Business Loan FAQ
- What do banks look in for to give a Business Loan?
Type of Business / Profession
Profit shown in the ITR,
- Business Vintage
- Company Profile
- Ownership of Residence / Place of Business
- Type of Accommodation.
- Residence Locality
- Loan Repayment History.
Personal loans to professionals such as Doctors, Chartered Accountants, Engineers, and Architects can be at special rates as offered by the banks at that point of time.
- Rate of Interest Band for various categories of Customers.
Self Employed Professionals 15% to 18%
Self Employed Non Professionals 17% to 24%
- How much amount dose a bank fund?
Business Person & Professionals – Rs.1 lacs to Rs. 30 lacs
- How much tenor does a bank give?
Business Person & Professionals – 1year to 3 years
- Age band for Business Loan.
Self employed – minimum entry age is 25 years and maximum exit age is 65 years.
- Geo Limits for Business Loan.
Every bank’s have demarcated their Geo Limits and are comfortable lending in those areas this is mainly due to collection restrictions.
- Points to be considered for Evaluation of various Business Loan offers.
- Applicable Rate of Interest.
- Type of Interest [reducing / flat].
- Processing fee.
- Part payment charges, terms & conditions.
- Fore Closer charges, terms & conditions.