Know the additional factors of your business loan eligibility

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business loan eligibility

Your net annual income should be more than 1.5 million if you are willing to apply for a business loan up to 1.5 million for a limited or private limited company. If you are interested in applying for a business loan beyond this limit, your annual income should be more than 3.0 million. You are also eligible to apply for a business loan if you are a Chartered Accountant, Construction contractor, Accountant, Medical Practitioner, Dental Surgeon, Engineer, Craftsmen, Management consultant, or any other Self Employed Professional. In such instances, you will be eligible to apply for a Partnership or Proprietorship Firm Loan. A minimum of twenty-five percent stake each can be bludgeoned to the income of the applicant. But yes, your application might get rejected if your employer is a little low on reputation.

business loan eligibility

A bank or a lender will consider some basic factors for finding your business loan eligibility. Your age should be in between twenty-one years & sixty-five years if you are willing to apply for the same. The business for which you are applying for a capital must be a profit making organization with an annual turnover of 1.5 million. Your enterprise must be engaged in making profits from last two years. As it is equally important, we also invite you to know the negative factors of your loan eligibility. You should know all those factors that affect your business loan eligibility directly and indirectly.

Also See: Getting A Collateral-Free Business Loan Isn’t Challenging

Applicant’s credit worthiness is an important factor as it is being evaluated by the bank before processing the application. If you are carrying a healthy credit rating, you are ahead of other applicants. It will give you more flexibility if you are not involved with fraudulent activities, default payments, and outstanding huge loan. In case, you are carrying average credit likeliness, you are open to going for option B or option C if option A rejects your application. If you are unfortunately carrying a below average credit rating, you are suggested to propose your lender for a capital against a higher interest amount. This theory is applicable if your application has got rejected due to your low creditworthiness. Otherwise, you should not try to apply it. A person with a criminal background is not likely to get welcomed by any lender. If you are unfortunate to face any criminal case in the past, you are strictly suggested to hide it while applying for a small business loan. It will help you in getting an early approval by your loan processing unit.