Most banks and NBFCs offer business loans to the following eligible borrowers:-
Business Loan Eligibility Criteria
Find Best Business Loan Offers
HDFC Bank
Max Loan Amt.Upto ₹75L
Rate of Interest10.75% - 28%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
ICICI Bank
Max Loan Amt.Upto ₹50L
Rate of Interest13.25% 19.25%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Axis Bank
Max Loan Amt.Upto ₹75L
Rate of Interest15% - 19.25%
Tenure uptoUpto 5 Years
Processing FeeUpto 2%
Why Choose Paisabazaar?
Choose from 20+ Partner Banks/NBFCs
Pick from Secured & Unsecured Options
Get Working Capital & Top-Up Loan Solutions
Flexible Tenure of Up to 4 years
How Can I Apply for a Business Loan Online?
Step 1: Enter your mobile number in the application form.
Step 2: Enter OTP to verify your mobile number.
Step 3: Provide your personal details.
Step 4: Select a bank account for account aggregator consent.
Step 5: Compare offers and apply for the best-suited loan.
Apply Now
Who Can Apply for Business Loans
Business Loan Eligibility Criteria
Stated below are the common business loan eligibility criteria by most lenders:-
Eligibility Criteria of Top Lenders - Unsecured Business Loans
| Lenders | Minimum Turnover | Profitable | Vintage |
|---|---|---|---|
| HDFC Bank | Rs. 40 lakh | Profit-making for the last 2 years | Minimum 3 years in current business with 5 years total business experience. |
| Kotak Mahindra Bank | Rs. 40 lakh | Generated profit for a minimum of 1 year | In business for the last 3 years |
| IndusInd Bank | NA | Profitable for 2+ years | Minimum 2 years |
| Axis Bank | Rs. 30 lakh | NA | Minimum 3 years |
| IDFC FIRST Bank | Rs. 1 crore | NA | Minimum 3 years |
Factors Affecting Business Loan Eligibility Criteria
Nature & Location of Business
Banks and NBFCs usually consider both the industry type and the location where your business operates. Retail and manufacturing sectors are considered stable, which lowers the lender’s lending risk and increases the chances of loan approval. On the other hand, seasonal businesses are considered riskier and often attract less favourable business loan terms.
Business Financial Health
Your business’s financial statements - income, profits, cash flow, turnover and outstanding liabilities directly impact your loan eligibility. Poor cash flow increases the lender’s risk and may lead to application rejection.
Debt-to-income ratio
The debt-to-income ratio is the ratio of total debt of your business to the total income. Lenders consider this ratio to assess your business repayment capacity, i.e., ability to repay the loan. A lower debt-to-income ratio signifies that a business has enough income to cover debt obligations. This improves the chances of business loan approval and at lower interest rates.
Business Age & Stability
Most lenders prefer businesses operating stably for at least a year. This reduces the risk of default and builds lenders' trust.
How to Improve Your Business Loan Eligibility
To boost your business loan eligibility and improve chances of approval, consider the following:
How Can I Apply for a Business Loan Online?
Step 1: Enter your mobile number in the application form.
Step 2: Enter OTP to verify your mobile number.
Step 3: Provide your personal details.
Step 4: Select a bank account for account aggregator consent.
Step 5: Compare offers and apply for the best-suited loan.
Apply Now
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FAQs
Is a collateral-free business loan available to startups?
Most banks and NBFCs offer collateral-free business loans to startups. Banks also extend loans to startups under various startup-specific schemes run by the Government.
How much loan can I get for my business?
Banks and NBFCs usually consider your business turnover, annual income, profit-making vintage, repayment capacity, overall financial health, etc, before deciding the loan amount.
How to apply for a business loan?
You can apply for unsecured business loans at Paisabazaar through the web or app. Alternatively, you can visit Banks/NBFCs and apply directly by filling out a loan application form and submitting the required documents.
How is business loan eligibility calculated?
Multiple elements are used to calculate your business loan eligibility, including your credit profile, annual turnover, net profit, debt-to-income ratio, and more.
Can I check business loan eligibility online?
Yes, you can check your business loan eligibility online at Paisabazaar in simple and quick steps.
What is the minimum turnover required for a business loan?
The minimum turnover required varies from bank to bank. To know the exact amount, you can visit Paisabazaar and check offers from top lenders along with the mentioned business loan eligibility criteria.
What credit score is needed for a business loan?
Lenders usually prefer a credit score of 700 and above for business loans.
Can startups check business loan eligibility?
Yes, startups can also check business loan eligibility. There’s no restriction on who can check their eligibility.
How does existing debt affect eligibility?
The higher the existing debt, the lower the capacity to repay new loans and vice versa. Lenders usually prefer a debt-to-income ratio of 50-55% for business loans.
Is GST mandatory for business loan eligibility?
Yes, most banks ask for your GST details before extending a business loan.
Can self-employed individuals apply for a business loan?
Yes, self-employed individuals can apply for a business loan. The eligibility might vary slightly. Check with your lender before applying.
What documents are required to check eligibility?
P&L statement, GST return, ITR, annual turnover, credit score/rating and other pertinent business details.
Does checking eligibility affect my credit score?
No, checking business loan eligibility does not impact your credit score.
Can I improve my business loan eligibility?
Yes, you can improve your business loan eligibility by improving your credit score/rating, maintaining a healthy cash flow, managing your business with stability, and keeping your documents and permits up-to-date and ready.
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Written By
Sumit Kumar
Reviewed By
Shamik GhoshPaisabazaar is a loan aggregator and is authorized to provide services on behalf of its partners
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