Who is Eligible for business loan ?

Any person who is running a legitimate business with good earnings can go for a business loan. Banks have certain criteria to validate on how much and whom to give. This is on the basis on.

1. Type of the business- Ie Proprietorship, Partnership, Pvt Ltd or Public Ltd.
2. Turnover of the business.
3. Profit of the business.
4. Cash flow of the business.
5. Track record and type of business.

Brief:-

Banks provide loans to business people for their short or long term financial needs. At various stages of running a business, capital is needed either for long term or short term needs. Business loans are provided to all kinds of enterprises like sole proprietorships, partnerships and private limited companies. Though income requirements can vary depending on banks, normally net income of the concern should be more than Rs. 150,000 per annum for business loan up to Rs. 15 lakh and over Rs.3 lakh for business loan above Rs. 15 lakh. A maximum of two incomes of the partners or directors holding a minimum of 25% stake each can be clubbed to the income of the concern. So, before going for a business loan properly review the situation and see how much money you need and at what time. And don't forget to review your financial situation to know how much loan you actually need and how much money you can repay easily.