Wednesday, 10 February 2016

Applying for Loan for Small Business – 3 Things to Remember

If you are planning to set up a small business, a startup loan is what you will need in order to ensure the success of your business. You can find many lenders in the market which provide small businesses with these loans and have different types of loan requirements for borrowers. Prior to applying for a loan for small business in Mumbai, it is important for you to do the following 3 things.

Check The Eligibility Criterion

Make sure that find out whether or not you are eligible for applying for this kind of loan. Each lender has a specific set of criteria for approving borrowers. Your credit history will be checked in order to ensure that you are qualified. In case of any discrepancy, it is quite possible that your application will not be approved. Make sure that your credit balance is a minimum of 20 – 30% of your total credit limit for obtaining the approval from the lending organization.

Check Your Debt – Income Ratio

You also need to supervise your debt to income ratio. The income should be greater than your debt amount. In case the income is lower than the debt amount you are supposed to repay, there is likelihood that the lender might reject your application for the loan. This is not something that you would want.

Prepare an Appropriate Loan Package

Prior to applying for a startup loan from any of the financial services in Mumbai Company you should prepare the right loan package in a proper manner. The type of package that you prepare should consist of executive summary, the business plan that you have and also the proper monetary projection of the previous 4 – 5 years. You should also keep in mind that you should add concrete proof of registration for your business along with the loan application.


Piers Lyman said...

Many times it happened to me that I asked for a business loan from a bank to help me with my bankruptcy.

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