Business lenders want to know two things: that your business is real and running, and that its cash flow can carry the EMI. The criteria below are how they check. Each lender sets its own thresholds.
Typical eligibility criteria
| Criterion | What lenders usually look for |
|---|---|
| Business vintage | A minimum time in operation — often one to three years, varying by lender |
| Turnover | Annual turnover above the lender's minimum, shown in GST returns, ITR or financials |
| Banking | A business bank account with regular inflows, a healthy average balance and no recent bounces |
| Credit record | A good personal credit score for the owner or promoters, and a clean business credit report |
| Registration | PAN of the business; GST registration where it applies; Udyam or other business proof |
| Applicant age | 21 years or above; the upper limit differs by lender |
| Existing debt | Current EMIs that leave room in your cash flow for a new one |
| Business type and location | Some lenders limit certain industries or pin codes |
What matters most
Banking history
Your bank statements are the clearest picture of how the business really runs — inflows, outflows, balances and bounces. Oxon Fintech collects them digitally through the RBI-regulated Account Aggregator framework, with your consent.
Turnover and filings
Regular GST and ITR filings show steady turnover. A business that files on time is easier to assess.
Credit history
For most small businesses, the owner's personal credit score matters as much as the business's. See how to improve your CIBIL score.
How to improve your eligibility
- Route sales through your business bank account.
- File GST returns and ITR on time.
- Avoid EMI and cheque bounces, especially in the last six months.
- Get a free Udyam registration.
- Ask for an amount whose EMI your cash flow can carry — try the business loan EMI calculator.
Read the business loan documents checklist and our MSME loan guide.