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.
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MPBF — Maximum Permissible Bank Finance
Bank CreditThe maximum working capital credit a bank may extend to a borrower, calculated per the Tandon Committee norms. MPBF = (25% of Projected Current Assets minus Current Liabilities other than Bank Borrowings). Under Method II of Tandon norms (most commonly applied), the borrower must fund at least 25% of current assets from owned funds (Net Working Capital). The bank finances the remaining 75% of current assets minus other current liabilities.
Read the full article →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.