How to Qualify for a Business loan in India?

How-to-Qualify-for-a-Business-loan-in-India

You can avail a business loan with/without security. It completely depends on the bank offering loan & then the amount of chance they are ready to endure. No matter your business loan is for any existing business or else to begin a new one, you can find a lot of banks in India offering loans for both big as well as small businesses. It is possible to acquire confirmation and money within 3 to 4 days if you submit all the required documents and also meet the eligibility criteria.

Factures Deciding Business Loan in India

Many factors are taken into account before declaring you eligible for a business loan. All those banks offering a business loan will consider the following important points before sanctioning it:

  • Age Limit- You should be a minimum of 21 years and a maximum of 65 years.
  • Income- Your business must be profit-making for the past 2 years (at least).
  • Turnover- ₹150,000 per annum must be the minimum yearly income.
  • Co-applicants- This is optional! It is not at all mandatory in case of a business loan.

You should also meet the following list of eligibility criteria before applying for a business loan in India:

  • No matter you have a limited or private limited organization, net income must be more than ₹150,000 per year for a business loan up to ₹1,500,000 & over ₹300,000 for business loan above ₹1,500,000.
  • No matter you have a partnership or proprietorship company, the minimum of 25% stake each can be bashed to the income of the concern

Different types of customers purchase a business loan. While few are direct people who are salaried or self-employed, the others are companies & entities. When it comes to applying for a business loan, a reputed bank will come across both types of customers.

Here are some more business loan requirements you will have to meet while applying for a business loan:

  1. Credit Score
  2. Age of Your Business
  3. Personal debt-to-credit ratio
  4. Not operating Income
  5. Potential Collateral
  6. Specify how You Intend to Utilize Your Funds

Go now, discover a business loan that fits best for your current situation as well as helps you to remain successful & profitable in the future!!!

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