If you have a business in Mumbai, Navi Mumbai, or Thane for the last three years and have made a profit in the last two years, you can apply for a business loan using one of the following options.

Before you apply for a business loan, you must first answer a few key questions that will help you decide which type of loan is best for you:

• How much money do you need for a business loan?
• How long would it take you to repay the Business Loan?
• How long have you been in the industry?
• What is the company's actual financial strength?
• How much collateral do you set up for the bank facility?
• How fast do you want the Company Loan?

According to several bankers, if you want a Business Loan, you can start thinking about the loan process from the lender's viewpoint. But, before you get out your calculator, make sure you're comfortable with a few important questions. These are the issues that lenders consider before deciding whether or not to grant you a loan.

1. DSCR: - A debt service coverage ratio is one of the factors used by banks and financial lenders to decide if a corporate enterprise is a suitable candidate for a business loan (DSCR). One side of this measure reflects the cash available to you, the company owner, to repay a loan in a given year. The sum you borrow each year, plus interest, as seen on the other page. Business owners with a DSCR of 1.25:1 — also known as 1.25 times coverage — are considered a reasonable credit risk and can typically handle, and thereby stable, funding. The optimal cash flow needed for a loan-worthy company was calculated by banks and financial lenders to be 1.15 times coverage.

2. DTI: Banks and financial lenders use another method known as a debt-to-income ratio (DTI) to assess your loan eligibility. After you've measured your DSCR, calculating DTI is easy. To start, complete your monthly debts, including car loans, credit card payments, and any other debts you may have. Include the living costs as well, such as interest premiums, income taxes, and homeowners insurance.
Divide your net monthly loans by your monthly gross income and add the result (which should be a decimal) by 100 to get a figure. Most conventional lending institutions prefer DTIs of no more than 50%.

3. Surrogate: The first-of-its-kind surrogate lending model, in which no financial statements are required and credit assessment is based on the client's GST returns and operating bank accounts. A scorecard running in the background will evaluate credit metrics from both outlets and take into account the interplay between them. The Business Loan requirement will be calculated based on the created ranking.

For more information feel free to contact us on 9321457879 or you can submit your information on www.bhcapital.in and our team person will contact you.