Business Loan Eligibility & Requirements

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.

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 and requirements

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.

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.

FAQs Regarding Business Loan Eligibility Criteria:

1. What are the fees incurred upon applying for a business loan?

The processing fee for the business loan is set at 2% of the loan amount.

2. What is the duration of the loan?

The tenure of the loan can be from a period of 1 month up to 36 months.

3. How often can you make the repayments?

Payments can be made on a bi-weekly or a monthly basis. There are no foreclosure charges for the business loan.

4. Are there any pre-closure charges?

We at LendingKart do not levy any pre-closure on the business loans availed by owners.

5. What is the interest on the business loan, and how do I calculate it?

LendingKart offers business loan with interests that amount to 18% annually.

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.