Bank Loan & Project Finance Support

Banks Don’t Reject Businesses. They Reject Files.

Inside every bank, your application is converted into an internal appraisal note — ratios computed, projections stress-tested, documents cross-checked. If the DSCR doesn’t hold at realistic utilisation, the working capital assessment contradicts the stock statements, or the CMA format is improvised, the note writes itself negative. Our job is to hand the credit team a file their note can approve: internally consistent, ratio-sound, and matched to the specific bank’s appetite and checklist.

What the engagement covers

• Loan structuring: term loan vs cash credit / overdraft mix, tenor and moratorium sized from the asset life and operating cycle.
• CMA data & projections: the full lender package — past performance, projected P&L and balance sheet, fund flow, working capital assessment, DSCR, current ratio and the ratios the appraisal note is built from.
• DPR where needed: greenfield units and scheme-linked projects get a full Detailed Project Report from the same assumption base.
• Collateral strategy: CGTMSE guarantee cover for eligible micro & small enterprises, scheme collateral-free mandates, and part-security structuring above those thresholds — see our CGTMSE guide.
• Bank shortlisting & follow-through: lenders chosen by district-level sector appetite and scheme familiarity after the project cost is fixed; queries and clarifications handled through to sanction and disbursement.

Straight talk: we do not guarantee sanction or pricing — those are the bank’s calls — and we will tell you upfront if the DSCR or contribution makes a proposal unbankable as framed, so you fix the structure instead of burning months. If equity is the better route at your stage, the same desk runs the valuation and model. Post-disbursement, stock statements, renewals and covenant reporting run through bookkeeping and Virtual CFO.

How the loan engagement runs

• Step 1 — Bankability check: amount, purpose, last year’s turnover and existing borrowings — enough to tell you whether the proposal is bankable as framed, and what to change if it is not. This call has saved clients months of rejected applications.
• Step 2 — Structure design: term loan vs working capital split, tenor, moratorium, and the collateral / CGTMSE-cover strategy — fixed before any bank sees the file.
• Step 3 — File build: CMA data, DSCR-tested projections, DPR where the project needs one, and every document on the lender’s checklist assembled once, completely.
• Step 4 — Bank shortlist & submission: two or three lenders chosen by district-level sector appetite, ticket comfort and scheme familiarity — submitted in parallel where sensible.
• Step 5 — Appraisal support to sanction: queries answered with computations, not adjectives; inspection coordinated; sanction terms reviewed before you accept them.

Documents you will need

KYC of promoters and entity; last three years’ financials with ITRs (or since inception); GST returns and bank statements for the recent period; existing loan sanction letters and repayment track; quotations or estimates behind any capex; premises documents; and Udyam registration for MSME-linked benefits. For working capital, debtors/creditors ageing and stock position. The pattern worth knowing: banks rarely reject on one missing document — they slow down, and slow files die of old age. Complete on day one is the strategy.

Why loan files stall

• DSCR that fails its own projections: repayment obligations the projected cash flows cannot cover at realistic utilisation — the appraisal note writes itself negative.
• Banking conduct contradicting the story: cheque returns, over-limit drawings or unexplained cash patterns in the very statements attached to the file.
• GST–books–statement mismatch: three documents telling three turnover stories — reconciliation is the first thing an appraiser runs.
• Asking the wrong bank: a perfect file at a branch with no appetite for the sector or ticket size still goes nowhere — selection is half the outcome.
• Dribbling documents: responding to each query with the minimum keeps the file at the bottom of the queue — anticipate the questions, answer them in the original submission.

Frequently Asked Questions