Credit History and Record: To get a loan sanctioned a person’s credit score is important. If you are not a loan defaulter, you can get loans from any bank along with a reasonable business loan interest rate in India. All banks public or private review the credit score of the applicant before giving credit with lowest interest rate for business loan. If you have a high credit score then you can get low the SBI Business loan interest rates, HDFC Business loan interest rate, and low rates from other banks and NBFCs.
Tenure of the company: The business organisation should be for than 3 years in operation irrespective of the kind of business. The older the business house, greater is the chance of credit facility. You can compare business loan interest rates India at loanbaba.
Turnover of the Business: If the company has a decent monthly turnover, then the lender will assume that there will be no default in the borrower‘s repayment. So it’s inevitable that a creditor reviews the financial credibility of the borrower before deciding on the loan amount.
Collateral: Sometimes the borrower has to pledge something as security to the bank or NBFC, against a loan sanction. The bank can take a financial risk against the security and offer a bigger amount of loan. The borrowers can offer their home equity, real estate, equipment, personal house, or other financial policies as collateral.
It is however necessary that a borrower does a thorough market study about the business loan provider. He/she should look for lowest Bank interest loan rates and compare business loan rates India. He/she should go for low interest rate business loans, and make sure that the interest rate and other charges being charged on the loan amount, the interest rate method, and EMI policy, are in accordance, to the bank’s policy.