FLASH REPORT:
The bank prepares a flash report. This flash report is to gauge whether it is feasible to provide the loan to the applicant. It determines the amount of money that the bank will earn by providing the loan, after how many ears will it be paid back etc.
Financial ratios for appraisal of term loans:
i. Debt Equity Ratio.
ii. Current Ratio.
iii. Debt Service Coverage Ratio.
iv. Fixed Assets Coverage Ratio.
v. Profitability Ratios.
vi. Interest Coverage Ratios.
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