A business loan is one of the easiest and safest choices for financing your business requisites including working capital, payroll, debt clearance, expansion, new infrastructure, machinery purchase, etc. Business Loans are tailor-made, with no end-use restrictions, to help owners scale up their enterprise to newer heights.
However, there are certain basic aspects that lenders check before approving your business loan application.
5 Things for Loan Application Approval:
Business vintage –For NBFCs Business Loans, your company needs to be operational for a minimum of 3 years. The more business vintage you have, the more are your chances of getting the loan application approved.
Income tax returns –To ensure a quick approval of your loan application, make sure you have filed income tax returns of your company appropriately for the last 3 years. This is one of the most important factors lenders check before deciding whether to approve or reject your application.
Business profitability –Lenders will check your business loan requirement, turnover and profitability to assess your creditworthiness.
Credit history –It is important that you have a clear credit history with no defaults. As a business owner, you must monitor your repayments on a regular basis. Before applying for Business Loans, do check for any such errors or discrepancies.
CIBIL Score –CIBIL or credit score is a major criterion for lenders to approve or reject your loan application. Calculated in the scale of 300 – 900, this figure signifies your creditworthiness. If you have a score more than 750, you have high chances of loan approval; if you don’t, it’s time you improve CIBIL score.
Since these are collateral free business loans, a great credit rating denotes you are a reliable borrower.
Besides these, you must have your business’ turnover of the previous year audited by a CA as lenders would verify the same before sanctioning the loan. Last but not the least, you, as a self-employed individual need to be within 25 to 55 years of age. Before applying for the fund, you can go through the complete checklist of business loans.
Features of Business Loans:
With all the above criteria fulfilled, you can enjoy the following features of business loan.
Quick loan disbursal:It only takes 24 hours to get the loan sanctioned by the NBFC, the fastest and easiest loan disbursal procedure. With this features, cater to your financial crunches immediately.
Avail up to Rs. 30 Lakh:You can avail up to Rs. 30 Lakh and use it to fund investments like expansions, infrastructure, working capital, etc. Also, attractive interest rates make it the perfect financing option for your company’s requirements.
Business loan without security: To qualify for a loan, you don’t have to pledge any asset as NBFCs and bank offers collateral-free business loans which are processed with minimal documentation.
You can even opt for the Flexi Business Loan from NBFCs which would reduce your EMIs by above 45%. This Flexi Hybrid feature allows the borrower to repay only the interest portion as EMIs and the principal amount can be repaid only during the time of closure of the loan.
This NBFC also offers attractive business loans for women to boost up their enterprise. Hence, without much delay, check for your eligibility and get the finance to grow your business.