Eligibility Criteria For Business Loan

Businesses often need additional working capital to cover day-to-day expenses, such as inventory purchases, payroll, rent, and utilities. Sometimes, time-sensitive opportunities arise that require immediate funding, such as purchasing inventory at a discounted rate or acquiring a competitor. Plus, in today’s age there’s also the need to raise brand awareness by investing in marketing and advertising campaigns. Whatever the case, a business loan can help bridge gaps in cash flow and ensure smooth operations.

IIFL Finance’s business loans can provide the necessary funds to support your growth plans if you're looking to expand your business, whether by opening a new location, launching a new product or service, or entering new markets. Our exhaustive range of financial products are continually innovated to cater to businesses seeking funds. Whether it is a large scale operation or a small business setup, we offer customised solutions for everyone. Moreover, the business interest rates are attractive and affordable, so you don’t have to strain your cash reserves. All you need to do is see if you fulfill all requirements in the business loan eligibility criteria.

The easy online application process and the Business Loan EMI Calculator make the task completely hassle-free so that you can focus more on the growth strategy while we take care of the funds.

So, go ahead and apply for an IIFL Finance business loan today!

IIFL Business Loan Eligibility Criteria

If you are planning to apply for an IIFL Finanace business loan, there is a business loan eligibility checklist that you need to fulfill:

  1. You should be self-employed. Professionals such as doctors and CAs, and proprietorship concerns can also apply.

  2. You should have a credit score, or CIBIL of 700 and above.

  3. Your business should be operating for at least 6 months at the time of applying for a loan.

  4. Your office location should not be on any negative list.

  5. Your business should not fall under any list of blacklisted businesses.

  6. Charitable organisations, NGOs, and trusts are not eligible for a business loan.

How is Business Loan Eligibility Calculated?

Business loan eligibility is typically calculated based on various factors that lenders consider when assessing the creditworthiness of a business. While specific criteria may vary among lenders, here are some common factors used to determine business loan eligibility in India:

  1. Candidate's age.

  2. Business type and nature.

  3. Applicant's Credit score rating, financial background, and income source.

  4. Stability, age, turnover, and profitability of the company.

  5. Repayment capacity and creditworthiness of the applicant.

  6. Loan repayment history or any loan defaults.

  7. Information about the security or collateral that must be provided in the case of secured business loans.

  8. Unsecured business loan eligibility requires no collateral submission.

Business Loan EMI Calculator

Calculate your EMI and choose the most suitable product for you

Documents Required For Business Loans

Duly filled application form with Passport-sized Photographs

KYC documents of applicants,partners and co-applicants:Passport,Adhaar card,Voters ID And PAN Card,Driving license,Utility Bills (Recent Water or Electricity Bills)

PAN Card of borrower and all co-borrowers

Income proof with last 6 months’ bank statements

Last 1 years ITR for existing enterprises

Business Incorporation/Establishment Certificate

Business Vintage & Address Proofs

Any other document required by the lender

IIFL Business Loan

Business Loan FAQs

While applying for a business loan, you should be self-employed,  your age should be between 23 & 65, at least 6 months into the business, CIBIL score of over 700, and the business should not be blacklisted.

Yes, credit score or CIBIL score of at least 700 is needed.

Yes. Simply visit the official website to access this list.

Unsecured business loans do not require security or collateral.

Yes, sole proprietorship does qualify for a business loan provided they fulfill certain criteria:

  1. Age between 23 & 65
  2. Business should be operating for at least 2 years
  3. Should fulfill the criteria of CIBIL score, minimum turnover, profits, repayment capacity etc.
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