It is no secret, but a business loan is an incredible opportunity that provides you with aid to build and grow your venture. And availing of a business loan is truly a remarkable way to meet your capital requirements which rise from time to time. Nevertheless, it’s important to evaluate your business loan eligibility before you can apply for a business loan.
And this is exactly how you can avoid the possibility of making an uninformed decision. When you have Piramal Finance’s business loan eligibility calculator at your disposal, you can easily find out if you're eligible. In fact, this effective tool can also be used as a commercial loan eligibility calculator. Thus, you can determine whether or not you are eligible for a business loan.
Fees & Charges for Business Loan
Fees & Charges for Business Loan
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Row 1
- Features & Fees
- Details
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Row 2
- Business Loan Interest Rates
- {blinterestrate}* p.a. onwards
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Row 3
- Loan Amount
- ₹ 3,00,000 to ₹ 20,00,000
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Row 4
- Processing Fees
- Up to 4% plus applicable taxes
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Row 5
- Loan Tenure
- 48 months tenure
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Row 6
- Prepayment Charges
- 5% of the Principal amount being repaid + applicable taxes
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Row 7
- Pre-closure Charges
- 5% of the Principal amount being repaid + applicable taxes
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Row 8
- Stamp Duty
- At actuals (as per state)
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Row 9
- Cheque Bounce Charges
- ₹ 500 plus applicable taxes
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Row 10
- EMI Pickup/Collection Charges
- ₹ 250 per visit plus applicable taxes
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Row 11
- Cash Collection Charges
- 1% of collection amount of Rs. 50000 and above in cash + taxes
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Row 12
- Change of Loan Repayment Mode
- ₹ 500 plus applicable taxes
How to use Piramal Finance's Business Loan Eligibility Calculator?
You can check the business loan calculator of Piramal Finance on our website. This online calculator for business loan eligibility can help you acquire an instant estimate of your business loan eligibility. The calculator is extremely easy to use. You can follow these steps to acquire a quick estimate:
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Select your desired location.
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Enter your age. While applying for a business loan you must be more than 21 years of age. And during the time of your loan maturity, you cannot be more than 65 years of age.
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Select your annual profit after making all the tax deductions in the following step.
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Select the present monthly EMIs that you are paying. Remember that the calculation should provide an equal sum of all the EMIs that you are currently paying. Also, it must include the EMIs for credit cards too.
Once you have inserted all the above-mentioned information, you need to click on the ‘calculate’ button. The debt consolidation loan eligibility checker will automatically fetch you the business loan amount you are eligible for. You can see the figures on the right side of your screen.
Remember, you can also alter the rate of interest and the tenure of your business loan according to your preferences. You must also note that this online calculator only provides an estimate and an indicative figure.
Business loan eligibility in real terms depends on various other factors. Some of them include credit histories, employment details, and lots more. To better understand the exact figure, you can get in touch with your desired bank. They will provide you with all the additional information as requested.
How is Business Loan Eligibility Calculated?
The business and MSME loan eligibility criteria comprise of varied parameters and include your tax payment record, CIBIL score, credit utilization ratio, bank balance, and other things. So, in order to become eligible for a considerably high business loan amount, you must adhere to the following factors:
- Maintaining and Ensuring a Good CIBIL Score
- Your credit score plays a significant role in determining your eligibility criteria. Thus, a CIBIL score of less than 700 can typically impact your business and SME loan eligibility.
- Paying Your EMIs and Taxes on Time
- When you have a punctual and clean record of making payments, you might qualify for a larger loan. As a result, you may end up receiving a large number of business loans.
The Working Capital Loan eligibility calculator of Piramal Finance is immensely smart and simple. You can deliberately use this easy-to-use calculator to determine your eligibility for a business loan. Further, you can apply for the same and get instant online approval.
Remember that the business loan that you apply for is usually disbursed within 24 hours of application. However, there are certain terms and conditions associated with it.
- When you have a punctual and clean record of making payments, you might qualify for a larger loan. As a result, you may end up receiving a large number of business loans.
How to Improve your Eligibility for a Business Loan?
If your eligibility for a business loan isn’t very promising, you can try certain ways to improve it. We've listed a few methods for increasing your business loan eligibility below. They include:
Pay Your Taxes Regularly
The most important thing of all is to pay your taxes on time. As your tax history is immensely crucial, it must be well maintained. And defaulting on tax payments can deliberately pave the way for loan rejections. That’s why making your tax payments at the right time is crucial.
Check Your Documents for Errors
In the majority of cases, loan applications are rejected because of fake or missing documents. Thus, you must ensure that all your listed documents are submitted with your application. But most importantly, those documents must be free from any significant error. And that is exactly how you can enjoy a smooth and seamless banking experience.
Consider Future Financial Prospects
We usually extend loans to those who are willing to stay stable and generate remarkable profits. So, if the business industry is volatile, the bank is very likely to reject the loan application. And if the loan gets approved, the interest rate automatically increases.
Increase Business Profits
Most lenders are comfortable with businesses that are actually doing well. So, banks and NBFCs typically reject businesses that suffer significant losses. Thus, it’s important for you to seek a secured loan, especially in the case of an unstable business record.
Frequently asked questions
In order to know whether you will qualify for a business loan or not, you must determine the eligibility for a business loan first. The typically standard eligibility criteria for a business loan are stated below:
- All businesses that seek loans must make a credible profit for the past two years.
- The businesses must also have a minimum annual income of ₹ 1.5 lakh per annum.
- The business owner or the applicant must be at least 21 years old while applying for a business loan.
- The business loan applicant or the owner should not be older than 65 years during the time of loan maturity.
When you fulfil the above-mentioned criteria, you will easily know whether you qualify for a business loan or not.
Yes, a sole proprietor is also capable of getting a business loan. It’s primarily because business loans deliberately finance all kinds of businesses, including sole proprietorships. However, it is important for businesses to fulfil all the required eligibility criteria in order to acquire a business loan.
So, if you are a sole proprietor, you can easily avail of a business loan when you fulfil all the criteria. Further, you can commence your enterprise or use it for your working capital requirements. You can also get done with your loan eligibility check online from Piramal Finance’s website.
Even when you have a bad credit score, you can seamlessly get a business loan under certain circumstances. Here are a few ways through which you can get a business loan with bad credit:
- Consider a few other business funding options
- Apply for a business credit card
- Apply for SBA loans
- Obtain help from friends and family
- Improve credit and reapply for a business loan
However, certain business loans that can be obtained with bad credit include the following:
- Secured Business Loans
- Unsecured business loans
If you have bad credit and want to acquire a business loan, you can also make a request to your current lender.
You can seamlessly use MSME loans for your new businesses, so that you can obtain the maximum benefit from them. Besides, the MSME loans also provide funds for capital growth, and this can be used for any type of business requirement.
So, if you are planning to obtain a high loan amount for the long term, then you must have an incredibly high turnover. Thus, your annual turnover is truly responsible for your granted loan amount. Further, it will typically affect your eligibility for acquiring the business loan.
If you plan to expand your business, you will need a business loan. And in order to be granted your business loan, you need to provide a multitude of documents. Some of them include the following:
- Aadhaar Card
- PAN Card
- Driving Licence
- Voters ID Card
- Residential Address Proof
- Ration Card
- Utility Bills, including electricity or telephone bills (of last 3 months)
- Passport
- Sales Tax Certificate
- Trade License
- Proof of Business Continuation
- Lease Agreement
- Proof of Financial Income
- Proof of Business Ownership
Some of the standard documentation that is required for every business loan is:
- Duly filled and signed application form
- Passport size photograph
- Valid residential proof of the applicant
- Valid proof of identity of the applicant
- Credible financial documents
- Valid proof of age
You should note that these are generic documents; only the original copies must be submitted. Also, remember that you must submit them to your respective banks from where you are acquiring your business loan.
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