The most a bank will lend for a borrower's working capital, after the borrower's own margin.
MPBF comes from the Tandon Committee (1975). Under its second method, the borrower funds at least 25% of current assets from long-term sources, so MPBF = 75% of current assets minus other current liabilities. RBI made the method optional in 1997, but it remains a core working capital assessment topic in credit exams.
Practise it in exam-pattern questions, with a worked explanation on every answer. Free to start, no card.
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