As India's startup and small business ecosystem continues to flourish, entrepreneurs are actively seeking financial assistance to fuel their ventures' growth or launch new projects. By availing of business loan, they gain access to vital funds that empower them to invest in technology, human resources, marketing, and infrastructure, helping them gain a competitive edge in the market.
Business Loan Eligibility
SMFG India Credit extends business loans to many businesses, including sole-proprietor firms, private limited companies, and partnership firms across diverse industries. Below are the eligibility criteria for our business loans:
● The minimum business experience required is three years at an individual level, with five years in business overall.
● Eligible individuals should be between 22 and 65 years of age at the time of loan maturity.
● The enterprise should have been profitable for two years, with a minimum turnover of INR 10 lakhs.
● A minimum annual income of INR 2 lakhs is required for the enterprise.
Meeting these criteria does not guarantee loan approval. Other factors, such as CIBIL score and credit history, are also considered.
Apart from the mentioned eligibility criteria, SMFG India Credit provides a business loan eligibility calculator to estimate the maximum loan amount you might qualify for. You can get an indicative amount of your eligibility by entering basic details such as location, age, annual profit after taxes, and net monthly EMIs. The business loan EMI calculator allows you to vary the rate of interest and tenure to understand the potential loan amount better.
The Business Loan EMI Calculator by SMFG India Credit is a very easy-to-use tool. In three quick steps, the borrower can determine the EMI amount in seconds. Here’s how:
- Use the slider to select the total loan amount.
- Select the tenure for the loan.
- Enter the interest rate that is comfortable for your current business profile.
- After you hit the submit button, your EMI amount is generated.
A lot of business loan borrowers have a common question. How is a Business Loan EMI calculated? Here’s the answer to this.
It is calculated based on the borrower’s loan amount, the interest rate quoted by the lender at the time of disbursal and the total tenure of the loan. The following is the business loan EMI calculation formula:
EMI = P*R*(1+R)n/(1+R)n-1
P is the loan amount, R is the interest rate, and n is the repayment period.
Documents Required for a Business Loan in India
When applying for a business loan in India, you will need to provide certain essential documents to support your application. Here are the basic documents typically required by most financial institutions:
● Identity Proof: A valid PAN card as proof of your identity is essential for the loan application process.
● Proof of Address: You must submit documents establishing your residential address, such as utility bills or a rental agreement.
● Bank Statements: Recent bank statements for the last six months will be necessary to evaluate your financial transactions and stability.
● Income Tax Returns (ITR): Furnishing your latest ITR for the past two years is mandatory, reflecting your income computation, balance sheet, and profit and loss account.
● Proof of Business Existence: Documents like a Trade license, Establishment Certificate, or Sales Tax Certificate will be required to verify the existence of your business.
Please be aware that the verification process may entail requesting additional documents, depending on your profile and the lender's policies.