how does financial institution increase the goodwill of the borrowing company?

It is when a company get a particular loan amount sanctioned from a reputed financial institution say SBI, ICICI, IDBI, etc., then such an instance adds to the goodwill of the company. Actually, it is a general consensus that the borrowing company has significant credit worthiness and is reliable, consequent of which a financial institution has forwarded loan. Any financial institution (such as those mentioned above) always scrutinises and investigates the credit worthiness, repayment behaviour from past loans-repayment experiences of the concerned company, feasibility of company's project (for which the loan is being required) and the company's future growth prospects. It is only when a company is found to be positive on all of these parameters, then the concerned loan amount is sanctioned. In case of any fault or deficiency on any front, loan application is not rejected. Hence, getting a loan-approval from a reputed financial institution is regarded as a yardstick to measure the creditability and goodwill of a company. 

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