A business loan comes under the category of unsecured loan; the major benefit of business loans in India is that it does not require any collateral or security to avail the loan and most of the banks sanction business loans with minimal pre-payment charges. The business loan depends on the annual profit of a business and number of years you are into that business. It also checks the cash flow and other aspects of revenue generation. Once the bank considers all the major factors, it decides the eligibility of loan amount which a business can get.
The bank provides home loan to the borrower on certain terms and conditions .Banks/ NBFC get the property valued independently and provide the loan on the basis of re-payment capacity of the borrower, also considering the property value and the agreement/Registry amount of the property being purchased.
ELIGIBILITY CRITERIA
Your eligibility is determined after looking at the following:
- Last 2-3 years business financials
- Years in business and current level of business activity
- Nature of the industry the business operates in and how that industry has fared in recent times
- The current level of obligations of the company i.e. the other instalments (EMIs), credit limits and other types of finance the company may have
- The company’s past credit history