India is a developing country, have a lot of resources to boost GDP, business loan offered by various banks and financial institutions in order to raise funds for startup business of your own or expand your current business.

1. Business Loan in India

2. India is a developing country, have a lot of
resources to boost GDP, business loan offered by
various banks and financial institutions in order
to raise funds for startup business of your own
or expand your current business. However, the
interest rate charged by the bank will depend on
the loan amount and loan tenure.

3. • Credit Score: A credit score is a significant factor that influences the
lender’s decision on your loan application. It’s a 3-digit numerical
number used to define borrower's repayment capability ranging
from 300 to 900.
• With the use of credit scores, lending institutions are used to assess
your repayment capacity. If you have a good credit score, then the
interest rate for your business loan will be much lower. Generally, a
credit score of 750 or above is considered a good score by lenders.
• In case you have a low or bad credit score, your application will be
considered as a riskier profile to fund, and it will reduce your loan
approval chances and ask you to pay a higher interest rate.
• Always make sure that you check your credit score before applying
for a business loan in India.

4. • Financial Record: An financial record includes your
transaction behaviors, account Maintenace, past credit
transactions. If you have a long and good financial
record that is good, then the interest rates that you will
receive from your lender for your business loan will be
lower.
• This a because your lender will view your past
transactions with your previous transaction to check
your creditworthiness. Suppose if you have a positive
and long credit history, the lender will consider you to
be reliable and will lend to you at a lower interest
rate. If you have a bad credit history, the interest rate
will be higher as you will be viewed as a risky customer.