Taking a small business loan from a reputed lender may increase your chances of quick loan approval. Also, you get to share the amount of principal into smaller instalments after the loan has been disbursed. As a good practice, “Always act wisely”. Avoid pairing up with a dubious lender who steals your personal data without disbursing your loan amount.
Here are the top 5 things to follow as a part of a checklist before applying for a small business loan.
- Credit history: The credit history is a kind of statement or to be subtle, it is a record that talks about things like the number of times you have taken a loan, the repayment responsibilities, the number of times you’ve applied for loans and the number of times the loans got disbursed to you. It also keeps a track of how many times you have failed to make payments on time. Once you know your credit history perfectly, you can decide on your repayment capacities also. If your credit history is good, go for it! But if it is not good, look for another prospective lender.
- Credit Score: It is a score which you get in accordance with your financial behaviour. If you repay your debts without failures, your credit score increases. It would also give you chances of availing low-interest rates. Whereas, if you miss out on repaying the debt on time, and have an outstanding amount on your credit card which still needs to be paid off, your credit score falls. So in short, if you are a defaulter of any kind, your credit score will fall. Having a credit score of about 700 and above helps you get fair chances of getting any loan approved. If you have a similar score like this, you are safe to go with your partner.
- Income: The income of your partner plays an important role. There is a minimum level of income that a person should be earning on a regular basis to have the loan approved. If that criterion is not met, no financial institution would grant you loans.
- Other ongoing debts: If your potential lending institution asks you about other ongoing debts or loans, chances are less that you would be granted loans. Having multiple loans is not a good practice. This gives somewhat a negative impression about the borrower.
- Responsiveness: You can know about the person’s responsiveness with the way he talks and behaves. Being a nascent borrower, you can start with a small loan and then take more. Ensure that you pair up with an upfront, active partner. This is the kind of person you need to be.
As the interest rates are increasing, people consider taking joint loans as it costs less and bestows the perks of getting money at a lower interest rate and faster instant approvals. Home Credit India also gives out such instant cash loans at a few clicks. Visit the Home Credit website and verify your ID documents for preliminary checks. Get your loan and accomplish your goals!
