Are you looking for a way to help your small business flourish? If yes, you must consider a small business loan! There’s no doubt that funds are instrumental in growing your business and catering to your financial goals. Especially now, when the entire world is still recovering from the aftermath of Covid-19, opting for financial aid makes even more sense.
However, qualifying for a loan is where things might get tricky! So, if you are wondering how to become eligible for small business finance in India, keep reading.
Check the eligibility criteria
Understanding the requirements set by the lender is essential before applying for small business finance. Although the small business loan eligibility terms are generally similar across different lenders, you should still review the criteria of your preferred lenders and draw comparisons. This will enable you to pick the lender who offers the most relaxed minimum criteria.
Pay attention to your credit history
A high credit score along with a healthy cash flow, and a proven track record are your holy grail when borrowing funds. With a spotless credit history, you can convince the lender of being a responsible borrower who has never defaulted on EMI payments. So, make sure your personal and business credit scores are decent, ideally above 750, to increase your chances of getting approved for a business loan in India.
Develop a strong business plan
Along with your repayment capacity, lenders also want to know how you plan to use the credit. With a solid business plan, you can give a comprehensive overview of your planned expenses and how you expect them to scale your business. Also, make sure to highlight your current and projected financials to demonstrate a healthy repayment capacity.
Doing so will help you win over the lender and boost your chances of getting the green signal!
Gather all the necessary documents
Now that you know the eligibility terms and what qualifications you need to bring to the table, the next step is to collect all the legal and financial documents. At Tata Capital, we will ask for your –
- Photo identity proof
- Business proof
- Income proof
- Bank statements
- Income tax returns
- KYC statements
With all the required documents in one place, you can ensure the application process goes smoothly.
Apply for a loan online
Another way to increase your chances of qualifying for small business finance is to opt for the online medium! Wondering why? Well, that’s because many lenders provide digital loans at highly competitive business loan interest rates, flexible eligibility terms, with lesser paperwork and numerous perks. And the best part? The entire loan process hardly takes more than a few hours.
Additional Read: How Different Industries Can Use a Small Business Loan
The bottom line
If you are ready to apply for a small professional loan, get in touch with Tata Capital. With our affordable interest rates and flexible repayment terms, you can get a quick loan to fulfil your business aspirations!
Want to know how much you can borrow? Well, you can use our business loan EMI calculator and get a precise estimate of your future EMIs. Learn more here.