Securing a business loan is a strategic move to ensure the smooth operation and expansion of your business. Lendingkart facilitates this process by offering loans ranging from Rs. 50,000 to Rs. 2 Crore, catering to various business needs such as upgrading equipment, expanding operations, or bolstering working capital. The business loan eligibility documents, criteria and required documentation for availing business loans at Lendingkart are streamlined to make the application process as seamless as possible, ensuring fast access to financing to keep your business thriving.
Eligibility Criteria And Documents Required for Business Loan
Business Loan Eligibility Criteria:
| Type of Company | Eligibility |
|---|---|
| Private / Limited Companies | Net annual income of more than Rs. 1.5 lakhs for loans up to Rs. 15 Lakhs; over Rs. 3 Lakhs for loans beyond. |
| Self Employed Professionals | Must possess relevant qualifications. Proof required for doctors, engineers, chartered accountants, and management consultants. |
| Proprietorship / Limited Liability Partnership | Profit and loss statements are necessary to meet minimum criteria. |
| General Criteria | Applicants must be aged between 18 and 65, with the business showing cash profits for the past two years. An audited balance sheet by a registered chartered accountant is mandatory. |
Documents Required for Business Loan:
Here is a curated list of business loan documents list which is required to avail of business loan as they are mandatory as per the business loan criteria –
- Photo ID proof and passport-sized photographs.
- Aadhaar card, Voter ID, or Passport.
- Bank statements from the past 6 months.
- Trade license, sales tax certificate, and ownership documents.
- Income tax returns and profit and loss statements for the past 2 years.
- Balance sheets from previous years.
Benefits of Applying for a Business Loan from Lendingkart:
- Experience rapid processing within 72 hours, eliminating long waits for loan eligibility and management.
- Enjoy competitive business loan interest rates starting at 1.25% per month for loans up to Rs. 30,00,000.
- Benefit from flexible payment options tailored to your business needs.
- Skip the hassle of providing collateral, as no personal or business assets are required.
- Streamline the process effortlessly online with minimal documentation.
How is Eligibility Criteria for Business Loan Calculated?
- Cash Flow Analysis: Lenders evaluate your business’s cash flow to determine repayment capacity.
- Credit Score Assessment: A good credit score enhances eligibility by demonstrating creditworthiness.
- Business Performance: Profitability and stability of the business over the past two years are critical.
- Age and Qualification: Age of the applicant and professional qualifications play a role in eligibility.
- Financial Documents Review: Thorough assessment of financial documents including balance sheets and income statements.
Business Loan EMI Calculator
Utilize the business loan EMI calculator to gain insights into your monthly repayment obligations. This tool helps estimate your EMIs based on the loan amount, interest rate, and tenure, providing a clear financial roadmap for your business loan.
Step-By-Step Guide on how to Apply for a Business Loan
While applying for a business loan in India, the applicant should ensure compliance to the following steps:- Check the requirement : The first and foremost step is to understand the loan requirement, based on the purpose of funding
- Check Eligibility criteria : To proceed further, the applicant if they are eligible to avail a loan
- Create a document checklist : Once eligibility criteria is met, the applicant should then make an assessment of the documents required for loan application, and create a checklist.
- Initiate the process : Once all the information is in order, the applicant can then initiate the process by reaching out to the lender or going over to the lender website and registering interest.
- Submit the documents : The next step in the application process would be to submit all the documents including the proof of business to proceed further with the application.
- Provide supporting proof/documents if required : Based on the assessment made by the lender, they may ask the applicant to submit supporting proof or documents.
- Approval/Rejection of Loan : Based on the assessment made by the lender, the loan application will then be either approved or rejected.
Repayment of the Business Loan:
The loan can be paid off with EMIs or with bimonthly payments- whichever is deemed more convenient. These EMIs can be paid through National Automated Clearing House (NACH) which are electronic and periodic in nature. The amount will be automatically debited from your account in the frequency chosen by you. Applying for a business loan with Lendingkart is designed to be straightforward, with no collateral required and flexible repayment options. This ease of access to business loan documents checklist to financing empowers business owners to focus on growth and operational excellence.Frequently Asked Questions
Business loan eligibility criteria vary by lender and location. Generally, established businesses may use a business loan eligibility calculator to assess their qualification based on factors like credit history, revenue, and profitability. New businesses often need a strong business plan to secure a loan. Eligibility for unsecured business loans may require a robust credit score. Required documents typically include financial statements, tax returns, and business plans. It’s advisable to check with specific lenders for precise eligibility requirements.
Business loan eligibility criteria vary by lender and location. Generally, established businesses may use a business loan eligibility calculator to assess their qualification based on factors like credit history, revenue, and profitability. New businesses often need a strong business plan to secure a loan. Eligibility for unsecured business loans may require a robust credit score. Required documents typically include financial statements, tax returns, and business plans. It’s advisable to check with specific lenders for precise eligibility requirements.
Business loan eligibility criteria vary by lender and location. Generally, established businesses may use a business loan eligibility calculator to assess their qualification based on factors like credit history, revenue, and profitability. New businesses often need a strong business plan to secure a loan. Eligibility for unsecured business loans may require a robust credit score. Required documents typically include financial statements, tax returns, and business plans. It’s advisable to check with specific lenders for precise eligibility requirements.
The rule of business loan eligibility encompasses various factors in India. To determine eligibility, lenders often consider credit score, business vintage, annual turnover, and the purpose of the loan. Many lenders provide online business loan eligibility calculators to assess qualification. Additionally, new businesses may face stricter criteria, while unsecured business loans may require a strong financial profile. Commonly required documents include business financials, bank statements, and KYC documentation. Eligibility criteria can vary among lenders, so it’s advisable to check with specific institutions.
The maximum age for business loan eligibility varies depending on the lender and location. In India, for instance, it typically ranges between 21 and 65 years. Factors such as creditworthiness, business type, and loan type (unsecured or secured) also impact eligibility. To determine eligibility, use a business loan eligibility calculator and prepare the necessary documents, including financial statements and business plans, for a thorough eligibility check based on specific lender criteria.
The processing fee for the business loan is set at 2 to 5% of the loan amount.
The tenure of the loan can be from a period of 1 month up to 36 months.
Payments can be made on a bi-weekly or a monthly basis. There are no foreclosure charges for the business loan.
At LendingKart, pre-closure charges for business loans are subject to the lender’s policy.
LendingKart offers business loan with interests Starting from 1.25% per month.The interest rate for the business loan can be calculated using the formula: E = P x r x (1+r)n/(1+r)n-1, Where E is the EMI to be paid, P is the Principal loan amount, n is the loan tenure and, r is the rate of interest that is calculated on a monthly basis.
NOTE: No processing fees are being charged by Lendingkart before disbursement of the loan amount. Any individual claiming otherwise must not be entertained. Please report such activity on 