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Credit Proposal Data Collection Template
A banker-grade Excel workbook covering all 7 sections a credit team needs — borrower profile, 3-year financials with 14 auto-calculated ratios, facility details, collateral, guarantors, credit history, and a document tracker.
Credit Proposal Template — Excel (.xlsx)
9 tabs · Data validation dropdowns · Auto-calculated ratios · Conditional formatting · Dashboard tab · Print-ready layout
What Is a Credit Proposal?
A credit proposal(also called a credit memo, credit appraisal note, or sanction note) is the formal document a relationship manager or credit officer prepares when a borrower applies for a loan or credit facility. It is submitted to the bank’s credit committee for evaluation and sanction.
The proposal consolidates everything the sanctioning authority needs to make an informed credit decision — who the borrower is, how their business has performed financially over 3 years, what exactly they are asking for, what security they are offering, and whether they have a clean track record with other lenders.
This template is the data collection stage— used to gather structured, complete inputs from the borrower before the bank’s credit team drafts the formal appraisal note.
Who Uses This Template
Relationship Managers
Collect structured borrower data before drafting the internal credit appraisal note.
Credit Officers / Analysts
Standardise data inputs; ratios compute automatically — no manual calculation errors.
Borrowers / CFOs
Understand exactly what the bank needs and prepare all sections before the first meeting.
The 7 Sections — What to Fill and Why
Each tab of the template corresponds to a distinct section of a credit proposal. Work through them in order.
Borrower Profile
IdentityWhat: Legal name, constitution, CIN/PAN/GST, registered address, industry, nature of business, years in operation, employee count.
Why banks need it: Banks must establish KYC and legal identity of the entity before any credit consideration. Constitution determines the applicable legal framework (Companies Act, LLP Act, Partnership Act) and liability structure.
- ›Ensure the legal name matches exactly with the MCA / ROC records.
- ›State the NIC / MSME sector code if applicable — this affects priority sector classification.
- ›List all group/sister companies even if not borrowers — exposure concentration matters.
Financial Summary
3-Year FinancialsWhat: 3-year audited P&L (Revenue → EBITDA → PAT), key balance sheet items (Net Worth, Debt, Assets, Inventory, Debtors), and 14 auto-calculated ratios.
Why banks need it: Financial analysis is the core of credit appraisal. Bankers look for revenue trends, profitability, leverage, liquidity, and the ability to service debt (DSCR). Three years of data reveals the trajectory, not just a snapshot.
- ›Use audited figures for FY(n-2) and FY(n-1). Provisional / management accounts are acceptable for the current year.
- ›Enter COGS and OpEx separately — EBITDA and Gross Profit both matter for different analyses.
- ›Never enter a value in blue formula cells — Total Income, EBITDA, EBIT, PAT, and all ratios compute automatically.
Facility Request
Credit StructureWhat: Facility type (CC, TL, LC, BG…), existing limit, proposed limit, tenor, pricing (rate), repayment terms, purpose, source of repayment, and 2-year post-facility projections.
Why banks need it: This section defines what the borrower is asking for and why. Bankers assess whether the facility structure is appropriate for the stated purpose, and whether projected cash flows can support repayment.
- ›State a specific, verifiable purpose — 'enhancement of working capital for procurement of steel' is better than 'business expansion'.
- ›Source of repayment must be realistic — link it to actual cash flow generation, not just 'profits'.
- ›Projected financials should reflect the impact of the facility — higher revenue / EBITDA if the funds are deployed productively.
Collateral & Security
Asset CoverWhat: Assets offered as security (primary + collateral), market valuations, valuation date, valuer name, charge type (mortgage / hypothecation / pledge), insurance, and encumbrance status.
Why banks need it: Security provides the bank's second way out if cash flows fail. Bankers compute a Security Coverage Ratio (market value / facility amount) and check for clear title, no prior encumbrances, and adequate insurance.
- ›Valuation reports must be from a bank-approved empanelled valuer and not older than 3–6 months at the time of sanction.
- ›State the encumbrance certificate period clearly — most banks require EC for at least 13 years.
- ›CERSAI registration is mandatory for all secured loans — confirm charge creation details.
Guarantor Details
Personal / CorporateWhat: Guarantor name, relationship, type (personal / corporate), PAN, net worth statement (assets, liabilities, net worth), annual income.
Why banks need it: Guarantors provide a third way out for the bank — they can be pursued personally or corporately if the primary borrower defaults. Net worth of the guarantor is compared to the facility amount to assess coverage.
- ›Personal guarantees from all directors / promoters are typically mandatory for private limited company borrowers.
- ›Net worth statements should be supported by the latest ITR and property valuations.
- ›Corporate guarantees must be backed by a Board Resolution from the guarantor entity.
Credit & Liability History
Track RecordWhat: Existing bank facilities (lender, limit, outstanding, track record, status), CIBIL / credit bureau scores for company and promoters, default / NPA / litigation history.
Why banks need it: Past repayment behavior is the strongest predictor of future behavior. Banks run CIBIL checks, check RBI's defaulters list, and verify conduct of existing accounts before extending new credit.
- ›A CIBIL score ≥ 750 is generally considered good; < 650 triggers enhanced due diligence.
- ›Disclose all existing facilities — banks will independently verify via CERSAI and CICs. Concealment is a red flag.
- ›Any prior NPA, write-off, or OTS (one-time settlement) must be fully disclosed with the resolution details.
Document Checklist
KYC & ComplianceWhat: Tracker for 24 categories of supporting documents across KYC, incorporation, financials, business documents, collateral, credit bureau, and guarantor documents.
Why banks need it: Incomplete documentation is the most common reason for delays in loan processing. The checklist ensures nothing is missed before the file is submitted to credit.
- ›Mark 'N/A' for documents genuinely not applicable — do not leave them blank.
- ›Bank statements must cover all operative accounts across all banks — not just the primary banker.
- ›The completion % at the bottom auto-calculates — aim for 100% before submitting the proposal.
Key Financial Ratios in Credit Appraisal
The Financial Summary tab auto-calculates 14 ratios. Here are the six that matter most in an Indian bank credit decision — with benchmarks and interpretation.
| Ratio | Formula | Benchmark |
|---|---|---|
DSCR Debt Service Coverage Ratio | EBITDA ÷ (Interest + Principal Repayment) | ≥ 1.25x (most banks); ≥ 1.50x preferred Tests whether operating cash flows are sufficient to service debt obligations. Below 1.0x means the borrower cannot repay from operations. |
D/E Debt-to-Equity Ratio | (Total Term Debt + WC Borrowings) ÷ Net Worth | ≤ 2.0x for most sectors; ≤ 3.0x for capital-intensive industries Measures financial leverage. Higher D/E means more lender risk. Most bank credit policies set a D/E ceiling for sanctioning. |
TOL/NW Total Outside Liabilities / Net Worth | Total Outside Liabilities ÷ Net Worth | ≤ 3.0x for most sectors A broader leverage measure than D/E — includes trade payables, provisions, and other liabilities. Reflects total indebtedness relative to equity cushion. |
Interest Coverage Interest Coverage Ratio | EBITDA ÷ Interest Expense | ≥ 2.0x Tests whether EBITDA can cover interest payments with headroom. A ratio below 1.5x is generally considered stress territory. |
Current Ratio Current Ratio | (Inventory + Debtors + Cash) ÷ (Current Liabilities + ST Borrowings) | ≥ 1.17x (Tandon Committee); ≥ 1.33x preferred Measures short-term liquidity — ability to meet current obligations from current assets. RBI's Tandon Committee set 1.17x as the minimum for working capital sanction. |
EBITDA Margin EBITDA Margin | EBITDA ÷ Net Sales | Industry-dependent; typically ≥ 10–15% for manufacturing Measures operating profitability before interest, tax, depreciation. Useful for comparing companies across capital structures. |
Use the DSCR Calculator and Debt-Equity & Leverage tool on Credit Desk for deeper ratio analysis.
How to Use the Template
- 1Download and open the .xlsx file in Microsoft Excel (2016 or later recommended for full formatting support).
- 2Start with the Dashboard tab — fill the Applicant Quick-Reference fields (borrower name, relationship manager, proposal date).
- 3Work through tabs 1–6 in order. Fill only the yellow-shaded cells. Blue cells contain formulas — do not overwrite them.
- 4In the Financial Summary tab, enter net sales, costs, and balance sheet figures. All 14 ratios calculate automatically.
- 5In the Document Checklist tab, mark Y/N/N-A for each document. The completion % updates live.
- 6Once all sections are complete, use the workbook as the data backbone for drafting the full credit appraisal note.
What’s Inside the Excel Template
Frequently Asked Questions
Is this template suitable for both working capital and term loan proposals?
Yes. The Facility Request tab supports all standard facility types — Cash Credit, Overdraft, Term Loan, Letter of Credit, Bank Guarantee, and equipment finance. For working capital-only proposals, sections like projected debt service can be marked N/A.
Can I add more rows to tables like the ownership structure or existing loans?
Yes. Select the last data row in any table, copy it (Ctrl+C), then insert rows below and paste. The row formatting and data validation will be copied automatically.
The ratios show 0 or #DIV/0 — what should I do?
Ratios that use debt or equity figures (like D/E or DSCR) require balance sheet inputs. Enter Net Worth, term debt, working capital borrowings, and interest expense in the Financial Summary tab — the ratios will update automatically. IFERROR guards prevent #DIV/0 errors from showing.
What currency / unit should I use?
Select the unit in the dropdown at the top of the Financial Summary tab (₹ Lakh, ₹ Crore, USD '000, etc.). Use the same unit consistently across all financial figures. Currency symbols in the template are illustrative — they don't affect the formula outputs.
Is this template aligned with RBI or IBA guidelines?
The sections and ratios are aligned with standard Indian banking practice and reflect the data requirements commonly expected under RBI's prudential norms, IBA model guidelines, and internal credit policies of major PSU and private sector banks. Specific policy benchmarks (e.g., minimum DSCR) vary by bank — confirm with your bank's credit policy manual.
Ready to fill it in?
Free to download. No sign-up required. Works in Excel 2016+.
Download Credit Proposal Template (.xlsx)