Working Capital Loan Eligibilities
Working Capital Loan Eligibility
Cash flow management is essential for each and every business. This means your business requires a regular cash flow for day-to-day operations. At certain times, the business faces a shortfall of funds. In such a scenario you can opt for an alternative option of a working capital loan eligibility. Before approaching any lender for working capital loan, you need to go through the eligibility criteria set by the lender.
Eligibility for Working Capital Loan
Applicant Age: - Ensure your age is above 21 years at the time of loan application and below 65 years at the time of loan maturity.
Nature of Business: - Working capital loan eligibility mainly depends on the nature of business. Whether you are individuals, partnership firms, proprietors, partnership firms, private or public companies, traders, retailers or any other business engaged in manufacturing, trading or service sectors.
Creditworthiness: - The creditworthiness of a business is a crucial factor in determining borrower eligibility on working capital loan. Make sure you haven’t been defaulted on any loan previously and maintained a good track record of financial statement.
Turnover of Business: - Business turnover will be taken into consideration by lenders while availing loans. The minimum turnover of a business should be 40 lakhs per annum. However, the turnover requirement of a business varies from lender to lender.