Tips To Get Business Loan Easily

Every lending institutions follows a set of criteria while offering finance to borrowers. These rules are important as they ensure the loan provider they are lending to responsible individuals with verified background. It even eliminates the chances of fraud as the process, though, simple requires relevant financial paperwork and identity documents to complete. This makes it easier for genuine borrowers to avail funds quicker with instant approval upon verification of their profile. Hence, its a win-win situation for both the parties.

Also Read: Tips for Business Loan Pitches

Having said that, lets discuss criteria for business loan to know how you can get the finance for your business.

Pitch it Right

Know the eligibility criteria of the lender and pitch your profile accordingly. Be clear why and what you need the loan for. When you discuss your requirement with the Relationship Manager pitch your business needs right so they can offer you the needed solutions.

Basic eligibility for business loan from any major NBFC states that - 

• The applicant must be between 25-55 years of age
• The business must have a minimum vintage of at least three years
• Income tax returns of at least the previous year must have been filed properly
• You must submit relevant financial documents to support your profile along with identity proof
• You must be either of these entities to apply for the loan - Limited Liability Partnership, Partnerships, Private Limited and closely held Limited companies. While, other constitution types depend on their profile and are considered on a case to case basis

Be Creditworthy

As business loan is unsecured in nature make sure to maintain a good credit score of 750+ or more to obtain preferable finance. As this is a measure of your creditworthiness you will be able to win the trust of your lender easily. Lenders too will be willing to negotiate loan terms and offer you a higher loan amount of up to Rs. 30 lakhs at a lower rate of interest and flexible tenure.

To know more, Read: 5 Tips to Get Your Business Loan Approved in the First Attempt Watch the video to know How Businesses can use GST to manage Working Capital: