Business Loan Eligibility: The bank provides business loans to a wide range of small, medium, and big businesses, as well as professionals. Also, offer top-up options for existing business loan customers who may require additional credit at a later date. Meeting the business loan eligibility requirements is the key to obtaining a business loan.

Business loan eligibility includes fundamental parameters such as CIBIL score, age, and business turnover. Details are provided below

1. Business entities that can obtain business loans include:

• Sole proprietorship firms
• Private and closely owned limited companies
• Partnership firms
• Self-employed individuals/professionals, such as accountants and doctors.
• Retailers
• Manufacturing for service
• Traders
• SMEs & MSMEs

2. The applicant’s age should be between 25 and 68 years.

3. Applicants must be Indian citizens with no loan defaults.

4. The business must be functioning for a minimum of three years.

5. Over the last three years, turnover must have been increasing.

6. The business’s balance sheet should be audited by a licensed accountant.

7. The company should not be blacklisted by any organizations.

8. The business’s location should not be included on the unfavorable location list.

9. Applicants should not be tax defaulters.

10. Please specify the applicant’s source of income.

11. The applicant should present a detailed business plan or project report.

12. The applicant should possess a home, office, business, or godown.

13. The CIBIL score must be over 700.

What is the CIBIL Score? What is its Importance in Availing Business Loan?

A CIBIL score, often known as a credit score, is a three-digit numerical value that shows an applicant’s repayment aptitude as well as repayment history. The CIBIL score ranges from 300 to 900 and is calculated based on repayment history. Banks and NBFCs typically accept any score above 700 when offering business loans at moderate interest rates. To qualify for financial benefits or a business loan, applicants should maintain a decent CIBIL score.

Maintaining a good CIBIL score in order to qualify for a business loan is challenging. Increasing your CIBIL score does not happen quickly; it takes anything from three to six months. As a result, you should begin working on improving your credit score as soon as possible.

*Eligibility may vary depending on the scheme chosen.