Business Loan Eligibility
A Business Loan is a loan that is provided by banks, financial bodies, or NBFCs to meet the financial requirements of the individuals. For acquiring a business loan, banks ask for many documents to demonstrate the eligibility of the individuals for the hassle-free loan process. It is provided to Individuals, professionals, entrepreneurs, MSMEs, etc.
Eligibility Criteria for a Business Loan
The eligibility criteria of a business loan depend on several factors such as total work experience, total work experience, repayment history, age factor, and creditworthiness.
- The minimum age for an applicant should be 21 years and the maximum age is 65 years of age.
- Business continuity should be required for a minimum of 2 years.
- It is important to maintain a good credit score, i.e., 750 or above.
- The individual must be the resident of India.
- Business vintage must be a minimum of 1 year with profit-making.
- Entities that are eligible for this loan are partnership firms, retailer, trader, sole proprietorship, individuals, manufacturers, MSMEs, services sector, and public & private limited companies.
- Annual turnover of a business must be a minimum of Rs. 10 lakhs.
- The borrower should own one of the given properties such as Godown, office, resident, or shop.