In today’s fast-paced world, securing funds for your business is no longer a lengthy process, thanks to the convenience of online applications by various platforms. Whether you are expanding your business, buying new and updated equipment or improving your cash flow, having pre-approved loans for business can help you get quick financial help without any hassle. But before you formally business loan apply, it would be great to understand how you can get pre-approved loans without much effort.
In this article, we’ll explore pre-approved loans for businesses, the steps to apply, and tips for increasing your chances of getting approval beforehand.
Understanding Pre-Approved Loans
A pre-approved loan for business is a loan offer provided by lenders to firms with a strong credit profile and a financial plan. They allow borrowers to quickly get access to funds, potentially at a lower interest rate and with flexible terms and conditions.
Here are some of the key advantages of getting pre-approved for a business loan:
Unlike traditional loans, the pre-approved ones are disbursed faster as the borrower’s creditworthiness is already assessed.
It allows users to plan better when they know how much funding they can access beforehand.
Lenders allow users to get a loan at lower interest rates, making it budget-friendly for them.
The application process for pre-approved loans is pretty seamless, and borrowers can skip the initial verification process.
Step-by-Step Guide to Get Pre-Approved for a Business Loan Online
Here are the steps to seamlessly get pre-approved for a business loan online:
Check Your Business’s Financial Health: Check your business credit score and make sure it is above 650 to get quick loan approval. Maintain updated and accurate company financial records and ensure a clear future plan that includes goals, strategies, and growth opportunities. Lenders prefer offering pre-approved loans to businesses that have a consistent profitability and track record of success.
Check Eligibility Criteria: When making an application, make sure to qualify for the following eligibility criteria:
The applicant must be an Indian with a minimum age of at least 21 years and should not be older than 80 years.
The applicant’s CIBIL score should be at least 650.
To obtain a pre-approved business loan, the business must have a positive repayment history and meet a minimum annual income requirement.
Gather Necessary Documents: Be prepared with the necessary documents to speed up the process.
KYC documents like the Aadhar card or the PAN card.
Proof of business ownership and existence.
Financial documents like bank statements for the last 6-12 months, income tax returns, and GST filings.
Outline a well-drafted business plan.
Apply Through Trusted Lenders: Take your time and research to find trusted lenders like Bajaj Finserv that offer competitive rates and flexible terms. After choosing the lender, apply for the business loan online by filling out the application form and uploading the required documents. Your pre-approval loan application will be approved in minutes.
Review the Offer: Check all the details and go through the pre-approved offer. Pay special attention to sections like interest rates, EMI, tenure and hidden costs.
Accept and Get Disbursed: Once you’ve reviewed the offer, accept it, and you’ll receive the funds in your bank account.
Tips for Increasing Your Chances of Getting Pre-Approved
Consider these tips to maximise your chances of obtaining loan pre-approval:
Maintain a strong credit score (ideally above 650).
Ensure you don’t have any previous debts.
Avoid applying for too many business loans at the same time.
Show consistent cash flow and have a clear idea about the future of the business.
Final Thoughts
It is concluded that getting pre-approved for a loan for a business allows the borrowers to seek quick financing. Ensure you have an outline of your business’s financials, a strong credit score, have gathered all the necessary documents and qualify for the eligibility criteria. To increase your chances of getting pre-approved business loans, follow the tips mentioned above and take your business to the next level.
