Business Loan Eligibility
What is Business Loan?
A business loan is a capital loan or a working loan that is provided by banks, financial bodies, or NBFCs to meet the financial requirements of the business owners. For acquiring what is business loan, banks ask for many documents to show the eligibility of the individuals for the hassle-free loan process. It can be availed by any Individuals, salaried person professionals, entrepreneurs, MSMEs (Micro Small Medium Enterprises), etc.
To qualify for a business loan, the applicant should meet the basic eligibility requirements set by the specified lender. However, the eligibility criteria shall vary from bank to bank. Let us have a look at some common sets of business loan eligibility as defined below:
Eligibility criteria for a business loan
The common eligibility criteria of a business loan depend on several factors including 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.
- Businesses must have at least 3 years of continuity
- Make sure your credit score of 750 or above to qualify for
- As a borrower, you 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.