A business loan you take to establish your business. Some people have a bad credit score but that can’t stop taking a business loan and fulfill all your wishes. It is not difficult to take a business loan but the difficulties arise when you have a bad or low credit score. This affects your loan interest rate so much.
A credit score stands for your past loan repayment histories. So you haven’t paid your past loans properly you will have a bad credit score. This fact is completely true that bank hesitates to give any kind of loan to a person who has a bad credit score.
You should not check your Credit score report so much. Every time you check for your credit report 30 points redeem. You do not want to redeem your points as you already have a low credit score. If you want to work on your credit score before applying for a business loan you can take a loan and pay it proper way it will help you to build your credit score. And the first thing you should do is repay all the debts you have. This will also help you to build your credit score.
Business Loan Eligibility Criteria
- Self-Employed Non-Professionals
- Age limit- Minimum age limit for the business person will be 21 years and Maximum age limit is 65 years.
- Applicant should have minimum 5 years of experience in the business.
- Applicant must have a minimum of 3 years of experience in the current business.
- Business turnover should be a minimum of Rs. 40 lakhs.
- The ITR report should be of a minimum of Rs. 1.5 lakhs per annum.
- Last 2 year must experience profit to the business.
- Following entities will be eligible for a business loan- Private Limited Companies, Partnerships, Limited liability partnership, closely held Limited Companies.
Self-Employed Professionals
The applicants are practicing professionals with proper qualification proof and under the categorization of CA, Doctor, architect etc.
Compulsory Testimonials for Business Loans
- ID proof of the applicant- AADHAR card, PAN card, Voter ID card.
- Residence proof- Utility Bills like Electricity bill, Gas bill.
- PAN card of the company.
- Bank Statement for the last 6 months.
- An approved copy of the Partnership Deed.
- Verified copy of Memorandum and Articles of Association.
- Business continuation proof- Sales Tax Certificate, Trade License.
- Copy of ITR file for the last three years.
- Balance Sheet, Computation of Income, Profit and Loss statement for the last 2 financial years.
- Age limit- Minimum age limit for the business person will be 21 years and Maximum age limit is 65 years.
Self-Employed Professionals
The applicants are practicing professionals with proper qualification proof and under the categorization of CA, architect etc.
