Eligibility Criteria & Eligible Entities

Business Type:  Most lenders provide loans to various types of businesses, including sole proprietorships, partnerships, limited liability companies (LLCs), corporations, and more.

Credit Score:  A good credit score is often required to qualify for a business loan. Lenders use your credit history to assess your ability to repay the loan.

Business Age:  Some lenders require a minimum operational history for your business, usually ranging from a few months to a year or more.

Annual Revenue:  Lenders may have a minimum annual revenue requirement to ensure your business has a stable income.

Collateral:  Secured loans might require assets as collateral to secure the loan. Collateral can be real estate, equipment, inventory, or other valuable assets.

Cash Flow:  Lenders often evaluate your business's cash flow to determine your ability to repay the loan.

Age Criteria:     Min. 21 years at the time of loan application & Max. 65 years at the time of loan maturity.

Eligible Entities:  Individuals, MSMEs, Sole Proprietorships, Partnership Firms, Public and Private Limited Companies, Limited Liability Partnerships, retailers, traders, manufacturers, and other non-farm income-generating business entities engaged only in the services, trading, and manufacturing sectors

Business Vintage : Min. 1 year or above

Business experience:  Min. 1 year, business location to remain same

Annual Turnover:  Shall be defined by the Bank/NBFC

Credit Score:  700 or above (Preferred by most private and public sector banks)

Nationality:  Indian citizens

Additional Criteria:  Applicants must own either a residence, office, shop, or Godown.     

Documentation for Business Loans

The list of documents required for a business loan to be submitted varies based on type of business entity. Submit the following documents to begin with the loan process:

• ITR for the past 2-3 years

• Current Bank Account Statement for the last 12 months

• Photocopy of PAN Card

• Address Proof for Residence such as Voter Card, Passport, Aadhaar Card, Telephone Bill, Electricity Bill

• Address proof for Business such as the Telephone Bill or Electricity Bill

• Last Financial Year's provisional Financials and future year's projections.

• Company's business profile on the letterhead

• 2 photographs of promoters and property owners.

• Sanction letter and Repayment schedule of existing loan

• GST registration certificate and GST returns of latest 2 years.

• D-Vat/Sale tax registration copy

• Udhayam Aadhaar registration certificate

• Rent agreement copy of factory and residence (if property is rented)

• Business Continuity proof of 3 years (3 years old ITR/Company registration etc)

• Company PAN Card, Certificate of Incorporation, MOA, AOA, List of Directors, and Shareholding pattern for Pvt Ltd companies

• Partnership Deed, Company pan Card for Partnership Companies

How to use Business Loan EMI Calculator

Using a business loan EMI (Equated Monthly Installment) calculator can help you estimate your monthly loan repayment amount. 

Follow these steps to use a business loan EMI calculator effectively:

• Enter loan amount, interest rate, tenure.

• Click Calculate.

• View EMI, total interest, repayment.

• Adjust tenure if needed.

• Consider extra costs.

• Check budget compatibility.

• Confirm with the lender before finalizing.