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Sunday, 2 March 2014

Dos and Don'ts when you approach Banker for Loan

* Never Share your Bank Account that is provided in the Income Tax Return, as there is a risk of your e-filing account being compromised by the executives of the Private Bank, if the same is shared with them.

* While approaching for a Personal Loan you are required to provide the six months bank statement, to the bank to prove your cash flow generation ability, as well as to prove your surplus accretion capability, which means, whether your monthly expenditure commitments are less than your monthly earnings or not, so it is always desirable to have one more account, in savings account, the same account should be provided while filing your Return of Income.

*  Banking is the key to secure the loan quickly. Not withstanding, whether you get paid through cheques or not try to deposit all your collections in your bank account, religiously, sans adjusting your cash expenses out of cash collections from your customers, this would create an excellent banking track, as well as feel of the Income generation capacity of your business to your banker.

*  Approach the banker with whom you are actively banking with, only when you don't get any support from your principal banker you may approach other banks, for your financial requirements.

*  Keep your CIBIL Score above 750, for this you have to issue cheques only when there are funds in your bank account. Keep sufficient balance to meet all your personal loan ECS clearings, sans arranging the cash after ECS is bounced. 

*  Keep filing your Income Tax Returns without delaying beyond the due dates, year after year, as bankers would be interested to deal with the people who are, law abiding citizens, in other words, bankers would be comfortable to take a bet on your endeavors only when you prove that you are person with high commercial propriety.

*  Please understand that Bankers are you partners in growth, hence our word of caution is, have excellent and impeccable banking track, and focus on fine tuning your accounting for your business as well as compliance with applicable laws, like Service Tax Compliance, VAT, CST & Income Tax Compliance, this would not only help reaching your business to the next level of expansion by being able to secure support from your bankers.

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