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<p>Each item in project cost has a minimum margin stipulated by banks while arriving at term loan eligibility.</p>
One hundred percent margin
100 per cent
Its30% as per prevailing rate
A tricky question: The margin means the borrowers share in full towards working capital. It can even be more than100%!!!
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.
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