FAQs

Eligibility for a business loan depends on several factors, including:
-Type of borrower: Self-employed individuals, proprietors, partnerships, start-ups, companies, traders, retailers, and wholesalers are generally eligible.
-Business profile: Lenders consider years in operation, business performance, credit history, revenue, and profitability.
Generally, both established and growing businesses can apply if they demonstrate stable operations and the ability to repay. New businesses may qualify with a strong business plan and proper documentation. Common requirements include proof of business (business registration, GST, Shop and Udyam registration etc.) financial documents (financial statements, tax returns, credit rating score etc.) It’s best to check the specific eligibility criteria set by the lender before applying.

Below are the common parameters that decide the rate of interest of a business loan:

1. History of the company: The operation period of a company affects the approval of a business loan and its interest rate. The longer the company has been in operation higher are its chances of obtaining a loan and competitive interest rates.
2. Credit Score: If an organization’s credit score is good, then its chances of procuring business loans and better rate of interest increases.
3. Collateral: In addition to eligibility, sometimes collateral is necessary to acquire a loan. The higher the collateral, better are the chance of getting a business loan and lower are the interest rates.
4. Sufficient cash flow: Other than the profitability of the organization, the lender will look for consistent monthly turnover. An efficient organization will have predictable profits and performance over a long period of time. This affects the interest rates of a business loan.

Business loan calculations consider factors like loan amount, interest rate, and loan term. Depending on the loan type, common methods include simple interest, compound interest, or amortisation schedules. Lenders often use financial data to determine eligibility and terms.

The repayment period for a business loan is up to 3 years, depending on the loan agreement and terms approved by the lender. Lendingkart offers loans with durations between 1 to 3 years

A processing fee of up to 4% of the sanctioned (gross loan) amount is charged when applying for a business loan. Applicable taxes, including GST, are charged additionally as per prevailing rates. Please refer to the Schedule of Charges available on our website for the most updated information on applicable fees and charges.