Business Loan In India

1. Business Loan in India

2. India is a developing country, have a lot of resources to boost GDP, business loan offered by various banks and financial institutions in order to raise funds for startup business of your own or expand your current business. However, the interest rate charged by the bank will depend on the loan amount and loan tenure.

3. Credit Score: A credit score is a significant factor that influences the lender’s decision on your loan application. It’s a 3-digit numerical number used to define borrower's repayment capability ranging from 300 to 900. • With the use of credit scores, lending institutions are used to assess your repayment capacity. If you have a good credit score, then the interest rate for your business loan will be much lower. Generally, a credit score of 750 or above is considered a good score by lenders. • In case you have a low or bad credit score, your application will be considered as a riskier profile to fund, and it will reduce your loan approval chances and ask you to pay a higher interest rate. • Always make sure that you check your credit score before applying for a business loan in India.

4. Financial Record: An financial record includes your transaction behaviors, account Maintenace, past credit transactions. If you have a long and good financial record that is good, then the interest rates that you will receive from your lender for your business loan will be lower. • This a because your lender will view your past transactions with your previous transaction to check your creditworthiness. Suppose if you have a positive and long credit history, the lender will consider you to be reliable and will lend to you at a lower interest rate.  If you have a bad credit history, the interest rate will be higher as you will be viewed as a risky customer.