Do you want to kickstart a well-flourished business but are falling short on funds? Or do you want to stock up on your inventory, but the profits have not been good this quarter? Well, worry not! Easily apply for a business loan online and acquire the funds you need to start a new business or keep your existing one afloat.
The lending landscape has changed drastically over the last few years due to the onset of technology. What used to be a long and tiresome process, including long queues and multiple visits to the bank branch, has now turned into an easy process that can be completed right from the comfort of your home. You just need to fulfil some common criteria laid out by the lender, and you will be all set.
Let’s look at the basic eligibility requirements to apply for a loan for new business:
- Age Of The Applicant:
The minimum age of the applicant applying for a business loan online must be at least 21 years. The maximum age cap is 65 years. If you fall within this age criterion, then you will tick the first and the most basic eligibility requirement for the approval of online business loans.
- Nature Of The Business:
In order to qualify for a business loan, your business must be in operation for a while. In addition to this, your business must be making a specified income and be legally compliant. Lenders often check if your business is registered, is legally compliant with the laws, the type of business entity, and the type of industry your business operates in.
- Age Of The Business:
Now comes the age of the business, or how long your business has been operating. Most lenders usually require a business to have an operational timeline of at least 2 to 3 years before applying for a business loan.
- Annual Finances:
Your business’s annual turnover and profit margins play a major role in determining the eligibility for the necessary loan amount. This is because lenders need to assess the financial behaviour of your business so that they can figure out if it is capable of repaying the borrowed amount comfortably. Hence, always have proper income statements, balance sheets, and GST returns to increase your chances of getting that loan approval.
- Business Plan Or Purpose Of Loan:
Clearly stating the purpose of applying for a loan usually increases the chances of approval. Lenders usually prefer applicants who have a well-defined business plan that states how they are going to use the loan amount and for what purpose.
- Documents:
Without documentation, your business loan application is as good as a ship without its sail. It simply won’t move forward at all. The basic documents required to apply for a business loan are identity proofs, financial statements and collateral documents (if any).
These are the basic business loan eligibility criteria that must be followed by each and every applicant.
Applying for a business loan is much easier when you know what lenders look for. By maintaining good financial records and preparing a solid business plan, you can significantly increase your chances of loan approval. Before you hit “Apply,” take a moment to check your eligibility. It’s the first smart step toward securing the funds your business deserves.