Factors affecting Business Loans

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Factors affecting Business Loans

• Choosing a road map and walking on it is a factor
  that as a business owner you must follow. Unlike
  Home Loan in Delhi, Business Loan in Delhi must
  follow the blueprint. Not just Delhi, this is a
  universal rule that business owners all over the
  country must tread towards. Having said that,
  business loans are not easy to manage as they
  come with conditions and factors that influence
  them. Let us find out these influential factors.
• Cibil Score As a business owner, maintaining a
  personal cibil score is preemptory. The loan you
  will apply for and what you get is dependent
  upon your creditworthiness. So if you have a
  credit score higher than 720, you are eligible
  to get an affordable rate of interest that would
  please you. Unlike this, if the credit score is
  500 or less, chances are that you will be refused
  the Business Loan in Delhi or other cities as
  the cibil score is universally calculated. So if
  one bank rejects the application, the other bank
  may give you a loan but with a high rate of
  interest.
• Business Tenure A business loan can be taken by
  anyone has a specific monthly earning. This rule
  has come into being recently. Earlier, any
  company or business operating for less than two
  years was not eligible for a traditional bank
  loan as it was categorized as a startup. However,
  with the change in the market scenario, funding
  for new businesses with lucrative ideas are
  funded by the banks and other financial
  institutions.
• Monthly Revenue A specific monthly revenue,
  irrespective of the tenure of the business must
  be there. Only when you show complete statements
  of specific income you can get a business loan.
  This is because the bank needs to have a
  security and the trust that you will repay the
  amount in full and are capable of paying the
  EMI's until the tenure matures.
• Collateral The entire business undertaking is
  done by the bank once the bank gives the loan in
  the name of the business. This is applicable in
  Delhi and all over the country however, in case
  of applying for Home Loan in Delhi, this rule
  does not apply and is only for businesses that
  are looking for expansion plans. Papers
  reflecting the bank undertaking of the business
  are prepared as a protocol and then the loan
  stands approved. Failing to pay the EMI's, the
  business can be taken over by the bank keeping it
  safe.