1. CriteriaCriteria WeightWeight ParameterParameter
A. FinancialA. Financial
RiskRisk
50%50%
1. Leverage : 15%1. Leverage : 15%
Debt Equity Ratio (x) – TimesDebt Equity Ratio (x) – Times
Total Liabilities to Tangible NetTotal Liabilities to Tangible Net
worthworth
All calculations should be basedAll calculations should be based
on annualon annual
financial statements of thefinancial statements of the
borrowerborrower
(audited preferred).(audited preferred).
 Less than 0.25 15Less than 0.25 15
 0.26x to 0.35 140.26x to 0.35 14
 0.36x to 0.50 130.36x to 0.50 13
 0.51x to 0.75 120.51x to 0.75 12
 0.76x to 1.25 110.76x to 1.25 11
 1.26x to 2.00 101.26x to 2.00 10
 2.01x to 2.50 82.01x to 2.50 8
 2.51x to 2.75 72.51x to 2.75 7
 More than 2.75 0More than 2.75 0

2. CriteriaCriteria WeightWeight ParameterParameter
A. FinancialA. Financial
RiskRisk
50%50%
2.2. Liquidity : 15%Liquidity : 15%
Current Ratio (x) – TimesCurrent Ratio (x) – Times
Current Assets to currentCurrent Assets to current
liabilitiesliabilities
 Greater than 2.74 15Greater than 2.74 15
 2.50x to 2.74 142.50x to 2.74 14
 2.00x to 2.49 132.00x to 2.49 13
 1.50x to 1.99 121.50x to 1.99 12
 1.10x to 1.49 111.10x to 1.49 11
 0.90x to 1.09 100.90x to 1.09 10
 0.80x to 0.89 80.80x to 0.89 8
 0.70x to 0.79 70.70x to 0.79 7
 Less than 0.70x0Less than 0.70x0

3. CriteriaCriteria WeightWeight ParameterParameter
A. FinancialA. Financial
RiskRisk
50%50%
3. Profitability : 15%3. Profitability : 15%
Operating Profit Margin (%)Operating Profit Margin (%)
Operating ProfitOperating Profit
X 100X 100
SalesSales
Greater than 25 %15Greater than 25 %15
 20% to 24 %1420% to 24 %14
 15% to 19 %1315% to 19 %13
 10% to 14 %1210% to 14 %12
 7% to 9 %107% to 9 %10
 4% to 6 %94% to 6 %9
 1% to 3 %71% to 3 %7
 Less than 1%0Less than 1%0

4. CriteriaCriteria WeightWeight ParameterParameter
A. FinancialA. Financial
RiskRisk
50%50%
4. Coverage : 5%4. Coverage : 5%
Interest Coverage Ratio (x)Interest Coverage Ratio (x)
TimesTimes
Earning Before Interest & TaxEarning Before Interest & Tax
(EBIT)(EBIT)
Interest on DebtInterest on Debt
 More than 2.00x 5More than 2.00x 5
 More than 1.51x Less thanMore than 1.51x Less than
2.00x42.00x4
 More than 1.25x Less than 1.50xMore than 1.25x Less than 1.50x
33
 More than 1.00x Less thanMore than 1.00x Less than
1.24x21.24x2
 Less than 1.00x 0Less than 1.00x 0