Bank loan rating from external agencies are 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. Various external credit rating agencies like CRISIL, ICRA, CARE, Brickworks and others have been authorised by the Government to rate the bank loan facilities enjoyed by businesses in India. 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.
Purminder Kaur & Associates is the largest business services platform in India, offering a variety of services like collateral free loan syndication, CMA report preparation, bank loan rating advisory, company incorporation, trademark registration, GST registration, income tax filing and more. Purminder Kaur & Associates can help you obtain bank loan rating for your business. Get a free consultation for obtaining bank loan rating through Purminder Kaur & Associates by scheduling an appointment with an Purminder Kaur & Associates Advisor.
Different Types of Bank Loan Facilities
Term loan is sanctioned by Banks for purchase of fixed assets like land, building, equipment and other types of assets. Repayment is fixed over a period of 5 years with EMI payments or bullet payments.
Working capital loan is sanctioned by Banks for working capital purposes like holding of inventory, receivables and build-up of other current assets in a business. Working capital facilities are renewable every year.
Bank guarantee is a promise from a bank that the liabilities of a party will be met by the Bank in the event that the party fails to fulfill contractual obligations. Bank guarantees are typically requested while executing large projects.
Letter of Credit
Letter of credit is a type of facility from a Bank guaranteeing a buyer’s payment to a seller, in the event that the buyer is unable to make payment on the purchase as per terms of the transaction.
Mortgage loans are loans that are backed by real property by putting a lien on the property being mortgaged. The funds generated from a mortgage loan can be used by the business for any purpose.
How we help with bank loan rating advisory
A Business Expert will review the business profile, financial information and loan documentation to understand the background of the business.
Based on the information gathered, advisory on bank loan rating is provided to the client and hand-holding is done during meetings with rating agencies.
Post the release of rating by the agency, a discussion is completed with the client and rating agency to ensure the rating is inline with the performance of the enterprise