The steps below are how CA Jitendraa Rathi prepares LAP, LRD and working-capital cases of ₹5 crore and above. They describe preparation and what a lender typically does. They do not promise a sanction, a rate or a date. If you want the numbers first, start with the borrowing tools. Working-capital files that need Forms I–VI use the CMA data maker. Before these steps, every file goes through the five checks of the five file checks.
What happens at each step?
1. First look
We talk about your business, property, old loans and how much you need. Within a day or two we tell you if we can help, a rough amount range, which lenders may fit, and what to fix. This is not a loan approval. Bank side: this is the first look a bank manager gives every file.
2. Paper check
As a Chartered Accountant, I line up tax returns, audited accounts, GST returns and bank statements, and write a short note for any gaps. Bank side: mismatched numbers are a top reason for more questions and a smaller loan.
3. Property papers check
Ownership chain, encumbrance certificate (EC), patta, city plan approvals (CMDA/DTCP/local body), completion certificate, and any building changes that were not approved. We try to fix gaps before you apply. For Chennai property, use the LAP readiness checklist on the loan against property in Chennai hub first. Bank side: legal and valuation reports decide if the property can be used at all.
4. Pick the right loan type
Match the need: loan against property, loan to buy a business property, rent-backed loan (LRD), or cash credit / overdraft for day-to-day cash. Also set years to repay, who joins the loan, and which property backs it. Bank side: the wrong loan type often gets a smaller amount or a no.
5. Pick lenders
From government banks, private banks and finance companies (NBFCs), we pick one to three whose rules fit your property, income, business type and loan size. Bank side: what one bank turns down, another may still take.
6. Short proposal note
We write a short note: your business, why you need the money, how you will repay, and the risks — in the style a bank credit note uses. Bank side: it gives the bank checker the facts they need to recommend your file.
7. Bank meeting and questions
We help you prepare for the bank’s personal discussion and site visit, and we answer follow-up questions quickly. Bank side: the meeting checks that you, your papers and your business tell the same story.
8. Read the bank’s yes letter and get the money
We read the bank’s approval letter and the Key Facts Statement with you — rate parts, fees, rules, insurance, early-repay terms — and help with mortgage papers (MODT) until the money is paid out. Bank side: this is where the terms stick for years.
How long does each stage usually take?
| Stage | Typical time* |
|---|---|
| Assessment & health check | 2–5 working days (depends on document availability) |
| Fixing document gaps | None to several weeks (patta transfer, legal heir certificates take longest) |
| Login to sanction | ~2–4 weeks for LAP, LRD or property purchase loans; longer for complex WC or large exposures |
| Sanction to disbursement | ~1–2 weeks (documentation, MODT) |
*Indicative; lender processes and case complexity vary.
What do we never do?
- Alter, fabricate or "arrange" documents or income.
- Promise guaranteed approval or a specific rate before a lender sanctions.
- Ask for OTPs, PINs, passwords or cash payments to "speed things up".
- Send your file to a lender without your consent.
What does credit review typically examine?
Banks usually ask four things: Can you repay? Have you repaid past loans on time? Is the property good security? Do all the papers match? (See how banks assess LAP.) We work on those points before you apply. The bank alone decides.
Written and reviewed by CA Jitendraa Rathi, Chartered Accountant (CA membership number 217936) · Ex-banker, 20 years of experience in credit and lending · LinkedInLast reviewed · Expert review: CA Jitendraa Rathi (ICAI 217936)
Frequently asked questions
How long does the whole process take?
For a loan against property, a rent-backed loan (LRD), or a loan to buy a business property, the bank’s yes often takes about two to four weeks after you apply, if papers are complete. Money is paid out after mortgage papers (MODT) are done. Cash-credit files with money forecast papers (CMA data) can take longer. Property paper problems add time, so we check those first. The bank sets the date.
Will you apply to many banks at once?
No. Asking many banks at once leaves many marks on your credit report, and banks may get cautious. We usually try one to three lenders whose rules fit your case.
Do I have to meet the bank?
Usually yes — most lenders conduct a personal discussion and a site visit for business loans and LAP. We prepare you for it.
Can you help if my loan was already rejected?
Yes. We find why the bank said no, fix what can be fixed, and try a lender whose rules fit — if that makes sense. Some “no” answers mean the loan idea itself needs to change before you try again.
What will you never do?
We never alter documents, inflate income, ask for OTPs or passwords, or promise guaranteed approval.
Official sources: bank rates and rules change, so check SBI loan interest rates, RBI (repo rate and lending rules).