An individual being the head of a multi-million dollar corporation may have defaulted on his/her credit repayment. This makes his/her credit score decrease considerably.
A higher credit score would make you eligible to apply for business loan and have it sanctioned. Banks and NBFCs look for businesspersons with an impressive credit score as one of their criterion for giving business loans.
This credit score ranges between 300 to 900, and you need to ensure it remains on the higher side. Such a score would mean, you have a stable income, calculated expenses, and the ability to repay a loan. There exist several ways in which you can increase this credit score. Following these steps would ensure you turn up your score and become eligible for a business loan.
- If rejected, stop applying for loans
- Ensure timely repayments
- Abide by credit limits
- Check your credit score regularly
- Keep your borrowings minimal
Following the points mentioned above can help you get your CIBIL Score up within a span of 4 months to 1 year.While banks can make this process a bit complicated, NBFCs like Bajaj Finserv, on the other hand, make it simpler with their pre-approved schemes.