Business Loan Eligibility Calculator - Check Your Business Loan Eligibility

To secure funds for your business, you first need to check if you meet the lenders’ eligibility criteria for business loans. These criteria are used to assess your creditworthiness and determine whether your business is financially stable enough to handle the loan. The business loan eligibility calculator on Bajaj Markets allows you to do this easily. 

 

Multiple lenders available on Bajaj Markets provide business loans to support small and medium-sized enterprises. Secure loans of up to ₹50 Lakhs for working capital, equipment purchases, or business expansion. Interest rates start from 14% per annum, with repayment tenures of up to 96 months.

Lenders set specific eligibility criteria to assess your ability to repay a business loan and ensure financial stability. These criteria typically include your business’s credit rating or CIBIL MSME Rank, revenue, ITR, cash flow, and operational history. A business that meets these standards gives lenders confidence in its ability to repay, making it more likely to secure financing.

 

As a borrower, it is important for you to understand and meet the lender’s eligibility criteria. A solid business plan and a proven operational history will also improve your chances of securing funding. Demonstrating financial responsibility increases lender confidence, giving you a better chance at getting the loan.

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 regular monthly spendings, 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, which is then displayed on the screen.

 

Enjoy simple eligibility, minimal documentation, and a seamless approval process with Bajaj Markets. These requirements vary across issuers. However, some common criteria include:

• You must be an Indian citizen

• You must possess a good CIBIL score

• Your age must be between 21–60 years

• The business must be registered as a partnership, LLP, or a Private limited company

• The business must be operational for at least 1 year

• The business must have a minimum annual turnover of ₹1.5 Lakhs (as per Income Tax Return)

 

Below are the eligibility requirements of various lenders available on Bajaj Markets:

Meeting the eligibility requirements set by the lender improves approval chances. There are multiple factors that affect your eligibility, such as:

• Credit History

A strong credit history is crucial for loan approval. Lenders prioritise credit scores above 650, as these reflect responsible financial management. A score close to 650 categorises you as a high-risk borrower, which may lead to higher interest rates and charges.

• Cash Flow

Lenders review bank statements to assess business cash flow and ensure financial stability before approving loans. Maintaining clear financial goals, tracking cash flow, and implementing a structured payment policy can enhance approval prospects.

• Repayment Capacity

Lenders evaluate financial stability by reviewing bank statements, credit history, and income tax returns. A healthy credit-to-debt ratio and a consistent repayment track record strengthen eligibility.

• Business Age

Lenders prefer businesses with at least 1-3 years of operational experience. A limited track record raises concerns about repayment ability, potentially leading to loan rejection.

• Income-to-Debt Ratio

Lenders examine this ratio to determine financial stability. Business expenses should ideally remain within 30-40% of income. A lower ratio improves approval prospects, as businesses with higher ratios pose greater financial risk.

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. 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.