Business Loan Eligibility Calculator

What is Business Loan Eligibility Calculator?

Nowadays a business loan is offered by a bank without claiming any security. It is totally the financial creditor’s discretion, as to how much monetary risk they are willing to incur. It is totally up to the creditor whether they will offer loan to a well established business firm or to a totally new setup. Who to give loan to and how much credit risk can be taken is decided by the lender itself. At loanbaba, we provide you free-of-cost business loan eligibility calculator that will tell you within a second about the amount you are eligible to borrow and the EMI payable.

If the borrower has all the required documents and has minimum CIBIL score required for Business loan, then the loan gets sanctioned within a few days. Given below is a list of Business loan eligibility criteria, for loan applicants all over India.

Decisive criteria for loan sanction:

Banks and financial companies will scrutinise and study many factors before a loan is credited to the applicant. They are as follows:

  • Age limitation: The age of the borrower should be between 21- 65 Years.
  • Earnings: Financial gain, at least for the current two years is a must.
  • Turnover: Not less than Rs.150, 000/- per year should be the annual income.
  • Co-borrowers: Depends on the borrower, but is not compulsory.

In addition to the above criteria we should keep in mind that no Business loan for CIBIL defaulter will be sanctioned, so a minimum CIBIL score required for Business loan.

What is Business Loan Eligibility Criteria?

Loan amount offered at loanbaba is between Rs. 1 lakh to Rs. 1 crore.  Tenure is between 6 months and 5 years. Interest rate starts from 13%. Here are the eligibility conditions for different profession type in business.

Private firm

Total yearly income of the establishment is required to be above Rs.150, 000/-to qualify for a business loan up to Rs.1.5million, and to get credit more than Rs.1.5 million net income of the company should be over Rs.300, 000/-.

Partnership or Multiple Ownership Company

A minimum of 25% share of the company can be added to the earning of the concern.

Special Professional

If a person is a diploma or degree holder in any form of art or craft, or possess any other vocational skill, which according to the creditor can turn out to be a source of income, then the bank will lend him financial assistance. People who could be eligible are: Maxillofacial Surgeons, Doctors, Engineering Professionals, Accountants, Indigenous craftsmen, Building Promoters, Architects, Event management consultants etc.

How to increase Eligibility for Business Loan?

Below mentioned are ways you can increase your business loan eligibility:

  • Documents: You need to be prepared with essential document required for business loan. If you have all documents in place, the loan can be processed faster and the financer will also gain trust on you.
  • Business Turnover: If you have a good turnover and profit on the business, then it will help you increase your eligibility for the loan.
  • Financial Statements: Your Company’s sales receipts, profit and loss statement, balance sheet etc if without faults and organized, will build a trust with the financial institute and make you eligible for the loan, if you meet other criteria.
  • Regular Tax Payer: Even if you have documents required, you should have documents related to tax payment. If you are a defaulter in this case, the loan application will be rejected. Thus, make sure you pay the taxes on time.
  • Consistent Business Performance: The business should perform well not only at the present but also in the future. If you can convince the bank or NBFC that the company will foster financially, it will improve eligibility for the loan.

What are the ways which improves Eligibility for Business Loan/Business Loan Eligibility Tips?

Every day the bank has to handle different business loan applicants, they could be salaried or independent businessmen, small establishments or a firm with financial instability or an entrepreneur who need Business loan with bad CIBIL score. The bank will have different criteria, for each customer, regarding loan amount, time period, interest rate, on the basis of borrower’s credit history, type of loan application. So before applying for loan it is mandatory to check and verify your customer category and eligibility criteria.

  • Self Employed Professionals are Physicians, Chartered Accountants, Architects, Interior designers, Company secretaries.
  • Self employed non professionals are, Traders and Manufacturers

Each category has a different status of eligibility, required valid papers, interest rate, loan amount, and time period of repayment.

  • Entities: Different partnership firms, private and other limited companies belong to this section. Also banks and credit companies looking for funds, come under this category. Business profiles, according to their own criteria are investigated and scrutinised by banks. All banks mention it in their policies, terms and conditions.

Why Use a Business Loan Eligibility Calculator?

Below mentioned are the reasons why you must use business loan eligibility calculator:

  • The free-to-use tool on our website clarifies possible loan repayment combinations to provide better understanding about the loan, and the ways to approach the repayment upon your financial capacity.
  • This tool also provides the amount of interest you have to pay and ways to save interest on the loan, thus, allowing you to plan your finances in a wiser way.
  • Once you feed the business loan calculator with necessary details such as existing EMI, loan amount, etc, it takes just a second to know the amount you are eligible for as loan and instalment to pay.

What are the Benefits of Using Business Loan Eligibility Calculator?

Below mentioned are benefits of business loan eligibility calculator:

  • The eligibility calculator business loan helps to make calculation easy for applicants regarding the amount of loan the financial institute can sanction, based on certain criteria.
  • The tool is designed by experts, which is to inform you about your business loan against CIBIL score and other factors, so that you get all necessary details for your loan eligibility.
  • In case you are confused between loans for business offered by more than one financial institute, along with other details such as maximum loan amount, interest rate, processing fees etc, then you can compare all these details on the tool and their balance, to understand your eligibility status.

How to Use Business Loan Eligibility Calculator by Loanbaba?

Below mentioned are the ways on using the business loan eligibility calculator on our website:

  • Enter your net income for the month.
  • Adjust the slider on the bar to mark the interest rate.
  • Enter amount you pay for other EMIs.
  • Adjust the slider on the bar to mark the loan tenure (number of years).
  • As per the entered value, at the left-hand side of inputs entered, you will be able to see the amount for total interest payable and the eligibility amount.

Business Loan Eligibility Calculator FAQs

Below mentioned are questions regarding eligibility of business loan.

  • add1. What is preferred CIBIL score for business loan eligibility?

    CIBIL Score for business loan: Each applicant’s credit history is carefully scrutinised and verified before passing a loan application. Here business CIBIL report plays an important role. Borrowers with CIBIL score above 750 will immediately get their loan sanctioned. They will also be in a position to negotiate their interest rate. Whereas loan defaulters, frauds, and borrowers’ with low CIBIL scores loan application may be considered invalid. Once your loan gets rejected by bank, it is unlikely that other financers will accept it, provided the borrower agrees to pay a higher interest rate.

  • add2. Does my employer’s credibility affect my business loan eligibility?

    If the borrower happens to work in a reputed firm with a good turnover then the loan application will have easy acceptance. If not, and employer has zero credibility in the market, then the loan gets rejected. Nowadays financial and credit history of each firm is available online. So the employer’s credit history is vital not only regards loan application but it hampers career prospects also.

  • add3. How my personal background influences chances of business loan approval/rejection?

    If ever the applicant has been involved in a fraud case or has had any other criminal record, then the loan application will not be processed at all. Loan will be granted to borrowers who the creditor thinks is capable of repayment of the principal amount along with the levied interest.

  • add4. What happens if I have unstable business performance?

    Business stability is an inevitable part of a business loan. If the business is unstable with minimum profit, then the banks will demand collateral before passing a loan. A borrower must calculate its loan repayment capacity with online Business loan calculator, to save himself from further financial crisis or debt. The HDFC business loan calculator, SBI Business loan calculator, is very useful to know your eligibility with stated banks. But, you can also use our loan eligibility calculator to understand eligibility for other financial institutes.

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