Check Free CIBIL Score Online

10 Questions Asked by the Lender when you Apply for a Business Loan

FAQ150 views

Highlights

  • See the List of Questions Asked by the lender when you are taking a Business Loan.
  • Check the Answers of all the Questions asked before you apply for a business loan.
  • Share the Required Information only with the lender.

Business loans play a vital role to boost your business activities. Some businessmen take a loan for managing their working capital and some take it to clear out their debts. Whatever may be the reason, business loans really help businesses for expansion. On the other hand, there are some business owners who are unaware of the questions that are asked by the lenders when they take a loan. So, here you can see the various questions asked by the lender when you apply for a business loan. You must also see the answers that you will have to tell the lender when they are interrogating you.

List of Business Loan Questions Asked by the Bank

  • Nature of Business
  • Business Ownership
  • Vintage Period
  • Cibil Score
  • Loan Required
  • Any Existing Loan
  • Secured Loans or Unsecured Loans
  • Purpose of Loan
  • Turnover History
  • Tenure of the Loan

Nature of Business

This is the first question that every bank’s representative will ask you when you are applying for a business loan. In this question, you will have to tell the nature of your business whether it is manufacturing, services, or trading business. Every business has different eligibility criteria for the loan.

Business Ownership

There are some lenders who will also ask you about the ownership of the business in which you will have to tell him whether your business is a sole proprietorship business, partnership business, or a company. On the other hand, you will also have to tell about ownership of the business property whether it is owned or rented.

People Also Look For  Personal Loan Eligibility Criteria of Different Lenders

Vintage Period

Business vintage period simply means that how old is your business. You will have to tell when you are involved in the business activities and carrying out a business. The vintage period of the business also determines the loan amount that you are willing to borrow.

CIBIL Score

Cibil Score is the credit score that simply authenticates you to tale a business loan. So, the lender will also ask you about the Cibil Score and if you are having a negative Cibil Score then there are fewer chances of getting a business loan. There are some factors that affect your Cibil Score and they are Repayment History, skipped EMIs, and many more.

Loan Required

This is the basic question asked by almost all the lenders. They will ask you the loan amount that you are willing to take for your business. There are multiple factors that might affect the loan amount like your Cibil Score, Loan Repayment History, and many more.

Any Existing Loan

You will also have to tell the lender about the existing loan whether it is a personal loan or a home loan. Once the lender knows the loan amount of the existing loan then it will tell you the amount of maximum business loan that you can take from the bank.

Secured Loans or Unsecured Loans

This question will be asked once you are eligible to take a loan. Now you will have to tell the lender whether you and a secured business loan or a business loan without collateral. Usually, the loan amount in a secured business loan is high in comparison with the unsecured business loan.

People Also Look For  How to Get Loans if I am a CIBIL defaulter?

Purpose of the Loan

You will also have to tell the purpose for which you are taking a business loan. It can be used for business expansion, purchase of machinery, buying raw materials, paying out debts, and many other purposes. So whatever may be the purpose of the loan, you will have to tell the lender.

Turnover History

The lender will also ask for the documents that will show the turnover of the business. It can be the Balance Sheet of the Company or the Income Tax Return Document. Different Banks ask for different amounts of turnover for giving business loans.

Tenure of the Loan

The tenure of the loan is the time period for which you borrow a loan. So the lender will ask you about the tenure for which you are willing to take a business loan. So, depending upon the repaying power you can decide the tenure of a business loan.

Conclusion

Well, now you are prepared to answer all the questions asked bythe lender when you apply for a Business Loan. You can go through all thequestions and their answers so that you will not have to face any kind ofdifficulty when you are taking a business loan.

People Also Look For

Free CIBIL Score Buy 24K 99.9% Pure Digital Gold Online
Personal Loan Interest Rates October 2020
Fullerton India14.00% - 33.00%
HDFC Bank10.75% - 21.45%
ICICI Bank10.75% - 18.49%
IndusInd Bank11.25%
Kotak Bank10.99% - 20.99%
RBL17.50% - 24.00%
Standard Chartered Bank11.00% - 15.00%
Tata Capital10.99% - 18.00%
Home Loan Interest Rates October 2020
Axis Bank7.75% - 8.55%
Bank of Baroda7.00% - 8.40%
Citibank8.20%
HDFC6.90% - 7.65%
ICICI Bank6.90% - 8.05%
Indiabulls Housing Finance Limited8.80% - 11.05%
Kotak Bank7.20% - 9.30%
LIC Housing6.90% - 7.90%
Piramal Capital & Housing Finance9.00% - 9.10%
PNB Housing Finance7.50% - 9.20%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI6.95% - 7.60%
Tata Capital9.20% - 9.35%