What are the credit score requirements?

Here are the typical credit score requirements for a business loan:

• Most banks and Non-banking Financial Companies (NBFCs) generally require a minimum credit score of around 700 to qualify for optimal business loan terms.
• A score under 650 is usually considered less than average and can lead to the rejection of the business loan application.

Tips to improve credit score:

• Pay all bills at least 5-7 days before due dates. This ensures that timely payments are registered in your credit report.
• Become an authorised user of a family member's credit card with an excellent credit history. It can raise your score.
• Maintain a low credit utilisation ratio, i.e., use less than 30% of your total available credit limit.
• Check credit reports annually for errors and dispute inaccurate negative information.
• Avoid multiple loan or credit applications within a short span, as it lowers your score.