• ABOUT
  • PRIVACY
  • CONTACT
  • ADVERTISE
No Result
View All Result
KeralaNews 24x7
Sunday, June 8, 2025
  • HOME
  • NEWS
  • ENTERTAINMENT
  • CRYPTO
  • SPORTS
    • OLYMPIC
    • CRICKET
    • FOOTBALL
    • KABADDI
    • BASKETBALL
    • TENNIS
    • WWE
  • TECHNOLOGY
  • HEALTH
  • EVENTS
  • DEALS
    • SPECIAL DEALS
  • BLOG
    • BUSINESS
    • FINANCE
    • DIGITAL MARKETING
    • EDUCATION
    • LIFE STYLE
    • REAL ESTATE
    • ART
    • ADULT
    • CASINO
    • FASHION
    • GAMES
    • LAW AND ORDER
    • TRAVEL
  • HOME
  • NEWS
  • ENTERTAINMENT
  • CRYPTO
  • SPORTS
    • OLYMPIC
    • CRICKET
    • FOOTBALL
    • KABADDI
    • BASKETBALL
    • TENNIS
    • WWE
  • TECHNOLOGY
  • HEALTH
  • EVENTS
  • DEALS
    • SPECIAL DEALS
  • BLOG
    • BUSINESS
    • FINANCE
    • DIGITAL MARKETING
    • EDUCATION
    • LIFE STYLE
    • REAL ESTATE
    • ART
    • ADULT
    • CASINO
    • FASHION
    • GAMES
    • LAW AND ORDER
    • TRAVEL
No Result
View All Result
News 24x7
No Result
View All Result

How to Find Out If You are Eligible for a Small Business Loan?


Rahim Gupta by Rahim Gupta
6 years ago
Reading Time: 6 mins read
0
0
0
SHARES
0
VIEWS
FBXLinkedinWhatsAppTelegram

Small and medium business is the mainstay of the Indian economy. Their contribution to the industrial output is approximately 45% while the GDP is 40%. Such is the dominance of this sector, the Government and well as private lenders have tailored suitable credit solutions which not only help business ventures to sustain and thrive but also offers opportunities to expand and explore new ventures. The primary lenders catering to business loans in the country are the banks and large NBFCs who offer customized business loans. The horizon is now breached by Fintech companies with innovative products that are becoming the norm of the day with evolving business trends and patterns.

Small-business-loan

The need for Business Loan

Every business needs capital not only to launch but also to sustain and grow. The lenders have products to cater to every need. Traditional business loans are there to stay, but modern trends indicate a different lending roadmap, which many of the lenders are currently adopting to attract prospective borrowers. But the factor that becomes primary on contemplating a loan is business loan eligibility. It is important to note that there are some general criteria as well as specific for customized business loans. Even the business loan interest rate sometime varies based on whether you qualify for a small business loan or there is a deficiency.  This is particularly true for a credit score, in which the banks are extremely rigid as compared to Fintechs.

How to check for eligibility for a small business loan?

While every lender provides an online Eligibility Checker Tab, it is prudent to learn about the different types of business loans in the market and eligibility criteria in each, to ascertain whether you qualify or not. In this context, it is pertinent to point out that the New-age NBFCs, especially the digital ones, are more liberal in their approach. We shall highlight them here. The other primary feature of business loan eligibility norms are the qualifying enterprises which are engaged in activities related to trading, manufacturing, and services with the following ownership:

  • Self Employed Professionals / Proprietors
  • Partnership Firms
  • Private Limited Company
  • Limited Liability Company

Short Term Small Business Loan: These are ideally suited for working capital needs as well for expansion and diversification with tenures up to 2 years.

Eligibility Criteria:

  • The operational business history of three years.
  • Audited financials must project annual turnover greater than Rs.1C.

Proprietor Loan: Ideally suited for retail stores, traders, manufacturing units, and service providers.

Eligibility Criteria:

  • The minimum business operational history of one year.
  • Turnover greater than Rs.90K over the preceding three months.

Inventory Finance: It is an overdraft facility, or a rolling loan sometimes referred to as Pay Later, pre-approved loan, etc. You are free to withdraw funds up to a borrowing limit and restore the balance once again by depositing funds into the account.

Eligibility Criteria:

  • Business operational history of one year.
  • Supplier relation with the business should be at least three months old.
  • This loan is ideally suited for SMEs who have:
  • Large. Orders in the pipeline.
  • Bulk orders attract discounts.

Franchise Finance: This is a new-age business model using the Brand value of the franchisor to sell products.

Eligibility Criteria:

  • The operational business history of two years.
  • Minimum annual income of Rs.12L during the preceding two years.
  • The Franchise should belong to the following business activity:
  • Education
  • Beauty and Wellness
  • Food and Beverages.
  • Fashion and Lifestyle.
  • Sports, Entertainment, and Fitness.
  • Automobiles
  • Retailers
  • Dealership and Distribution.

Online Seller Finance: These are small businesses who sell their products in various established E-commerce marketplaces like Amazon, Flipkart, Snapdeal, eBay, Myntra, Jabong, etc.

Eligibility Criteria:

  • Minimum business operational history of one year.
  • Partnership with the Ecommerce enterprise for a minimum of six months.
  • Minimum sales of Rs.75K over the preceding quarter / three months.

Supply Chain or Invoice Discounting: Advance for percentages of the value of pending invoice when there are growing sales in the pipeline to ensure that the business is not out of funds.

Eligibility Criteria:

  • The minimum business operational history of two years.
  • Customer relation for a minimum of three months.
  • Minimum annual turnover should be Rs.1C.

Merchant Cash Advance: It is a recent trend where digital payment is the norm. You card swipe result consistent receivables, the value of which is converted into cash.

Eligibility Criteria:

  • The minimum business operational history of one year.
  • Card acceptance for a minimum of six months.
  • Minimum annual turnover should be Rs.20L
  • Minimum card swipe value of Rs.5L.
  • Minimum six settlements per month.

Fees and rates of Small business loan:

Rate of Interest

Business loan interest is variable in a range up to 27% PA

Quantum of Loan

Up to Rs.2C

Processing fee

Variable upfront up to 3% of the loan amount

Tenure

In banks, it is longer, but in Fintech it is maximum of three years

Pre-closure

Mostly waived.

Once the parameters of business loan eligibility are known, it is also important to know about the fees and rates to determine the cost of capital. Along with the tenure of the loan, it is sure to have an impact in determining if you qualify or are eligible for a loan matching your need.

ShareTweetShareSendShare
Rahim Gupta

Rahim Gupta

Rahim Gupta, is a digital marketing maven known for his expertise in website optimization and SEO strategies. With an unwavering commitment to online success, he has guided countless businesses to new heights in the digital landscape. Rahim's concise, results-driven approach to SEO has made him a respected leader in the field.

Related Posts

Western Carriers logistics truck inside industrial plant

Western Carriers Secures ₹27.73 Crore Contract from Jindal Stainless for Jaipur Plant Logistics

2 days ago
ITC Infotech HR transformation SAP SuccessFactors

ITC Infotech Names Rashmi Sharma as General Manager of HR Transformation

1 week ago
Kriti Sanon Magic Moments Vodka campaign photoshoot

Kriti Sanon Named New Face of Magic Moments Vodka as Brand Pushes Bold New Image

2 weeks ago
Premier Energies solar module manufacturing plant India

Premier Energies Reports Soaring FY25 Results, Eyes Massive Capacity Growth by 2028

3 weeks ago
BharatNet broadband rural connectivity

Dilip Buildcon JV Secures ₹2,631 Crore BSNL Contract for BharatNet Phase-III

2 months ago
Kotak Mahindra Bank quarterly financial results

Kotak Mahindra Bank Reports 10% Rise in Q3 FY25 Net Profit to ₹3,305 Crore

5 months ago
Satish Kannan Joins Bounteous x Accolite as EVP, Chief People Officer for EMEA & APAC

Satish Kannan Joins Bounteous x Accolite as EVP, Chief People Officer for EMEA & APAC

6 months ago
GE Vernova India transmission project

Power Stock Surges 3% After ₹400 Crore Order Win from Sterlite Grid 32

6 months ago

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

SEARCH

No Result
View All Result

ADVERTISEMENTS

(adsbygoogle = window.adsbygoogle || []).push({});

POPULAR ARTICLES

Crypto Transaction

How Cryptocurrency Transaction Works? Read Pros & Cons of Cryptocurrency

3 years ago
Indian stock market Sensex Nifty June 2025 midday trading

Sensex and Nifty Surge Midday, Led by Finance and Auto Stocks on June 6, 2025

1 day ago
snapdragon-8-elite-chipset-qualcomm-2025-devices

Snapdragon 8 Elite Defines 2025’s Mobile Revolution — One Form Factor at a Time

1 day ago
eSports

Just How Big Will eSports Be?

8 years ago
Iontophoresis Device

Iontophoresis Device, the Best Treatment for Excessive Sweating

8 years ago
NOW Entertainment soon to Start Selling American Hustle82 Apparel

NOW Entertainment soon to Start Selling American Hustle82 Apparel

8 years ago
E-cigs Products in Classrooms

Is It Right to Ban the Juul and Other E-cigs Products in Classrooms?

8 years ago
Ryan Van Wagenen

Ryan Van Wagenen Expects Continued Growth for the Silicon Slopes

7 years ago
Working Remotely: Benefits for Employers and Employees

Working Remotely: Benefits for Employers and Employees

7 years ago
Benefits of installing Solar on your house

Benefits of installing Solar on your house

7 years ago
Facebook Twitter Youtube

ABOUT US

The KeralaNews 24×7 website is for desi entertainment lovers across India, USA and UK. We often cover breaking News & Trending topics in India and have been referenced by numerous media outlets. Follow us on our Social media profiles for the latest updates and news.

Contents produced in this website are subjected to DigitalCopyRight Law.

© 2023 KeralaNews 24×7 – Website Designed by VISION

WEBSITE STATS

  • Google News Approved
  • 1,00,000 Traffic/Month
  • Domain Authority – 25
  • 70% Traffic from Google

ADVERTISE WITH US

If you are looking to advertise your business or website, feel free to contact us at ceo.keralanews247@gmail.com

We accept following form of advertisements,

  • Banner Ads
  • Contextual Links
  • Guest Posts
  • Sponsored Posts

SEARCH

No Result
View All Result

MORE INFO

  • ABOUT
  • PRIVACY
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • HOME
  • NEWS
  • ENTERTAINMENT
  • CRYPTO
  • SPORTS
    • OLYMPIC
    • CRICKET
    • FOOTBALL
    • KABADDI
    • BASKETBALL
    • TENNIS
    • WWE
  • TECHNOLOGY
  • HEALTH
  • EVENTS
  • DEALS
    • SPECIAL DEALS
  • BLOG
    • BUSINESS
    • FINANCE
    • DIGITAL MARKETING
    • EDUCATION
    • LIFE STYLE
    • REAL ESTATE
    • ART
    • ADULT
    • CASINO
    • FASHION
    • GAMES
    • LAW AND ORDER
    • TRAVEL

© 2023 KeralaNews 24x7 - Website Designed by VISION

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.