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Debt-Equity Ratio in Business Loans: Meaning, Formula & Importance

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The debt-equity ratio is one number that sits quietly inside every bank's credit appraisal for a business loan, right alongside your turnover and credit score — and it's a number most business owners have never actually calculated for themselves. In simple terms, it compares how much of your business is funded by borrowed money against how much comes from your own capital, and this one ratio quietly decides a lot more than people realise: whether the bank sees room to lend you more, whether you'll need to bring in additional promoter contribution, and sometimes whether a fresh business loan gets approved at all. A business that's already heavily leveraged looks riskier to a lender no matter how healthy its monthly sales are, because a high debt-equity ratio means a bigger share of future profits is already committed to existing debt repayments. This is exactly the kind of figure that gets missed when a project report or CMA data is put together without a proper financi...
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Solar Subsidy Rejected? Common Reasons and How to Avoid Mistakes

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A rejected solar subsidy application is one of the most frustrating outcomes an applicant can face — you've already spent money installing the system, and now the ₹30,000 to ₹78,000 central subsidy under PM Surya Ghar Muft Bijli Yojana, or the project-linked subsidy for a business/agricultural solar installation, seems to be slipping away over what often turns out to be a small, fixable issue. At Sharda Associates, our CA team regularly sees this exact pattern with clients pursuing subsidy-linked solar financing for commercial and MSME projects — a fundamentally eligible, well-installed system that gets stuck at the documentation or bank-appraisal stage rather than because of the installation itself. Whether your rejection is at the residential PM Surya Ghar portal or at the bank/DISCOM stage of a commercial solar loan, this article walks through the real, verified reasons applications get rejected and exactly what to fix before resubmitting. Understanding What Kind of Solar Sub...
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Location: India
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