https://www.taxtmi.com/article/detailed?id=17715 Lenders assess character, repayment capacity, capital, collateral and business conditions. A central test is whether financial statements, bank statements and tax records present a consistent account of the business. Common weaknesses include declared income insufficient to support borrowing, low debt service coverage or interest cover, overdue tax and provident fund dues, poor borrower or promoter credit history, excessive leverage, inadequate promoter contribution, weak or delayed accounts and an unclear loan purpose. Applicants should explain material discrepancies, avoid inflating financial figures or diverting funds to undisclosed purposes, and monitor loan covenants after sanction. en-us Sat, 07 Nov 2026 08:25:22 +0530 Sat, 07 Nov 2026 08:25:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=17715 Lenders assess character, repayment capacity, capital, collateral and business conditions. A central test is whether financial statements, bank statements and tax records present a consistent account of the business. Common weaknesses include declared income insufficient to support borrowing, low debt service coverage or interest cover, overdue tax and provident fund dues, poor borrower or promoter credit history, excessive leverage, inadequate promoter contribution, weak or delayed accounts and an unclear loan purpose. Applicants should explain material discrepancies, avoid inflating financial figures or diverting funds to undisclosed purposes, and monitor loan covenants after sanction. Articles Accounting - Auditing Sat, 07 Nov 2026 08:25:22 +0530 https://www.taxtmi.com/article/detailed?id=17715