How can I get an unsecured business loan with bad credit?

It is difficult to get an unsecured business loan with a bad credit score and lenders also refrain from entertaining such business loan applications. Instead, you should try to improve your credit score by paying off debts and settling with your old lenders. Once your credit score improves, you can apply for a loan and try to get it at the best possible terms.

What are the eligibility criteria for a Business Loan?

To be eligible for a Business Loan, applicants typically need to meet specific criteria, such as being aged between 22 to 60 years old, having a business that has been operational for at least 3 years, and submitting previous years' income tax returns duly audited by a CA. Additionally, the business should have a profitable track record for the past 2 years and a minimum annual turnover of INR 10 lakhs to demonstrate its financial stability.

How much credit score is required for a Business Loan?

A credit score of 750 and above is generally required for a Business Loan. Lenders consider credit scores as a crucial factor in assessing the creditworthiness of borrowers. A higher credit score signifies responsible credit behavior and increases the likelihood of loan approval with more favorable terms and interest rates.

How does your income affect your business loan eligibility?

Lenders evaluate your income to assess your repayment capacity and financial stability. A steady and sufficient income stream from the business indicates that you can meet the loan obligations. A higher income may also qualify you for a larger loan amount, subject to meeting other eligibility criteria and creditworthiness factors.

Business Loan Eligibility Calculator

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Calculate your eligibility with our smart business loan eligibility calculator

City

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Net Profit After Tax

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Monthly EMI

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13%21%

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Months

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Disclaimer : The above business loan eligibility calculator is merely an indicative tool to check eligibility ... Read More

Our business finance solutions are carefully designed for a host of needs. Whether you are looking to set up a new enterprise, grow your business, or increase working capital, we have customised solutions can help your growth at every step.

Our business loans are offered at competitive interest rates along with several other benefits that support you in reaching your business goals. With our online account offering, you can also track and manage a range of tasks on any device, anywhere.

We understand that each business has its unique needs. That's why, we identify the potential of your business based on relevant parameters. We look at your CIBIL credit score to determine the loan amount along with our own processes for precise evaluation. With SMFG India Credit’s 360-degree approach, we make sure that every small business can access unsecured loans to fulfil their business needs. With seamless use of technology, we have completely simplified the small business loan application procedure. So, go ahead and try our business loan eligibility calculator for a quick understanding!

Business Loan Eligibility

If you are thinking of availing a business loan, you need to meet certain criteria for the same.

These business loan eligibility criteria are mentioned below -

Self-employed individuals, proprietors, private limited companies & partnership firms working in trading, manufacturing or services.
Individuals associated with the current business for a minimum of 3 years (plus a total of 5 years of business experience).
Individuals should be at least 22 years of age while applying for the loan & less than 65 years of age at the time of maturity.
Enterprises making profits for the past two years.
Enterprises with a minimum turnover of INR 10 Lakhs.
Enterprises with a Minimal Annual Income (ITR) of INR 2 Lakhs per year.

How is Business Loan Eligibility Calculated?

Business loan eligibility criteria consists of varied parameters including your CIBIL score, your tax payment record, bank balance, credit utilisation ratio, and more. In order to be eligible for a higher loan amount, you should keep the following factors in mind:

Ensure a good CIBIL score: Your credit score plays a key role in determining eligibility criteria. A CIBIL score of less than 700 can impact your business loan eligibility*.
Pay your taxes and EMIs on time: If you have a clean and punctual past record of making payments, a higher loan amount could be waiting for you.

With SMFG India Credit’s smart and simple business loan eligibility calculator, you can quickly estimate the amount of business loan that you can avail and also get instant approval online. The loan amount is disbursed within 24 hours!*

*Terms and Conditions apply

How to Use the SMFG India Credit Business Loan Eligibility Calculator?

Our online business loan calculator is a helpful tool that gives you an instant estimate of your business loan eligibility.

Follow the steps below for a quick estimate:

Select your location
Enter your age. You have to be at least 22 years old when you apply for a loan, and a maximum of 65 years of age (at the time of loan maturity).
Select your annual profit after all tax deductions.
Select your current monthly EMIs. This should be equal to the sum of all EMIs that you are currently paying, including any on credit card.

You will be able to see the business loan amount you are eligible for on the right side. You can also change the rate of interest and tenure as per your preference.

Please note that this calculator only gives you an indicative figure. Actual business loan eligibility depends on many more factors, including employment details, credit history and more. To know the exact figure, you can “Apply now” and help us with some additional information as requested.

Page also available in: हिन्दी - Hindi

FAQs

How do I know if I qualify for a business loan?

To know whether you qualify for a business loan or not, you can use the business loan eligibility calculator. It determines your eligibility for a business loan based on your city, age, business’s net profit after tax, monthly EMI, rate of interest, and loan tenure. The calculator will show you the maximum amount you may be able to get a business loan.

However, your final eligibility will also take into account other factors such as your credit score, business continuity plan, years of experience in the business, profitability of the business, steadiness of revenue, etc as well as SMFG India Credit's policy at the time of loan application. It is advised to check the business loan eligibility criteria before applying.

How much loan can I get on business?

Based on the fulfilment of eligibility criteria of the unsecured business loan- you can get a loan of up to Rs 75 Lakhs* to meet a wide array of business expenses. Using an online business loan eligibility calculator, you can get an instant estimate of the loan amount that can be borrowed.

How much income do you need to get a business loan?

The minimum annual turnover of your business should be Rs 10 lakh and the minimum annual income (ITR) should be Rs 2 lakh to secure a business loan. Also, the business should be making profits for the past two years.

Furthermore, the applicant should have a good credit score and the borrower should have a credit score of at least 750. He/she must be an Indian resident, have an overall business experience of at least 5 years (with at least 3 years in the current business), and must be between 22-65 years of age.

Please note that final eligibility will take into accounts several other parameters including SMFG India Credit's policy at the time of loan application.

Can a sole proprietor get a business loan?

Yes, a sole proprietor is eligible to get a business loan, if he/she fulfils the following two eligibility criteria apart from meeting financial criteria.

Should be at least 22 years in age and less than 65 years at the time of maturity of the loan
Should be engaged in current business for at least three years and have a total of five years of business experience
Should match the criteria in terms of minimum turnover, profits earned, CIBIL score, etc.