Bank provides business loans to a wide variety of small, medium, and large enterprises, and professionals. Also, provide top-up facilities for existing business loan customers who may require more credit at a later period. To meet the business loan eligibilty is the key to get business loan.
Business loan eligibility comprises basic conditions like CIBIL score, age, business turnover, detail are mentioned below:
- The business loans can be availed by business entities like:
- Sole proprietorship firms
- Private limited companies and closely held limited companies
- Partnership firms
- Self-employed individuals/ Professionals like CA’s, Doctors, etc.
- Manufactures for service
- SMEs & MSMEs
2. Applicant age should be between 25 years to 68 years.
3. Applicant should be an Indian citizen, with no loan defaults
4. The business should be operational for a minimum period of 3 years
5. Turnover for 3 years must be showing an upward trend.
6. The balance sheet of the business should be audited by a registered CA.
7. The business should not be blacklisted by any entities.
8. The location of the business should not be on the negative location list.
9. Applicant should not be a defaulter of tax
10. Specify applicant’s source of income earning
11. Applicant should submit a detailed Business Plan/Project Report
12. Applicant should own either a home, office, shop, or godown
13. CIBIL score must be above 700.
What is CIBIL Score? What are its Importance in Availing Business Loan?
CIBIL score or credit score is a 3-digit numeric that represents the repayment capability of an applicant, along with the repayment history. The CIBIL score spans between 300-900 that is computed based on repayment history. Any score above 700 is generally accepted by banks and NBFCs in providing business loans at reasonable interest rates. Applicants should maintain a decent CIBIL score for financial benefits or to meet business loan eligibility.
Maintaining a decent CIBIL score to avail business loan is tough. Increasing the CIBIL score is not an overnight process, as it requires time from 3-6 months. Therefore, start to build your credit score from today or at the earliest.
*Eligibility may vary as per the scheme chosen.