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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TOL/TNW
Financial RatiosTotal Outside Liabilities divided by Tangible Net Worth. A leverage ratio measuring the extent to which a business is funded by debt (external liabilities) versus equity (owned funds). Most PSU banks require TOL/TNW ≤ 3:1 for MSME proposals — meaning total external borrowings should not exceed three times the owner's equity. A TOL/TNW above 4:1 typically results in the bank requesting additional equity infusion or collateral.
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.