Finance Process

Finance Process

Once you have provided all the required information the bank concerned will start processing your request by preparing internal memos to seek an approval from the concerned authority in the bank/financial institution. They will send an evaluator to get your security evaluated who assesses the value of your security. If it is a property they take pictures of the premises and make a valuation report.

Your property documents will also be sent to a lawyer on the bank's panel who will ascertain that the ownership of the property is correct and that the bank can use it as a collateral and also that it can be mortgaged in favor of the bank/FI.

After receiving approval for financing the person you are dealing with i.e. Branch Manager or Relationship Manager, will request you to provide with all the original documents that they can retain in their custody. Mortgage will be executed as a token registered mortgage at the registrar's office.

Disbursement

Once all the formalities are completed the Bank or Financial Institution will issue a cheque/Demand Draft or Pay Order in favor of the enterprise raising finance.

If you have obtained running finance then an account is opened in the bank where you can withdraw from and deposit in on a need basis. You can withdraw on a daily basis and also deposit on a daily basis. Always try to reduce the outstanding balance as soon as you can because as long as the balance is outstanding you pay interest on it.

Financial Management

Manage your Finances efficiently and you will grow your business. Poor financial management causes businesses to fail terribly. It is easy to raise finance and blow it away but very hard to pay it back if you use it in unproductive activities.

Be very frugal and even miserly where you can save even a small amount. But do not pinch pennies where you have to spend as it is equally important to keep the business well funded.


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