Business loan eligibility
Every MSME lender in India uses a version of the same underwriting logic: how long has the business been running, how consistent is the turnover, how clean is the promoter's credit, and how healthy is the bank statement.
Last updated: 15 June 2025
Standard eligibility parameters
| Parameter | Typical minimum |
|---|---|
| Business vintage | 2 to 3 years (for unsecured loans) |
| Annual turnover | ₹40 lakh and above |
| ITR filings | Last 2 years, minimum ₹3 lakh net profit |
| GST filings | 12 months of consistent GSTR-1 and GSTR-3B |
| CIBIL commercial rank | CMR 1-4 preferred |
| Promoter credit score | 700+ preferred |
Documents typically required
- PAN of business and all promoters
- Business proof - GST certificate, Udyam registration, or Shop Act licence
- Last 2 years' audited financials (P&L, balance sheet)
- Last 2 years' ITR of business and promoters
- Last 12 months' bank statement of primary current account
- Existing loan and CC/OD statements
How to strengthen your file
- Maintain steady balances - avoid frequent overdrafts
- File GST and IT returns on time; late filings hurt CMR
- Keep promoter personal credit score healthy
- Show 20%+ year-on-year turnover growth if possible
- Consolidate multiple small loans before applying