Introducing GIX Verify: one standard for every loan file
Automated screening, sampling and CMA for banks, NBFCs and co-operative lenders, organised by loan product.
Read · 3 minCMA (Credit Monitoring Arrangement) data is the standard format Indian banks use to assess working capital and term loans for businesses. It turns a company's financial statements into a consistent set of tables.
The six forms
| Form | What it shows |
|---|---|
| I | Particulars of existing and proposed limits |
| II | Operating statement: sales, costs and profit |
| III | Analysis of the balance sheet |
| IV | Current assets and current liabilities in detail |
| V | Fund flow: where money came from and went |
| VI | Assessment of the permissible bank finance (MPBF) |
The second method of lending
Under the second method, the borrower must fund at least 25% of total current assets from long-term sources. The bank can finance the rest of the working capital gap.
MPBF = 75% of total current assets − other current liabilities (current liabilities other than bank borrowing).
This keeps the current ratio at about 1.33 after bank finance. Lenders then compare the MPBF with the limit requested and with the drawing power from stock and debtors.
Where errors creep in
- Figures typed by hand from the financials, with mistakes in carrying totals forward.
- Projections that do not match the GST returns or bank credits.
- Inventory and debtor days that change sharply without explanation.
Building CMA directly from the uploaded financials, and cross-checking against GST and bank data, removes most of these errors.