Od loan from bank question

Income Tax
1

A Gst registered tax payer estimated taxable turnover yearly rs:2 crores and dealer Od loan rs:50 lacs required from bank
Question:
Dealer rs:50 lacs od loan required eligible from banks for bank loan purpose

2

Eligibility Factors Banks Will Consider
₹2 crores annually is a decent turnover, Most banks offer OD limits up to 10–25% of annual turnover, depending on the business profile and creditworthiness.
₹50 lakhs is 25% of ₹2 crores on the higher side, but not impossible if other factors are strong.
Banks will review your GSTR-3B, GSTR-1, and ITR for income proof.

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stock statement monthly report how much stock value minimum amount show in stock statement rs:50 lacs od loan.

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For an OD loan of ₹50 lakhs, the bank typically requires a monthly stock statement showing enough stock to justify the sanctioned limit.
Banks generally offer OD limits based on a certain margin percentage against stock and receivables.
-Margin on stock: 25% (bank funds 75% of stock value)
-This means to justify ₹50 lakhs OD.

₹66–70 lakhs stock value in your monthly stock statement (if OD is purely against stock).

Some banks calculate drawing power based on:

Stock + Debtors – Creditors – Margin

Hope your doubt is cleared now.