Business Loan Eligibility Criteria


Before applying for a Business Loan, it's always beneficial to check your eligibility. Different banks have different requirements, so knowing your eligibility can help you understand if you're likely to get approved or not. Your chances depend on thinags like your financial history, credit score, repayment history and how stable your business is.

Most banks and NBFCs have specific criteria that applicants need to meet before getting a business loan approved. These criteria shall differ from one lender to another and are based on factors like the applicant's profile, type of business, its requirements, and various other related factors.

Comparison Table of Business Loan Interest Rates offered by MybankingTips Partners:

Bank/NBFC/Fintech Interest Rate  
SBI Bank 9.10% p.a. Apply Now
HDFC Bank 10.00% - 22.50% p.a. Apply Now
Kotak Mahindra Bank 16% p.a. onwards Apply Now
RBL Bank 14%-26% p.a. Apply Now
ICICI Bank Up to 17% p.a. Apply Now
Axis Bank 10.75% p.a. Apply Now
IDBI Bank 8.05% to 13.45% p.a Apply Now
Bank Of Baroda 10% to 15% p.a Apply Now
Ujjivan Small Bank Up to 2.50% Apply Now
Bajaj Finserv 9.75% - 25% p.a. Apply Now
IIFL Finance 12.75% - 44% p.a. Apply Now
FlexiLoans 1% per month onwards Apply Now
ZipLoan 1% - 1.5% per month (Flat) Apply Now
Indifi Finance 1.5% per month onwards Apply Now
Five Star Business Finance Up to 2% Apply Now
Lendingkart Finance 1.25% per month onwards Apply Now
Tata Capital Finance 12% p.a. onwards Apply Now
NeoGrowth Finance 15% p.a. onwards Apply Now
Hero FinCorp Up to 26% p.a. Apply Now
Aye Finance Up to 2.5% Apply Now
Clix Capital Up to 3% Apply Now
Protium Finance Up to 1.5% Apply Now
HDB Finance 8% - 26% p.a. Apply Now
U GRO Capital Up to 9% p.a. Apply Now
Mcapital Business Up to 2% p.a. Apply Now

Eligibility Criteria for Business Loan

Age Criteria Min. 21 years at the time of loan application & Max. 65 years at the time of loan maturity
Credit Score 750 or above (Preferred by most private and public sector banks)
Business Vintage Min. 1 year or above
Business experience Min. 1 year, business location to remain same
Annual Turnover Shall be defined by the Bank/NBFC
Nationality Indian citizens, should not have defaulted on any previous loan(s) with any lender
Additional Criteria Applicant must own either a residence, office, shop, or godown
Eligible Entities Startups, MSMEs, Sole Proprietorships, Individuals, Partnership Firms, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers, and other non-farm income-generating business entities engaged only in the services, trading, and manufacturing sectors

Note: The eligibility criteria mentioned above are for guidance purposes only. The actual eligibility criteria set by Banks/NBFCs may vary at their discretion and will be specified at the time of submitting the loan application.

 

Factors that determine Business Loan Eligibility

Business loan eligibility depends on several key factors:

  • Applicant's age
  • Nature and type of business
  • Applicant's repayment capability and creditworthiness
  • Details of collateral/security required for secured business loans
  • Any history of loan defaults or repayment history
  • Applicant's credit score, financial history, and source of income
  • Business stability, vintage, turnover, and profitability

Purpose of availing Business Loan

Business loans can be a lifeline for individuals, business owners, startups, self-employed professionals, entrepreneurs, and MSMEs in need of extra funds for various purposes. These include meeting working capital needs, expanding the business, purchasing machinery/equipment, paying rent or salaries, managing debt, or maintaining cash flow. However, each lender sets specific eligibility criteria that applicants must meet to qualify for a business loan.

Frequently Asked Questions

Yes, it's possible to get your bike financed even as a student if you meet the specific eligibility criteria set by the lenders.

The best loan for financing your bike or scooter is the one with the lowest interest rate. This way, you'll have to pay less in monthly installments (EMIs) throughout your loan term.

To get financing for your motorcycle, bike, or scooter, you can easily apply for the loan online from home. Or, if you prefer, you can go directly to a bike shop and apply for the loan there by giving them the documents they need

You can check your loan status online through internet banking. Another option is to visit the closest branch of the bank or financial institution that's providing the loan.

Many lenders consider a credit score of 620 and above to be good when giving out loans for motorcycles, superbikes, or scooters. However, if your credit score is lower than 620, you can still find lenders who may be willing to give you a loan, although they might charge a higher interest rate.

Banks allow you to make prepayments after successfully paying 3-6 EMIs. Depending on the number of EMIs you've already paid, there might be a small fee applicable on the outstanding amount when you choose to prepay.