Getting a loan processed through banks is always an uphill battle to conquer due to their strict rules and norms. Often, the needy and deserving individuals or businesses are damped by the bank’s policies. Here comes the role of Non-Banking Financial Companies (NBFCs), which offer various banking services and thus play a key role in meeting the credit demand unmet by traditional banks.

The following factors will determine the creditworthiness of the potential client:

• Personal documents such as KYC, PAN, and address proof would act as the preliminary parameters.
• The capacity of the applicant to repay the credit amount.
• In the case of business, the annual turnover and the consistency in turnover for the past years.
• Credit report of the applicant, including past history of credit.

CIBIL scores are checked to see how creditworthy you are. You need to provide a strong trustworthiness to repay EMIs as per the loan schedule to the lending company in order to get a loan. Below points mentions possibilities to get a loan with bad CIBIL score.

• Evidence of income to support loan repayments.
• Applying for a joint loan, or with a guarantee.
• Applying for a lower amount of loan.

Approval of your loan will not take a long time if your credit score is good as per the requirements. Generally, online approvals take up to 48 hours to process if all requirements are satisfied.

You can get a credit of up to INR 4,00,000 as a business loan and the repayment term will be up to 5 years.