Processing for Borrowing Capital form Bank :

             Many times in our professional career and in our personal life we need to borrow some capital from the banks. That’s is easy process but sometimes it is too much difficult for some people to achieve some credit amount as a loan from the banks. The Complete process to get a bank loan is divided in three different steps which further divided in many relevant steps. That complete process show us how to achieve a bank loan form the bank in the capital market.

Relevant Information Collection:

                In the first step the bank credit staff come to the individual or to the company financial department representatives and collect the relevant information from them to make their paper or application file ready for further process. That information is contain a very important value for them to access their customers and their customers worth. The Important information for them are as follows:

·         How is the applicant?

·         What is the purpose of this loan for him?

·         What kind of business he have?

·         What is the worth of his project in the market?

·         What the project and owner pay back to the market and society?

·         How the loan will be recover from them?

·         Who is responsible for the securities against this loan?

·         What about their credit history?

·         What kind and worth of securities they need to submit to the bank?

The Client or individual/ business firm both liable to give the any correct information and data which is asked by the bank to lend them the desirable amount.

Information Analysis:

                The next phase for information assessment or analysis the bank hire some professional staff which give their services on the behalf of the bank. They make the assessment of the customer or client information and then the bank decides to issue or not issue the desire capital to the individual or business venture. Their assessment is based on the following points:

·         What is the applicants financial ability for borrowing?

·         How much they need to borrow?

·         What is the core purpose of the borrowing for them?

·         What is the credit analysis of the applicants?

·          What is the effective of this borrowing to them and their surroundings?

·         What is their possibility to pay back the loan?

·         What about their liquidity ration and about their credit borrowing history?

·         What their financial documents evaluation project about their future?

·         Which kind of information’s fabricated in their financial information’s?

·         What is about their good will to lend the money to them?

·         What is the principle amount and what is the interest amount in the loan?

·         What is the time horizon to pay the loan back?

·         What is the net worth of the landed amount in future and present?

·         What is the total period of time to pay the whole borrowed amount?

Capital Lending decision:

                After collection of all these information and assessment of the borrower financial and non-financial information. Now the point of decision came where the bank authorities decides that to issue the loan amount to the borrower or not issue. At that stage sometimes the personal relations and reference normally people use. That personal relations and references are necessary for both the lender and borrower. These can be use as trust building and management for both the bank and the borrower.

Conclusion:

                These are the three main phases which include the information collection form the applicants, the information assessments and the decision about the landing money to the applicant after assessment or some time both assessment and reference collection. The personal relations and reference works as trust building bonds between them.