Citizenship & Age
You must hold Indian citizenship at the time of application.
You must be at least 21 years old to apply for this loan.
Your maximum age at the end of the loan's tenure must not be more than 65 years.
Business Loan Eligibility
Why pass up a great opportunity to finance your business growth when Hero FinCorp makes it simple to obtain funds with its straightforward business loan eligibility criteria?
Hero FinCorp Business Loan Eligibility
Starting a business is simple but maintaining and expanding it requires a consistent infusion of funds. If you try to use the profit for all your business needs, you will not be able to go very far due to a lack of liquidity. This is where Hero FinCorp can assist by providing easy access to business loans.
In order to assist you in meeting your growing funding needs, we have simplified our small business loan eligibility criteria. Here is a table that summarises the checklist for obtaining business financing from us:
Occupation (Self-employed Professionals)
Architects
Chartered Accountants
Doctors
Company Secretaries
Occupation (Self-employed Non-Professionals)
Sole Proprietors
Retailers
Traders
Manufacturers
Service Providers
Occupation (Entities)
Limited Liability Partnership (LLPs)
Private Limited Company
Partnership Firms
Trusts
Work Experience
As an SME, you should have at least five years of experience in your existing business.
Maximum Loan Tenure
The loan has a maximum repayment term of 60 months.
Maximum Loan Amount
You can get funds between Rs 3,00,000 and Rs 4,000,000.
The maximum amount is determined by your business and credit profile.
Monthly Income
We do not have predefined income criteria for granting a business loan.
Factors Affecting Business Loan Eligibility Criteria
When using a business loan eligibility calculator to determine your approval chances, it is critical to first understand the following factors that influence small business loan eligibility
Business Credit Score
Your business' credit score reflects its credibility and repayment ability. If you are good at managing your existing debt and have never had a debt default on your company's name, you may be able to get a business loan approval quickly.
Nature of Business
The industry in which you work is also vital in determining whether you are eligible for business financing. If you run a business that only flourishes during a particular season or engages in activities that the Indian government considers illegal, you will be denied funding.
Annual Turnover
Your company's sales figures inform lenders about how you are performing in the market and whether there is a demand for your product. A higher turnover equates to a higher profit from your business. On the other hand, if you are having trouble selling your goods or services due to a lack of demand, you may be unable to obtain a business loan.
Business Debt Coverage Ratio
The eligibility for a business loan also relies on your company's debt-to-revenue ratio. If a sizeable chunk of your monthly profit goes toward debt repayment, leaving you with only bare minimum funds to cover operational expenses, your business loan application will be denied.
How to Improve Your Eligibility for Business Loan?
Improving your eligibility for a small business loan is simple if you follow the tips outlined here.
Proper Business Plan
When applying for this loan, create a proper business plan that details things like areas where you intend to use funds, future projects, sales forecast, anticipated profit, and so on. In addition, emphasise your management team's experience and a brief overview of your company. A well-researched plan informs your lender about the viability of your business and increases your loan’s approval chances.
Improve Cash Flow
Cash flow highlights your company's liquidity position and informs lenders if you have enough cash on hand to cover EMIs. You can cut unnecessary expenses, avoid stockpiling, sell obsolete assets, and negotiate better repayment terms with your raw material suppliers to improve your business’ cash flow.
Improve Credit Score
There are many ways to boost your business credit score. You should automate the payment of your existing debts to avoid EMI skips, limit the business credit card usage to below 30% of the available limit, and clear its previous defaults (if any).
Check the Documents
In order to get an quick business loan approval, you must have all the business loan eligibility documents in hand. The key documents that determine your business loan eligibility are proof of existence, balance sheet, cash flow statement, income tax return certificate, KYC proof, and a few others.
Frequently Asked Questions (FAQs)
Our business loan provides you with sufficient funding and places no
restrictions on how you can use the funds. We also give you the option
of deciding on the repayment term with our pocket friendly EMIs. Our
simple business loan eligibility criteria ensures that you have easy
access to funds to make the most of any business opportunities that
come your way.
In this case, the only way to obtain a business loan is to persuade
your lender that your profile carries a low credit risk. You have the
option of using your business assets as collateral or adding your
business partner as a joint loan applicant. However, this co-applicant
must have a good profile and no default records associated with his
name. Even if you provide collateral or add a co-applicant, it is
entirely up to your lender's discretion whether you are approved for a
loan.
Every niche has some level of risk. For example, if you are in the
clothing business and only manufacture woollen clothes with a reach
limited to India, you may struggle to sell your products during the
off-season, which is during summer and monsoon seasons. The type of
business informs lenders about your income stability. Furthermore, if
you do business with an enemy country, there is a high credit risk
associated with your profile.
Safe & Secure
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