NCA Applicable for Loan indicates whether net cash accruals are being used as a repayment-capacity basis for the proposed loan. In MSME lending, it shapes how the facility is structured, priced, documented, disbursed and monitored after sanction. It should be reviewed with the borrower’s actual cash flows, existing exposure, repayment behaviour and the purpose for which the facility is being used. For example, healthy reported profit is less useful if cash accruals are weak and the borrower cannot fund instalments, working-capital needs or promoter contribution. It matters because facility terms influence cash-flow burden, utilisation behaviour, approval authority, documentation and customer communication. The common caution is to verify the amount, tenor, repayment cycle, moratorium, security, renewal terms and approval conditions instead of reading the field in isolation.