How to write Bank Loan Proposal

Step by step approach for writing Bank Loan Proposal

Take this Course for $10
Welcome to this course How to Write Bank Loan Proposals.
This course is based on my practical experience of writing loan proposals for Largest Public Sector Bank as well as from insights gained by working on loan proposals with various other banks in India.
This course is created mainly from Bankers point of view. i.e., This course will equip you to write loan proposals with better quality as a Banker. However, this course is also relevant for Finance Professionals like CA / CMA / Loan Syndicating Agencies, Project Finance Consultants to better understand expectations of Bankers.
This course will take you through several aspects of writing loan proposals like:
1) Borrower Profile
2) Background of Borrower
3) Industry / Sector of Borrower
4) Analysis of Performance and Financial Indicators
5) Analysis of Efficiency Ratios
6) Analysis of Fund Flow Statement
7) Analysis of Cash Flow Statement
8) Analysis of Group Performance and Financial Indicators
9) Analysis of Group Cash Flow Statement
10)Synopsis of Balance Sheet and comments thereof.
11) Inter firm Comparison
12) Rating of Customer (Internal & External)
13) Review of Facilities (CC / LC / BG / TL)
14) Warning Signals
15) Security Coverage
16) Compliance of Sanction Terms
17) Statutory Dues and Contingent Liabilities
18) Risk and Mitigating Factors
19) Pricing Analysis and request for approval.
20) Defaulters List
21) Justification for Working Capital
22) Assessment of WC / LC / BG
23) Security (Primary / Collateral / Personal Guarantee)
24) Margins
25) Other Terms & Conditions
26) Due Diligence
27) Associate Concerns
This course is structured in self paced learning style.
Excel / PPTs used for delivering course content.
Hope to see you inside the course.

Course Curriculum

How to write Bank Loan Proposal - Introduction
Capture Borrower Profile
Write Brief Background of Borrower
Industry / Sector of Borrwer Write Up
Proposal request Template Format
Credit Limits Table Formulation
Group Exposure Table and Interpretation
Banking Arrangement and Sharing Pattern
Untitled Lesson
Sales Movement Analysis while writing Loan Proposal
Export Sales Movement
Analysis of Raw Material Cost
Analysis of Power Cost
Analysis of Direct Labour Cost
Analysis of Selling, General & Admin Cost
Analysis of Operating Profit
Analysis of Profit and Profitability
Analysis of Cash Accruals
Analysis of PBDIT and Interest Coverage Ratio
Analysis of Paid Up Capital
Analysis of TNW, Adjusted TNW and TOL / TNW in Loan Proposal
Analysis of Current Ratio and Net Working Capital in Loan Proposal
Analysis of Debt Service Coverage Ration (DSCR) in Loan Proposal
Analysis of Efficiency Ratios in Loan Proposal
Comments on Performance and Financial Indicators
Deficit Analysis in Fund Flow Statement
Estimate vs Actuals analysis in Fund Flow Statement
Comprehensive Analysis 1 of Fund Flow Statement
Comprehensive Analysis 2 of Fund Flow Statement
Comprehensive Analysis 3 of Fund Flow Statement
Cash Flow Analysis in Loan Proposal
Cash Flow Analysis in Loan Proposal 2
Cash Flow Analysis in Loan Proposal 3
Cash Flow Analysis in Loan Proposal 4
Inter firm Comparison in Loan Proposal
Inter firm Comparison in Loan Proposal Case 1
Internal Rating in Loan Proposal
Internal Rating in Loan Proposal - More Insights
External Rating in Loan Proposal
Review of Conduct of Accounts in Loan Proposal
Review of Cash Credit Account
Review of Term Loan Accounts
Review of Letter of Credit Facility
Review of Bank Guarantee
Review of Warning Signals and Audit Reports in Loan Proposal
Review of Compliance of Financial Covenants & Sanction Conditions
Review of Contingent Liabilities and Statutory Dues
Addressing Risk and Mitigating Factors
Recommendation for Finer Pricing
Review of Defaulters List
Review of Loan Policy Guidelines and its Deviations
Review of Assessed Bank Finance
Working Capital Cycle Explanation
Working Capital Cycle Analysis
Assessment of CC Book Debts
Assessment of Letter of Credit Limit
Introduction to Term Loan Appraisal
What is TEV Study?
Technical Viability of Project
Financial Viability of Project
Economic Viability of Project
Commercial Viability of Project
Managerial aspects of Project
Compliance aspects of Project
Cost of Project and Means of Finance under Term Loan Appraisal
Land Cost and related inputs under cost of Project - Term Loan Appraisal
Building Cost and related inputs under cost of Project -Term Loan Appraisal
Plant and Machinery Cost and related inputs under cost of Project -Term Loan Appraisal
Technical Know how and related inputs under cost of Project -Term Loan Appraisal
Preliminary Expenses and related inputs under cost of Project -Term Loan Appraisal
Pre-operative Expenses and related inputs under cost of Project -Term Loan Appraisal
Provision for Contingencies and related inputs under cost of Project -Term Loan Appraisal
Working Capital Margin and related inputs under cost of Project -Term Loan Appraisal
General aspects related to estimation of Cost of Project - Term Loan Appraisal
Introduction of Sources of Finance - Term Loan Appraisal
Share Capital as source of Finance - Term Loan Appraisal
Internal Accruals as source of Finance - Term Loan Appraisal
Subsidies as source of Finance - Term Loan Appraisal
Debenture as source of Finance - Term Loan Appraisal
Term Loan as source of Finance - Term Loan Appraisal
Unsecured Loans as source of Finance - Term Loan Appraisal
Project Implementation Schedule
Production Factors - Term Loan Appraisal
Manufacturing Process - Term Loan Appraisal
Other Production Factors - Term Loan Appraisal
Analysis of DSCR (Gross Average & Net Average)
Analysis of DSCR 2 (Gross Average & Net Average)
Break Even Analysis in Term Loan Appraisal
Break Even Analysis Case 1 in Term Loan Appraisal
Break Even Analysis Case 2 in Term Loan Appraisal
Sensitivity Analysis in Term Loan Appraisal
Sensitivity Analysis Sales Drop Testing Case 1 in Term Loan Appraisal
Sensitivity Analysis Variable Cost Increase Testing Case 2 in Term Loan Appraisal
Sensitivity Analysis Material Cost Increase Testing Case 3 in Term Loan Appraisal
Sensitivity Analysis DSCR Testing Case 4 in Term Loan Appraisal
author

CA N Raja Natarajan

Instructor

I am a Chartered Accountant with tonnes of passion for teaching.

I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.

I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.