Getting a small business loan in India is quite a challenging task for the small and midcap business owners. Since it is an unsecured form of loan, business loan is difficult to get unless the entrepreneur is able to meet all the business needs and requirements. Whenever you apply for a business loan, without any security it is important that you meet the most important factors. When you follow the factors and meet the loan requirements, the chances of getting a business loan approval becomes higher. Not only this, by meeting the eligibility of the business loan you actually become eligible for an easy approval along with the best rate of interest in your business loan. Let us find out three important factors to consider before taking a small business loans from bank or non-banking financial companies.

Credit score

Credit score is an important criterion that determines loan approval as well as interest rate.It is a 3-digit score that decides the creditworthiness of an individual or business. Based on the credit score, the amount of risk involved in a business loan is decided by the financial institution. When the measure of risk is low, the rate of interest will eventually be low as well. However, if the credit score is low, it means there is a risk of borrowing. With a low credit score, it will not be very easy for the business owner to get a business loan approval and an affordable rate of interest.

Business revenue

Business revenue plays a vital role in deciding the approval and rate of interest for business loans. If your business generates a good amount of revenue, it will be easy for you to make the repayment. This reduces the measure of risk in borrowing. Stable and sound businesses are always an asset for the loan provider. Therefore, if your business is able to generate stable revenue every month, it will be easy for you to get an instant and easy approval on a business loan. However, if your business has a downtown financial condition, you will get a denial or a loan with a high rate of interest. It is important for you to generate good revenue if you want an affordable loan.


Business plan

A business plan is an important factor that helps you get business loan approval as well as a low rate of interest. It is an important factor that decides the rate of interest and approval on your business loan. Make sure you’re able to determine the right business plan and design it in the right manner. If you want a low rate of interest, it is easy to get one with the right business plan. A perfect business plan helps you to get a low rate of interest, which eventually makes your loan affordable. If the business plan looks convincing to the loan provider, it means stability in business. Therefore, chances are high that you will get a low rate of interest. Always work on getting a meticulous business plan with all the important details about your business so that it is convincing to get an easy and affordable business loan instantly.

Finishing up

You can get an instant small business loan online by meeting the following eligibility criteria as mentioned above. It enables you to obtain quick and easy approval for your business loan. Always prefer to use a business loan calculator for a better understanding of EMI.