What Are The Eligibility Criteria For Business Loans

To set up any business, we need to invest a big amount of money in it so that we can make a profit from it.

But for the money, we can’t rely on our single source of income or on our family members. To overcome this problem, there exist numerous banks that can provide us with business loans to keep our progress going on. But there is eligibility for business loan which everyone needs to fulfill in order to apply for the same. Business loans help in developing and extending our business and to obtain a good position in the market.

Several public and private sectors provide business loans with favorable interest rates and also the tenure for the same can be adjusted according to the one asking for the loan. Banks can easily grant you the loans but to achieve it, you have to submit various important documents that prove your real identity.

These loans are the best because no collateral is required in return because the business you are going to set up is new and requires capital to invest in. There is also business loan for women with different eligibility criteria so that they can also take these loans to set up their small businesses. Women with a passion to start their own businesses and to make them successful can make use of these loans.

Here are some eligibility criteria to be fulfilled by the companies in order to go for the business loans:


1. AGE

AGE

The person applying for the loan must be 21 or more and also less than 60 which is the bank’s standard age because below or above that is not considered applicable for the loans.

2. INCOME

The company for which you are taking the loan must have annual revenue of more than 20 lakhs and also the company should pay all the taxes.

3. STABLE BUSINESS

The business loan must be taken for the company which has already a stable position in the market because these loans are granted to small enterprises with established track records in their respective sectors.

4. DEBTS

DEBTS

If the person taking the loan has already a debt so he/ she is more likely to receive a reduced amount of loan. So, to be eligible for the loan one should clear all the past payments and debts in order to take a fresh loan.

5. CREDIT SCORE

You should have a good credit score because the banks before granting the loans check your credit score and record it at the time you apply for the loan. A good credit score makes you eligible for the maximum loan amount and also low-interest rates.

If you fulfill all these criteria then you can easily take the desired amount of loans from the banks with a minimum amount of interest rate. Every bank almost has the same terms and conditions so that the borrowers can become eligible for the loans they require.

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