Eligibility Criteria

Eligibility for a Working Capital Term Loan can vary between lenders, but common criteria include:

• • Type of Business:
   
  • Construction companies, manufacturers, traders, or service providers.
• • Business Vintage:
   
  • Generally, companies need to have been in operation for a certain amount of time, such as two to three years. (New businesses also take into account).
• • Annual Turnover:
   
  • In order to evaluate repayment capacity, lenders frequently demand a minimum annual turnover.
• • Credit Score/CIBIL Score:
   
  • Approval of a loan depends on a high credit score.
• • Stability of finances:
   
  • Proven profitability and sound financial records.
• • Business Type:
   
  • Some lenders may favor or disqualify particular business kinds.
• • Industry Type:
   
  • Certain industries are regarded as more hazardous than others.
• • Debt-to-Equity Ratio:
   
  • Financial stability is indicated by a strong debt-to-equity ratio.
• • Collateral (Occasionally):
   
  • Depending on the loan size and business characteristics, certain lenders may demand collateral.
• • GST Registration:
   
  • It is often necessary to provide proof of GST registration.