1. Credit-worthiness: These will be treated on behalf of applicant‘s credit
history, capacity to repay, collateral value as
eligibility criteria.
2. Business and Credit history: The eligibility may be judged by business track records
and also qualifying for
the
different types of
credit history like type of credit facility, credit limit, repayment records, etc.
3. Working capital: The present working capital may be considered that can be thought of as cash at hand and bank.
4. Collateral: Collateral securities which are assets will be evaluated as secured
assets
and pledge or hypothecation of inventory.
5.
Keen money management skills: This includes a solid cash flow, the ability to
live, and skills of
keeping accurate and timely financial records.
6. Earning power: The earnings
of
borrower
to
be given out as loan are some of
the
determining factors in granting the loans.
7. Ability to repay: The borrower should have to ability to repay the loans from
his business
and personal income.
8. Experience and character: The borrower
should have experience in business
to run that should have business
skills
and managerial experience.