What is the general net worth percentage banks will observe
while sanctioning the Loans for Tranding, Construction and
Manufacturing units.
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Answer / Indrani Chauhan
Banks typically consider a variety of factors when sanctioning loans. However, a common practice is to look at the debt-equity ratio (DER) which can vary depending on the industry and the bank's lending policies. For trading, construction, and manufacturing units, banks may require DER to be below 2:1.
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