Business Loan Eligibility
What is Business loan?
Business loan is a type of loan that is given by banks, financial bodies, or NBFCs to meet the financial requirements of the business owners. For acquiring a business loan, banks ask for many documents to demonstrate the business loan eligibility of the individuals for the hassle-free loan process. It is provided to Individuals, professionals, entrepreneurs, MSMEs, etc.
In order 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’s us have a look at some common sets of business loan eligibility as defined below:
Eligibility criteria for a business loan
The common business loan 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.