Business Loan In India
Every bank and financial body need their borrower to fulfill their certain eligibility criteria while applying for a business loan. Eligibility criteria differ from bank to bank and depend on the profile of the individual. Given below are some eligibility criteria.
Eligibility criteria for a business loan
Eligibility criteria for a business loan depend on several factors such as repayment history, age of the individual, creditworthiness, total work experience, monthly salary, CIBIL Score, business income, etc.
The minimum age limit of the individual is 18 years, and the maximum is 60 years at the time of maturity of the loan.
The existence of a business should be a minimum of at least 3 years.
CIBIL Score must be 750 or above.
The criteria for non-individuals such as limited liability partnership, sole proprietorship, public and private companies, partnership firms are eligible for a business loan.
The annual turnover of the existing units is Rs. 10 lakhs and above.
Business should be generating profit for the previous 2 years.
Factors affecting business loan eligibility
Low CIBIL Score: - Banks verify the credit score of the individual as it shows your repayment capacity that you pay bills on time or not. And the CIBIL Score must be 750.
Borrower's age: - Lenders are anxious about the age of the borrower as it is a primary factor to be considered while applying for the loan. Therefore, the age of the borrower must be ranging from 18 to 60 years of age.