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.
| 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.
Business loan eligibility depends on several key factors:
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.
You can borrow any amount you need for a business loan, but some lenders offer collateral-free loans up to Rs. 2 crores at most.
The interest rate for business loans starts at 16% per annum and may go higher based on the applicant's profile and business needs.
Banks and financial institutions usually prefer a credit score of 750 or higher when considering loan applications. If your credit score is below 750, they might still approve the loan but could charge a higher interest rate.
Yes, having a problematic background can greatly reduce your chances of getting a loan approved. If a bank discovers that you have been involved in fraud or have a criminal record, they will likely reject your loan application.
