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Factors affecting Business Loans

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"Right from Lending to Investment Advisory and Wealth Management to Insurance, Finway Capital is a holistic financial platform for individuals and small businesses. Website: " – PowerPoint PPT presentation

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Date added: 22 October 2019
Updated: 23 October 2019
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Title: Factors affecting Business Loans


1
Factors affecting Business Loans
  • Choosing a road map and walking on it is a factor
    that as a business owner you must follow. Unlike
    Home Loan in Delhi, Business Loan in Delhi must
    follow the blueprint. Not just Delhi, this is a
    universal rule that business owners all over the
    country must tread towards. Having said that,
    business loans are not easy to manage as they
    come with conditions and factors that influence
    them. Let us find out these influential factors.
  • Cibil Score As a business owner, maintaining a
    personal cibil score is preemptory. The loan you
    will apply for and what you get is dependent
    upon your creditworthiness. So if you have a
    credit score higher than 720, you are eligible
    to get an affordable rate of interest that would
    please you. Unlike this, if the credit score is
    500 or less, chances are that you will be refused
    the Business Loan in Delhi or other cities as
    the cibil score is universally calculated. So if
    one bank rejects the application, the other bank
    may give you a loan but with a high rate of
    interest.
  • Business Tenure A business loan can be taken by
    anyone has a specific monthly earning. This rule
    has come into being recently. Earlier, any
    company or business operating for less than two
    years was not eligible for a traditional bank
    loan as it was categorized as a startup. However,
    with the change in the market scenario, funding
    for new businesses with lucrative ideas are
    funded by the banks and other financial
    institutions.
  • Monthly Revenue A specific monthly revenue,
    irrespective of the tenure of the business must
    be there. Only when you show complete statements
    of specific income you can get a business loan.
    This is because the bank needs to have a
    security and the trust that you will repay the
    amount in full and are capable of paying the
    EMI's until the tenure matures.
  • Collateral The entire business undertaking is
    done by the bank once the bank gives the loan in
    the name of the business. This is applicable in
    Delhi and all over the country however, in case
    of applying for Home Loan in Delhi, this rule
    does not apply and is only for businesses that
    are looking for expansion plans. Papers
    reflecting the bank undertaking of the business
    are prepared as a protocol and then the loan
    stands approved. Failing to pay the EMI's, the
    business can be taken over by the bank keeping it
    safe.
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