Banks do not just evaluate your business plan. They evaluate YOU as a borrower. Here is what they look at:
CIBIL Score and Credit History Your personal and business credit score is the first filter. A score below 700 raises red flags. Late payments, defaults, and over-utilization of credit limits hurt you.
Banking Behaviour Banks check your bank statements for regularity of transactions, average balance maintenance, cheque bounces, and cash flow patterns. Irregular behaviour signals risk.
GST Compliance GST return filing regularity and accuracy reflect your business discipline. Missing filings or mismatches between GST and bank data create doubt.
Collateral Adequacy Even for unsecured loans, banks assess your overall asset position. For secured loans, the collateral must meet their loan-to-value ratios.
Business Vintage and Profitability New businesses face higher scrutiny. Banks prefer businesses with at least 2-3 years of operations and consistent profitability.
Capital Yono FinanceReady helps you assess all these factors before you approach any lender, ensuring you present the strongest possible case.
Tagged