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Business Loan Eligibility Criteria
There has been tremendous development in the way businesses run their operations today. A major chunk of this can be attributed to the change in the financial model and the increase in the purchase power of individuals. Fintech, lending, and banking organisations are now more flexible in their operational protocols and are looking to accommodate a wide variety of users from different walks of life. The business loan eligibility criteria have been tuned to a level that allows it to reach a variety of applicants including salaried and non-salaried, business and agricultural, and aspiring women entrepreneurs.
With this paradigm shift, the eligibility criteria for business loan is not very stringent.
Business Loan Eligibility Criteria:
Business loans are essential for every organization. It could either be used for meeting the initial expenditure of setting up a new organization or to cater to the business expansion regime of acquiring new resources/infrastructure or it could be to acquire the capital required to sustain the organization in business as usual between payment cycles.
According to the need of the hour, entrepreneurs or business owners are provided with a plethora of options to choose from depending on their eligibility criteria for a business loan.
Predominantly there are 4 types of business loans that are preferred by entrepreneurs from the MSME and SME markets. They are:
Term loans:
Term loans are for retailers, manufacturers,s or sellers to expand inventory, meet seasonal requirements, etc. They are a viable option for entrepreneurs who are looking to get a business loan with an EMI model of repayment with tenure as high as 24 months and low-Interest rates along with flexible repayment options.
Eligibility criteria For Term Loan
| Minimum Business Vintage | 1 year |
| Monthly Business Sales Minimum | 2,00,000 |
Line of Credit:
A line of credit loan is one of the most sought after business loan in the startup space, for it provides the ease and convenience of flexible repayment, low-interest rates, diminishing principal and interest, pre-payment options, and quick disbursal methods.
A line of credit business loan is best suited to meet sudden spurts of unplanned expenses, cover additional procurement expenses in festive seasons, or cater to short term investments.
Eligibility Criteria for Line of Credit
| Minimum Business Vintage | 1 year |
| Monthly Business Sales Minimum | 2,00,000 |
Vendor Financing:
Medium and Large scale industries often are in business with multiple organizations and rely on invoices to be cleared in time to time. The invoices are not always cleared in time and this creates a rift between flowing income and expenditure. To bridge this gap, organizations often tend to raise capital on the existing invoices that are due to be cleared. This allows organizations to raise capital on incoming finances.
Eligibility Criteria for Vendor Financing
Minimum Business Vintage: 1 year
| Supplier of large corporate |
| You have a valid invoice/work order/purchase order with value of at least 1 Lakh Rupees |
Loan against POS
A merchant cash advance is a business loan that relies on transactions at POS machines. With a merchant cash advance, the applicant is allowed access to capital with almost instant disbursal period to meet their requirements. A merchant cash advance has a third party lending institution or an individual lender processing the loan.
In this form of raising capital, the repayment is based on the amount of transactions on card swipes at POS machines. The more the sales, the quicker the loan gets cleared with reduced interest rates and tenure. This is best suited for organisations which conduct commerce through online transactions like supermarkets, restaurants, and fuel stations among others.
Eligibility Criteria for Loan against POS
| Minimum Business Vintage | 1 year |
| Monthly Business Sales Minimum | 1,00,000 |
Documents Required for Business Loan
Be ready with the following documents while applying for Small Business Loans
| Personal KYC | PAN card |
| Residential Address Proof (Any One) | Rent Agreement | Driving License | Voter's ID | Ration Card | Passport | Aadhar Card |
| Banking | Last 6 months current account bank statements |
| Business KYC (Any One) | GST Registration Certificate | Shops & Establishment Certificate | Business PAN Card |
Frequently asked questions
- What are the purposes for which I can get a loan via FlexiLoans?
- Why should I avail loan via FlexiLoans?
- What documents are required to apply for a loan?
- Are there any charges other than interest rate that I have to pay to avail the loan?
- What is the eligibility of a business loan?
- How to calculate business loan eligibility?
What are the purposes for which I can get a loan via FlexiLoans?
FlexiLoans is here to provide you financial access for your business funding needs. You have to undergo simple and transparent Credit Evaluation, basic documentation before we disburse the loan. You may get loans via FlexiLoans for:- Expanding your business
- Servicing regular working capital needs
- Managing seasonal working capital requirements
- Manage short term cash flow gaps
Why should I avail loan via FlexiLoans?
Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.What documents are required to apply for a loan?
KYC document
- - Pan card
Proof of residential address (any one)
- - Rent Agreement
- - Driving License
- - Voter's ID
- - Ration Card
- - Passport
Banking
- - Last 6 months of bank statement of current account
Business KYC (any one)
- - GST Registration Certificate
- - Shop Establishment Certificate
Financial documents (For loans greater than 20 Lakhs)
- - 2 years Audited financials
- - Last 2yrs ITR
- - GST Returns of 6 months
Are there any charges other than interest rate that I have to pay to avail the loan?
We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.What is the eligibility of a business loan?
Basic eligibility for business loan is your business should be running for at least 1 year and has monthly total sales of at least ₹2,00,000How to calculate business loan eligibility?
To check the eligibility click on the link here.Why should I avail loan via FlexiLoans?
Quick credit assessment ensures fast disbursal of loan at best rates and flexible terms, thus providing financial access at a click! Our business is to help you grow your business.
What documents are required to apply for a loan?
KYC document
- - Pan card
Proof of residential address (any one)
- - Rent Agreement
- - Driving License
- - Voter's ID
- - Ration Card
- - Passport
Banking
- - Last 6 months of bank statement of current account
Business KYC (any one)
- - GST Registration Certificate
- - Shop Establishment Certificate
Financial documents (For loans greater than 20 Lakhs)
- - 2 years Audited financials
- - Last 2yrs ITR
- - GST Returns of 6 months
Are there any charges other than interest rate that I have to pay to avail the loan?
We may charge processing fee to facilitate the loan towards legal and documentation charges. You may be charged penal charges for late or irregular payment behavior.
What is the eligibility of a business loan?
Basic eligibility for business loan is your business should be running for at least 1 year and has monthly total sales of at least ₹2,00,000
How to calculate business loan eligibility?
To check the eligibility click on the link here.