# CMA Data & Bank Loan Proposals

> CMA (Credit Monitoring Arrangement) data is the format banks use to assess working capital and term loan proposals: two or three years of actual financials plus projections, operating and balance sheet ratios, assessment of working capital requirement, and fund-flow statements. Banks check it for consistency with your audited accounts, GST returns and bank statements, so credible assumptions matter more than optimistic numbers.

Practice: Corporate Finance & Valuation — https://www.industax.com/services/corporate-finance/

Lenders focus on current ratio, debt-service coverage, interest coverage, inventory and receivable days, and the promoters' margin. We build projections that tie to your actual performance and explain variances.

We prepare the CMA, project report and loan proposal, and help answer the bank's credit queries.

## Key facts

| Item | Detail |
| --- | --- |
| Contents | Actuals, projections, ratios, working capital assessment, fund flow |
| Key ratios | Current ratio, DSCR, interest coverage, TOL/TNW |
| Cross-checks | Audited accounts, GST returns, bank statements |
| Used for | Working capital and term loans |

## Who needs this

- MSMEs applying for working capital limits
- Businesses seeking term loans
- Companies renewing or enhancing limits

## What's included

- CMA data
- Projected financials
- Loan proposal and project report
- Bank query support

## Documents

- Audited financials for 2–3 years
- GST returns
- Bank statements
- Order book or business plan

## Process

1. **Analyse** — Past performance and needs.
2. **Project** — CMA and projections prepared.
3. **Present** — Proposal submitted to the bank.

## FAQs

### Is CMA data the same as a project report?

No. CMA data is the financial format banks use; a project report explains the business, project, market and cost — banks usually want both for new projects.

### Do banks need an LEI for large loans?

Yes. Non-individual borrowers with aggregate exposure of ₹5 crore or more must have a Legal Entity Identifier.

### Can unrealistic projections hurt the application?

Yes. Credit teams compare projections with past results and industry norms; unexplained jumps reduce credibility.

## Official sources

- Reserve Bank of India: https://www.rbi.org.in/

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Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.