Business Loan Eligibility

Business Loan Eligibility

A business loan can be availed as a secured loan with collateral or unsecured loan without collateral. However, it all depends on the bank that offers business loans and the amount of risk your profile carries.

Be it a startup or existing unit, there are several financial institutions that offer loans for both small and large corporate enterprises. Moreover, these loans can be availed from both mode of application online or online as per customer preference, this makes the loan approval process quick and hassle-free. But it is essential to meet bank eligibility requirements. Usually, the eligibility criteria differ from bank to bank.

Borrowers need to meet certain business loan requirements to avail them. Here is the list of eligibility criteria to apply for business loans as follows:

Any sole proprietor, limited liability companies, private and public companies, partnership firm

Also, individuals, self-employed professionals such as doctors and chartered accountants, SMEs and MSMEs sector units are also eligible to apply

The minimum net income of the unit should be more than Rs.15 lakh per annum

To fall under the eligible borrower category list, there are a lot of factors that affect the eligibility requirements. Each bank offering a business loan will look into many criteria before sanctioning a loan application. Below are the factors that need to be considered by borrowers before applying for business loans:

Age Criteria: Minimum age of the applicant should be above 21 and below 65 years.

Income: The net income of the applicant should be profit making at least for the last 2 years.

Annual Turnover: At least Rs.15 lakh per annum must be generated by the unit.