Business Loan Credit Policy & Underwriting Rules
Business loan underwriting: turnover, tenure, documentation and eligibility criteria.
How lenders evaluate applications
Business loans are assessed on turnover, profitability, vintage and collateral. Banks and NBFCs set minimum turnover and documentation norms.
Eligibility may include debt service coverage ratio (DSCR), existing exposure and sector-specific rules.
Eligibility at a glance
| Parameter | Typical Requirement |
|---|---|
| Minimum turnover | Varies; often ₹10L–₹1Cr+ per year |
| Minimum CIBIL Score | Often 650+ for entity/director |
| Business vintage | Typically 2–3 years |
| Maximum loan tenure | 1–10 years depending on purpose |
| Documentation | ITR, financials, bank statements, KYC |
Policy rules
Common business loan underwriting parameters.
Turnover & income
Minimum annual turnover and profit; stability over years.
DSCR / FOIR
Debt service coverage or FOIR for repayment capacity.
Credit score
CIBIL/Experian for entity and sometimes directors.
Collateral
Secured vs unsecured; collateral type and value affect limit and rate.
Example eligibility scenario
Sample borrower
Example inputs
- Annual turnover: ₹50L
- Loan required: ₹15L
- Vintage: 4 years
Result
Likely within eligibility for many lenders
Turnover and vintage meet typical thresholds; final approval depends on financials and DSCR.
Check Loan Eligibility with AI
Evaluate your scenario against policy rules in seconds using AI Credit Policy Copilot.