Factors For Eligibility For Business Loans

Loan Credit
Posted by Veronica

The reason why people apply for personal loans is flexible and you don’t have to specify any information. You can take a loan from an online application for some medical issues or purchasing of any fixed asset. And if you choose the online platform then it will be better for you as you will get more benefits compared to normal banks. You should click on this link for getting a low-interest rate when you apply for loans.

Factors for eligibility:

The eligible age is required- banks consider the person who is asking for loans with the age of 21 to 65 years. And below that will be not allowed to apply for loans.

Another factor is the loan tenure- these loans are usually unsecured loans that are given for a short period of time. Business loans are for tenure of around one year up to 5 years.

Loan Credit

The loan amount you have asked for- the loan amount of 50000 to 100 Cr can be easily availed and the higher the loan amount there will be higher the chances to get the low-interest rate from the bank. And if you choose the online platform then there you will be getting a low-interest rate.

Income tax return- a self-employed person can get a business loan when it has filed the Income Tax Returns for the past few years before applying for a loan. The bank always considers those borrowers who have filed their ITRs of 2 years and more.

Your revenue or turnover- the revenue referred to the income that a particular business owner has earned from the sale of goods or services to the customers. You can also be termed as sales or turnover also. If we take an example of doctors then this sales or revenue is measured in terms of Gross Annual Receipts, so in the very professional sense, it may differ but all are the same. Most banks ask for a minimum annual turnover of around 1 core to be eligible for the loans without any collateral.

The growth and vintage of a business- is an important factor that is considered by banks to take a step to provide you a business loan. It provides the bank with a kind of assurance that your company is authentic, stable as well as can generate profits to repay their loan easily. Banks usually take business stability and profitability in three years for self-employed professionals.

Related Post