Bank Finance & Loan Advisory — New Delhi
Loan Arrangements & Bank Finance Advisory — CA-Assisted
Securing a bank loan — whether for a new home, business expansion, working capital, or a large project — requires far more than just an application form. Banks and NBFCs evaluate your creditworthiness through a detailed assessment of financial statements, projected cash flows, project viability, and your credit history. A professionally prepared loan file significantly improves your chances of sanction at the right interest rate and tenure.
At Gupta Chandan & Associates, our Chartered Accountants assist individuals, businesses, and promoters in preparing bank-ready documentation — including CMA data, projected financial statements, project reports, CIBIL advisory, and loan repayment schedules — tailored to meet the specific requirements of your bank or NBFC.
Home Loan
Purchase, construction & renovation
Business Loan
Expansion, equipment & capex
Working Capital
CC, OD, bill discounting
Loan vs Property
LAP for residential & commercial
CMA Data
Credit monitoring arrangement report
Project Report
Bank-ready business feasibility
Types of Loans We Help You Arrange
We assist individuals, self-employed professionals, and businesses in arranging and documenting the right type of credit facility from banks, NBFCs, and government lending schemes. Here is a guide to the main loan types and what we do for each:
Business Loan — Term Loan & Expansion Finance
Most SoughtWhat It Is
A term loan provided by banks and NBFCs to businesses for a specific purpose — such as purchasing machinery, expanding capacity, acquiring commercial property, or funding a greenfield project. Repaid in equated monthly instalments (EMIs) over a fixed tenure.
Who Can Apply
Proprietorships, partnerships, LLPs, private limited companies, and public limited companies. MSME-registered businesses may access preferential rates and priority sector lending under government schemes (CGTMSE, Mudra, Stand-Up India).
What We Prepare
- CMA data (3 years historical + 5 years projected)
- Project report with financial viability analysis
- Projected Balance Sheet, P&L, and Cash Flow
- Loan repayment schedule
- Means of finance statement
- Business plan and promoter profile
Working Capital Loan — CC / OD / Bill Discounting
For BusinessesWhat It Is
A revolving credit facility to fund day-to-day business operations — purchasing raw materials, paying wages, bridging receivables, and managing cash flow gaps. Available as Cash Credit (CC), Overdraft (OD), Bill Discounting, or Letter of Credit (LC).
CC vs OD vs Bill Discounting
- Cash Credit (CC): Credit limit secured against stock and debtors — interest charged only on the amount utilised. Most common working capital facility.
- Overdraft (OD): Credit limit against FD, property, or personal guarantee — more flexible, used for general purposes including by individuals.
- Bill Discounting: Bank advances funds against trade receivables / invoices before they are due — improving cash flow for exporters and B2B businesses.
What We Prepare
- CMA data — stock and debtor assessment
- Drawing Power calculation statement
- Stock and debtor statements
- Projected working capital requirement analysis
- Turnover method / MPBF method assessment
- CA certificate for stock / debtors
Home Loan — Purchase, Construction & Renovation
IndividualsWhat It Is
A secured loan taken to purchase a residential property, construct a home on owned land, renovate or extend an existing home, or purchase a plot for construction. Typically the largest individual loan — with tenures up to 30 years.
Eligibility Factors
- Monthly income (salary or business profit)
- CIBIL score (generally 700+ for best rates)
- Existing EMI obligations (FOIR — Fixed Obligation to Income Ratio)
- Property valuation and legal title clearance
- Employment / business stability and continuity
- LTV ratio — typically up to 80% of property value
What We Help With
- Income computation and ITR-based income proof
- CA-certified income for self-employed / business persons
- Preparation of projected income (for new businesses)
- CIBIL score review and improvement advisory
- Identification of best lender based on profile
- Documentation checklist and file preparation
Loan Against Property (LAP)
SecuredWhat It Is
A secured loan taken by mortgaging a residential or commercial property — either self-occupied or rented. The loan amount is typically 50–70% of the property's market value (LTV). Used for business expansion, debt consolidation, higher education, or any other purpose.
Key Advantages
- Lower interest rate compared to unsecured business or personal loans
- Higher loan amounts available (linked to property value)
- Longer tenure — up to 15 years for LAP
- Property ownership is retained; only mortgage is created
- Suitable for self-employed, businesspersons, and HNIs
What We Help With
- Income documentation for self-employed applicants
- Business financial statements and CA certification
- Preparation of projected income statement
- Assistance in property valuation liaison
- CIBIL review and improvement advisory
- Documentation file preparation
Personal Loan
UnsecuredWhat It Is
An unsecured loan granted to individuals based on their personal creditworthiness — salary / income, employment stability, existing obligations, and CIBIL score. No collateral or mortgage required. Used for medical emergencies, travel, weddings, education, home improvement, and more.
Key Considerations
- Interest rates higher than secured loans (typically 10–24% p.a.)
- CIBIL score is the most critical eligibility factor
- Income proof and employment stability are key
- FOIR (Fixed Obligation to Income Ratio) typically capped at 40–50%
- Shorter tenure — 1 to 5 years in most cases
What We Help With
- CIBIL score review and dispute resolution
- Income documentation for self-employed applicants
- ITR preparation and CA certification for income
- Identification of best lender rate based on profile
- Advisory on improving eligibility before applying
MSME & Government-Backed Loans
SME FocusCGTMSE — Collateral-Free Loans
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme enables banks to provide collateral-free loans of up to ₹5 crore to MSMEs. The government provides a credit guarantee to the bank — making it accessible for new and small businesses without property to mortgage.
PM Mudra Yojana
Loans under the Pradhan Mantri Mudra Yojana (PMMY) are available to non-corporate, non-farm small businesses in three categories: Shishu (up to ₹50,000), Kishor (₹50,001–₹5 lakh), and Tarun (₹5 lakh–₹10 lakh). No collateral required.
Stand-Up India
Bank loans of ₹10 lakh to ₹1 crore for SC/ST and women entrepreneurs setting up a greenfield enterprise in manufacturing, services, or trading. At least one loan per bank branch must be given to an SC/ST and one to a woman borrower.
Not sure which loan type suits your need? Share your financial profile with us and our CAs will identify the right facility, the best lender, and prepare a loan-ready documentation package. Contact us for free advisory →
CMA Data Preparation — Credit Monitoring Arrangement
A CMA Report (Credit Monitoring Arrangement Data) is one of the most critical documents required by banks for evaluating and sanctioning credit proposals — particularly for business loans, working capital facilities, and project finance above ₹10 lakh. Mandated by the Reserve Bank of India (RBI) guidelines, the CMA report provides a structured analysis of a borrower's historical financial performance and projected future cash flows — enabling the bank to assess the viability of the loan and the borrower's ability to repay.
A professionally prepared CMA report — with realistic projections backed by sound assumptions — significantly enhances the probability of loan sanction and can influence the interest rate offered, the loan amount, and the terms of the credit facility.
Components of a CMA Report
Existing Investment in Fixed Assets
Details of existing fixed assets — land, building, plant & machinery, vehicles — with gross block, depreciation, and net block as per audited balance sheets.
Projected Working Capital Requirement
Estimated working capital needs based on projected sales — covering raw material holding, WIP, finished goods, debtors, creditors, and other current assets/liabilities. Determines the working capital limit to be sanctioned.
Fund Flow Statement
Analysis of sources and application of funds over the projected period — showing how the business will generate and deploy cash, and how loan repayment will be funded from operations.
Operating Statement
Comparison of 3 years of audited historical income statements with 5 years of projected revenue, cost of goods sold, gross profit, operating expenses, EBITDA, interest, depreciation, and net profit.
Analysis of Balance Sheet
Year-wise comparison (historical + projected) of the balance sheet — current ratio, debt-equity ratio, interest coverage ratio, net worth, and other financial health indicators that banks use to assess creditworthiness.
Ratio Analysis
Key financial ratios — Current Ratio (minimum 1.33 per RBI norms for working capital), Debt-Service Coverage Ratio (DSCR), Total Outside Liabilities / Tangible Net Worth (TOL/TNW), and others reviewed by the credit officer.
Why Banks Require CMA Data
Assess Repayment Capacity
Banks use projected cash flows and DSCR (Debt Service Coverage Ratio) to determine whether the business will generate sufficient surplus to repay the proposed loan installments along with interest, after meeting all operating expenses.
Determine Working Capital Limit
The Maximum Permissible Bank Finance (MPBF) — the maximum working capital loan a bank can extend — is calculated from the CMA data using the Tandon Committee norms mandated by RBI. Without CMA data, the bank cannot calculate MPBF.
Validate Business Projections
Banks scrutinise the assumptions behind projected sales, margins, and costs. A CMA report with well-reasoned, industry-aligned assumptions is far more credible than one with unrealistically optimistic numbers — and builds banker confidence in the promoter's understanding of the business.
Credit Risk Assessment
The ratio analysis in the CMA report — particularly current ratio, leverage ratios, and coverage ratios — directly feeds into the bank's credit risk model and determines whether the proposal meets minimum sanction criteria.
Annual Review (Renewal)
CMA data is not a one-time submission. Banks require updated CMA data every year at the time of annual review / renewal of credit limits — comparing actual performance against projections filed at the time of original sanction.
Our CAs have prepared CMA reports for a wide range of businesses — manufacturing, trading, services, real estate, and more — at amounts ranging from ₹10 lakh to ₹50 crore. We prepare reports that meet RBI guidelines and bank-specific formats. Contact us to prepare your CMA report →
Project Report for Bank Loan
A Project Report for Bank Loan is a comprehensive document that presents a complete picture of a proposed business venture or expansion project to the bank — covering the technical, financial, economic, and managerial aspects in a format that enables the bank's credit officer to evaluate viability and creditworthiness.
Unlike a general business plan, a bank project report is structured to specifically answer the questions banks ask: Is this project technically feasible? Is the promoter competent? Are the financial projections realistic? Can the loan be repaid from project cash flows? A well-prepared project report is often the difference between loan approval and rejection.
Components of a Bank Project Report
👤 Promoter Profile
Background, qualifications, industry experience, business history, and net worth statement of the promoter(s) — establishing their credibility and capability to execute the project.
🏭 Business / Project Description
Nature of business, products or services, industry overview, market analysis, competitive landscape, location and infrastructure, and the specific purpose for which the loan is sought.
🔧 Technical Feasibility
Plant and machinery details, technology to be used, installed capacity, capacity utilisation projections, raw material sources, utilities (power, water), and operational readiness.
📈 Means of Finance
Total project cost breakup — land, building, plant & machinery, working capital, preliminary expenses, and contingency. Funding mix: promoter equity contribution vs. bank loan (typically 25–30% equity, 70–75% debt).
📊 Financial Projections
5-year projected Profit & Loss Account, Balance Sheet, and Cash Flow Statement — with detailed assumptions for revenue, cost of production, operating expenses, depreciation, interest, and taxation.
📄
DSCR & BEP Analysis
Debt Service Coverage Ratio (DSCR) — ratio of net cash accruals to loan repayment obligation. Break-Even Point (BEP) analysis — minimum revenue needed to cover all fixed and variable costs. Banks require DSCR of at least 1.5x or higher.
🌎 Market & Demand Analysis
Industry size, demand-supply gap, target customer segments, pricing strategy, competition assessment, and revenue assumptions — supporting the projected sales figures in the financial model.
⚠ Risk Analysis
Identification of key business, market, technical, and financial risks — with sensitivity analysis showing how the project performs if revenues are 10–20% lower or costs are higher than projected.
Who Needs a Project Report?
🏭 New Business / Startup
First-time entrepreneurs seeking a term loan to set up a new manufacturing unit, restaurant, service centre, or any new venture — must present a project report as no historical financials exist.
📈 Business Expansion
Existing businesses adding new capacity, launching a new product line, entering a new market, or acquiring a competitor — need a project report for the expansion component of the loan.
🏠 Real Estate / Infrastructure
Builders, developers, and real estate investors seeking construction finance or project loans for residential or commercial property development.
🌟 MSME Subsidy & Scheme Loans
CGTMSE, Mudra, Stand-Up India, and state government subsidy scheme applications all require a formal project report as part of the loan application package.
🌑 Export Finance
Exporters seeking pre-shipment or post-shipment finance, or trade finance facilities like Letter of Credit, need project / feasibility reports for larger credit facilities.
🔣 Equity / Investor Pitch
While not a bank loan, a well-structured project report also forms the foundation of an investor pitch deck — applicable when raising angel or VC funding as an alternative to bank finance.
We prepare professionally structured project reports in the format preferred by public sector banks, private banks, NBFCs, and government scheme portals. Reports are backed by defensible assumptions and verified financial modelling. Contact us for your project report →
Projected Financial Statements & Loan Documentation
Banks require a minimum of 3 years of historical financial statements and 5 years of projected financial statements as part of the CMA data and project report for loan evaluation. These must be prepared in a structured, bank-compatible format with clearly stated assumptions — and for many loan types, certified by a Chartered Accountant.
Four Key Projected Statements
Projected Balance Sheet
Year-wise — 5 years
- Equity and reserves
- Proposed term loan drawdowns
- Fixed assets (with additions for proposed capex)
- Working capital assets and liabilities
- Loan repayment schedule reflection
- Current ratio and leverage ratios per year
Projected P&L Account
Revenue, costs & profitability
- Projected net revenue / sales with assumptions
- Cost of goods sold / raw material cost
- Gross profit and gross margin %
- Operating expenses (wages, rent, power, admin)
- EBITDA, depreciation, interest on term loan & CC
- Net profit before and after tax per year
Projected Cash Flow Statement
Cash generation & deployment
- Operating cash flow (net profit + non-cash items)
- Changes in working capital year-wise
- Capital expenditure outflows
- Loan drawdowns and repayments
- Promoter equity infusion
- Closing cash balance (must remain positive)
Loan Repayment Schedule
EMI / instalment breakup
- Total term loan amount and disbursement schedule
- Moratorium period (typically 6–18 months)
- Repayment tenure and instalment frequency
- Interest and principal breakup per instalment
- Outstanding loan balance at end of each year
- DSCR calculation year-wise
Key Ratios Banks Check in Projections
Current Ratio
Minimum 1.33
Current Assets ÷ Current Liabilities. RBI mandates minimum 1.33 for working capital facilities (MPBF method).
DSCR
Minimum 1.5x
Debt Service Coverage Ratio: (Net Profit + Depreciation + Interest) ÷ (Loan Instalment + Interest). Banks prefer DSCR of 1.5x to 2x over the loan tenure.
Debt-Equity Ratio
Max 3:1
Total Term Debt ÷ Equity. Most banks prefer this ratio not to exceed 2:1 to 3:1 depending on the industry and risk profile.
Gross Profit Margin
Industry Aligned
GP margin must be realistic and consistent with industry benchmarks — unrealistically high margins trigger scrutiny from credit officers.
TOL / TNW
Max 4:1
Total Outside Liabilities ÷ Tangible Net Worth. Measures overall leverage. Banks typically cap this at 4:1 for manufacturing; lower for trading businesses.
Projections that are overly optimistic, internally inconsistent, or disconnected from industry realities are a leading cause of loan rejection. Our CAs prepare projections that are realistic, defensible, and structured to pass the bank's credit appraisal — while maximising your eligible loan amount. Get your financials prepared →
CIBIL Score & Credit Report Advisory
Your CIBIL Score — issued by TransUnion CIBIL, India's largest Credit Information Company — is a three-digit number ranging from 300 to 900 that summarises your credit history. It is the first thing banks and NBFCs check when you apply for any loan or credit card. A higher score means lower perceived risk to the lender — translating into faster approval, higher loan amounts, and better interest rates.
Beyond the score, the CIBIL Report contains your complete credit history — all active and closed loans, EMI payment track record, credit card utilisation, enquiries by lenders, and any defaults or settlements. Banks review this report in detail before making a credit decision.
CIBIL Score Range — What It Means for Loan Approval
300–549
Poor
Very difficult to get a loan. Most banks reject outright. Only very high-cost lenders may offer loans.
550–649
Fair
Loan possible but at higher interest rates. Limited lenders. Requires strong collateral.
650–699
Average
Some banks will lend but at higher rates. Collateral and income proof are critical.
700–749
Good
Most banks will consider the application. Reasonable rates available. Strong income proof required.
750–900
Excellent
Best rates, fastest approval, highest loan amounts. Preferred category for all lenders.
How to Improve Your CIBIL Score
⏰ Pay EMIs on Time — Always
Payment history is the single largest factor in your CIBIL score. Even a single missed or delayed EMI can drop your score by 50–100 points. Set up auto-debit mandates for all loan EMIs and credit card bills.
💳 Keep Credit Utilisation Below 30%
Using more than 30% of your total credit card limit is seen negatively by CIBIL. If your combined limit is ₹1 lakh, keep outstanding below ₹30,000. Request a higher credit limit instead of spending more.
⛔ Avoid Multiple Loan Applications
Every time you apply for a loan or credit card, the lender makes a "hard enquiry" on your CIBIL report. Multiple enquiries in a short period signal credit-hungry behaviour — damaging your score. Apply only when you are ready to take the loan.
📈 Maintain a Mix of Credit Types
A healthy mix of secured loans (home loan, car loan) and unsecured credit (credit card, personal loan) demonstrates well-rounded credit management. Avoid having only one type of credit.
📋 Check Your Report for Errors
CIBIL reports sometimes contain errors — incorrect personal details, outdated loan balances, or loans that don't belong to you. These errors drag your score down unfairly. Review your report annually and raise disputes for any inaccuracies.
📅 Don't Close Old Credit Accounts
The length of your credit history positively impacts your score. Closing an old credit card or a fully paid loan reduces your average credit age and can lower your score. Keep old accounts open with minimal activity.
CIBIL Dispute Resolution
If your CIBIL report contains incorrect information — such as a loan showing as outstanding even though it has been repaid, or an account that does not belong to you — you have the right to raise a dispute directly with CIBIL or through the lending bank. Resolved disputes can significantly improve your credit score and remove loan rejection barriers.
We assist in reviewing your CIBIL report, identifying negative entries, advising on dispute resolution, and developing a structured plan to improve your score before applying for a loan — maximising your chances of approval at the best possible rate. Get your CIBIL reviewed →
Important: Be wary of companies that claim to "remove" accurate negative entries from your CIBIL report for a fee. This is not possible — only genuine errors can be corrected through the formal dispute process. Accurate negative information remains on your CIBIL report for up to 7 years.
Documents Required & Our Loan Advisory Process
The documents required for a loan application vary by loan type and entity. Below is a general reference guide — specific bank requirements may vary and we advise on the exact checklist based on your bank and loan type:
Documents Required
- PAN Card (mandatory for all)
- Aadhaar Card
- Passport / Voter ID / Driving Licence
- Address proof (electricity bill / rent agreement)
- Passport-size photographs
- Last 3 months' salary slips
- Last 2 years' Form 16
- Last 2 years' ITR (Income Tax Return)
- Last 6 months' bank statements (salary account)
- Employment confirmation / offer letter
- Last 3 years' ITR with computation of income
- Last 3 years' audited financial statements (Balance Sheet, P&L, Audit Report)
- Last 12 months' business bank statements
- GST returns (last 12 months)
- Business continuity proof (GST certificate, trade licence, S&E)
- CA-certified income / net worth statement
- CMA data (3 years historical + 5 years projected)
- Project report (for new projects / expansion)
- Projected financial statements
- Quotations for machinery / equipment to be purchased
- Land / property documents (if any)
- Business registration (GST, ROC, S&E)
- Bank statements of all business accounts
- Property title documents (sale deed, chain of title)
- Approved building plan / sanction
- Encumbrance certificate
- Property tax receipts
- Society NOC (for flat / apartment)
- Builder-buyer agreement (under-construction)
- Valuation report (bank-appointed valuer)
- Certificate of Incorporation / Partnership Deed / LLP Agreement
- MOA and AOA (for companies)
- Board resolution authorising the loan application
- List of directors / partners with DIN / PAN
- Shareholding pattern (for companies)
- Net worth statement of promoters / guarantors
Our Loan Advisory Process
Initial Assessment & Eligibility Check
We review your income profile, existing obligations, CIBIL score, business financials, and the purpose of the loan to assess eligibility and identify the right type of loan facility and lender.
CIBIL Review & Pre-Application Advisory
We pull and review your CIBIL report — identifying any negative entries, disputes, or score improvement actions that should be taken before applying. A better CIBIL score can significantly improve terms.
Document Collection & Gap Analysis
We provide a specific checklist for your loan type and entity. We identify missing documents and advise on alternatives — such as CA-certified income statements where standard documents are not available.
CMA Data, Project Report & Projections
Our CAs prepare all required financial documentation — CMA data, projected financial statements, project report, loan repayment schedule, and ratio analysis — in the format required by your bank.
Loan File Compilation
We compile the complete loan application package — all financial documents, KYC documents, entity documents, and bank-specific forms — in a professionally presented file ready for submission.
Bank Submission & Follow-Up Support
We coordinate the loan file submission with your banker, provide clarifications during the bank's credit appraisal process, respond to bank queries on financial projections, and follow up on the sanction timeline.
A professionally prepared loan file handled by a CA reduces back-and-forth with the bank, speeds up the appraisal process, and significantly improves the probability and terms of sanction. Start your loan file preparation today →
Why Choose Gupta Chandan & Associates for Loan Documentation?
We are a New Delhi-based Chartered Accountancy firm with hands-on experience in preparing loan documentation for businesses and individuals across a wide range of industries and loan types. We do not just help you fill forms — we help you build a loan case that banks find credible and approvable.
CA-Certified Documents
All financial statements, CMA data, net worth certificates, and income computations are prepared and certified by qualified Chartered Accountants — carrying the authority that banks require.
Realistic Projections
We prepare projections that are grounded in your actual business — not inflated to impress, but well-reasoned to withstand bank scrutiny. Banks trust projections that are consistent with your historical performance and industry benchmarks.
Industry-Wide Experience
We have prepared loan files for manufacturing, trading, services, real estate, hospitality, healthcare, and technology businesses — from ₹10 lakh Mudra loans to ₹50 crore project finance proposals.
CIBIL Expertise
We review your CIBIL report, identify improvement levers, advise on dispute resolution, and develop a score improvement plan — so you approach lenders from the strongest possible position.
Bank-Specific Formats
Different banks have different CMA and project report formats. We tailor documentation to the specific requirements of SBI, PNB, HDFC, ICICI, Axis, and other lenders — ensuring your file passes their internal credit checklist.
Transparent & Affordable
Fixed professional fee based on loan type and documentation complexity. No hidden charges. We advise on what is needed before we start, so you know exactly what you are paying for.
Ready to Apply for a Loan? Start with the Right Documentation.
Whether you need a business loan, home loan, working capital facility, or MSME government scheme loan — a professionally prepared loan file is your first step to approval. Contact us today and our CAs will assess your case and get started immediately.
