Whether you are expanding your operations or simply need funds for your day-to-day expenses, getting a business loan can be a lifesaver. However, it is important to know how to get the maximum loan amount you can, to ensure you have the funds you need to grow your business. Here, we talk about some of the factors we consider when determining your business loan sanction.
1. Business vintage:
The older and more stable your business, the better your chances of securing a higher loan amount. We are more likely to lend to businesses that have been operating for several years and have a proven record of success. To apply for our business loan, you should have a business vintage of at least 3.
2. Annual turnover:
Your annual turnover plays a crucial role in determining the loan amount that you can get. We often consider your turnover to estimate your business's capacity to repay the loan amount. The higher your turnover, the better your chances of securing a higher loan amount.
3. Credit score:
Your credit score is one of the most important criteria that can affect your loan amount. While you only need a minimum credit score of 685 to apply for our loan, having a higher score is likely to get you better terms on your loan. Maintain a good credit score by paying off your debts on time and keeping your credit utilisation ratio low.
4. Debt-to-income ratio and cash flow:
The general financial health of your business plays a significant role in the determination of your loan amount. We ask for your business’s financial records and income tax statements, along with proof of ownership. If your debt-to-income ratio is low, and your cash flow high, you can secure a high loan amount.
While we offer an unsecured business loan – you do not have to provide any collateral to get funds going up to Rs. 80 lakh. However, if you require an even higher loan amount, you can look into our secured business loan, which offers you a maximum sanction of Rs. 1.05 crore.
In conclusion, getting a business loan with a high loan amount requires careful planning. Keep in mind the above criteria when applying for our business loan, and you should stand a good chance of getting your desired loan amount.
