What’s next for online marketplace lending

Investment strategies

Market place lending is a new way of doing online lending. It is indeed a platform that offers a medium through which businesses and investors can come together for their needs. While in many cases, the online marketplace lending is able to collect interest along with the principal from the one who borrows and sends it to the investors by keeping a small amount in the form of a fee. These kinds of platforms usually not only use the new but the old loans that can be utilized for the purpose of refinancing the debts that exist. 

Things you need to consider before taking a loan

Have you been looking for a new loan? Do you consider applying for an online marketplace lender this time? If yes, we suggest you follow the steps that we have mentioned below:

 

Consider your income and expenses

Creating a budget can be helpful for you. With this, you will be capable of seeing the cash flow. It includes the money that is coming as well as the payments you are making each month. For making an effective budget for yourself, you can refer to some money goal worksheet. 

Decide your needs and how much you can afford

Do you have a clear monthly budget plan for yourself? deciding how much you are capable of affording in case of paying for a new loan is critical. You have to think one step ahead. Taking your visions beyond the monthly payment and looking into the total cost of the loan is important for you. Well, this includes fees and interests. One thing you must keep in mind is that borrow the amount you need. In fact, you must know how much money you can afford. Do not rush to go for more even if the lender is offering you more than you need. 

Check the credit report

As an entrepreneur, credit score matters a lot to you. If yes, it must have affected your credit score. For understanding where your credit score stands, requesting for free copies of the report can help. For this, you can request those companies that offer credit reports. In this way, you can get a credit score every 12 months. 

Shop around

Now, you got to be learning about more options. Check the availability of the different types of loans. Well, that includes the cost of each of the loans available. For comparison, you can take help from the online calculators. In this way, you can easily compare the rates along with the terms of each of the loans available. So, you can easily come up with the best deal online. While you compare these loans, you must consider these things:

Things you must consider

  • You must consider the amount you need to finance along with the amount the lender is able to give.
  • In case if you are going for a loan, it is necessary to know the months to repay. It is the term for the loan.
  • Know the rate of interest being charged at present. It is also important to know whether the rate will vary or not.
  • It is critical to know the fees that you have to pay. Moreover, you are capable of using the APR (annual percentage rate) for comparing the interest rate expenses along with the average fee for a year. 
  • Also, you need to consider the penalty. That includes the fee for the late payments. In addition, it may include the extra fees in order to complete the payment earlier. 
  • If you have quoted the payment for a monthly basis, looking beyond the monthly payments can help. In fact, think of the duration for which you have to pay. For this, you must be considering the costs and fees. 
  • Lastly, you have to consider the total cost. Know the overall payment you need to make when your payment is complete. 

Final words

We highly recommend you to take the steps that we have mentioned above for applying for any loan. So if you are going to consider online marketplace lending, you must be considering the fact that this industry is a new one. As far as the background is concerned, you cannot have the same perception that you have in credit unions and banks. However, online marketplace lending does adhere to the same federal and state laws.

What to Expect from a Small Business Lender

Small Business Lender

Are you a growing entrepreneur? Have you been looking for taking your small business to another level? Do you prefer considering a lender for investing in your small business? For all these questions, one of the most important questions arises. This is in fact, “what should I expect from a small business lender?”. Indeed, what to expect from a lender if you consider applying for a business loan. Well, it is important to clear this thing up. For which, we have come up with some of the key factors that can bring lucidity in your expectation from a lender:

So, here we go!

First things first

Primarily, it is critical to understand your needs. As a matter of fact, there are many things that arise in your mind. These thoughts include how much money you really need, your performance that is reflected by the credit score your business has, etc.

Hence, these are things that you can expect from a small business lender:

Loan approval

If you are going to start a business, getting a loan in the very first year of the company can be difficult. Lenders need cash flow for supporting the amount to be repaid. Hence, lenders do not always approve of the business loan application of startups. 

So, if you have expected approval, you might not get at the very first attempt. Instead, you can rely on borrowing from peers, personal loans, microloans, etc. 

 

In the case of a business with more than a year of inception, there can be some financial options as well. This includes term loans, SBA loans, invoice factoring, business lines of credit, etc.

Moreover, you are capable of getting loans from other places that include the following:

  • Microlenders
  • Online lenders
  • Banks
  • Nonprofit microlenders

From such types of lenders, you can expect products like lines of credit, accounts receivable financing, and term loans.

Type of loan

We prefer your approach to shop for small business loans like you are shopping for a vehicle. 

The time you have found the type of lender, comparing a number of lenders of the same type can lead you to have the best deal. Moreover, you must be looking for the lowest APR. 

 

Well, for getting the best deal on business loans for your small business, you gotta be expecting these things from the lenders.

What to do if Your Small Business Loan Have Been Denied

Best Small Business Loans

For an entrepreneur, nothing is more discouraging than witnessing some obstacles to your small business. Foremost, it becomes quite halting if your lender makes a decision against your favor. You might take it as a rejection for your small business loan application. In fact, puzzling thoughts can make it more perplexing for you to come up with an idea. Additionally, it leads you to arise question whether your business plan can come to an accomplishment or not. However, you do not have to worry at all.

There are many cases where they have got success regarding the matter even after the first rejection. The main concern is why your application failed. So, before you make your other move, make sure you have brought improvisations. Well, we are talking about the improvisation regarding credit and financial standing. 

Well, you should not be taking this as a failure. Your pursuit of the success of your small business can face a few denials including this one. So, for this, we have come up with some helpful tips for you. After going through the article, you might not face the same thing.

Know the reason for denial

You have got all of your hope for another try even if you face a rejection for the first time. As a matter of fact, most of the business owners do want denial so that they can apply for the second time. However, before this, you must ask for the reason for the denial. 

 

It might be the want for submitting more collateral. The debt to income ratio might be one of the reasons for the rejection. Therefore, you can hope for getting the red flags for the decline of your application.

 

The time you get the idea of what the lender was looking for, you must wait until your application meets the standards. After that, you can begin with the process again. In this way, you can get more chances for approval. 

Improving your credit score can help

Are you aware of the credit score of your business? Additionally, along with the personal credit scores, the lender evaluates the credit score of your business. It is able to provide a clear insight into your finances. 

Hence, we highly recommend you to improve your credit score. You must not only focus on your personal but also your business credit score. 

Find another lender

In case if the bank rejects your small vusiness loan application, finding a lender can bring fruitful results. You can find a lot of them online who show their keen interest in working with small businesses and startups. You can even get better options that suits the best for your business. 

 

Look for a different option for financing

Looking for a term loan might not be that satisfying if your business struggles with working capital. You might find your lender showing interest in providing you with revolving credit. Also, you will the lines of credit easier for qualifying as we compare it to the term loans

 

In fact, you can find some loan products easily obtainable. But, be sure of what options can make the best out of your efforts. 

Find an alternative way

In case you are not able to get the funding from an institution, you can search for some angel investors. Well, you cannot always expect outside cash from financing institutes and lenders. You can consider alternative ways like asking for a loan from your wealthy friends as well as your family. In fact, you can be trustworthy to them so they will rely on you. 

Just take a break

Sometimes, it is better to take a break. So, if you face denial, wait until the moment comes when your business plan is ready. In case if your sales went down, or you got a credit score that is below satisfactory, you must be focusing on improving the numbers. 

Undoubtedly, there is a need for finances, but if you take a break and work on the things, you will be getting positive results.

 

So, these are some of the most important tips that you must adopt for getting approval for your small business loan application. 

Best Small Business Loans

Best Small Business Loans

Numerous businesses, both large and small businesses, depending on the loan to fuel development or reserve different activities. Many times, the conventional loan procedure works for these organizations for their development. However, there are times when a business needs and answers rapidly to make the most of a chance to catch extra ROI. Hence, it will illuminate a sudden business crisis in the process. Fortunately, a moneylender who offers fast and best small loans for the small business fund availability more smoothly.  

 

Helps in finical growth

 

Numerous organizations finance development and meet momentary capital needs with a private venture credit. There are times when quick access to extra capital, or access to quick business credit, is basic to achieve. The most of a chance to make extra ROI or meet a momentary business challenge. However, recognized media advances the finance is the answer for each business challenges. In addition, the more the better recollect that getting more than is required can be costly. Moreover, for private ventures and could even put their practicality in danger.

 

Online lenders provide fast small business loans

 

Most traditional business advances are a repetitive procedure that can cover you in administrative work. Moreover, agreeing, the Small Business Association’s yearly monetary research report, based on a downturn decrease in loaning got through customary banks. The application and endorsement time for a private venture advance takes somewhere in the range of 30 to 60 days. In the meantime, in the Digital Age, time is significantly increasingly vital as customer requests will in general change continuously. That is the reason we are in the matter of helping you subsidize your business on your time plan.

 

Funding speed

 

64 % of the private companies studied distinguished speed to subsidizing as the explanation they picked an online business credit. 57 % referred to the simple application process and 52 percent, the reasonable all-out credit cost. Obviously, a speedy answer and fast access to reserves is a significant thought to numerous entrepreneurs. Moreover, it helps small businesses to grow in the market by accessing the speed loan. 

 

A cash advance on the use of credit card 

 

There is an advantage that you have a charge card, you can likewise take advantage of this credit extension. There are two different ways to do as such. The first is by putting a crisis cost on your charge card. The other is to take out a loan. Getting a loan is quite straightforward: assume your acknowledgment card to an ATM or bank. Moreover, they will charge your Visa and give you money consequently. Some charge card guarantors like Discover even permit you to make an online exchange for your financial records.

 

Take loans from friends and family

 

In the event that you have an encouraging group of people, you can approach those near you for help. Ask a relative or friend for the loan of your business. Aside, the effort to examine and concur on terms, similar to how frequently you will give those installments on the credit. It is frequently worth the push to sign a promissory note for the advance. Going into the circumstance with clear desires will help ensure funds and the relationship. 

Is it Possible to Get a Business Loan With no Money Down

Apply for Small Business Loans

 If you are on low on the fund, it is absolutely fine to opt for finance from a good financial debtor. But there are some constraints behind getting the financial loans if you’re are not prepared to submit the money down. Although to get a business loan without money is not impossible. There are some financial institutions that fulfill your need to get the business loan with no money down.

 

 What is the concept of “Money Down”?

 

  Most of the business owners like you, always need a constant inflow of money to run their daily day to day operations. To fulfill that requirement they approach many financial institutions to fund their financial requirement. As a consequence, the financial institute finances funds by the means of earning revenue through acquiring interest rates. In addition to that, due to earn money profit the financial institutes’ charge a portion of the fund from them. That amount of money is commonly known as money down or the down payment or processing fee. But you may ask why it is necessary? Actually, financial institutes are financing you. That means they are funding in your bad times. They can charge anything out of their money, after all, they are also doing the business.

 

 How to get the financing without any money down?

 

 Irrespective of the industry it is difficult to get debt fund money, however, you can get the loan without the submitting money down by following the below steps:

 

Purchase a business credit card: 

 

Undoubtedly, purchasing a business credit card for maintaining the daily business requirements is a very fruitful idea. There end number of institutions that are providing the business credit cards. So, thus you can easily acquire business credit cards. Besides that by the extra grated use of credit card, you can boost the credit score too. In the meantime, you need not pay any kind of money. Plus, your continuous transactions in credit cards will offer will many reward points. That you can easily use in the near future

  

Opt for equipment financing: 

 

This is another excellent option that provides money free finance. Generally, most of the financial institutes avoid financing the business person, who lacks cash bank statements. As a matter of fact, when you opt for the equipment financing then you neither need to show the bank account details nor balance sheet of your business.

 

 You can also go for the invoice financing: 

 

Invoice instancing is also one type of collateral that provides loan fun without any money down. 

 

You can go for the government or subsidized loan:

 

 In most of the countries, the government provides a different kind of loan to scale up the industry sector. As a consequence, they advance different kinds of loans and various amounts of loans without seeking any kind of presubmission of cash. Therefore if you want to boost your unit without such prior investment you can approach government financial institutes to fund your business.

 

Definitely, the above-mentioned loan will help you to get loan money without any money down.

All about Small Business Loans

Apply for Small Business Loans

Across all the industries need for finance is a crucial part to operate the business. If you are the owner of the small business, then your need for funding may be higher in comparison to other big players in the market. As a matter of fact, small business owners face several problems at the time of applying for business loans. If you are in the market for the same reason and searching for small business loans, you are the best place. 

 

Probably, you are continuously applying for the different kinds of loans for your small business. Whereas, you do not have the idea of getting a business loan. As a matter of fact, your banker or financial agent renders you only a partial idea rather than providing you a complete factual data about the business. As a lot of small business institutions depends on small business for fueling their initiatives.

 

 Let us understand the concept of small business loans: 

 

 Basically the small business loans are those type of loans that funds a lesser amount of money in comparison to other loans. There are several stages of the loan amount are exist in the market. Generally, the loan amount which is below the ten lakh is regarded the small business loans. On the other hand, the loan is more than ten lakh are often known medium loan. And also, which equals to one crore or more than one crore.  These loans require fewer prerequisites for loan applying procedures. Meanwhile many institutions like the banks offer small business loans. By following the rules and regulations provided by your financial institutes you can easily use the fund money.

 

 What are the perceptions people hold before applying for the small business loan?

 

 Often people believe that getting a small business loan is very difficult to receive. But if you maintain a healthy business and keep healthy cash flow in your account then you can conveniently apply for the small. However, some of the lenders do not provide loans below than ten lakh. But, on the contrary, many new institutes are come up with small business opportunities. Instead of seeking help from those who never helping on the ground, you can easily approach them who is constantly helping you out. Plus when you hold a credit score, then also you get some best advice for applying for the loans.

 

 What is a credit score and how it affects when you apply for business loans? 

 

Lumsump all the lenders will first look into your credit score before giving you the small business. In general, the credit score stands between 300 to 800. This credit score is monitored by the international credit supervising organization.

 

This credit score is an important aspect to get a small business loan. Even your previous loans that you have taken long back and had not paid the installments in the proper time influences you. That. Most importantly your previous delayed installments influence your credit score. Thus it indirectly influences that measure of getting small business loans.

 

Know about your lenders:

 

Today, maximum financial organizations have come with small business loans. Earlier financial institutes hesitated to give the loan to the people. After globalization, many things have changed in the banking industry. Back then, many new private players come into the loan market, due to the fact there are huge profit gain options in this market. However, a few among them do not offer small business loans. But, on the other hand, many new small finance institutes and A Non-Banking Financial Company (NBFC) emerged during this period. Those especially provide small business loans to small business loans. Therefore, you can a lot of options for debiting loans. Hence, you can conveniently apply for the loans for the betterment of your organization.

 

 Why some of the people prefer to go for a small business loan?

 

 Many businesses unit prefers to go with a small business loan. The most crucial reason behind it is that it is very easy to payout. In addition to that, rules and regulations of small businesses more flexible in comparison to others. Moreover, this type helps to stand out in the competitive market. The traditional loans are more viable for high purchases which require a lot of investment. Meanwhile, small business loans often provide gives more benefits to some special parts business. And the parts are likewise:

 

  •  You can take loans machinery, equipment, and other many tools for the repairing, manufacturing, service-related aspects
  •  Even you use the small business units to the real estate, reconstruction, new renovation, expansion of new brands, acquiring the new stocks for your brands.
  • Moreover, you can upgrade your business new technology up-gradation and many more.
  • You buy new pieces of machinery like phone items, computers and many more.

 

 What are the repayment structure of the small business?

 

There are several repayment options that are offered by the many institutes in the market. Yet, every financial institution has a similar type of repayment structure. However, most of the organizations have some of the basic structures to repay the loans. Here are these:

  • This type of tool offers longer tenure of repayment options with lower interest.
  • Most of the institutes provide the facility for repayment structure for ten years for the equipment purchases.
  • Even if it is a real estate purchase, then generally the long tenures go beyond 15 years

 

What are the options you can avail after taking the small business loan?

 

 Balance transfer: If your current lender is charging more money from you than definitely after some time you can shift your loan one bank to another bank.

 Tax benefits: When you shift your debt details in your balance sheet, you can easily avail of some tax benefits by showing the debt history in your balance sheet.

 

 Interest rates: With many new lending options you can easily go for the best interest rates.

 

To sum up the whole article, we have articulated some of the major aspects of the small business. Hoping that you will have all the best of luck to gain business loans.

What does a bank/financial lender look for providing a business loan

providing Business loan

 The bank or the financial lender scrutinizes various aspects before providing a business loan. As a business person, you maybe want to know about the phases of business loans. Or, perhaps, you are thinking about the aspects, which will increase your chances of getting a business loan. Even, in many instances, the people like you, experience many daunting nightmares, when they think the matter of taking a business loan. Well, this article will articulate all the aspects that will give you the overwhelmed idea to get a business loan.

 

Below are the most of predominant requirements for getting the business loan

 

 Credit score parameter: 

 

Lenders or the financial institutes examine your debt history very well before giving you the business loan. In these days, worldwide credit authority measures your credit score. Those people who have at least a 650 credit score, usually get the loans very easily. If you are already determined that you will be applying for a business loan then you must prepare a credit report card.

 

The tenure of your business:

 Another important feature, forgetting the business loan is the age of your business. Maximum business institutes look for the age of the business. Because that shows your ability and dominance in the business. In general, most of the financial institutes hold the criteria of at least two years of business continuation.

 

 Your business’s annual revenue: 

The moment when you apply for a business loan, at that point in time you need to show your annual profit that you earn from your business. Here to mention, different financial institutions have different criteria. Therefore, if you surely require a loan, then ask your lender what is their criteria.

 

Moreover, here are some additional measures that your bank examines to get a business loan

  •  Banks examine your debt and credit ratio:

 Before giving the loan, your banks will check the debit and credit ratio. Debit and credit ratio actually means, the credit risk on your loan amount. Whether you will able to refund the money or not, that matter comes under the debit and credit ratio.

 

    •  Following this, the bank watches out your solvency
  •  They will check your residence status: 

Whether you live in a rented house or you reside in your own house. In fact, most of the lender’s checks whether you are an outstation candidate or not. After all, there are possibilities of fleeing after taking the loan.

  • Banks check your balance sheet
  • Banks check your net flow of income
  • What is  your  intention  for the investment of loan fund

 

  •  Banks check your potential collateral:

 When you are opting for a secured business loan, you need to show your asset estates such as investor’s equipment or real estate.

  • In addition to that, Banks check your loan applying behaviors
  • Banks examines your responsibilities

 

 Unlike other loans, to get a business loan may be a little tough. However, if your business does well, then of course easily you can get a business loan. Hope this will give you a idea about What does a bank/financial lender look for providing a business loan.

Tips For Women Who Want To Start A Business

Apply for a business loan

When it comes to starting a new business, and when it comes to entrepreneur goals, we often tend to forget about women. And, most often, the men become the center of attraction. While discussing entrepreneurship and the start of a new business is being talked about, women are often overlooked. But starting a new business can be an ideally awesome idea and they can accomplish the entrepreneur goals quite well. A world report study says that women can be extremely good managers and they have some sets of amazing leadership skills. There are many women who are housewives but are having enough educational qualifications.

So, for them, starting a new business can be an amazing idea. But for starting a business, she would definitely require some initial funds to invest. In modern days, there are many opportunities for availing business loans. So, a business aspirer can definitely Apply for business loans in order to step towards being her own boss.

Down below are some useful tips for loans for women who want to start a business :

Grants for Female Entrepreneurs: 

Beyond borrowing options like lines of credit and term loans, there are various grant programs as well. These programs are specifically for helping women out there who own businesses. If you can get the approval for one of these grants, it can provide the capital that helps to get your business off the ground or take it to the next level. 

Build relationships in your business community

The small business lenders want to know that the companies they are investing in are suitable for success or not. So, it why it is very important in order to establish yourself within your local business community before you try to apply for a loan. It is necessary for female business owners to build good and healthy relationships in their business communities. A vital part of being a trusted small business is building these relationships, and this can take some time.

Have your financial information organized:

If your finances are in disarray, your application for the business finance will be denied right away. This is very important for you as an entrepreneur that you should verify each information that you give via documentation very carefully. So you must organize your reports and the necessary statements and keep them ready for review will actually demonstrate that you have done your homework properly.

Seek out women-specific lending programs:

In male dominating society, no matter where they apply for a loan, the female entrepreneurs out there face a lot of competition. However, some lenders have implemented some loan programs. These programs are basically for women-owned businesses. Their aim is to make it a little easier for these business owners to receive business funding.

Explore various lender options:

As with any other important and major financial decision, it is always advisable to explore all the options before making a final choice. The business owners should spend time shopping around for the lender that suits their needs in the best way.

Know what you need, and prove you will use it well:

Being able to explain to a lender the exact amount and the purpose of your loan is perhaps the most important factor in getting approval, next to prove financial stability. Vague loan requests generally make the lenders wary. So, be prepared with specific information can only help you in the loan-application process.

It can be a very good idea for a woman to start her new business. So, in order to start her entrepreneurship, she can refer to the above information regarding business loans.

WHAT IS BUSINESS LOAN & CATEGORIES OF BUSINESS LOAN:

business loan

Business loans are a form of unsecured financial assistance provided by many banks and some NBFCs out there in India. The prime aim of the business loan is to support various urgent needs of growing a business. A number of financial institutions offer various term loans and Flexi loans in order to cater to the business needs of any company. Another name of loans for business is called commercial loans. Every type of business like privately held companies, a sole proprietorship, partnership firms, retailers and the self-employed individuals out there can avail these loans.

Moreover, the female entrepreneurs out there can also explore various benefits from these types of loans. A number of public sector banks have some special schemes for the women out there who have their own business. Also, if you want to avail of a business loan from SBI, you can get such special schemes.

Various categories of business loans are discussed down below:

Broadly, there are majorly two types of business loans available in India.

  1. Professional Loans
  2. Trade Loans
Professional Loans:

A professional loan is a type of business or commercial loans. Various self-employed professionals such as chartered accountants, doctors, lawyers, etc. on the basis of their respective individual credit history can avail of these loans. It might also vary from bank to bank as to what amount of loan they can extend to that individual and the latter’s relationship with the particular bank. Professional loans in India u on a personal report basis and in many lands, Government Bonds, National Savings Certificates, Assignment of life insurance policies, Bank’s Term Deposits, etc. especially for the loans that extend over a certain threshold limit of approximately Rs. 15 to 20 Lacs. These loans are basically long term loans and have a payback tenure of about 5 to 7 years.

Trade Loans:

Trade loans are another type of business loan. Types of businesses like partnerships, sole proprietorships, private limited companies, etc. can avail of these types of loans. These types of loans further comprise of three types:

  1. Overdraft
  2. Term loan
  • Working capital loan.

Overdraft: These loans are usually based on a number of collateral or securities especially in terms of Bank Fixed Deposits. Usually, a bank takes approval for a definite overdraft limit. This basically depends upon the cash flows, credit histories, repayment history of the individual promoter or business, tenure of the banking relationship, etc. On the basis of these limits, you can use the amount of overdraft and the bank charges the interest only on the utilized amount.

Working capital loan: these types of loans are generally provided to the businesses as regular working capital. This type of loan is also against the collateral. This has a relatively lesser interest than overdrafts. In this type of loan also, the bank charges the interest on the utilized amount.

Term loans: These are the standard type of loans that can be for both business and personal purposes. The whole amount of term loan is basically disbursed and is EMI based on a definite pre-definite tenure.

ELIGIBILITY CRITERIA FOR BUSINESS FINANCE:

Business finance alludes to cash and credit utilized in the business. It includes acquirement and use of assets with the goal that business firms might have the option to complete their activities viably and proficiently. Some business owners use business loans in order to pay for their salaries and wages until their new organization or company get off the ground. On the other hand, the other companies put the borrowed funds towards the office supplies, business, projects or inventory, etc. The lenders generally want to know the ways businesses intend to use the money. Therefore, the business owners must ensure that they have a clear outline for spending the money in various aspects. 

One can avail of a business loan, with or without security. It actually depends on the bank that offers a loan for business finance. Whether the business loan is for an already existing business or for starting up a brand new one, there are many banks out there that offer loans for business in India. 

You can get the approval and the money within just a few days, if you are having all the necessary documents and if you are meeting the eligibility criteria. 

To avail a business loan, you need:

  • Identity Proof: Whether a Driving License, PAN Card, Passport, Voters ID Card or Aadhaar Card.
  • Address Proof: Ration Card, Telephone Bill, Electricity Bill, Passport, Trade license, Lease agreement or Sales Tax certificate.
  • Income Proof: Bank Statement for the past two years.
  • Financial Documents: Last 2 Years ITR along with the calculation of Balance Sheet, Income & Profit & Loss account for the last 2 years.
  • Proof of Continuation of the business.
  • Business Ownership Proof: Other necessary Documents such as a certified true copy of Memorandum & Articles of Association, Sole Proprietorship Declaration, etc.
  • Last 3 years audited financials.
Eligibility criteria for business finance:
  • For a Private Limited or Limited Company:
  • For loans up to Rs. 15 Lakhs, the total annual income of the business needs to be more than Rs. 1.5 lakhs.
  • For loans exceeding Rs. 15 Lakhs, the gross annual income of the business needs to be more than Rs. 3 Lakhs.
  • For a Self Employed professional
  • If you are a professional, you must possess the required qualifications and skills to avail of the loan for business.
    Doctors, engineers, chartered accountants, and management consultants are required to produce proof of qualification as well.
  • For a Proprietorship firm or a limited liability partnership
  • For a proprietorship firm or a limited liability partnership company, it must have the profit and loss statements in order to meet the minimum criteria of the lender in question. Many banks assess the repayment ability of the borrower before sanctioning the business loan.

 

  • Other Eligibilities for a business loan/ business finance are:

  • You must be between 21 and 65 years of age.
  • If you are a business, then you should show cash profits in the last two financial years.
  • If you are a chartered accountant, then you need to audit the balance sheet of the business.