What are the requirements for self-employed to apply for a business loan?

Here are the typical requirements for self-employed individuals to apply for a business loan:

• Age: Generally, the eligible age range is 21 to 70 at the time the loan matures. Different lenders can have different age criteria.
• Time in Business: Typically, loan providers require the self-employed individual to have been in business for at least 3 years in the same line of work. This demonstrates the ability to operate the business successfully over time.
• Occupation: The applicant must be self-employed, a business owner, or a proprietor. They should have proof of self-employment status, such as tax returns, licences , etc.
• Income and Revenue: Financial institutions usually want to see stable revenue and income generated from the business over the last 3 years at a minimum. Tax returns, bank statements, and financial statements serve as proof.
• Credit History: The applicant's personal and business credit scores are generally checked. Good credit increases the chances of loan approval and better terms.
• Collateral: For larger loans, collateral may be required, which can be in the form of business assets or personal assets. This reduces the risk of banks or Non-banking Financial Companies (NBFCs).