✓Minimal Documentation ✓Flexible Repayment ✓Collateral Free Loan | Apply for Business Loan Now! Check Eligibility

To apply for a business loan, you must meet the eligibility criteria that the lender has set. 

  • You must be a self-employed individual in a partnership, trading, service, or manufacturing.

  • You must be between the age group of 25-65 years

  • The enterprise must have a stable profit record in the last two years

  • The enterprise must have a minimum turnover of ₹10 Lakhs

  • You should possess Income tax returns for at least one year

Business Loan Eligibility Calculator

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You are eligible for a loan amount of up to

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How to Calculate Business Loan Eligibility?

The unsecured business loan eligibility is calculated after evaluating different parameters that include your business record, CIBIL score, credit utilisation ratio, and tax payment record. To be eligible for a new business loan, you must ensure:

  • A good CIBIL score that ranges above 700 as it plays a major role in determining your eligibility

  • A clear tax record; having a good tax filing history will ensure that you get a high loan amount

  • A clear debt repayment record assures the lender of your financial discipline

How to Improve your Eligibility for Business Loan?

  • Provide Error-free Documentation: Most times, loan pleas are rejected due to missing or fake documents. You must ensure that you submit all the listed documents at the time of application, and this will ensure that you enjoy a smooth banking experience.

  • Make Regular Tax Payments: Your tax history is important, and defaulting on tax payments can lead to loan rejections. This makes it essential for you to make your tax payments on time.

  • Business Profitability: Lenders are more comfortable with businesses that are doing well. The bank is likely to reject the loan application if the business suffers losses. You should seek a secured loan in case of an unstable business record.

  • Future Financial Prospects: Lenders extend loans to clients who will stay stable and generate profits. If the business industry is volatile, the bank may reject the loan application, and if the loan is approved, the interest rate will be higher. 

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Business Loan Eligibility Calculator FAQs

How does your income affect your business loan eligibility?

A promising and stable income assures the lender of your strong repayment capacity. This is why it has a heavy influence on your eligibility.

What is the minimum eligible age required to apply for a business loan?

The minimum age required to apply for a business loan is 22 years.

What are the documents required for a business loan?

The documents required for a business loan include identity proofs, duly filled application form, certified bank statements, and business proof.

What is the minimum salary required to apply for a business loan?

No minimum salary is required when applying for a business loan as business persons do not have a fixed salary.

Who is eligible for a new business loan?

The eligibility requirements for a business loan usually vary from one lender to another. Here are some of the common criteria that lenders generally require you to meet:

  • Self-employed individuals and professionals: Businessmen, Entrepreneurs, Doctors, CAs, etc.

  • Legally constituted businesses: Proprietorships, Pvt. Ltd. companies, etc.

  • Minimum age: 21 years

  • Minimum business vintage: 2-3 years 

  • Minimum annual turnover: Over ₹40 Lakhs

  • Credit score: Ideally over 650

  • Business plan: The company’s plan to utilise the funds acquired 

  • Collateral: The complete details and value of the collateral (if any)

 

Prior to applying, speak to your lender and get a complete understanding of their business loan eligibility criteria.

What is the CIBIL score required to be eligible to get a business loan?

Generally, a good score, typically 700 or above, is required when applying for a business loan. However, some lenders might consider scores in the 650-700 range. Make sure to check the credit score requirements with your lender before applying, as it usually varies from one lender to another.

How to use a business loan eligibility calculator?

Follow these simple steps to check your eligibility for a business loan using a calculator:

  • Enter basic details like your business turnover and the estimated EMI amount in the tool

  • Get an estimate of the loan amount you will be eligible to borrow

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