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Eligibility for a Business Loan


There are a lot of different factors that affect one’s eligibility for availing a loan. In all of these factors, your ability to pay back the loan along with the interest amount is the primary one. Every financial institution runs extensive checks on your business, financial statements, profits, and its scope. Your business organization represents your ability to pay back the loan, and that is what banks assess.

Here we have compiled a list of different aspects that determine your eligibility for a business loan. Keep all of these aspects in check when availing a instant business loan:

Age

For any self-employed business owner, the typical age on which banks passes business loans is 24 to 65years.

Sustainable and Stable Business

Your past business record also goes a long way in determining your ability for the repayment of the loan, your business must be running stable for the minimum of three years to be able to avail loan or you should be involved with managing a business for almost five years to increase your chances of getting a loan.

Financial Statements

Banks make use of your past financial statements to check your ability to pay back the principal and interest amount. Any financial instability due to lousy management can significantly reduce your chances of getting a loan.

Outstanding EMIs

If your CIBIL score is low due to any outstanding EMIs, then it is sure to reduce your eligibility. So make sure to pay any outstanding EMIs to enhance your CIBIL score before availing instant business loan from any financial institution. You can also pay-up some EMIs in advance to improve your chances of getting a loan.
If you want to be completely sure, then you can make use of our business loan EMI calculator to know whether you are eligible for a loan or not. If you still have some questions or queries regarding business loans, then you should contact us right now our team of experts is always on stand-by to tell you how to get a loan .