KreditBee Business Loan

If your venture is deemed to be a risky one or is a part of an industry that earns only seasonal profits, you may be charged a high interest rate.

• Your CIBIL Score: Your CIBIL score indicates your creditworthiness. It is a numerical figure that stays within the range of 300-900. The higher your CIBIL score is, the more creditworthy you are and better are your chances of getting a business loan. Lenders prefer to give loans to individuals with a CIBIL score of 750 or above. If it is between 650-750, you can still get a loan, but maybe at a higher interest rate. A CIBIL score below 650 may lead to much more unfavourable repayment terms, or worse, even the rejection of your business loan application.

• Business Experience: The business loan interest rate is also directly proportional to the age of your business. If your business is several years old, it will tell the lender that you know how to manage the finances of your venture well and vice-versa. If you are a young business owner, you may still be able to get a business loan, but you will get it at a higher interest rate as the lender will think that there is a higher risk attached to granting you a loan.

• Revenue and Profit: Another thing that the lender observes is the profit you have generated over the years and how consistently you have done it. This is to determine your loan repayment capability. If your accounts show that you have been generating profits consistently over a long period of time, you can easily get a business loan and, perhaps, at favourable repayment terms as well.

• Repayment History: If you have paid off your business loans on time in the past, the lender will think of you as a creditworthy individual. If you have exhibited healthy credit behaviour in the past, the lender will happily give you a loan and that too probably at a good interest rate.

• Relationship with the Lender: If you are on good terms with your lender and have a long standing relationship, it will be easier for you to get a business loan. It is mainly due to the fact that every financial institution wants to maintain and keep a creditworthy client happy. It is as simple as that!

An income within this threshold signals that you have a stable financial position and can easily meet your EMI obligations.

• Age

Yet another crucial factor determining your KreditBee business loan eligibility is your age. You must be at least 21 years of age to make a loan application. Regulated lenders across the country prescribe the minimum age criteria for business loans to ascertain whether you have the requisite maturity and experience for running your business.

• Employment

Another variable that influences your repayment capacity is the nature of your employment. That’s why authorised lending institutions seek the details about your employment. For business loans, different categories of self-employed professionals, such as doctors, architects, Chartered Accountants (CAs), etc., and self-employed non-professionals, such as traders, manufacturers, and service providers, can apply for a loan.

Alongside, business entities such as a private limited companies or a partnership firm can also apply for a KreditBee business loan. However, you must provide the requisite documentation supporting the conduct and running of the business enterprise across every category. To determine your KreditBee loan eligibility, the nature of your business will be taken into account. Here, factors like profitability, the scale of business, operational structure, years of operations, and so on will be considered.

• CIBIL Score

This is a factor that significantly influences your business loan application. Financial institutions consider the CIBIL score among the basic eligibility conditions because it reflects the creditworthiness of a self-employed individual. The KreditBee loan eligibility criteria stipulate that your CIBIL score must be in the optimum range. If you don’t know your CIBIL score, you can use the Bajaj Markets platform to get access to a detailed credit report.

• Other Factors Influencing KreditBee Loan Eligibility

Along with age, income, employment and CIBIL score, other factors affecting your KreditBee business loan eligibility include your existing debt-to-income ratio, credit defaults in the past, your relationship with the financial company, and so on. If you do not meet the specific criteria, your application may get rejected or you may get the business loan at a higher rate of interest.

• Start-up Business Loan: If you're a new entrepreneur, you can get a start-up business loan to launch a new venture or expand your current business. To learn about the features and benefits of getting an instant business loan through Bajaj Markets, simply visit the "Startup Loan" section.

• Business Term Loan: A business term loan can finance large investments such as business expansion or the purchase of machinery. This loan ensures the smooth operation of your business.

• Business Loan for Women: Women entrepreneurs can secure financial support and grow their enterprises with business loans specifically for women. To apply, visit the "Business Loan for Women" section and discover the benefits of a small business loan.

• Mudra Loan: The Pradhan Mantri Mudra Yojana (PMMY) is designed to offer business financing for MSMEs. These funds can be used to cover both capital and operating expenses. Under the Mudra scheme, you can avail three different categories - Shishu, Kishore, and Tarun, ranging from ₹50,000 to ₹10,00,000.

• Working Capital Loan: To finance daily business expenditures, consider a working capital loan. Different businesses use working capital loans for various purposes, such as funding growth projects, handling seasonal demands, or managing the credit cycle.