When you decide to take a business loan to meet the working capital requirement, start and expand your business, for any other reason, you must know when to apply for the loan and how long it takes to get the business loan approved and sanctioned.
In this blog, we will try to cover all the aspects of business loans and make you understand the process and eligibility of business loans.
Different loan providers offer different loan processing times. But no one can tell you exactly how long it will take to get the business loan. However, if you need a business loan, you will always want to get the loan at the earliest possible.
Your loan processing time depends on many factors such as:
- The financial institution you choose
- The type of loan you want
- How quickly you submit the documents
- When you apply for the loan, etc.
Let’s talk about the loan application & approval process. It involves three steps- applying for a business loan, going through underwriting, approval of loan, & lastly, funding of the loan.
Let us now look at the eligibility criteria for availing of a business loan.
The eligibility criteria for a business loan typically constitute income, balance sheet, age limit, CIBIL score, business health, and more, which are defined by financial institutions. For easy loan sanction, try to build your CIBIL score of more than 750. The amount of a business loan depends on your eligibility and returns from your business.
Following is the eligibility criteria which you have to satisfy to get the business loan:
- Your age should fall in the range of 25 to 65.
- Your business must be a profit-making business for three consequent financial years.
- There must be an upward trend in your business turnover.
- You must get your balance sheet audited by a practicing Chartered Accountant.
You need to provide the following documents for a business loan:
- Photo identity proof,
- Business proof,
- Income proof,
- Bank statement,
- KYC documents, etc.
Nonetheless, the loan comes at a cost, i.e., interest has to be paid for availing the loan. Financial institutions generally offer business loans at an interest rate of 19%. However, the best interest rates are offered based on eligibility, business, income, and other criteria.
There may be some charges, such as processing fees & foreclosure charges, but the most trusted financial institutions guarantee no hidden charges, maintaining client transparency.
Financial institutions determine the equated monthly installments (EMI) based on the loan amount, interest rate, and loan tenure. Now you can also calculate your EMI using Business loan EMI calculators provided by most financial institutions.
How long will it take you to get a business loan from TATA Capital:
If you require funds to meet your financial requirements, business loans can be one of the best options. However, it can be very challenging to avail of the business loan quickly. And if a loan is not processed on time, it can hamper the business and lead to destruction.
If you require a business loan, you can apply on Tata Capital for benefits, such as easy application process, fast loan sanction, lucrative interest rates, simple documentation & high eligibility, basic terms & conditions, multi-purpose loans, structured loans, EMI plans, etc.