A business loan is a brilliant opportunity that enables you to build and grow your venture. 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 Finserv 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 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 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.
FAQs on Business Loan Eligibility
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✔️What are the business loan eligibility criteria?
To be eligible for a business loan, you must be in the age group of 25 to 65 years, have a CIBIL score of 700 and above, have a good business profit history, show an upward business turnover trend, and have a tax payment history.
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✔️How to calculate business loan eligibility?
Business loan eligibility is driven by factors that include the CIBIL score, business vintage, and more. Use the Finserv MARKETS eligibility calculator to conveniently estimate your eligibility to get a business loan.
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✔️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.
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✔️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.
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✔️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.
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✔️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.
