Eligibility Criteria for Machinery Loan
Before applying for a machinery loan, it’s essential to determine whether you meet the required eligibility criteria.
This ensures a higher chance of approval and smooth processing. Here’s how you can check your eligibility:
Age Requirement
- Applicant age should be 21–65 years.
- Must meet this criterion at the time of application.
Credit Score
- Check via a reputed credit bureau or online report.
- Typical minimum score: 650+ showing good repayment history.
Business Vintage
- Business should be operational for at least 3 years.
- Demonstrates stability and profitability for lenders.
Additional Factors to Consider
- Annual turnover: Meet lender’s minimum requirement.
- Existing liabilities: Maintain a healthy debt-to-income ratio.
- Documentation: ID/address proof, business registration, financials.
Tools to Simplify Eligibility Checks
Many lenders provide online eligibility calculators. Enter details like age, credit score,
and business information to get a quick estimate of your eligibility.
By evaluating these factors in advance, you can prepare a strong application and improve your chances of securing a machinery loan.