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Banking & Insurance

Syndication & Funding

BANK LOAN RATING

Bank Loan Rating:

Bank loan rating from external agencies is used by Banks, Vendors, Financial Institutions, Investors and others to gauge the financial health of an Enterprise and its ability to make timely payment of its bank loan, including principal and interest payment. Further, to improve awareness about credit rating and its benefit, the Government of India also provides a subsidy for MSME businesses to obtain SME credit rating.

• Bank loan rating (BLR) is essentially a credit rating for bank facilities or loans given by banks, namely – Rupee Term Loans, – Foreign Currency term loans incl. FCNR (B) loans – Cash Credit facilities, Overdraft – Packing Credit – Letter of Credit, Bank Guarantees

Bank Loan rating is used by Banks to calculate the capital required by them for that loan. – They save capital for higher rated companies and need to keep aside additional capital for lower rated loans

Benefits of BLR: Banks

• Risk-based pricing of bank loans & facilities

• Helps inculcate financial discipline in borrowers

• Quicker processing of loans & enhancements

• Computation of Capital Adequacy Ratio (CAR) as per RBI guidelines

• Independent view of borrowers’ strengths and weaknesses by a reputed rating agency 6.

• Focus on Client Relationship Management

• Dynamic ‘health check’ of portfolio

Benefits of BLR: Corporates

• Risk-based pricing of bank loans – lower borrowing costs for higher rated entities

• Quicker processing of loans & enhancements

• Access to alternate avenues of funding

• Provide an independent view of the company’s strengths and weaknesses through a detailed credit rating report

• Enhance visibility for the corporate in the investment community

• Avoid penal interests on unrated bank loans

REQUIREMENTS FOR BANK LOAN RATING:- (All copies of documents should be self attested by the customer)

  • Authority letter to sign the application.
  • Documents supporting registration.
  • Copy of income tax, sales tax, excise and wealth tax returns, if filed.
  • Copy of the audited accounts for the last three years.
  • Copy of insurance policies of assets.
  • In case of new project/expansion, a copy of the project report containing a brief project profile, cost of the project, source/means of finance.
  • Details of subsidy and tax concession available, if any
  • Quality certificates, export awards won membership of any associations.

How we help with BANK LOAN RATING

Engagement advisory

Our business except will review your business profilefinancial information LOAN documentation to understand the background of the business.

Consultation

Based on the information collected our advisory buy advisory bank LOAN rating is provide to the client.

Rating Advisory

Before releasing of rating buy the agency a discussion is completed with the client client and rating agency.

Needs For Evaluating Bank LOAN

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working capital

working capital LOAN is given by banks for working capital proposal like holind of investments,recivables and bulit up of other current assets in a business capital, working capital r renwable every year

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Bank warranty

It is promise that is made by a bank that liabilities of party will be met by the bank in the event that party fails to fulfill contractual obligation bank warranty are typically requested will executing a large project.

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Letter of cerdit

It is type of facility that a bank granting a buyers payment to a seller. If the buyer is unable to the payment on the purpose as per term and conditions of transaction.

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Mortgage LOAN

These are the LOANs that are back to buy real property by putting a lean on the property being mortgage.

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Term LOAN

Short-term financing is a method of raising funds involving financial obligations that need to be repaid within a year or less. It is a fast and flexible way for companies to obtain working capital.