Business Loan Eligibility

A business loan is a brilliant opportunity that enables you to build and grow your venture. The availability of a business loan is a great way to meet capital requirements that arise from time to time. However, it is essential to evaluate your eligibility before applying for a business loan. This way, you avoid the possibility of making an uninformed decision. Check your eligibility using the Bajaj Markets Business Loan Eligibility Calculator.

Business Loan Eligibility Calculator

A business loan eligibility calculator is an effective tool that enables you to estimate your eligibility for a business loan.

Business Loan 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

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.