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What is the margin stipulated on the item “Margin money for working capital”?

<p>Each item in project cost has a minimum margin stipulated by banks while arriving at term loan eligibility.</p>

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/09/15
georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

One hundred percent margin

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

100 per cent

Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

Its30% as per prevailing rate

Deleted user
by Deleted user

One hundred percent of what I think

Asim Azaldeen Abdalrahman Mhammed
by Asim Azaldeen Abdalrahman Mhammed , Property Manager , TAAM PROPERTY

Agreed with answer one hundred per cent

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

A tricky question: The margin means the borrowers share in full towards working capital.   It can even be more than100%!!!

SAIF Rehman
by SAIF Rehman , Accountant , Eco Smart Light Trading LLC

Margin on working capital should be based on RISK associated with that item of WC. Normally we charge more margin if the risk factor is involve in this. the other factors should be consider debtors receiving period. inventory holding period, and bad debts etc.

DINESH MADAN CHAND
by DINESH MADAN CHAND , loigistic officer , MUKAND LIMITED

working capital is the cash reserve, funds that a business requires to manage its short-term financial goals - the daily running cost.

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