15 things that a banker looks for WHEN EVALUATING A COMPANY

1.Viability of the project—technical and economic

2.Background of the promoter—is he from a business family, is he a
technical or B-school graduate

3.What does the promoter bring to the enterprise—knowledge,
experience, technical skills, capital, and goodwill

4.Project location—what are the natural advantages at the location

5.Market for the products. What is the competitive edge of the enterprise?

6.Ready availability of raw materials

7.Requirement for skilled manpower, and its availability

8.Is the enterprise highly dependent upon power? Is the power
situation in that area comfortable?

9.Requirement for natural resources like water and their availability

10.Any environmental issues connected with the project. Have the
clearances been obtained?

11.What is the scope for growth and expansion of the business?

12.Lifespan of the technology being used and is it upgradeable

13.Credit history of the promoters with CIBIL or other agencies

14.Is there a captive market? Is the enterprise dependent upon a
single or few customers?

15.Is this loan aligned with the Bank’s overall strategy?