Business Loan Eligibility
Business Loan Eligibility
While planning to start a business or enhance an existing business, many entrepreneurs opt for loans from banks. However, it is a great way of funding.
With a strong banking system and network of lending to non-banking financial companies, a business person can acquire a business loan eligibility for a startup. In order to take such loans, banks request a variety of documentation to establish the loan applicant’s credibility to assure that genuine evidence is obtained during the loan process. This gathered information is used to assess the ability of the borrower to pay back the loan.
Eligibility criteria of a business loan
Age Limit – The age of the borrower should be 21 years or above at the time of loan application & must be above 65 years at the time of maturity of the loan.
Eligible Entities – Entities that are eligible for the business loan are individuals, sole proprietors, MSMEs, limited liability companies, SMEs, partnership firm, manufacturers, public and private companies, traders, retailers, and service sectors.
Business Continuity – The business continuation must be a minimum of at least 2 years with the same line of experience.
Nationality – The individual must be the citizen of India.
CIBIL Score – The borrower should maintain a good CIBIL Score i.e., 750 or above.
Annual Turnover – The minimum turnover of the business must be Rs. 10 lakh or above for existing enterprises.