Eligibility for A Business Loan
The Information about the coman Eligibility of a Business loan is given below:
- Income Proof – on the basis of ITR, Profit and Loss Account and Balance Sheet. One can expect a Loan equal To EMI one half Of Monthly Income.
- Business Turnover – Through this method bankers calculate the average profit of the business as per industry average or as per the normal circumstances and arrive at a percentage of net profit of their own.
- Past EMI’s method- In this method loan is given on any single EMI base equaling to EMI* EMI paid if EMI paid are >=9. The criteria is also applicable on loans completed with in last six months. The maximum limit for loan in this category for unsecured business loan is Rs. 7,50,000/-.
- The Liabilities, EMI’s being paid are taken in to account while calculating the loan eligibilities. few bank exclude the EMI’s obligations for which one has paid 50% or 18 EMI’s which ever is lower.
- Depriciation for business, interest on unsecured loans, interest paid to partners/ directors, salary to partners/ directors are added back to enhance the loan eligibility.
- If any group having more than one company or business, they can apply for an unsecured business loan by clubbing all the financials together to enhance the eligibility,.
Categories: Business Loans India, Eligibility Method, Loan Information
I want a loan of Rs.20,00,000/- for starting up a business. Do i need to mortgage any thing. If yes then is there any solution on getting loan without any mortgage?
I want a loan of Rs.2,00,000/- for Expansion a business. Do i need to mortgage any thing. If yes then is there any solution on getting loan without any mortgage?