How Can an Applicant Qualify for an Entrepreneur Loan?

To initiate and maintain a business successfully, every entrepreneur needs sufficient liquidity. Those who have substantial funds can self-finance their ventures. However, majority of the business owners look for an entrepreneur loan to have access to ample funds.

How convenient is it to get entrepreneur loans?

Over the years, NBFCs have introduced customised business loans in India for specific trades. Similarly, for entrepreneurs, financial institutions including Bajaj Finserv have brought tailor-made Entrepreneur Loans at competitive rates of interests. These loans come with exclusive features and benefits for the applicants.

Bajaj Finserv also provides pre-approved offers on business loans, personal loans, mortgage loans along with a plethora of other financial products and services. This scheme is undeniably a time-saving process which also makes it easier for borrowers to avail funds. You can also check your pre-approved offer by submitting a few pieces of essential information online.

Not to mention, NBFCs are more relaxed while approving an entrepreneur loan to their borrowers as compared to traditional financing institutions. With a go-getter approach, here’s how one can qualify for entrepreneur loans from NBFCs.

A. Produce a constructive business plan to the lender

A critical requirement for obtaining capital via entrepreneur loans is producing a well-defined and precise business plan. With a detailed description of the product/services, a lending institution gets an idea of the business’ position in the target market.

A debtor should provide unique features and advantages, helping to differentiate his business from the peers. Additionally, try incorporating the following aspects to increase the chance of loan approval:
i. Industry analysis.
ii. SWOT analysis of the business
iii. Industry analysis
iv. Sales strategy and operational plans

These details help in establishing a sense of confidence in the lender’s mind to approve your business loan.

B. An applicant needs to have a sound credit score and history

Having a good credit history is one of the prime factors to qualify for an entrepreneur loan. Also, an applicant’s CIBIL score signifies his expertise in financial management. Lenders usually prefer candidates having a CIBIL score above 750.

Therefore, he must make sure to be regular with his loan and credit card bill payments. Any previous defaults can inhibit the loan sanctioning. So, from day one, a borrower must keep an eye on his business loan and adopt different ways to build a sound credit rating.

C. Ensure to meet all the eligibility criteria

Majority of the financial institutions in India have nominal criteria for entrepreneurs from different backgrounds and trades. Instead of setting up strict eligibility guidelines, they often require one to fulfil the basic criteria.

The applicant needs to be between 25 to 55 years of age. Also, he should have a business running for at least 3 years. This experience gives a lender that much-required assurance of the debtor’s business and his repayment capability.

D. Gather all required documents on time

Lastly, get hold of every necessary document beforehand to enjoy a hassle-free loan approval process. Generally, NBFCs conduct the entire process without involving any huge paperwork. But a borrower must provide these following documents to get the final nod:

▪ KYC documents to prove his Indian citizenship.
▪ Secondly, a borrower must file income tax returns at least a year before applying for a loan. Many people in business forget to file IT returns on time, and then, try to file the returns all at once. This practice leads to the rejection of loan applications.

Therefore, before it’s too late, do the needful for availing the credit in a quick process.
Thus, there are standard pre-requisites one needs to abide by while applying for an entrepreneur loan. One can receive high credit amounts up to Rs. 30 Lakh within 24 hours post verification of the entire process and documents. Additionally, a borrower can complete the whole application process in a few minutes online.

So, follow these points mentioned above to qualify for an entrepreneur loan easily. Do plan your repayments beforehand, avail higher amounts according to your needs and become a successful business owner.

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