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Here is the all-in-one RM Calculator Suite—built for relationship managers and loan officers to assess loans, collateral value, working capital, and project viability. With tools like the Loan Assessment Module, WC Gap Estimator, and Break-Even Analyser, streamline your credit decisions using reliable financial logic and psychometric insights.
This tool is perfect for initial screening and loan underwriting.
Relationship Manager's Calculator Suite
📘 Relationship Manager's Toolkit Guide
This blog explains how to use each tool in the RM Calculator Suite effectively. Learn how to interpret the results and make better loan decisions.
1. Collateral Valuation & Margin Calculator
This tool helps assess whether the proposed loan amount is adequately secured against the value of the property offered as collateral.
| Input | Description |
|---|---|
| Property Type | Select from options like Residential, Commercial, Industrial, etc. |
| Market Value (Rs.) | Current fair market valuation of the property. |
| Loan Amount Proposed (Rs.) | Total loan amount applied for by the borrower. |
- LTV > 80%: High risk; suggest additional security or reduce loan amount.
- Margin: Represents the lender's risk buffer. Ideal: 20% or more.
2. Working Capital Gap Calculator
This tool helps determine if a business needs working capital (WC) financing based on its inventory, receivables, and payables.
| Input | Description |
|---|---|
| Turnover | Total annual sales of the business. |
| Inventory | Current value of stock in hand. |
| Receivables | Outstanding customer payments (credit sales). |
| Payables | Outstanding supplier payments (credit purchases). |
- Positive WC Gap: Indicates a funding need. Recommend WC loan equivalent to gap.
- Negative WC Gap: Business is self-sufficient or overfunded. No WC loan needed.
3. Project Viability & Break-Even Analysis
This calculator helps assess whether a new business or expansion project is financially viable.
| Input | Description |
|---|---|
| Fixed Costs | Annual overheads like rent, salaries, admin. |
| Variable Cost | Cost per unit sold (materials, packaging). |
| Selling Price | Price at which each unit is sold. |
| Total Investment | Capital to be invested in project. |
| Expected Annual Return | Projected net income per year. |
| Cash Flow | Net annual inflow (simplified for IRR). |
| Project Life | Expected lifespan of the project in years. |
- BEP (Break-Even Point): Units needed to recover costs.
- ROI: Annual return as % of total investment. Good ROI is 15% or above.
- IRR: Basic profitability over project life. IRR > cost of capital is favorable.
💼 Decision Support for Loan Managers
Each calculator provides actionable insights to strengthen your credit assessment process:
- 🛡 Collateral Tool: Decide on collateral sufficiency and margin risk.
- 💸 WC Gap: Quantify short-term fund requirement with accuracy.
- 📈 Viability Tool: Support project financing with data-driven evidence.
Use these calculators as part of your preliminary appraisal or pre-sanction memo to enhance accuracy, reduce risk, and speed up decision-making.
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