Criterions to meet borrowing from the Bank: Finance & capital are vital component for the success

of business today. Irrespective of whether a firm is in proprietorship or big organization, finance holds the key to its development, and managing finance is certainly very crucial. Banks & financial institutions are vital in this area as they have large financial resources & are looking for eligible projects for finance. Very frequently, every business has to face a situation of need of money which calls for investment to reap long term benefits. These loans not only a great help in expanding a business, but also play a vital role in modernizing and improving small as well as big business. Business loans are offered in two types, secured and unsecured. For a secured business loan, the borrower needs to pledge something as collateral or security against the loan amount taken like raw material or finished products, land or machinery etc. In case of unsecured business loans, there is no requirement of any collateral from the borrower. As there is no security while availing an unsecured business loan, the borrower may need to pay a high interest rate. Also according to their tenure, business loans can be further classified. To meet the temporary needs of a business like short term working capital with the repayment time period of a year. A medium term loan is necessary for certain specific period like medium term investment in equipment etc. A long term is necessary for well-established business houses who wish to expand, increase their fixed assets or related business acquisitions.

Taking a wrong finance decision, might prove to be detrimental in the long run. Therefore, the entrepreneur must be very clear of his actuals need and necessities for enhancing and improving the business by borrowing the right loans, with a detailed insight of its pros and cons. Hence, acquiring more capital in order to promote any business is crucial. A project report is required to be submitted to the bank, as per the size & nature of business which, would explain the borrowers suitability in terms of the bank loan criteria. This report should include details as below: 1. Eligibility : The applicant ( individual/ organisation) must meet the certain eligibility criteria's which may include: Min. Age/ max. Age Income/required turnover Minimum/maximum loan amount Suitability in terms of parameters which are crucial to the success of business Past business Existence /qualification related to the area of business Suitable loan tenure

2. Personal details: Details of promoters/ directors viz., name, address, academic qualification, experience, functional responsibilities in the unit, capital/loan contribution in the unit, management/ organizational structure, key managerial and technical staff.

3. Documents: Proof of identity, proof of residence, latest bank statement (from existing bank account if any), Security documents like title deeds of immovable property or related papers of such other securities.

4. Project details : Details like availability of utilities like power, water, labour, transport, pollution control clearance, quality control arrangements (Quality certification) 5. Technical details: Details of technology & machinery, manufacturing process, production data, source and availability of raw material. 6. Commercial & Marketing detail: Product & demand, major players and market share, any specific strategies, unique selling proposition if any. 7. Other details: details of major shareholders, legal / regulatory issues, any other factor relevant, impact of WTO/globalization.