What lenders actually look at.
Eligibility is not one number — it is a combination of factors that different lenders weigh differently. Understanding what actually moves the needle helps you present a stronger file before you apply, rather than finding out what was missing after a decline.
The five factors that decide most applications
Credit score (CIBIL/CMR): Most lenders look for 650 or above for unsecured facilities; secured loans against strong collateral can be more flexible on score.
Business vintage: A minimum of 2–3 years in the current line of business is the norm for most commercial lending; newer businesses generally need stronger collateral or a scheme-backed route.
Turnover and declared income: Lenders size loans against your GST-declared turnover and ITR-declared income, not your stated turnover — a gap between the two reduces your eligible amount.
Debt Service Coverage Ratio (DSCR): For secured and larger loans, most lenders want your post-sanction cash flow to cover the EMI by 1.25 to 1.50 times.
Fixed Obligation to Income Ratio (FOIR): Total EMI obligations, including the new loan, generally should not exceed 40–50% of your income for personal-guarantee-backed lending.
What actually moves your eligibility up
Bringing your GST-declared turnover in line with your actual turnover, consistently, over two to three quarters before applying.
Clearing or consolidating existing high-interest unsecured debt, which directly improves both DSCR and FOIR.
Correcting any errors on your CIBIL report, and closing old, dormant credit lines that are unnecessarily counted against your exposure.
Offering appropriate collateral where available, which can unlock materially better rates and quantum than an unsecured route.
Where a scheme-backed route helps
If your business is newer, or you lack substantial collateral, government-linked schemes such as CGTMSE, PMEGP or Mudra can bridge the gap that a standard commercial assessment would not.
We check scheme eligibility as a matter of routine before assuming a commercial-only route is your only option.
How we assess your actual eligibility
Initial conversation
We understand your requirement, business type and rough financial picture.
Document review
Bank statements, ITR, GST returns and existing loan details reviewed against real lender criteria, not a generic checklist.
Honest quantum estimate
We tell you the realistic eligible amount and rate before any application goes anywhere, including if your file needs strengthening first.
Placement with the right lenders
Filed only with lenders whose policy genuinely fits your profile, avoiding wasted applications that hurt your credit score.
Frequently Asked Questions
The questions our advisory desk is asked most often about Loan Eligibility.
Generally 650 or above for unsecured facilities. Secured loans against strong collateral can be more flexible, and some lenders will consider slightly lower scores depending on the strength of the security offered.
It depends on the loan type, but broadly on your turnover, existing obligations, and the security you can offer. Secured facilities against property can reach 55–75% of asset value; working capital limits are typically sized around 20% of turnover; unsecured facilities depend heavily on your declared income and credit score.
Yes, potentially. Multiple hard credit enquiries in a short period can lower your score and signal distress to lenders. We recommend a single, well-prepared application placed with the right lenders, rather than shopping broadly across many banks simultaneously.
Yes, and it is usually worth the time. Bringing GST-declared turnover in line with actual turnover, clearing high-interest debt, and correcting CIBIL report errors can meaningfully change both your eligible amount and the rate offered — see our CIBIL score guide.
Tell us what you need. We'll do the running around.
Share a few details and a CreditCares expert will call you back to map your eligibility and shortlist the right lenders — at no cost.