As a business owner, you might find yourself in a position where you require a loan to mitigate the ebbs and flows of cash influx in and out of your business. Fast access to financing is what we provide, and this might help you keep your business running.
A business loan can be used to revamp an existing business, invest in new machinery, expand the business or to increase the working capital of the business. The minimum loan amount offered by Lendingkart is Rs. 50,000 and the maximum is Rs. 2 crores.
Business Loan Eligibility Criteria:
Who is allowed to take a business loan?
- For a Private Limited or Limited Company For loans up to Rs. 15 Lakhs, the net annual income of the business should be more than Rs. 1.5 lakhs. For loans over Rs. 15 Lakhs, the net annual income of the business should be more than Rs. 3 Lakhs.
- For a Self Employed professional The professional should possess the required skills and qualifications to avail the loan. A list of qualifications can be found online. Doctors, engineers, chartered accountants and management consultants are required to produce a proof of qualification as well.
- For a Proprietorship firm or a limited liability partnership The company must have the profit and loss statements to meet the minimum criteria of the lender in question. We assess the repayment ability of the borrower before sanctioning the business loan.
Other Eligibility Criteria for a business loan:
- The borrower should be between the age of 21 and 65.
- The business should show cash profits in the past two financial years.
- A registered chartered accountant is required to audit the balance sheet of the business.
Explore your business loan eligibility further by utilizing a business loan EMI calculator. This tool helps you estimate monthly repayments based on loan amount, interest rate, and tenure, ensuring financial clarity for successful planning
Business Loan Requirements Document:
Photo ID Proof
- Passport sized photographs
- Valid Aadhaar card, Voter ID or Passport.
Bank Statements
- Certified bank statements of the borrower for the past 6 months
Proof of Business
- Trade license or sales tax certificate
- Ownership documents
- Sole proprietorship or partnership deed
- Income tax returns for the past 2 financial years
- Profit and loss statements for the past 2 financial years
- Balance sheets from previous years
Benefits of Applying for a Business Loan from Lendingkart:
- With fast processing – within 72 hours – you do not have to wait for days on end to know about loan eligibility and the consequent handling of the business loan
- Interest rates start at 1.25% per month for loans up to Rs. 30,00,000.
- Flexible payments for all customised business loans makes it convenient to pay back the amount.
- No collaterals are required to avail a business loan. Personal or business assets do not need to be put on the line.
- This simple and straight forward process can all be done online. Loans can be applied for with just the documents mentioned above.
Repayment of the Business Loan:
The loan can be paid off with EMIs or with bimonthly payments- whichever is deemed more convenient.
These EMIs can be paid through National Automated Clearing House (NACH) which are electronic and periodic in nature. The amount will be automatically debited from your account in the frequency chosen by you.
Frequently Asked Questions:
Business loan eligibility criteria vary by lender and location. Generally, established businesses may use a business loan eligibility calculator to assess their qualification based on factors like credit history, revenue, and profitability. New businesses often need a strong business plan to secure a loan. Eligibility for unsecured business loans may require a robust credit score. Required documents typically include financial statements, tax returns, and business plans. It’s advisable to check with specific lenders for precise eligibility requirements.
The rule of business loan eligibility encompasses various factors in India. To determine eligibility, lenders often consider credit score, business vintage, annual turnover, and the purpose of the loan. Many lenders provide online business loan eligibility calculators to assess qualification. Additionally, new businesses may face stricter criteria, while unsecured business loans may require a strong financial profile. Commonly required documents include business financials, bank statements, and KYC documentation. Eligibility criteria can vary among lenders, so it’s advisable to check with specific institutions.
The maximum age for business loan eligibility varies depending on the lender and location. In India, for instance, it typically ranges between 21 and 65 years. Factors such as creditworthiness, business type, and loan type (unsecured or secured) also impact eligibility. To determine eligibility, use a business loan eligibility calculator and prepare the necessary documents, including financial statements and business plans, for a thorough eligibility check based on specific lender criteria.
The processing fee for the business loan is set at 2 to 5% of the loan amount.
The tenure of the loan can be from a period of 1 month up to 36 months.
Payments can be made on a bi-weekly or a monthly basis. There are no foreclosure charges for the business loan.
At LendingKart, pre-closure charges for business loans are subject to the lender’s policy.
LendingKart offers business loan with interests Starting from 1.25% per month.The interest rate for the business loan can be calculated using the formula: E = P x r x (1+r)n/(1+r)n-1, Where E is the EMI to be paid, P is the Principal loan amount, n is the loan tenure and, r is the rate of interest that is calculated on a monthly basis.
