If you’re planning to start or scale your business and need funds, a business loan can be the quickest route to finance growth. But before applying, it’s crucial to know whether you qualify. At Shivafinz, we break it down simply.
In this blog, you’ll learn the top 3 criteria that banks and NBFCs use to evaluate your business loan eligibility.
🏦 Why Knowing Your Business Loan Eligibility Is Important?
When you apply for a business loan, banks and NBFCs (Non-Banking Financial Companies) evaluate your creditworthiness, business performance, and repayment ability.
Applying without meeting their minimum criteria could lead to rejection—and multiple rejections can hurt your credit score.
Let’s save time and get straight to what matters.
📊 3 Quick Checks to Know If You Qualify for a Business Loan
1. ✅ CIBIL Score Must Be 720+
Your CIBIL score reflects your creditworthiness. Lenders prefer a score above 720, which signals good repayment behavior and financial responsibility.
🔹 Pro Tip: If your score is below 700, work on clearing old dues and lowering your credit utilization.
2. 🧾 Minimum Business Vintage: 1 Year
Lenders want to see business continuity. Your company must have at least 12 months of operational history to be considered for a loan.
📌 If you’re a startup less than a year old, you may still be eligible through special startup loan schemes or alternate lending platforms.
3. 💰 Average Monthly Bank Balance: ₹50,000+
Your average monthly bank balance speaks volumes about your cash flow. Most banks and NBFCs look for a minimum of ₹50,000 per month in your primary business account.
🔍 Note: This should be consistent over the last 6 to 12 months.
📈 Bonus Tips to Boost Loan Approval Chances:
- Keep all documents ready: GST registration, MSME certificate, ITRs, and business bank statements.
- Avoid multiple loan enquiries in a short period—this could flag you as “credit-hungry.”
- Maintain a clean repayment history with existing lenders.
🚀 Final Thoughts: Let Shivafinz Help You Grow
If you meet these 3 conditions, you’re already on the right path toward business loan approval. Still unsure about your eligibility or need help with documentation?
📲 Contact Shivafinz today and get personalized loan consulting from experts.
🔍 Frequently Asked Questions (FAQs)
Q1. Can I get a business loan with a low CIBIL score?
Yes, but the interest rate may be higher, and approval will depend on other strong business metrics.
Q2. What is the interest rate on business loans?
It generally ranges between 10% to 36% per annum on a reducing balance basis.
Q3. What documents are required?
PAN, Aadhaar, GST registration, business bank statements, ITRs, and proof of business vintage.
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