Here are five Business Loan requirements you must consider before applying for one in India:
Check Your Eligibility Criteria
Before applying for a Business Loan online, you must check whether you are eligible for one. Although the criteria may differ from one financial institution to another, yet, most of them follow a similar line of requirements:
- Your age should be between 21-65 years, and you should be an Indian citizen
- You should have at least five years of business experience with a steady income flow.
- You should have a strong credit score, a stable business category, strong sales turnover, high repayment capacity, and a low debt-to-income ratio.
Always Use a Business Loan EMI Calculator
You can apply for a Business Loan ranging from Rs 3 lakhs to Rs 40 lakhs, which depends on several factors like credit score, age, income, etc. The repayment tenure is also quite flexible.
To reach the desired loan amount, loan tenure, and EMI that you can fit into your monthly budget, it is highly recommended that you use an EMI Calculator.
The EMI Calculator helps you calculate your EMIs, so you can plan your loan repayment accordingly. It depends on three figures – loan amount, loan tenure, and interest rate. You can use various permutations and combinations, and enter different interest rates, to check which EMI suits your financial situation and the financial institution (based on the interest rate) that suits your requirement.
Make a Thorough Comparison
Remember! Interest rate is an important factor when comparing different business loan providers. However, it is not the only factor you must pay heed to. You must make a smart comparison of various financial institutions based on the following:
- Ratings, reviews, and customer testimonials of existing users
- Credibility and reputation
- Customer service and support
- Your relationship with the financial institution
- The loan amount and loan tenure offered
- Other charges, including prepayment fees, processing fees, and other charges that could be levied
- Loan application process
- Tax benefits
Keep Your Documentation Ready
Your document file must be handy when applying for a Business Loan online/offline.
Besides having your KYC documents, you must consider other requirements of Business Loan providers in India. Keep your business continuity proof, signature proof, proof of income, credit report, banking information, ITR-related documents, etc., handy.
The Right Process to Apply for a Business Loan
You must know the right procedure to apply for a Business Loan. Let us look at the key steps you must follow to apply:
- Fill out the online application on the website of a reliable financial institution and enter all essential fields.
- Upload the required documents online.
- Fill in the loan amount you want and the loan tenure for repayment.
- Wait for the verification to go through. After verification, you will get a personalised loan offer with the amount and interest rate.
- On accepting all terms and conditions, your Business Loan amount will be disbursed within hours.
Now that you have learned about the fundamentals of a Business Loan and how to get a Business Loan, make sure you assess your need and contact the best financial institution.
Remember to apply for a Business Loan online, which ensures minimum documentation and quick verification, approval, and disbursal.
All the Best!