Unsecured Loans of 10 Crores to Negative Networth Client

“Zero Mass” Company is one of the Largest Banking Correspondent to SBI.

Turnover in March 2018: 73 Crores / PAT: 7 Crores
Turnover in March 2018: 73 Crores / PAT: 7 Crores
Turnover in March 2019: 97 Crores / PAT: 15 Crores
Existing Limits: None
Customer Requirement: 5-7 Crores Unsecured Loans.

Challenges:

• Negative Reserves and Surplus of 13 Crores
• Auditor’s Comments of Qualified Report on “Going Concern”
• Promoters Not owning any Property in Mumbai.
• Company has 28 Offices across India, but none of them were owned.
• All Taxes Paid in time, but a contingent liability of year 2012 for non deduction of TDS to the tune of 3 Crores.
• Never borrowed unsecured in past.

The case was rejected by almost every bank and NBFC in the first go, raising lot of questions about the company’s capability of servicing any debt.

Solution:
Almost 80% of Banks have reconsidered their Decision on the basis of representation done by our management. We have finally disbursed close to 10 Crores of Unsecured Loans to Zero Mass