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Here’s How to Avail an Unsecured Business Loan in Kolhapur

Kolhapur, a small district of Maharashtra, is abundant with textile and cotton mills. These small and medium-sized mills are expanding every day. Post implementation of GST, the business landscape is full of optimism and urgency for growth beyond just the textile and cotton sector. Numerous MSMEs and SMEs aim to make the best of an overall productive entrepreneurial sentiment.

So, if you own a business in Kolhapur which has the potential to reach newer heights, you can take an unsecured business loan in Kolhapur. However, to ensure maximum chances of approval, follow the below shared steps.

FOIR: Fixed Obligation to Income Ratio or popularly called FOIR is a critical parameter which lenders consider before offering a loan. The ideal FOIR to avail any credit is at least 50% i.e. you must be saving at least 50% of your salary every month after meeting all your inevitable monthly expenses. The sum of all the EMIs you pay should never go beyond 50%.

Credit score: Secondly, if your credit score is above 750 your chances of getting approved for an unsecured business loan increases. It is another important parameter lenders check before approving a business loan to a prospective borrower.

Repayment history: Institutes which provide a business loan in Kolhapur and elsewhere across India also consider the loan repayment history of the borrower. If the same is in a good state, getting approved for a loan is an easy-peasy task and vice versa.

Income stability: It is an essential parameter for financial institutes to check the credibility of the borrower. When a borrower’s income decreases, their FOIR also decreases. So, keep a check on that too.

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