Business Loan Eligibility

Capital Float is a digital lending company that specializes in providing working capital finance to SMEs in India. Our flexible, short-term working capital loans are easy to apply for and are quickly disbursed. They help small businesses to expand, purchase inventory, invest in plant and machinery, service new orders and optimise cash cycles. Borrowers, who meet the eligibility criteria can apply business loan online in minutes, select desired repayment terms and receive funds in their accounts in 3 days.

Eligibility Criteria for Different Types of SMEs

1. MSMEs offering B2B products/services

Capital Float’s Term Loan is a popular working capital loan for manufacturers, traders, resellers and distributors. Indian SMEs with positive monthly cash flows and short-term investment requirements can apply for this loan.

Limit: ₹3 Lakhs - ₹50 Lakhs

Tenure: 1 year - 3 years

Benefits:

  • Collateral-free loan
  • Customised credit criteria
  • Zero prepayment charges

MSME loan eligibility criteria

SMEs that meet the following criteria are eligible for Term Finance:

  • A minimum operational history of 3 years
  • Annual business turnover of over ₹1 crore or audited financials

2. E-commerce MSMEs

Online selling is a high-growth sector requiring innovative financial products. Our Online Seller Finance is ideal to address inventory management in peak/lean seasons, price fluctuations, changing customer expectations and other unforeseen developments.

Limit: ₹1 lakh – ₹1 crore

72-hour disbursal

Benefits:

  • Collateral-free loan
  • Customised credit criteria
  • Zero prepayment charges

MSME loan eligibility criteria

The eligibility criteria for Online Seller Finance are simple. They do not require the pledging of assets. Your business must have:

  • A minimum operational history of 1 year
  • A partnership vintage of more than 6 months minimum
  • Minimum quarterly sales of ₹75,000

3. Merchants with significant POS transactions

Most retailers are adopting point of sale (POS) card-swipe machines for digital payments. Capital Float offers Merchant Cash Advance to SMEs, repayments being collected from debit and credit card swipes.

Limit: ₹1 lakh – ₹1 crore

Tenure: 9 months - 1 year

72-hour disbursal

Benefits:

  • Collateral-free loan
  • Customised credit criteria
  • Zero prepayment charges

MSME loan eligibility criteria

The eligibility criteria for Merchant Cash Advance are:

  • Minimum operational history of 1 year
  • Minimum turnover of ₹20,00,000
  • Minimum card acceptance vintage of 6 months
  • Minimum monthly card volume of ₹1,00,000
  • Minimum of six settlements per month

4. MSMEs with growing orders and pipeline

SMEs that manufacture against orders face the challenge of collecting payments in time to procure raw materials. Delayed payments impact the entire supply chain. Supply Chain Finance is an effective way to infuse capital by leveraging outstanding invoices or bills. SMEs with a client base of blue-chip customers can get a fast advance of up to 80% of their invoice value.

Limit: ₹5 Lakhs - ₹50 Lakhs

Tenure: 30 days - 60 days

Benefits:

  • Collateral-free loan
  • Customised credit criteria
  • Zero prepayment charges

MSME loan eligibility criteria

The eligibility criteria for Supply Chain Finance are:

  • Minimum operational history of over 2 years
  • Minimum customer vintage of over 3 months
  • Minimum turnover of over ₹1 crore

Factors Deciding Business Loan Eligibility

Eligibility criteria remain almost the same across different lenders (banks, NBFCs, etc.) offering business loans. A business loan eligibility calculator takes into consideration key parameters deemed critical, such as:

Age Limit: Individual owners/promoters driving the business should be within 21 – 65 years of age.

Profitability: SMEs are expected to be self-sustaining, showing profits for the last 2 years minimum.

Net-Income:

  • In case of a private limited company, most lenders expect revenues of ₹1.5 lakh (to qualify for a loan of up to ₹15 lakh); and revenues of over 3 lakh (to qualify for loans exceeding ₹15 lakh).
  • In case of a partnership or proprietorship firm, the applicant may further be required to have significant ownership/stake in the company.
  • In case of self-employed professionals, the educational credentials along with prior experience will be considered.

Factors that Negatively Impact Business Loan Eligibility

SMEs must also pay attention to factors that may adversely affect their eligibility for business loan. These include:

Creditworthiness: A good score, absence of defaults and of large outstanding loans will increase your creditworthiness and the chances of getting a loan with sufficient flexibility.

Business Instability: The business must be financially sound. SMEs must have a clear plan to generate sufficient revenue and close the loan within the term—lack of which may invite a rejection.

Client & Customer List: If SMEs have a history of conducting business with bigger/blue-chip companies, their reputation will automatically be boosted. However, if past transactions show defaults or significant delays in customer payments, it may adversely affect the chances of securing the loan.


Apply Now