5 Tips to Qualify for a Business Loan Request

The total amount of funds lent to micro, small and medium enterprises in India is expected to grow to Rs. 7 Lakh Crore by 2023. It is a 15 fold increase in the annual disbursement towards this sector in comparison to the current scenario.

This substantial growth in the disbursement amount is owing to the escalating contribution of these sectors to the country’s GDP. One such prominent state prospering in the SME, MSME sectors is Manipur. Agriculture, handicrafts, bamboo basketry, food processing, pottery, and sericulture continue to boost its economy. These SMEs are readily resorting to a business loan in Manipur for the necessary initial financial backing.

Such credits help the state’s businesses deal with financial crunches during the times of civil strife, prolonged mass agitations, and insurgency. Reputed lenders take into account such existential issues and the subsequent financial shortage to expand their business. Hence, they provide business loans that help them meet their professional goals.

Although the financial institutions keep the application process to avail such loans comparatively simple, prospective borrowers need to keep in mind specific criteria before approaching lenders. It will help them avail the best rates of interest on their loans along with other added features. Here are a few such tips –

Tip 1: Build a good credit score

The CIBIL score of an individual reflects the borrower’s credit history and his/her repayment capability. Hence, in case of unsecured credits like business loans, lenders often look into the CIBIL score of the prospective borrower. This score lies in the range of 300 to 900, and it is advisable to keep your score 750+ in case you need to avail unsecured loans.

Having a good credit score does not only help you avail loans but also ensures you have access to better financial deals and terms. Hence, you can go for a lower rate of interest, which leads to pocket-friendly EMIs. So, if your business’s credit score is low, approach the financial expert and implement tips to boost it.

Tip 2: Check out the required eligibility criteria

Borrowers need to meet specific eligibility criteria following which, he/she can avail the loan. Mostly, in cases of reputed lenders like Bajaj Finserv, their Business Loan requires individuals to meet minimum eligibility criteria like –

• He/she should be between 25 to 55 years of age.
• The business should have Income Tax returns filed for at least the last 1 year.
• The trade should have a vintage of a minimum of 3 years.

Meeting these criteria will give you access to their multiple beneficial features like –

• Credit amount of up to Rs. 30 Lakh.
• Instant loan approval and quick loan amount disbursal within 24 hours of verification of the furnished documents.
• A flexible repayment tenor ranging up to 5 years.

Tip 3: Keep the required documents handy

Reputed financial institutions like the ones mentioned take into consideration the convenience of the customers and hence require minimal documents for their business loan in Manipur. Keeping your documents handy is especially beneficial while you are applying for the credit online. In such cases, you will need to provide a few personal details like passport sized photographs, KYC documents, bank account statements, etc. and professional details such as certificate of proof of business, relevant financial documents, etc.

Tip 4: Plan out a fool-proof business strategy

Lenders stress on the requirement to furnish details of the business plan, considering that they provide the loan amount without the necessity of any collateral.  Create a growth plan for your small business and include your past and present financial statements for the trade plan, industry analysis, details of the teams and a complete breakdown of the opportunities and strengths of your trade.

Tip 5: Check your repayment capability

It is imperative to borrow a credit amount as per repayment capabilities. Before you approach a lender, calculate your existing financial obligations and then decide upon the credit amount required. Following this, you can approach a lender who offers a competitive rate of interest, thus helping you repay your loan sans any unnecessary stress on the monthly budget.

Follow these tips and easily avail a business loan in Manipur to help your trade prosper irrespective of its genre. Remember to compare lenders and approach ones that provide the best offers.