Corporate Loan Advisory

Any business applying for a term loan for a new project, expansion, or capital investment requires a project report covering capital cost estimation, means of financing, financial projections, break-even analysis, and DSCR computation. Project reports are also required for government scheme applications including PMEGP, CGTMSE, and sector-specific subsidy programmes. A credible project report built on defensible assumptions gives the lender confidence in the viability and repayment capacity of the proposed investment.

The Credit Guarantee Fund Trust for Micro and Small Enterprises provides collateral-free guarantee cover for loans up to ₹5 crore to eligible micro and small enterprises that enabling businesses without adequate collateral to access institutional credit. The guarantee covers a significant portion of the loan amount, reducing the lender's risk and improving the likelihood of sanction. CGTMSE eligibility depends on the business category, loan purpose, and lending institution that structured advisory identifies eligibility and prepares compliant applications before submission.

Most banks require a minimum Debt Service Coverage Ratio of 1.25 to 1.50 for term loan approvals and meaning the business must generate at least 1.25 times its annual debt repayment obligations from net operating income. A DSCR below the threshold results in rejection or a requirement for additional security. Assessing and addressing DSCR adequacy before application through accurate projection preparation and financial structuring is among the most important steps in corporate loan advisory.

A standard corporate loan application requires audited financial statements for the last two to three years, income tax returns for the corresponding periods, GST returns for the last twelve months, a CMA report or project report depending on the facility type, bank statements for the last twelve months, KYC documents for the business and promoters, details of existing credit facilities and repayment track record, and property documents where collateral security is being offered. Incomplete documentation is among the most common reasons corporate loan appraisals are delayed but a complete, lender-aligned package prepared before submission eliminates most query cycles.

A working capital loan finances the day-to-day operational requirements of a business that inventory purchase, debtor financing, and short-term cash flow gaps and is typically structured as a cash credit or overdraft facility with annual renewal. A term loan finances capital expenditure, project costs, or asset acquisition and is repaid over a defined period through structured EMIs. Each facility type has different appraisal requirements, documentation standards, and repayment structures. The right facility depends on the specific financing requirement of the business.

A well-prepared, complete corporate loan application submitted to the right lender typically takes three to six weeks for appraisal and sanction depending on the loan amount, facility type, and lending institution. Applications with incomplete documentation, CMA reports that do not meet the lender's format requirements, or financial statements inconsistent with tax filings consistently take two to three months as the bank raises queries across multiple cycles. Structured loan advisory that prepares a complete, lender-aligned application before submission eliminates most query cycles that extend appraisal timelines.

A rejection is an assessment that the application as submitted did not meet the lender's criteria at that time not a permanent disqualification. RVG reviews rejected applications, identifies the financial and documentation gaps that contributed to the rejection, restructures the credit proposal, and supports reapplication is giving the business the strongest possible case for the subsequent submission to the same or an alternative lender.