What actually gets examined
Three years of audited financials. Not just the profit line. Ratios — current ratio, debt to equity, interest coverage — and the direction they have moved. A business whose profit rose while its debt rose faster is telling a different story from one where both improved.
Debtor ageing. Who owes you, how much, how overdue. Concentration and ageing both get probed; a large balance past ninety days will be discounted whatever your books say.
Buyer concentration. One client representing most of your revenue is a risk that will be priced, and asked about directly.
Total existing debt. Across every lender, including facilities you may not think of — an overdraft in another bank, equipment finance, a director's loan. Underwriters pull this from the credit reports, so disclosing it upfront reads far better than having it discovered.
Related-party transactions. Money moving between the business and entities you control gets attention. There is nothing wrong with it, but be ready to explain it.
A site visit. Someone will come and look. A working unit with stock, staff and activity supports the numbers. A quiet premises does not.
Security at this level
₹50 lakh unsecured is available, but the field narrows and the file has to be strong. In most cases you will be asked for one of:
- Property — cheapest, longest tenure, three to six weeks for valuation and legal work
- CGTMSE cover — collateral-free with a guarantee fee, and worth asking for explicitly
- Hypothecation of stock and receivables — where the facility is working capital
- A lien on fixed deposits — sometimes a partial margin rather than full security
Prepare the file before you approach anyone
At this size the difference between a three-week sanction and a three-month one is almost entirely preparation. Have the audited financials, the debtor ageing, the GST-to-ITR reconciliation and a note explaining anything unusual ready on day one. Underwriters form a view of the borrower partly from how the file arrives, and a well-organised submission genuinely moves faster — not because anyone is being generous, but because there is nothing to chase.
Structure it as two facilities where it is really two needs
A ₹50 lakh requirement is frequently a machine plus an operating cycle. Financed as one term loan you pay term pricing on money you need for weeks at a time, and the limit that should have covered your cycle does not exist.
Equipment finance for the asset, secured by the asset, plus a working capital limit sized from your actual cycle, is almost always cheaper and more useful than a single ₹50 lakh term loan. The loan types page works through which is which.
Questions this page gets asked
Do I need collateral for ₹50 lakh?
Not always, but it is commonly expected. Unsecured is available to strong files, and CGTMSE cover extends collateral-free credit well beyond this amount for Udyam-registered enterprises.
What turnover is needed?
Around ₹2 crore is typical, though serviceability from declared cash profit is the actual test. A high-turnover, low-declared-income business will be offered materially less.
Will they visit my premises?
Almost certainly at this size. It is a routine verification that the business exists and operates at the scale claimed.
Are audited financials mandatory?
For companies and LLPs, yes. Proprietorships and partnerships below the audit threshold may submit CA-certified statements with the ITR, but audited accounts are expected at this level regardless of entity type.
How long does ₹50 lakh take?
Two to four weeks unsecured or CGTMSE-backed, three to six weeks if property is involved. Most of the variation is document readiness rather than lender speed.
Find out where your file stands before you submit it
Money Bharti assesses your financials, both credit reports and existing obligations against the policies of RBI-registered banks and NBFCs, so gaps surface before an underwriter finds them. Soft enquiry only.
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Where This Page Sits
This is one page in a larger guide. The pillar covers the whole subject end to end — rates, eligibility, documents and the process — and links to every page in the silo.
Comparing products rather than digging into one? These are the main guides.
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Responsible borrowing note
All rates, fees and eligibility figures on this page are indicative market ranges for illustration and are not an offer. Approval, pricing and the sanctioned amount rest entirely with the bank or NBFC. Money Bharti is a loan marketplace, not a lender. Assess your repayment capacity honestly and read the sanction letter in full before signing. This content is general information, not financial advice.