Introduction to Working Capital Cycle Management You being the business owner. your power of execution can be seen in how many working capital cycles you can make it happen. The higher the number of working capital cycles, the higher the churning, the lower the indirect cost (fixed cost may remain proportionate) and the lower the cost higher the margin levels. You being the owner, hence, you need to push all the stakeholders in one direction where you can move the working capital cycle faster and better. Accelerate Your Business Growth with Efficient Working Capital Management Generally, the working capital cycle varies from industry to industry. The working capital cycle for the manufacturing and service industry may be around 30-90 days and for the trading industry, it may be for around a day only. So shorter the working capital, the better the churning of the funds and the better the churning, the higher the margin in the business. Nowadays getting work orders may be easy but delivery on time is tough and may get tougher every day. And one of the many reasons for it is the working capital arrangement. Most of the time, instead of using your bank credit facility, your customer wants to use your credit facility with the bank. So keeping a close eye on working capital is one of the important parts of financial management. Learn Effective Management of Working Capital Cycle from the Insights, here. Factors Impacting Your Working Capital 1) Convenient and clear Payment Terms You should have a very clear understanding of the payment terms with your customer. Because you’re also a customer for your suppliers. In a scenario, where you misunderstood your payment terms with your customer, it will not only impact your working capital cycle but also impact your supplier’s working capital cycle. Your debtors will pay you late, so you may pay late to your suppliers. 2) Understand Your working capital supporters Let’s say you have a working capital limit of Rs. 5 cr from your banker and the available facility is getting exhausted with your existing work orders, then you should be very careful while taking the new orders. There are multiple ways to deal with this scenario. First, you can ask your existing customers if they can pay you early. If yes, you can use these funds to procure the material for a new order. Second, you can check with your existing bankers, if they can enhance your working capital limit (this may be time taking part). Third, check with your creditors, if they can allow an extra credit period. Fourth, You can also explore if you can get some advance (proportionate to your raw material purchase) for a new order and the remaining can be paid on a milestone basis. 3) Long-term association with all stakeholders This is a very important aspect. Choose all the stakeholders wisely and stay with them for a long time. Including your raw material suppliers to your daily utility supplier. Over the period these suppliers/stakeholders know you and your business well. And once they get confidence in you (as a promoter) and your business, these stakeholders stand by your side in tough times.  While raising the funds, we have seen many businesses rebuild their business only because their stakeholders supported them in the tough times. 4) Delivery Time India has two major reasons to compete with China – faster delivery time and economies of scale. Due to these two factors, Indian manufacturers cannot sell cheaply. In most cases, the credit period starts after the delivery of the products. So faster delivery will help you reduce your working capital. You can also understand that – due to better road quality, there has been a significant increase in the last-mile delivery of products. This will be applicable only for manufacturing and trading 5) Short on Debtors and Long on Creditors – We’re not suggesting you squeeze your creditors, but you can always check if you can get an extended credit period from your suppliers. and faster payment from your creditors. 6) Timely Payment Keeping your word is always important. This should always be your moral obligation. You can ask your borrowers for an extension, but ensure the payment is not delayed by a day. This helps you gain the confidence of a “person of words”. This helps in developing and maintaining smooth relationships with all your suppliers. Apply for Working Capital Finance at ease, Here. Conclusion Effectively managing working capital is crucial for maintaining a healthy cash flow, optimizing margins, and ensuring the smooth operation of your business. By understanding key factors such as payment terms, stakeholder relationships, and timely deliveries, you can navigate the complexities of the working capital cycle management and position your business for sustained success. At Terkar Capital, we specialize in helping businesses facilitate working capital solutions tailored to unique needs. Our expertise and customized approach ensure that you have the financial support necessary to thrive in today’s competitive market. So, Let Terkar Capital work with you to achieve optimal working capital cycle management and propel your business growth.

Overview Many business owners aspire for growth and expansion, but making that happen often comes down to one crucial factor which is Working Capital. Unforeseen expenses, seasonal slowdowns, and strategic investments can hinder your working capital, and the ability to seize opportunities. This is where unsecured working capital loans come in. Unsecured working capital loans offer a lifeline,  providing the financial boost you need to bridge short-term gaps without putting your assets on the line. Working capital is the lifeblood of your business. It is the difference between your current assets (cash, inventory, receivables) and current liabilities (short-term debts). Strong working capital allows you to meet daily operational needs, invest in growth initiatives, and navigate unexpected challenges. Understanding Working Capital and the Power of Unsecured Loans Unsecured working capital loans provide a significant advantage. Unlike secured loans that require you to pledge assets as collateral, unsecured loans free up the collateral requirement. This translates to several benefits, such as: It leads to a much faster turnaround time. For your business, various debt options can be tailored to your needs and requirements. Improve turnover ratio and current obligations by optimising working capital finance requirement Flexible repayment terms of 3 to 5 years based on the borrower’s creditworthiness. You will be charged only for the amount you used. There is no fixed obligation like a Term Loan. What are the documents required to apply for unsecured working capital? The specific documents required for an unsecured working capital loan can vary depending on the lender, but there are some general requirements that most lenders will ask for. Here’s a breakdown of the typical documents you might need to submit: Identity Documents Aadhar card PAN card Driving license Voter ID Passport, etc. Address Proofs Ration Card Electricity Bill Lease Agreement Trade License Passport Tax Invoices, etc. Financial Documents  Bank Statements CIBIL Business Bank statements Asset Counts, etc. Unsecured Working Capital Solutions at Terkar Capital Terkar Capital understands the unique challenges faced by businesses of all sizes. We offer a range of unsecured working capital loan options tailored to your specific needs. We’re an experienced team that works closely with you to assess your financial situation and recommend the most suitable loan structure, ensuring you get the right amount of capital at a competitive rate of Interest. Learn more about working capital here. In conclusion: Unsecured working capital loans offer a lifeline for businesses seeking to secure their growth. With its flexibility, streamlined application process, and versatile use of funds, these loans empower businesses to seize opportunities, fuel innovation, and unlock their full potential. By harnessing the power of unsecured working capital loans, businesses can navigate challenges, capitalize on opportunities, and chart a path to long-term success.

Investment Banking Services in India India is considered to be the fastest-growing market and the most important market in Asia. To address various challenges in front of the Indian economy, investment banking firms develop and offer more comprehensive financial instruments for business situations. Their activities include capitalizing new debt and equity securities for all types of corporations. Thus, the firm is reputable for its extensive knowledge of public offerings and private placements. Here’s what you need to know about investment banking services in India and how the firm helps you navigate the complex world of finance. An investment banking firm is to raise debt and equity funds. It facilitates the business expansion of its clients through: 1. Private Equity (PE Funding) Private equity firms raise significant funds and provide significant capital to a company. This type of investment is particularly suitable for companies that require significant amounts of capital and have substantial growth potential. However, In exchange for its financing, private equity often takes control of a large percentage of ownership in a company. A PE firm may provide additional management and financial expertise to help take a business to its next level. The company benefits from PE’s industry knowledge, greater access to cash flows, and increased marketability. For investors, it provides diversification by spreading risk across multiple investments. In addition to providing capital and expert advice, a private equity firm can also assist with restructuring or refinancing debt when necessary. This can be particularly helpful if a company is struggling with high-interest payments. Or other debt-related issues, also. 2. Debt Fundraising Banks are required to hold a certain amount of cash at hand. The minimum required is known as the Statutory Liquidity Ratio or SLR. It restricts their ability to lend. As these loans get repaid, banks have more money available for lending, allowing them to extend new loans. This can be viewed as the recycling of funds from one borrower to another borrower. Hence, this activity is called debt fundraising. Investment bankers play an important role in it. They help companies raise funds by issuing corporate bonds and other instruments. So, it represents claims on future cash flows generated by a company’s assets. So, with their expertise and deep understanding of financial markets, investment bankers can help companies navigate the complexities of debt fundraising and secure the funding to achieve financial goals. Learn the Statutory Liquidity Ratio here. 3. Mergers and acquisitions Mergers and acquisitions are an essential part of investment banking. The investment banker will use their expertise to guide a company through an acquisition process and provide guidance on valuations, corporate strategy, due diligence, debt financing, and capital raising. Analysts at investment banks play key roles in advising companies about mergers, acquisitions, and divestitures. 4. Leasing Financial intermediation, also known as leasing, refers to the process of a company obtaining funds from banks or investors and subsequently lending them to smaller enterprises. The smaller firms utilize the borrowed funds to finance their business expansion or meet other expenses. 5. Compliance Advisory As a risk advisory or compliance advisory professional, you focus on evaluating, managing, and mitigating risks for clients. By helping banks and financial institutions comply with regulations and assess risks, you can safeguard your clients’ interests from fraudulent practices. Increase their profitability and security as well. At a Conclusion Terkar Capital is an investment banking firm in India that raises debt and equity funds and helps businesses expand. We work exclusively with businesses to raise funds from a variety of sources, including both Indian and international markets. Terkar Capital offers a variety of conventional and non-conventional debt and equity investment banking services to our clients, tailored to their specific needs, strengths, and weaknesses. We are headquartered in Pune and have a corporate office in BKC, Mumbai. However, we operate in major cities across India to meet the investment banking needs of our clients.

Introduction In today’s fast-paced world, people are struggling with unpredictable situations. Such as financial disputes, public emergencies, uncertainties in the financial sector, securities exchange crashes, etc. So, even if their best efforts, they may find themselves financially constrained. In situations like this accessing debt fund exposures becomes crucial. There can also be a situation wherein, despite the lack of urgency, you fall short of funds for planned expenditure. In these situations, the best recourse would be to avail of debt fund exposures such as an unsecured business loan, term loan, LAP facility, enhancing CC (Cash Credit) / OD (Overdraft Facility), and more. But regardless of the type of loan, approval depends primarily on your CIBIL score. So, let’s get insights into Factors Affecting the CIBIL Score and Their Impact on Loan Eligibility. What is the CIBIL score? A CIBIL score is the first impression of the borrower for the lending institution. Simply put, the score demonstrates your financial soundness and can assist you in quickly getting the loan of your preference. Alternatively, if your credit score is not in the ideal range, you are more likely to be denied a loan or get a higher interest rate. Therefore, before you apply for a loan, it is essential that you check your CIBIL score. Factors Affecting the CIBIL Score: Financial institutions assess your CIBIL score based on specific factors. These factors are crucial in determining your creditworthiness and include: 1. Credit Reimbursements Pattern: 2. Reimbursement Capacity: 3. Interest Rate and Loan Amount Calculation: 4. Working Capital Arrangement: 1. Credit Reimbursements Pattern: Using the CIBIL score, a lending institution can know your previous patterns regarding credit reimbursements. If you have repeatedly defaulted on your EMI obligations in the past, it does not reflect well on your creditworthiness. 2. Reimbursement Capacity: Any lending institution must differentiate between high-risk and low-risk borrowers. A good CIBIL score indicates a low-risk borrower who has the capacity and financial discipline to reimburse the credit. 3. Interest Rate and Loan Amount Calculation: Once the lending institution realizes your CIBIL score, it will then use it to calculate the interest rate and determine the actual amount of loan to be disbursed. Individuals with good credit scores can expect reasonable rates of interest along with disbursal of the required loan amount.    4. Working Capital Arrangement: How well do you arrange your working capital out of the available credit facility? and justify all the stakeholders.   Does a low CIBIL score mean the end for the borrower? If your credit score is low, you may find it difficult to get an unsecured business loan from the banks. But a low credit score isn’t the end of the world. A decent credit score is essential for credit endorsement. However, if the score check reveals low numbers, it does not mean that you have lost all chances of getting credit at affordable rates. You can take some necessary steps to increase your score over the long haul. How to Improve CIBIL Score? Boosting your CIBIL score requires consistent effort and sound financial management. Implementing proactive measures can gradually enhance your creditworthiness and improve your eligibility for loans.  Coming to Conclusion: Understanding how your CIBIL score affects your loan eligibility is crucial in today’s financial landscape. A good CIBIL showcases your commitment to financial responsibility. However, a lower score does not spell disaster. Those who effectively manage their finances tend to have higher CIBIL scores, enabling better loan opportunities. On the other hand, borrowers with low scores may face challenges in repaying loans.

Business Loan for startup in India Finance plays a vital role in supporting business enterprises throughout their lifecycle, facilitating their establishment, enabling smooth operations, driving growth, and facilitating necessary upgrades as and when required. So, the financial allocation for any business is likely to be enormous. However, the promoter businessperson has to seek a loan for a startup business from a suitable lender. Business-term loans are crucial for startups in India. Entrepreneurs use these loans for specific purposes and repay them within a pre-agreed time frame. A substantial down payment may be required to reduce the payment amounts and total loan cost. Meeting Capital Needs and Loan Classification Term Loans meet one-time capital needs, such as acquiring land, machinery, or working capital. They are available to industrial and non-industrial borrowers, including manufacturing, services, and trading. Short-term and long-term classifications are based on their time scale. Discover the opportunity of working capital loans specifically designed for startups. Take a closer look at the incredible options available at Terkar Capital. Types of Term Loan: The main determinant is the specified period. A term loan is categorized as: 1. Short-Term Loan:  Usually reimbursed within a maximum of 5 years. 2. Long Term Loans: The repayment duration for this loan goes beyond five years, which can prolong up to 30 years. Term loans can be further described depending on the security necessity imposed by the lenders. Based on this model, a term loan can be further categorized as: A. Secured Some collateral security has to be presented to avail of a secured loan for startups. So, Most Banks and NBFC lenders seek suitable security for business loans. B. Unsecured These loans are granted without any collateral as security. Most of the Digital Platforms implementing business loans offer unsecured loans. It may be for amounts up to Rs. 5 Cr. However, such loans are usually short-term loans to be reimbursed in 2 years. Term Loan Eligibility – Business Loan Age Criteria: The minimum age of the candidate should be 21 years at the time of loan request and the maximum 65 years at the period of loan maturity The applicant should be an Indian citizen The applicant should maintain a good credit score Applicants should sustain a regular source of income Term Loan Examples related to Business Loan 1. Working Capital Loan Businesses that require immediate funds to manage the cash flow or to meet day-to-day business expenditures opt for working capital loans. Working capital loans are normally termed short-term loans. Thus, It reimburses within 12 months from the date of loan disbursal. 2. Overdraft OD or Overdraft is a different loan form in which the financial institution raises a credit limit, as necessary. The interest rate is repaid only on the amount used, not the specified withdrawal limit. The repayment security is as low as 1 month and can pass up to 12 months. Every year the limit has to be restored by the borrower from the lender. 3. Equipment Financing Businesses can use this type of loan. And industries for financing equipment or vehicles used for several purposes like agriculture, farming, commercial transportation, construction, etc. The equipment finance loan amount shall range wheresoever between Rs. 1 lakh to Rs. 10 crores. The term loan interest rate depends on the applicant’s profile and kind of business. How does Terkar Capital help in availing Loan for startup business? Business loans are crucial in supporting the establishment, growth, and facilitating necessary upgrades. Also known as a term loan to fund your quick business needs. We, at Terkar Capital, provide loans for startup businesses in India. We are headquartered at Prabhat Road Pune & have a corporate office at BKC Mumbai. However, we are operational across major cities in India. With our absolute assistance and guidance, we help you choose the right repayment structure and suggest to you which type of loan you should go for.

CIBIL score for Business loan CIBIL (Credit Information Bureau India Limited) or credit score reflects your creditworthiness. It has a basis on your borrowing and repayment history, as shared by lenders. Cibil’s score ranges between 300 and 900. A score above 700 is generally considered good. Different lenders have different requirements concerning CIBIL scores. It is like the first impression of the borrower for the lending institution. If a person manages his finances responsibly, then his CIBIL score for loan approval will always be higher. Whereas, the borrower who has a low CIBIL score will have lower creditworthiness towards the repayment of loans. Several factors are taken into consideration while calculating the credit score. It is like the relationship of the applicant with the bank, repayment history, outstanding debt, etc. Factors affecting credit score Here, we will discuss a few of them: 1. Repayment History of the borrower: Applicants’ repayment history influences most in credit score. It is a crucial aspect that is taken into consideration while undertaking calculations. The past performance of repayment of funds, whether the applicant has paid the loan in time or not is checked. The bank as well as the Credit bureau keeps track of month-to-month records of the EMIs of the applicant and studies their relationship with the banker. The timely repayments will give a positive score, but the inconsistency in payments will negatively impact the score. The repayment history contributes approximately 30-35% weightage to the overall score. 2. Credit Balance of applicant: The other factor is the credit balance in the account of the applicant while making repayment of loans. The score will be affected when the applicant does not have a favourable credit balance while making the payment through EMIs. Hence, one should maintain a credit balance in their account. 3. Outstanding Debt: Having an outstanding debt hampers largely on CIBIL. One must not have any outstanding debt while applying for the new loan, this affects your CIBIL intensely and negatively. The borrower loses the credit from the bank as well as from the credit bureau, and it becomes difficult to gain confidence again. 4. Duration in Credit Line: This impacts the medium on the score. Generally, banks, NBFCs, or Financial Institutions give priority to their old or regular customers. i.e. Their genuine customers and tend to help them throughout. This shows that you have used the given credit responsibly and have repaid dues on time. 5. Irresponsible Payment Behaviour: Many times banks remind their customers about the outstanding dues and still, they behave ignorantly in paying them on time. This will affect the score negatively and cause huge problems while sanctioning future loans. 6. Type of credit used: Any bank, NBFC, or Financial Institution can give any one of the secured or unsecured business loans. This type of credit too matters a lot in calculating credit scores and impacts up to 20% on the score. CIBIL score for loan approval A credit score is required in the process of a business loan. The higher the amount of the loan, the higher the credit score. The minimum CIBIL for corporate financing is usually between 700 and 750. Having this score means you are creditworthy and lenders will approve your loan application quickly. Below is the list of the places where CIBIL matters: In loan approval, mostly unsecured loans require a high score due to the absence of collateral security. While applying for credit cards, the score is checked for understanding whether or not the applicant has the capacity for repayment in a specified time. When a company wants to raise finance to a higher amount, the credit score is given the top priority. Advantages of a Good Credit Score A high Credit Score leads to several advantages for a borrower. Here are a few key advantages: 1. Credit from Lenders If an applicant has a good CIBIL score, he may get a loan from a financial institution with a lower interest rate and minimum documentation. However, if the CIBIL score of a candidate is low, the financial institution may reject his application for a loan or offer it at higher rates of interest. 2. Quick Approval A high CIBIL score states that you have good creditworthiness. Also will repay your loan on time to the lender. Therefore, the financial institution will process your loan faster. The ones who have a low CIBIL Score may have to submit several documents and find guarantors making the loan disbursal process time-consuming. 3. Low-interest rate Those who have a higher CIBIL, get a loan at a lower interest rate than the ones who have a lower one. This is because when one has a higher CIBIL score, the banks trust the borrower more than the ones who have a low one. 4. More Negotiation For people who have a higher score, financial institutions will grant loans to them quickly and at a low interest rate. Therefore, they get more negotiation authority to negotiate with the banks for a lower interest rate. 5. Higher Limit Loans With a good CIBIL, you may get loans to the upper limit. Therefore, you should do your CIBIL report check. 6. Easy Approval for Leased Properties A good credit score assists us in getting easy approval for loans even for rented or leased properties. Like commercial complexes, apartments, and so on. 7. Amazing Credit Card Offers If you have a good score, you may also enjoy credit card offers from various banks. These cards generally have higher limits, more privileges, and amazing offers and cash-backs. Learn how the Factors Affect the CIBIL Score and Their Impact on Loan Eligibility here. How can you improve a credit score? Following are the ways of growing CIBIL score for Loan Approval: Always try to pay dues on time i.e. may that be credit card dues or any other. Late payment negatively affects scores and becomes tedious to develop again. Maintain appropriate credit balance in a bank account. Having a low or negative balance affects the

Corporate finance companies in India Corporate finance companies have two primary avenues to raise funds: debt and equity funding. Equity funding is generated by selling shares of the company and reinvesting the same amount. On the other hand, Funding through debt happens when a company borrows money. And agrees to pay it back to the lender at a later date. The debt capital is further divided into 2 major parts. i.e., Unsecured funding and Secured funding. What is Corporate finance? Corporate finance plays a crucial role in the financial management of companies in India. It is the area of finance, deals with raising the finances for corporate companies. Also, it assists in the capital creation & development of the corporation. Corporate finance manages financial decisions that affect operations like Capital Budgeting, Capital Raising, Investment Decisions, etc. Understanding the fundamentals of corporate finance is essential for companies to make informed financial decisions and achieve their goals. Investment Banking Instruments Sr. no Secured Funding Unsecured Funding 1 Loan Against Property CGTMSE (Government-backed scheme) 2 Working Capital Finance Unsecured Business Loan 3 Machinery Loan Unsecured Working Capital  4 Builder Finance Bill/Invoice Discounting 5 Lease Rental Discounting Factoring 6 Debt Syndications LC Discounting 7 Foreign Currency Funding Trade Finance 8 Sugar Pledge Loan Bank Guarantee 9 Project Finance Secured Funding Secured funding is a type of loan where the borrower has to keep collateral of assets or security against the loan. The borrower here does not have personal liability for the loan. The period of the loan offered in secured is high with a low rate of interest. In case of default, the lender has the right to put the asset or security pledged on auction. So, they can recover the amount from it. 1. LAP Facility 2. Working capital Finance: 3. Machinery loan: 4. Builder Finance: 5. LRD Loan: 6. Debt Syndications: 7. Foreign Currency Funding: 8. Sugar Pledge Loan: 9. Project Finance: 1. LAP Facility As the name suggests, a loan against property is the most secure type of loan for lending institutions. It is the most easily available one for borrowers in normal circumstances. Thus, generally, it is a long-term loan that needs collateral security against loans. 2. Working capital Finance: Working capital is the difference between the company’s current assets and its current liability. One can avail of a loan against working capital. Thus, it will help in short-term operations like paying dues or expenses, utility bills, etc. Hence, Working Capital Loan allows one to run their operations smoothly and efficiently. Working capital is available in both secured and unsecured ways.    3. Machinery loan: All manufacturing companies require machinery to manufacture the products. That may have huge costs. Thus, in such a case, a machinery loan is something that acts as a savior for your business. The machinery loan is available in both secured and unsecured ways which are taken for purchasing new machinery.    4. Builder Finance: It is a loan to the builders or developers. So builder finance is given for constructing or developing residential or commercial property. Being long-term finance, it comes under secured funding. So, the collateral of such a loan will be the land against the property being acquired or developed. Generally, lenders prefer those builders who have been in this construction field for many years and have a good CIBIL rating.   5. LRD Loan: LRD Loan facilitated against the rental receipts of the borrower. It has been derived from lease rent contracts from the clients. Thus, the loan is provided to the lesser based on the discounted value of the rentals and the value of the property.   6. Debt Syndications: It occurs when a borrower requires an amount that is too large for a single lender to provide. Hence there is a group of lenders. The lenders in debt syndication share the risk only exposed to their portion of the loan. 7. Foreign Currency Funding: It is when the borrower wants to fund across borders. That is a foreign country. Hence the borrower as well as the lender deals in foreign currency only. 8. Sugar Pledge Loan: The time gap between the production and sales of sugar is high. Hence, they can face a crunch in working capital and sugar industries can get loans against sugar. 9. Project Finance: Project finance means a loan obtained for fulfilling the finances of the new project. The new project can be used for expansion, reconstruction, etc. Here, the project itself is kept as collateral. So, the loan amount has to be paid after the completion of the project. Or once the borrower starts generating revenue.   Unsecured Funding As the name implies, Unsecured debt products are loans that do not require collateral. So, the loan is provided based on the CIBIL score. This type of loan is taken by businessmen to overcome their short-term inconsistency in the business.  That includes the payment to the supplier, shortage of working capital, unsettled invoices, and many more. The Rate of Interest is comparatively high because of the absence of collateral. 1. CGTMSE: 2. Trade Finance: 3. Bill Discounting: 4. Factoring Facility 5. LC Discounting: 1. CGTMSE: Credit Guarantee Fund Trust for Micro and Small Enterprises is an unsecured loan. It is for micro and small enterprises to help small businesses grow in a competitive market. So, it assists entrepreneurs to build their businesses and availing of collateral-free loans up to 5 Cr easily and conveniently. 2. Trade Finance: Trade finance makes it possible and easier for importers and exporters to transact business through trade. Thus, it signifies financing for trade. Trade finance concerns both domestic and international trade transactions. So, this is one of the suitable financial instruments we can use while dealing with an international customer for minimizing financial risk.   3. Bill Discounting: Discounting of the bill can be defined as the advance selling of a bill or invoice to an intermediary before it is due to be paid about certain criteria. A major aspect of bill discounting is that it will help in resolving the crunch of working capital. 4. Factoring Facility

What is a CIBIL Score? In the year 2000, TransUnion CIBIL was incorporated as Credit Information Bureau of India Limited. This organization issues a score called a CIBIL score for a borrower. It is also known as credit score. This score denotes the creditworthiness of the borrower and his ability to repay the loan on time. What is a good Credit Score? A person who has a good Credit Score can repay the loan with interest on the given time to the bank. A Score is a three-digit number calculated based on the financial history of the applicant. It ranges from 300 to 900. The higher the score the better chance of your loan being approved. 79% of the loans approved are for those who have a score of 750 or more, according to CIBIL’s analysis.  Things you need to know about your credit score. Factors affecting CIBIL score The score is based on several factors. Such as your payment history, types of credit and number of loan accounts, guarantors on the loan, credit history, opening and outstanding loan amount, and so on. Different financial institutions have different regulations and benchmarks with respect to the score. CIBIL score is like the first impression of the borrower for a financial institution. A person who manages his finances well will always have a higher score. A lower CIBIL signifies that the borrower has low creditworthiness and lenders refrain from giving loans to such applicants. Learn factors affecting CIBIL score in detail, here. Advantages of a Good Credit Score A high Credit Score leads to several advantages for a borrower. Here are a few key advantages: 1. Credit from Lenders If an applicant has a good CIBIL score, he may get a loan from a financial institution with a lower interest rate and minimum documentation. However, if the CIBIL score of a candidate is low, the financial institution may reject his application for a loan or offer it at higher rates of interest. 2. Quick Approval A high CIBIL score states that you have good creditworthiness. Also will repay your loan on time to the lender. Therefore, the financial institution will process your loan faster. The ones who have a low CIBIL Score may have to submit a number of documents and find guarantors making the loan disbursal process time-consuming. 3. Low-interest rate Those who have a higher CIBIL, get a loan at a lower interest rate than the ones who have a lower one. This is because when one has a higher CIBIL score, the banks trust the borrower more than the ones who have a low one. 4. More Negotiation For people who have a higher score, financial institutions will grant loans to them quickly and at a low-interest rate. Therefore, they get more negotiation authority to negotiate with the banks for a lower interest rate. 5. Higher Limit Loans With a good CIBIL, you may get loans to the upper limit. Therefore, you should definitely do your CIBIL report check. 6. Easy Approval for Leased Properties A good credit score assists us to get easy approval for loans even for rented or leased properties. Like commercial complexes, apartments, and so on. 7. Amazing Credit Card Offers If you have a good score, you may also enjoy credit card offers from various banks. These cards generally have higher limits, more privileges, and amazing offers and cash-backs. To conclude A CIBIL also known as Credit score is an important factor. Financial institutions, banks, and other agencies consider this when evaluating the creditworthiness of a person. The higher the credit score you have, the better it is for you. If a person has a low score, it means that he has not been able to pay his bills on time, or has a history of non-payment of bills. A person with a low score might not be able to get the best interest rates from a bank, or might not be able to get a loan at all. Check your CIBIL for free here.

The nationwide lockdown was imposed in India on the 22nd of March. The effects of this complete lockdown will feel in the Indian Economy for some months even after the relaxation. The COVID-19 Pandemic and the lockdown that followed have paralyzed businesses and resulted in large-scale unemployment. Unemployment spiked to 23% in April says the Centre for Monitoring Indian Economy. This has impacted the Indian loan market. This will, in turn, affect the repayment ability of the borrowers and the demand for fresh loans. Let’s understand Covid 19 effects on the Indian Loan Market. Banks will face one of the toughest years in terms of loan growth. Retail loans may take a longer time to bounce back due to the uncertainties around employment and pressure on wages. Many companies have announced pay cuts while some have announced layoffs to bring down costs. Indian banks introduced 5 emergency loans during this global pandemic. The loans are for their corporate clients, MSMEs, SHGs, Retail borrowers & Pensioners. IND- COVID Emergency Credit Line for Corporates (IBCECL) Under IBECL, additional funding will provide up to 10% of the working capital limits. This loan is applicable to large corporates and medium enterprises. IBCECL will be applicable for a tenure of around 36 months with an initial moratorium of up to 6 months and an additional fixed interest rate of 1-year MCLR. Subsequently, all other charges will be waived. IND- MSE COVID Emergency Loan for MSME (INDMSE-CEL)  The MSME sector in the Indian loan market is one of the most affected due to this global pandemic. Under this type of emergency loan, additional funding of 10% of FBWC limits with a maximum of Rs 50 lakhs will make available for all MSMEs for a tenure of 60 months. This loan will make sure that MSMEs loans are not derived from liquidity during these challenging and uncertain times. SHG-COVID – SAHAYA LOAN for Self Help Groups This situation is very challenging for self-help groups. To help self-help groups including women beneficiaries through this crisis each member will be eligible to avail of a soft loan of Rs 5000 which adds up to Rs 1 lakh per group. The tenure of the loan would be around 36 months with a 6-month moratorium. IND-COVID Emergency Salary Loan for Retail borrowers Due to the rapid spread of the coronavirus, many people are in need of money for medical and other emergency expenditures. Under this loan type, salaried employees will avail of a loan up to an amount equivalent to 20 times the latest monthly gross salary. This will be up to a maximum of Rs 2 lakh.  IND COVID- Emergency Pension Loan for Pensioners The pensioners, which generally consist of the older population in the country are also getting affected by COVID-19. This virus is affecting the older population much more severely. Therefore, under this loan facility, 15 times monthly pension with a maximum of up to Rs 2 lakh will be allowed. 60 months of repayment with concessional interest will be given and other charges to be waived.  Why Terkar Capital? During these uncertain times, We at Terkar Capital stand by our customers. We will help you to get various credit lines so that you can meet the immediate liquidity requirements of your business. Be it raising funds for the IT industry or MSMEs in the pharmaceutical sector, Our trained executives will assist you in the entire procedure when applying for loans in the Indian loan market.  We speed up the process so that they get the required funding as soon as possible. Even after the disbursement of the loan, if the client faces any issues, we are happy to help until the end of the tenure of the loan. Once you give Terkar Capital the responsibility, you don’t need to worry!

Guide to Business Loan Businesses may consider taking out a business loan without collateral. These types of loans can be convenient for managing emergency monetary requirements, and the application process is typically faster and easier. To help clarify the process and answer common questions, we’ve put together a list of business loan FAQs. Whether you’re wondering about eligibility requirements or repayment terms, our guide can provide the answers you need to make informed decisions about financing your business. How can MSMEs obtain business loans without collateral? Small and medium-scale businesses today face a significant challenge in obtaining loans from financial institutions. This is due to the requirement for collateral. Many MSMEs today do not have collateral for loans. These businesses can take a Business Loan. However, Unsecured business loans are given solely upon the creditworthiness of the businessman borrower. To be eligible for an unsecured business loan, the borrower should have a good CIBIL score. That is a credit rating, good credit history, and good cash flow. Our business loan FAQs can help provide the clarity you need to make informed financing decisions for your business. Why should you go for a Business Loan? 1. Helps your business grow at a faster pace By taking a business loan your business can grow at a faster rate. Thus, you can also finish any stagnant projects or ventures with the help of a business loan. 2. The value of the loan is not dependent on the collateral When applying for a secured loan, the amount of the loan is dependent on the collateral being used. But while taking an unsecured loan, you may get a bigger amount of money. Because the lender is making decisions based on your cash flow, credit profile, the health of your business, and so on. 3. Faster Disbursement of Loans As a business loan does not require collateral, the disbursement of the business loan is faster. The financial institution checks your documentation, proposal, and track record and then sanctions the loan. Less paperwork is required for unsecured business loans in India. 4. Repayment in EMI You can repay the business loan in the form of EMIs. So, the interest rate will be applied to the EMIs over the term of the loan. 5. No risk to your assets An unsecured business loan is a loan where no collateral is necessary. Thus, all your assets are safe from any risks. 6. Eligibility Criteria for Business Loans in India The Eligibility criteria for a business loan may differ depending on various financial institutions and the situation of the business. Here is a list of the general eligibility criteria for a business loan: The business must have its previous year’s financials duly audited by a CA. The borrower must have a good credit rating in order to qualify for an unsecured business loan.  The business should have a vintage of at least 2 years. The business needs to have its Income Tax returns filed for at least the past 1 year How Unsecured Business Funding Can Help Your Business Succeed? How do you get Business Loans in India? Business Loans can be defined as loans given to businesses and corporations against any kind of collateral. It is one of the most convenient financial products for businesses to manage emergency conditions of the business.  A. Assessing the requirements of the client  We at Terkar Capital will first understand the requirements of the client. We will also talk to the client about the future of their business, their plans to expand, restructure so on, and so forth. So, after assessing the requirements of the client, we will make an application for the business loan.  B. Application and Documentation Many business people have experienced the tedious nature of the documentation that needs to be done for the bank loan process. Thus, we at Terkar Capital take care of the documentation. We understand what stakeholders require to disburse the loan to our clients. Once we receive the required documents we analyze the financials of the company and choose the financial institutions that best suit the client’s requirements. This helps to avoid unnecessary inquiries to CIBIL and messing up while raising the finances.  C. Get your loan After your proposal and documentation have been reviewed by the financial institution, your loan will be sanctioned. During the process, whenever the financial institution is in need of any clarification or any documentation we arrange for them. Thus, our association with the client doesn’t stop with the disbursement of the amount, rather it starts. We make sure the client should not have any problems while dealing with the respective financial institutions during the loan tenure.  What are the Documents Required for Business Loans? Business loans are one of the most convenient types of loans for growing businesses. The documents required for Business Loans differ from one financial institution to another and as per the constitutions of the business. Here is a list of documents usually required for a Business Loan: A. Documents Required for Public Limited & Private Limited Companies 3 years of income tax returns, Balance-sheet, Audit Report of the Company Company Pan Card, 1 Year All Current Account Banking shown in Balance Sheet Till date All Directors KYC and 5 Photos Shop act, Office Telephone, and Electricity Bill Latest, MOA, AOA Companies All Loan Sanction letters, Cash Credit sanction letter, Closer letters if exist All director’s residence telephone and electricity bill latest Shareholding pattern on the letterhead of company attested by CA Company Profile GST returns to date B. Documents List for a Proprietorship Firm 3 years of Income Tax returns, Balance sheet, Audit Report Pan Card, 1 Year All Current Account Banking shown in Balance Sheet Till date Proprietor KYC and 5 Photos All Loan Sanction Letters and Closer letters, Track Records, and CC Sanction Letters if exist Shop-act, GST Certificate, Office, And latest Residence Telephone and Electricity Bill GST returns to date Company Profile C. Documents List for a Partnership Firm 3 years