Question

A new project has total cost ₹200 crore. Promoter proposes equity ₹30 crore, unsecured loans from group ₹20 crore, and term loans ₹150 crore. Bank policy requires minimum 30% promoter stake excluding unsecured loans. What should be the bank’s appraisal conclusion?

A Structure is acceptable
B Accept with higher interest
C Reject due to high debt
D Ask promoter to bring additional ₹30 crore equity
E Convert unsecured loan into CC
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