Business Loan Information & Eligibility

Capital is a vital component for the success of commerce today Finance holds the key to its development and needed from inception of business, formation of assets to generate income, running day to day expenses and expansion of sales etc.

Business Loans are offered in two types, Secured and unsecured.

For a Secured Business loan
  • The borrower needs to pledge
  • Business or personal properties used for Residential/ Commercial/ Industrial/ Plot
  • Stock or Inventory of Raw / Semi/ Finished products
  • Machinery new of old.
  • Vehicles.
  • Shares and Securities
  • Debtors.

as security against the loan amount taken, above thing can be kept as collateral which is having clear/ marketable title. The loan tenor is for 5-10 yrs and rate of interest is depending on collateral offered.
For unsecured Business loans

There is no requirement of any collateral from the borrower. However, while availing an unsecured business loan, the borrower needs to pay a high interest rate. Moreover, the loan amount is taken for a smaller tenure when compared to a secured loan. According to the their tenure, business loans can be further diversified.

General Factors Effecting Eligibility
a. Type of Organisation f. Gross Profit Margin k. Market Value of Property
b. Vintage in Business g. Net Profit Margin l. Banking 
c. Type of Industry h. Debtors & Creditors cycle m. Assets of Company
d. Current Exposre of Loans i. Net Worth of Promotors
e. Turnover j. Credit History of Key people
Loan Amount Calculation ( Indicative)
On Profit

(a) Net Profit ( Before Interest, Depreciation, Intererst on Loans, Salary to Director's/ Partner's and Tax) / 12               

(b) Total Monthly existing Loan obligations    

(c) A -B is Max EMI possible 

On Turnover

(A) Annual Income = Audited T/O x Industry Margin %

(B) Monthly Computed Income = (A) / 12  

(C) DBR = 50 -60% of (B)

(D) Obligation Per Month 

(E) Max EMI = ( C ) - (D)

On Existing Loan Track

Perosnal Loan: Total Existing EMI x 35% 

Car Loan: As Per Car Category Loan Amount 6 - 15 Lacs

Home Loan/ LAP: EMI x 15 Times

Eligibilty for Secured Business Loan & Unsecured Business Loan

The applicant must meet the below eligibility criteria's

1. Min. age
2. Max. age
3. Minimum income (annual)
4. Minimum loan amount :
5. Maximum loan amount :
6. Min. years of buss. existence :
7. Minimum loan tenure :
8. Maximum loan tenure :
9. Minimum turnover require:
21 years
65 years
INR 2 Lacs
INR 10 Lacs
INR 25 Cr
3 Yrs
3 year
15 years
INR 1 Cr
22 years
70 years
INR 200000
INR 10,00,000
INR 750000
Not Applicable
3 year
5 years
INR75 Lacs

Apply Business Loan

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