How lenders assess eligibility
Most lenders use the FOIR (fixed obligations to income ratio): total EMIs, including the new loan, should stay within 40–60% of monthly income. The loan amount is then the present value of the EMI you can afford over the tenure.
Business loans also depend on your credit score (750+ is preferred), business vintage (usually 2–3 years), GST returns, bank statements, and ITRs with audited financials.
Improve your chances
- File ITR and GST returns on time – see ITR filing and GST returns
- Close small loans and credit card dues before applying
- Keep books, a CMA report and a project report ready
Frequently Asked Questions
What documents are needed for a business loan?
KYC, business registration, last 2–3 years of ITRs and financials, GST returns, 12 months of bank statements and sometimes a CMA or project report.
Does GST filing affect loan eligibility?
Yes. Many lenders use GST returns to verify turnover, so regular filing helps.
What is a good FOIR?
Below 50% is generally comfortable; some lenders allow up to 60–65% for high incomes.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.