Business Loan Eligibility Calculator - Check Your Business Loan Eligibility

You can apply for a business loan on Bajaj Markets once you satisfy the lender’s eligibility criteria. While exact requirements vary by lender, typical prerequisites include:

• Indian citizenship
  

• Business in operation for at least 6 months
  

• Credit score of 650 or above
  

• Self-employed applicant (professional or non-professional)
  

• Applicant should be at least 21 years old
  

• Business registered as a partnership, LLP or private limited company
  

• Minimum business turnover of ₹2 Lakhs

To calculate the eligibility of your business loan you simply need to enter two essential details. These are:

• Net Monthly Income - This is your earnings after the deduction of tax, provident fund contributions, etc. 

• Monthly Expenses - This includes all your existing loan EMIs, credit card dues, etc.
   

These details help calculate your debt-to-income ratio, which is the basis for your loan eligibility. The calculator uses a simple algorithm to compute the amount you can borrow with a business loan, which is then displayed on the screen.

Here are some things you can do to enhance your eligibility for a 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 borrowing 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.
  

• Ensure Business Profitability: Lenders are more comfortable with businesses that are profitable and have a high turnover. The lender 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.
  

• Plan Future Financial Prospects: Lenders extend loans to businesses that are likely to remain stable and generate profits. Thus, it is essential to submit a complete business plan which consists of the revenue forecasts and the financial trajectory of the firm. This assures the lender of a stable income in the future, leading to regular repayments. If the business is volatile, the lender may reject the loan application. However, in this case, if the application is approved, the interest rate may be higher.

Calculating business-loan eligibility involves assessing how much your business can comfortably repay and how much risk the lender is willing to absorb. While each lender may use its own proprietary model, here are some common, readable formulas and methods used in the Indian context:

Debt-to-Income (DTI) Ratio

This helps a lender view how much debt your business (or you personally as the proprietor) already carries relative to income.

DTI = (Total monthly debt payments ÷ Gross monthly income) × 100 

Equated Monthly Instalment (EMI) Computation

To check whether the potential monthly repayment fits within your cash flows, the EMI is calculated as:

EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N – 1] 

Where:

• P = Principal loan amount
  
  
• R = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  
  
• N = Tenure in months
  This helps the lender (and you) verify if the business can service the loan without strain. 

Debt Service Coverage Ratio (DSCR)

This is a broader indicator of your business’s capacity to pay debt obligations from its earnings.

DSCR = Net operating income ÷ Total annual debt service (principal + interest) 

A DSCR above 1.0 (e.g., 1.2) means the business generates more than enough income to cover debt payments; a ratio below 1.0 raises red flags.

Turnover-multiple & Profit-based Methods

Some lenders use heuristics based on business turnover, profitability and vintage (years in operation). For example:

Eligible loan amount ≈ X % of last annual turnover (subject to profit & risk parameters)

This method is less formula-driven in public disclosures but is used in many Indian business-loan credit models.

Different lenders on Bajaj Markets have unique eligibility requirements based on factors like credit score, business turnover, and operational history. Here’s a quick overview of the business loan eligibility criteria followed by some of the leading lenders available on the platform:

A business-loan application is evaluated on multiple dimensions by lenders to determine creditworthiness. Below is a breakdown of the core factors that commonly influence whether your enterprise meets eligibility criteria:

Business Vintage and Continuity

Lenders prefer businesses that have operated for a certain period (often two to three years or more) as this demonstrates stability and reduces risk.

Nature and Type of Business

The industry segment, business model and inherent risk play a role. Businesses in well-established, low-risk sectors may have better eligibility compared to newer ventures in highly volatile areas.

Financial Performance, Turnover and Profitability

Consistent revenue generation, a healthy turnover and profitability strengthen the case for loan eligibility since they reflect repayment capacity.

Credit History and Credit Score (Personal and Business)

A strong credit score and clean credit history indicate reliability in repayment. Lenders often look at both business credit and the proprietor's personal credit.

Repayment Capacity and Existing Liabilities

Lenders assess how much debt the business already carries, how much cash-flow is available for servicing new debt and whether the loan repayments are sustainable.

Age and Background of the Applicant or Proprietor

The age of the individual applying, their business experience and track-record can affect eligibility.

Security or Collateral (for Secured Loans)

For loans that require collateral, the value and quality of the pledged asset matter. Even for unsecured business loans, the absence of collateral may lead to stricter criteria.

Documentation and Regulatory Compliance

Complete, accurate financial statements, audited accounts, tax returns and compliance documentation reassure lenders and thus influence eligibility.