Enter 5 years of financial data and instantly generate a complete bank-style credit analysis — 13 key ratios, expert underwriting comments, MPBF working, and a step-by-step process for assessing fund-based and non-fund-based credit exposure.
Enter figures in the same unit consistently (e.g. all in โน Lakh or โน Crore) for each of the 5 financial years, then click Calculate. Sample figures are pre-filled so you can see how it works — simply overwrite them with your borrower's actuals.
Click any ratio name to expand the banker's comment for that line. Colour tags reflect commonly used credit-underwriting benchmarks and are indicative only — always apply your bank's actual internal credit policy and industry-specific norms.
| Ratio | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Trend |
|---|
75% of Working Capital Gap (CA โ CL other than bank borrowing). Borrower brings 25% of the gap as margin/NWC.
75% of Current Assets, less Current Liabilities other than bank borrowing. More stringent margin requirement (25% of total CA).
20% of projected annual turnover, less actual/projected NWC. Commonly applied for MSME working capital limits up to โน5 crore.
A borrower's real exposure to a bank is rarely just one loan. A sound appraisal looks at the fund-based limits (money actually disbursed) together with non-fund-based limits (contingent liabilities the bank has guaranteed) before arriving at the total credit exposure and pricing the risk.
Pull every facility the borrower (and connected/group entities, guarantors, and associate concerns) holds with the bank and other lenders. Check CRILC, CIBIL/credit bureau reports, and the Structured Financial Statement to capture off-book exposure, especially for MSMEs with multiple banking or consortium arrangements.
Classify every sanctioned limit as fund-based (cash actually goes out of the bank) or non-fund-based (the bank's name/guarantee is at risk but no cash has moved yet). This split determines how much capital and provisioning the exposure attracts, and how liquid/urgent the risk is if it turns bad.
Working capital (Cash Credit/OD) is assessed against the MPBF/Turnover method using the CMA data above; Term Loans are assessed on DSCR, project viability, and repayment tenure against asset life. Confirm CC drawing power against the latest stock & book-debt statement, not just the sanctioned limit.
LCs and BGs/LGs don't involve upfront funding, but they carry a real probability of devolvement. Convert each non-fund limit to its Credit Conversion Factor (CCF)-weighted fund-based equivalent (as per RBI's Basel guidelines) before combining it with fund-based limits for a true picture of exposure.
Total Exposure = Fund-Based (O/s or sanctioned, whichever is higher for TL; sanctioned limit for CC) + Non-Fund-Based (full outstanding LC/BG value, not CCF-weighted, for RBI large-exposure norms). Check this against the bank's Board-approved exposure ceiling for the borrower/group and sector-exposure caps.
Map each facility to its specific security (hypothecation of stock/book debts for CC, exclusive/pari-passu charge on assets for TL, cash margin/counter-guarantee for LC-BG) and confirm the margin held is adequate for both fund-based and contingent limits, not just the fund-based book.
Run a sensitivity check — e.g., what happens to DSCR and TOL/TNW if 30-50% of outstanding LCs/BGs devolve in the same year as a term-loan repayment falls due. Price the facility (interest rate, processing/guarantee commission) and set the final internal risk rating based on this combined, stressed picture — not the fund-based ratios alone.
Record the total exposure computation, CCF assumptions, and DSCR/ratio benchmarks used in the appraisal note. Set review triggers (e.g., stock statement ageing, LC devolvement, ratio covenant breach) to catch deterioration between annual renewals rather than waiting for the next full review.
Revolving working-capital limit against stock and book debts, drawable up to the lower of sanctioned limit and drawing power (DP) computed from the latest stock statement.
Loan for acquisition of fixed assets/project cost, repayable in structured instalments over a fixed tenure, assessed principally through DSCR and project cash flows.
Short-tenure fund-based facilities that convert a receivable, order, or a portion of the CC limit into a discrete disbursed loan for a defined period.
Bank undertakes to pay the borrower's supplier on the borrower's behalf if certain conditions are met. Risk crystallises (devolves onto the bank's books as a fund-based loan) only if the borrower fails to retire the bill on due date.
Bank guarantees the borrower's performance (Performance BG) or a financial obligation (Financial BG) to a third party. Risk crystallises only if the beneficiary invokes the guarantee.
Other contingent commitments where the bank stands behind the borrower's obligation without funding it upfront, but which must still be counted in total exposure and capital computation.