like balance sheet or p&l account...
or tornower.. wich is mainly consider for loan in banks..
Turnover with profit margin of last 3 years.
Check bank sites for eligibility criteria of business loan...
Like one from HDFC bank is as follows ..
The following people are eligible to apply for a Business Loan:
1. There are no rules as such for eligibility to obtain loan from a bank. The criteria vary from bank to bank. Some bank will look at the future prospects your business and grant loan. Some may look at your financial credibility and security. Some may look at your past financial records like Balance sheet, Profit and loss account and mainly Cash flow (if available). It depends on the business you are into and how the bank views the same and the amount of loan.
2. So there is no yardstick as such but they do expect you to give full details on the documents they are demanding. Say for instance if you are applying for a business loan relating to the trading of cotton,
i) Audited financial statements for the last 3 years
ii) IT return for the last 3 years
iii) Stock statement from a CA. (preferably stock audit reports)
iv) Vendor details
v) Debtors details (Trade receivable party and amount wise certified by CA)
vi) If you have future projections of your financials, would be helpful.
vii) Other company related documents for its authentication as per bank demands.
3. And all these documents are for the purpose of verification but the important point to be kept in consideration is how much you are trustworthy in business dealings. This is determined by the bank manager along with other senior executives (if necessary). This aspect is so intangible that only bank on its own judgment on merits will decide. After a lot of scams, this point has become very important beyond paper-based verification.
Hope my take on Bank Loan was helpful.
CAclubindia
