1. Acceptable property to be provided as a collateral... Which is residential, commercial and in some cases industrial property.... Unacceptable properties are like vacant land, Agricultural land etc.
2. Legal title of the property should be clear... The bank goes through the entire chain of the property documents... Like all previous transactions of the property... To make sure there is no chance of future dispute...
3. Turnover, gross profit, net profit and owners equity should be on an increasing trend for the last 3 years...
4. Business/occupation vintage should be at least 3 years
5. There should be enough churning in bank accounts...banks avoid businesses which have mostly cash transactions
6. Number of inward and outward cheque returns should be as low as possible
7. No instalment returns in case the applicant is running loans already
8. Given that these conditions are primarily met, the final eligibility is arrived at on the basis of the market value of the property and the income eligibility as per the bank's norms...
2. Legal title of the property should be clear... The bank goes through the entire chain of the property documents... Like all previous transactions of the property... To make sure there is no chance of future dispute...
3. Turnover, gross profit, net profit and owners equity should be on an increasing trend for the last 3 years...
4. Business/occupation vintage should be at least 3 years
5. There should be enough churning in bank accounts...banks avoid businesses which have mostly cash transactions
6. Number of inward and outward cheque returns should be as low as possible
7. No instalment returns in case the applicant is running loans already
8. Given that these conditions are primarily met, the final eligibility is arrived at on the basis of the market value of the property and the income eligibility as per the bank's norms...
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