Agra is the city of Architectural greatness where many small businesses have found their hold. Taking a personal loan can be extremely useful for small set-ups or budding ideas to meet working capital needs. It is quite possible to realize the costs at later times when it bundles up to a deficit. Costs spent on a business can be way more than expected. Whether it’s a small or big venture, it takes an equal amount of time, effort & energy. These are the days when you do not have to lag behind in any of your arrangements. This is exactly why lending institutions design personal loan offerings which meet all fixed & variable expenses. These personal loans are popular due to simple and quick approval. Home Credit Loans for Small Businesses are instant, paperless & easy.
What is the eligibility criteria for small business loans in India?
Here, it is not able to understand that a small personal loan will be based on a wide spectrum of governing factors. And interesting is to register that every condition will be placed differently for every individual. The eligibility criteria can always change depending on the lending institution/lender as we can have a view below:
- Minimum age: To apply for a small business loan, you should at least be 21 years or above. For others, it could be 23 years or more.
- Maximum age: Working-class individuals should be below 58 years of age to apply for a business loan. Self-employed should be below 65 years of age. This is the maximum threshold in terms of age for application.
- Minimum Net Monthly Income: Typically, the starting income condition for small business loans ranges between Rs. 15,000 and limitless. However, this changes with the lender and gets agreed upon at Rs.25,000. The residing city, age, etc. of the individuals also make a huge difference to the minimum income condition.
- Employment Type: Salaried, self-employed and working professionals are all qualified to avail small business loans to meet the minimum income benchmark.
- Employment status: Individuals must have a fixed source of income to apply for a small business loan. The working-class individuals must be into employment for over 2 years with the present company. This is essential for business loans.
- Credit score: Lending institutions use the credit score as a compulsion. And it is preferable when set at 700 or over. Individuals with relatively lower scores are still eligible but with high rates of interests. This is of utility at the time of sanction, however, this turns out costlier for the individual in the future.
- Maximum Loan Amount: The maximum limit for a small business loan can, of course, depend on the lending institution. This has further relied upon factors like repayment capacity, regular income, credit score etc. of the individual. The upper and lower limit of a small business loan is Rs. 5 lakh and Rs. 20 lakhs respectively.
