Nowadays a business loan is offered by a bank without claiming any security. It is totally the financial creditor’s discretion, as to how much monetary risk they are willing to incur. It is totally up to the creditor whether they will offer loan to a well established business firm or to a totally new setup. Who to give loan to and how much credit risk can be taken is decided by the lender itself. At loanbaba, we provide you free-of-cost business loan eligibility calculator that will tell you within a second about the amount you are eligible to borrow and the EMI payable.
If the borrower has all the required documents and has minimum CIBIL score required for Business loan, then the loan gets sanctioned within a few days. Given below is a list of Business loan eligibility criteria, for loan applicants all over India.
Banks and financial companies will scrutinise and study many factors before a loan is credited to the applicant. They are as follows:
In addition to the above criteria we should keep in mind that no Business loan for CIBIL defaulter will be sanctioned, so a minimum CIBIL score required for Business loan.
Loan amount offered at loanbaba is between Rs. 1 lakh to Rs. 1 crore. Tenure is between 6 months and 5 years. Interest rate starts from 13%. Here are the eligibility conditions for different profession type in business.
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Private firm |
Total yearly income of the establishment is required to be above Rs.150, 000/-to qualify for a business loan up to Rs.1.5million, and to get credit more than Rs.1.5 million net income of the company should be over Rs.300, 000/-. |
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Partnership or Multiple Ownership Company |
A minimum of 25% share of the company can be added to the earning of the concern. |
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Special Professional |
If a person is a diploma or degree holder in any form of art or craft, or possess any other vocational skill, which according to the creditor can turn out to be a source of income, then the bank will lend him financial assistance. People who could be eligible are: Maxillofacial Surgeons, Doctors, Engineering Professionals, Accountants, Indigenous craftsmen, Building Promoters, Architects, Event management consultants etc. |
Below mentioned are ways you can increase your business loan eligibility:
Every day the bank has to handle different business loan applicants, they could be salaried or independent businessmen, small establishments or a firm with financial instability or an entrepreneur who need Business loan with bad CIBIL score. The bank will have different criteria, for each customer, regarding loan amount, time period, interest rate, on the basis of borrower’s credit history, type of loan application. So before applying for loan it is mandatory to check and verify your customer category and eligibility criteria.
Each category has a different status of eligibility, required valid papers, interest rate, loan amount, and time period of repayment.
Below mentioned are the reasons why you must use business loan eligibility calculator:
Below mentioned are benefits of business loan eligibility calculator:
Below mentioned are the ways on using the business loan eligibility calculator on our website:
Below mentioned are questions regarding eligibility of business loan.
CIBIL Score for business loan: Each applicant’s credit history is carefully scrutinised and verified before passing a loan application. Here business CIBIL report plays an important role. Borrowers with CIBIL score above 750 will immediately get their loan sanctioned. They will also be in a position to negotiate their interest rate. Whereas loan defaulters, frauds, and borrowers’ with low CIBIL scores loan application may be considered invalid. Once your loan gets rejected by bank, it is unlikely that other financers will accept it, provided the borrower agrees to pay a higher interest rate.
If the borrower happens to work in a reputed firm with a good turnover then the loan application will have easy acceptance. If not, and employer has zero credibility in the market, then the loan gets rejected. Nowadays financial and credit history of each firm is available online. So the employer’s credit history is vital not only regards loan application but it hampers career prospects also.
If ever the applicant has been involved in a fraud case or has had any other criminal record, then the loan application will not be processed at all. Loan will be granted to borrowers who the creditor thinks is capable of repayment of the principal amount along with the levied interest.
Business stability is an inevitable part of a business loan. If the business is unstable with minimum profit, then the banks will demand collateral before passing a loan. A borrower must calculate its loan repayment capacity with online Business loan calculator, to save himself from further financial crisis or debt. The HDFC business loan calculator, SBI Business loan calculator, is very useful to know your eligibility with stated banks. But, you can also use our loan eligibility calculator to understand eligibility for other financial institutes.
