Factors affecting Business Loans
by Finway FSC Empowering People FinanciallyChoosing
a road map and walking on it is a factor that as a business owner you must
follow. Unlike Home Loan in Delhi,
Business Loan in Delhi must
follow the blueprint. Not just Delhi, this is a universal rule that business
owners all over the country must tread towards. Having said that, business
loans are not easy to manage as they come with conditions and factors that
influence them. Let us find out these influential factors.
1. Cibil Score: As a business owner, maintaining a
personal cibil score is preemptory. The loan you will apply for and what you
get is dependent upon your creditworthiness. So if you have a credit score
higher than 720, you are eligible to get an affordable rate of interest that
would please you. Unlike this, if the credit score is 500 or less, chances are
that you will be refused the Business Loan in Delhi or other cities as the cibil score
is universally calculated. So if one bank rejects the application, the other
bank may give you a loan but with a high rate of interest.
2. Business Tenure: A business loan can be taken by
anyone has a specific monthly earning. This rule has come into being recently.
Earlier, any company or business operating for less than two years was not
eligible for a traditional bank loan as it was categorized as a startup.
However, with the change in the market scenario, funding for new businesses
with lucrative ideas are funded by the banks and other financial institutions.
3. Monthly Revenue: A specific monthly revenue,
irrespective of the tenure of the business must be there. Only when you show
complete statements of specific income you can get a business loan. This is
because the bank needs to have a security and the trust that you will repay the
amount in full and are capable of paying the EMI's until the tenure matures.
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Created on Oct 11th 2019 01:52. Viewed 571 times.