How to Increase Your Business Loan Eligibility in India

 If you operate a business, you must be prepared to take out secured business loans anytime you need them. These are evaluated based on pre-determined criteria established by lenders to assess your eligibility for one. These standards are based on a number of aspects that are relevant to your business choice. Let's take a look at the four most crucial.



Credit History

Your CIBIL Score is the first thing lenders look at when determining your eligibility. This allows lenders to see your previous borrowing habits by looking at your credit history. While on-time payments might help you raise your CIBIL Score, late payments can lower it. A score of 750 or higher will almost always help you raise your eligibility. Even though a good CIBIL Score is important, there are other elements that can influence your ability to obtain a business loan.

Business Performance

The past success of your company is another important factor that a lender considers because it is a predictor of timely loan payback. Balance sheets, bank accounts, and tax returns are just a few of the key indicators of your company's success. If your balance sheet displays any anomalies in your yearly revenues, your eligibility may be jeopardised.

Age of Your Business

The age of your organisation also affects your ability to obtain a business loan. A typical rule of thumb is that enterprises that have been in existence for less than two years are unlikely to be approved for a business loan. Companies that have been in operation for a few years can speak for their financial stability using papers such as ITRs, bank statements, and balance sheets.

Collateral Offered

To reduce the risk of lending money, most lenders prefer to give loans to businesses that have some type of collateral. If you can present it to a lender, your eligibility will be greatly increased.

For over 30 years, Electronica Finance Ltd (EFL) has been a leader in machine and company financing, providing business loans with flexible repayment choices and low interest rates. Rather than relying solely on paperwork, EFL assesses your eligibility through a thorough examination of your company. It is the only non-banking financial institution (NBFI) that provides loans against secondhand machinery for working capital and business expansion.

Conclusion

We may operate in both existing and emerging markets at any time during the loan lifecycle. We are capable of handling both simple and complex large syndicate transactions. To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Business Loan Online Apply if you have any more inquiries.

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