Business Loan

• Business loan is a kind of financing to meet the urgent needs of your growing business.
• Business loans are secured or unsecured financial assistance provided by banks and NBFCs in India.
• Business loans are also called commercial loans.
• There are different types of business loans in India:

• Term Loan
• Working Capital Loan
• Start-up Loan
• Loan against property 
• Overdraft (OD)
• Equipment Financing
• Cash Credit (CC)

How to Improve Business Loan Eligibility?

• Build a good Cibil score: Try to manage a CIBIL score of more than 750.
• Do away with past debts: Pay off any existing liabilities, loans, or pending credit card bills, on time. Try to maintain a spotless repayment history by avoiding defaulting on payments.
• Try not to avail various loans simultaneously: Always apply for a business loan that is best suited to your financial requirements. Filing multiple loan applications affects your creditworthiness.
• Opt for longer loan repayment tenure: Choose longer loan tenure. It will enable you to repay comfortably over an extended period. Higher repayment tenure also reduces your EMI amounts.

Business Loan Eligibility For Self-Employed:

The following creteria are need to fulfill to apply for a Business Loan:

• Self-employed individuals, Proprietors, Private Ltd. Company and Partnership Firms involved in the business of Manufacturing, Trading or providing Services.
• Those whose business has been profit making for the previous 2 years.
• The business should have a Minimal Annual Income (ITR) of Rs. 2.5 lakhs per annum.
• The business should have a minimum turnover of Rs. 10 lakhs.
• Individuals who have been in the current business for a minimum of 3 years, with 5 years total business experience.
• The applicant should be at least 21 years at the time of applying for the loan, and should be no older than 65 years at the time of loan maturity