Eligibility Criteria -

At Money Axle, we help businesses secure hassle-free funding by meeting the required business loan eligibility criteria. Financial institutions and banks have predefined criteria for assessing the creditworthiness, economic stability, and repayment capacity of the applicants before approving a business loan.

Business Loan Eligibility Criteria-

• Business Category

  To qualify for the loan, applicants must meet the RBI's definition of Micro and Small Enterprise (MSE).

• Purpose of Loan

  The loan should be used specifically for working capital, business expansion, purchase of machinery or equipment.

• Personal Guarantee

  A key partner or owner must act as a guarantor of the loan to ensure financing.

• Business Stability :

  The company must be in the same industry or business for at least three years

• Financial Documents

  It is mandatory to submit the necessary financial records, which include. Audited Financial Statements (Profit and Loss Balance Sheet) Tax Audit Report (Last 2 Years)

• Business Bank Account Statements (Last 6 Months)

  Meeting these criteria increases the chances of loan approval and ensures uninterrupted access to business funds. If you need help securing a business loan, MoneyAxle is the destination to guide you every step of the way.

Factores Affecting

Key Factors Affecting Business Loan Interest Rates-

When applying for a business loan, various factors affect the interest rate you receive. Lenders evaluate multiple criteria to determine the risk associated with the loan, which in turn affects the rate at which they provide the loan. The primary factors that affect the interest rate on a business loan are given below ---

• Business and Industry Risk Type-

  The nature of your business plays a significant role in determining the interest rate. Some industries are considered high-risk, resulting in high interest rates, while stable and well-established sectors can get lower rates. Lenders also evaluate the credibility of your business, product quality, and management status. Businesses operating in blacklisted areas may face higher scrutiny and possible loan rejections.

• Credit Score and Financial Health

  A strong CIBIL score (or business credit score) is one of the most important factors affecting the interest rate on a loan. A high credit score reflects financial stability and responsible credit behavior, which makes lenders more likely to offer lower interest rates. Conversely, a low score can result in higher interest rates or even loan rejection, so maintaining a healthy credit profile is essential to ensure favorable loan terms

• Business Vintage and Stability

  Lenders at any bank prefer businesses with a solid operating history. A company that has been in business for a long time is seen as more stable and reliable, resulting in better loan offers at lower interest rates. Startups or businesses with limited experience may have to pay higher interest rates due to perceived risk.

• Annual Turnover and Revenue Trends

  The financial health of your business, including the consistency of annual turnover and revenue, affects the interest rate on a loan, as lenders assess cash flow stability and leverage margin before setting the applicable interest rate. High earnings and positive growth trends indicate strong repayment capacity, resulting in better loan terms.

• Collateral vs Unsecured Loan

  If you apply for a secured business loan by pledging your property, machinery or inventory, you can get a lower interest rate. On the other hand, unsecured loans usually come with higher interest rates due to the lack of security for the lender.

• Lender Policies and Market Conditions -

  Interest rates also vary based on the lender's internal policies, market conditions and RBI regulations. Economic factors like inflation, repo rate changes and demand for credit can affect lending rates at financial institutions.

• Final Thoughts -

  Understanding these factors can help you improve your eligibility and secure a business loan at a competitive interest rate. To increase your chances of getting a favorable deal, maintain a good credit score, ensure stable business growth and find the best terms and conditions, explore different lenders.

Application Documentation Process

• Documents Required for Business Loans

  The following business loan documents are mandatory to get a loan very easily.

• Forms and Photos:

  A business loan application form and 2 passport-sized photos are required to complete the loan application properly.

• Business Loan Documents Required:

  The following business loans require various documents to get a loan very easily.

• Proof of Identity

  PAN Card, Passport, Voter ID Card, MAPIN Card or Driving License etc.

• Proof of Residence –

  Voter ID card, Ration card, Electricity bill, Telephone bill, Aadhar card, or Utility bill, along with lease agreement.