Business Loan Checklist
The exact 12-point checklist banks use to evaluate business loan applications.
Business Vintage & Turnover
Most banks look for a minimum of 3 years of business vintage and consistent turnover. A stable or growing trend signals resilience.
Profitability and Cash Flow
Banks scrutinize your Profit & Loss statement, focusing on operating margins, EBITDA, and cash flow adequacy for servicing the proposed debt.
Credit History
Both the promoter’s personal CIBIL score and the business’s commercial credit report (Experian or CIBIL Commercial) are reviewed thoroughly.
Existing Debt and Obligations
The Debt-Service Coverage Ratio (DSCR) and total leverage on your balance sheet are important indicators of borrowing capacity.
Collateral and Security
For larger loans, primary and collateral security requirements vary by lender. For MSMEs, CGTMSE offers a strong collateral-free alternative.
Sector and Purpose Fit
Banks have internal exposure caps and risk appetites for different sectors. Aligning your ask with the right lender significantly improves sanction chances.
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