Financial FAQs for Business Loan

While securing a business loan with no credit history can be challenging, it's not impossible. Here are some strategies:

To increase your business loan eligibility, focus on these key areas:

While a credit score of 650 is generally considered good, it may not guarantee approval for a business loan in India. Financial institutions often consider factors beyond credit scores, such as your business's financial health, industry, and repayment capacity.

However, a higher credit score can improve your chances of securing a loan with favorable terms. Consider these strategies to increase your chances:

Yes, you can use a business loan for working capital management. Many financial institutions offer specific working capital loans designed to cover day-to-day operational expenses, such as inventory purchases, payroll, and utilities. These loans provide quick access to funds, helping businesses maintain smooth operations during cash flow gaps. Ensure you choose a loan with terms that align with your business’s cash flow needs and repayment capacity.

There are several ways to secure a business loan without using a mortgage in India:

A GST business loan is a financing option specifically designed for businesses registered under the Goods and Services Tax (GST) regime. Financial institutions use your GST returns to assess your business’s financial health and loan eligibility. These loans typically offer quick approval, as GST returns provide a clear picture of your revenue and tax compliance. They are ideal for meeting working capital needs, expanding operations, or purchasing inventory.

Getting an instant business loan in India is now easier than ever. With the rise of digital lending, you can often secure funding within a few hours or days: