What is the company's creditworthiness and ability to repay the loan?

Assessing a company's creditworthiness involves evaluating its ability to repay the loan, which typically involves reviewing its financial statements and credit history. The lender will analyze various financial ratios and metrics, such as liquidity, solvency, profitability, and cash flow, to determine the company's credit risk.

In India, creditworthiness can also be assessed using the Credit Information Bureau (India) Limited (CIBIL) score, which is a threedigit number that represents a borrower's credit history and repayment behavior. The score ranges from 300 to 900, with higher scores indicating better creditworthiness. Lenders typically consider a CIBIL score of 750 or above as good creditworthiness.

Factors such as the company's industry, competition, regulatory environment, and macroeconomic conditions can also affect its creditworthiness and ability to repay the loan.