About Business Loan

Lot of times businessmen find themselves in need of Money to expand or fund their business for multiple reasons. They need the money to buy some equipment, payment to creditors, pay off business dues, pay employee's salary, to expand etc. Businessmen can't put their personal savings in the business. Thus they opt for business loans. The business loan works as the perfect financial solution for such situations. Taking a business loan is always a safe and easy way to fulfill your business-related financial needs. You can also apply for a business loan if you want to start a new business.

What are the Eligibility Criteria to avail for Business Loan?

Banks have divided applicants in two categories based on their profession. The eligibility criteria and list of documents change as according to these two categories :

  • Self Employed Professionals (SEP): Doctors, CA, CS, architects, engineer etc
  • Self Employed Non Professionals (SENP): Trader, commission agent, contractor etc.

Also, if you are applying as a company, you can avail loan by applying under following entities :

  • Partnerships/Proprietorship
  • Limited Liability Partnerships
  • Private Limited Companies

Other important requirements to avail Business Loan :

  • The minimum turnover of your business should be Rs. 60,00,000. The turnover should be in positive track.
  • You should have minimum 3 years of experience in current business and 5 years of experience in overall business industry.
  • Your business must be making profit for last 2 years.
  • The age of the applicant should be minimum 25 year and maximum 65 years.
  • You should have paid your business's Income Tax Returns for last 2 years.
  • The borrowers should have a strong credit history. They should have a credit report ready for bank reviewing.