Business Loan
Document Criteria
Note : Any additional documents specified by the Bank or NBFC.
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Features and Benefits
- Deals for New & Existing Customers
- No Guarantor / Collateral
- No Hidden Charges / Fast Process
- Easy Repayments / Term Loans
- Working Capital Loans
- Business Expansion Loans
- Inventory purchase
Eligibility Criteria
To qualify for a business loan, the applicant must meet certain criteria set by the lender. While these criteria may vary, they are generally the same for all lenders. Below are some of the most important factors to consider:
- Type of business - Sole proprietorships, partnerships, limited liability companies (LLCs), corporations and more.
- Credit score - A good credit score is often a prerequisite for obtaining a business loan
- Age of the business – More than 3 years
- Annual turnover - Determined by the bank/NBFC
- Collateral - For secured loans, assets may be required as collateral for the loan
- Cash flow - Lenders often assess the cash flow of your business to determine your ability to repay the loan.
- Age criteria – At least 21 years old
- Eligible businesses - Individuals, MSMEs, sole traders, partnership firms, limited companies and limited liability companies, limited liability partnerships, retailers, traders, manufacturers.
- Additional criteria - Applicants must have either a residence, office, store or warehouse.
It is therefore essential that you ensure that the business meets these criteria before applying for a loan. Otherwise, the loan could be rejected. In addition, it is important to choose an approach that positions the business optimally to meet the criteria. If the applicant adheres to the prescribed guidelines, they have a better chance of success. Make sure your business meets these criteria before applying for a loan.
FAQs:
Personal loans can be used for a variety of purposes, including debt consolidation, home renovations, medical expenses, weddings, vacations, and more.
Qualification criteria vary depending on the lender and the type of loan. Generally, lenders consider factors such as the creditworthiness of the business, its revenue and cash flow, time in business, collateral, and the purpose of the loan.
Required documents typically include business financial statements (profit and loss statement, balance sheet), tax returns, business plan, personal and business credit history, bank statements, legal documents (licenses, registrations), and collateral documents if applicable.
Loan amounts depend on factors like the lender’s policies, the financial health of your business, your creditworthiness, and the purpose of the loan.
Conditions:-Rates can be fixed or variable and may range from a few percent to double digits.
Repayment terms vary depending on the type of loan and the lender’s policies. They can range from a few months for short-term loans to several years for long-term loans. Some loans may have fixed monthly payments, while others may offer more flexible repayment schedules.
Defaulting on a business loan can have serious consequences, including damage to your credit score, legal action by the lender, seizure of collateral if applicable, and difficulty obtaining future financing. It’s crucial to communicate with your lender if you’re facing financial difficulties to explore potential solutions.
It depends on the lender and the type of loan. Some loans have specific purposes, such as equipment financing or real estate loans, while others offer more flexibility in how the funds are used. Always clarify the allowed uses of the loan before applying.
