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Working Capital Loan Problem and Solution

A new private company (incorporation date 29-11-2011) wants a working capital loan of Rs.35 lakhs to run Tata motors servicing centre at a semi-urban area. As a manager of a Bank we have to finance the company- How we will proceed?

Subhasishmodak from India

Subhasishmodak ! Working capital loan are needed for fulfill the short term need. If company wants working capital loan for fulfilling the short term needs, there should not be any problem for giving loan to the company. But before giving loan,   you should study the project and analyze it. If your bank requires any security for this, you should follow the rules of your bank. This is the investment of your bank and your aim should be to minimize the level of non-performing assets in your total assets.

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