If you are a small business owner and need to take step towards business growth and expansion, you require a business loan. The decision of availing a loan will have a considerable impact on your business so it’s significant to prepare well for loan documentation as well as application process. The most important step involved in loan process is to be ready for the questions asked by the financial institution.

However, these queries may vary from one lender to other but when you “Apply For Business Loan“ you are asked some basic essentials before granting a business loan. In this blog post, we have enlisted all those queries asked by the lender.

✓ Loan amount: This factor proves to be little bit complicated because lending money is a conservative procedure. Lenders usually inspect about your financial health when it comes to financing and question about the loan money you need. One might have to justify the loan quantum through their business idea as well as action plan.

✓ Repayment plan: A lender needs an appropriate answer about your repayment plan to get assurance about that loan will be repaid on time. Your confidence about your repayment capacity defines whether the lender is satisfied or not. Any lender who offers you business loan will also ask you about your assets, savings and collateral to avoid any risk in lending.

✓ Collateral: It can be any valuable asset that you need to pledge to lender against a loan as security. In case, you default on loan for any reason then your collateral will be at risk as lender will use it to recover their outstanding amount. Sometimes, lender might not ask you about collateral but will expect you to have a good credit score to ensure the smooth repayment.

✓ Prospect of business: Most of the credit givers are keen to know about your business to make a lending decision refined as well as informed. Moreover, they can also ask you about the other cost expenses. To illustrate, the lending institution may ask about the consistency of your business in past years and its structure.

✓ Credit score: It is one of the key factors that can make or break the chances of your loan approval. Every lending institution wishes to know about your credit score before sanctioning you a loan. Before you “Apply For Business Loan Online“ or offline, lenders look into your income, total debt, credit report and other credit taken before.

✓ Business vision: The loan approval is highly based upon the business plan that how you are going to use the loan money or allocate the funds and make the most of all resources. Therefore, have a robust business plan to make the lender understand your business vision clearly.

Hence, you can prepare beforehand with above mentioned business loan questions asked by the lending institutions. ShubhBank offers business loan at affordable rates of interest for small business owners. You can also use an EMI calculator to plan your budget and living expenses while repaying a business loan.