Every Term Your Bank Uses — Explained
DSCR, CMA Data, MPBF, TOL/TNW, CGTMSE, FACR, NPA — banks evaluate your proposal using ratios and metrics most MSME owners never encounter in daily business. This glossary explains every term in plain language, with Karnataka context.
B
Bank Guarantee (BG)
Bank CreditA contractual commitment by a bank to pay a specified sum to a third party (the beneficiary) if the bank's customer fails to fulfil an obligation. MSMEs supplying to government departments or large corporates often require BGs as performance or payment security. BG facilities are sanctioned against a margin (typically 10–25% in cash) and count toward the bank's overall credit exposure to the borrower.
Know the Terms. Now Let Us Handle the Numbers.
MSME Central prepares DPRs and CMA data that meet every ratio threshold banks require — and submits them to the right bank desk in Bengaluru and Karnataka.