Business loan eligibility criteria

Business loan eligibility criteria

Business loan eligibility is determined based on the sector and vintage of the business. In order to be eligible for a working capital loan from Kinara Capital, your business should meet the following criteria:
• Your company should be an MSME operating in the manufacturing, trading, or services sector.
• The business should be in operation for more than 2 years at the time of applying for a loan.
• The total monthly turnover should be greater than Rs. 50,000 and less than Rs. 2 crores.
• The business should be a sole proprietorship, partnership or private limited.
• Both an applicant and co-applicant are needed to apply for a loan.
• The applicant should be between the ages of 25 and 65 in order to be eligible.
• For a short-term working capital loan, you must be an existing Kinara Capital customer to apply.

Documents required for a business loan

To apply for a business loan from Kinara Capital, you will need the following documents:
• Applicant’s KYC document (PAN card)
• Co-applicant’s KYC document (PAN and Aadhaar are recommended, but not mandatory)
• Business KYC document (Udyam registration, etc.)
• Last 12 months’ bank statements
• GST and ITR documents are optional

What is the maximum business loan amount you are eligible for?

The business loan amount you are eligible for depends on various factors including the age, sector and turnover of your business. It is also heavily reliant on what the purpose of the loan is. In the case of Kinara Capital’s business loans, you can be eligible for a loan amount of up to Rs. 30 lakhs for asset purchase of long-term working capital. For short-term working capital, existing Kinara customers can be eligible for a loan of up to Rs. 2 lakhs.

How to Improve your eligibility for a business loan

The best way to check if you are eligible for a business loan from Kinara Capital is to take the 1-minute eligibility check on the website or using the myKinara app. By entering just a few relevant details, you can instantly verify your eligibility before you apply for a loan. In case you are unsure about your chances of getting a business loan, there are a few ways to improve your eligibility:
• Ensure that you have a healthy credit score and don’t make multiple loan inquiries to different lenders at the same time.
• Clean up your credit history by paying off any outstanding or bad loans.
• Balance your cash flows and strike a balance between revenues and expenses.
• Make sure your business meets the vintage and turnover criteria for eligibility.
• Have the necessary information and documentation handy to complete the application process.
• If you have any doubts or queries, reach out to Kinara’s customer care to help you through the steps.

Types of business loans

Kinara offers two main categories of business loans: asset purchase loans and working capital loans. While assets purchase loans are earmarked for buying machinery and equipment, working capital loans can be used to cover a gamut of business expenses, from paying salaries to expanding the product portfolio.

Kinara offers two types of working capital loans: long-term and short-term. While the former has a tenure of 12 to 60 months and a ticket size of up to Rs. 30 lakhs, the latter can only be availed of by existing Kinara customers, and has a tenure of 6 to 12 months and the loan amount ranges from Rs. 50,000 to Rs. 2 lakhs.

Aside from these, Kinara also offers a special scheme called HerVikas exclusively for women entrepreneurs. Under the scheme, women-run businesses can avail of an upfront discount on any of the above mentioned business loan categories.