Business Loan Eligibility
A business loan is an amount of money that the lender provides and the borrower pays back along with the rate of interest in a specific period. Every business has its own financial requirements. It is offered by many banks, financial institutions, and Non-Banking Financial Companies (NBFCs) to fulfill the requirements of their business needs.
Eligibility criteria of a business loan: -
Eligibility criteria for a business loan depend on various factors, I.e., age of the borrower, repayment history, working experience, credit score, business turnover, etc.
- The minimum age of the borrower is 25 years and the maximum is 60 years of age.
- Cash flow should be positive in the organization of a business.
- Business or sales turnover must be audited by the registered Chartered Accountant.
- Continuity of a business must be a minimum of at least 3 years.
- Income Tax Return must be filed for the previous 1 year.
- The borrower can take a minimum loan amount of Rs. 1 lakh and the maximum are Rs. 5 crores.
- Annual turnover should be more than Rs. 10 lakhs.
- CIBIL Score of the individual must be 750 or above.
- Business should generate a minimum profit of 2 years.
- Entities that are eligible for business loans are sole proprietors, individuals, partnership firms, public and private limited companies, MSMEs, SMEs, limited liability companies, etc.