Straight answers to the questions borrowers actually ask, written by people who place these files for a living. No news, no rate tables that go stale, no filler.
Credit basics
GST turnover, banking turnover and ITR turnover: why the three numbers differ
These are three different measures of the same business, and lenders compare all three. GST turnover is taxable sales, banking turnover is money actually…
Secured or unsecured: what actually changes
An unsecured loan is lent against your income and record alone. A secured loan is backed by an asset, usually property. Secured borrowing costs…
What CIBIL score do you need for a business loan?
Most lenders want 700 or above for an unsecured business loan, and 750 or above gets you the better rates. Between 650 and 700…
What is banking turnover, and why do lenders care so much?
Banking turnover is the total credits landing in your business current accounts over a period, usually twelve months. It is the first thing a…
What is business vintage, and why does it matter so much?
Business vintage is how long your business has been operating, evidenced by documents rather than by memory. It is the single biggest gate in…
What is CIBIL, and what actually goes into the score?
CIBIL is one of four credit bureaus licensed in India. Your CIBIL score is a three-digit number between 300 and 900 that summarises how…
What is DSCR, and why does it decide larger business loans?
DSCR is the Debt Service Coverage Ratio — your operating profit divided by what you repay on loans in a year. It asks whether…
What is FOIR?
FOIR is the Fixed Obligation to Income Ratio — the share of your monthly income already going to fixed commitments. Lenders use it to…
Business lending
Business loan documents, explained line by line
Every business loan needs three sets of documents: who you are, that the business exists, and what it earns. The financial set does most…
Can you get a business loan without GST registration?
Yes, but the amount will be considerably lower and the rate higher. Without GST filings a lender has fewer ways to verify your turnover…
Funding an expansion: what lenders want to hear
Expansion is the easiest business borrowing to justify, because there is something to show for the money. Lenders want a specific plan, a specific…
How lenders actually assess a business loan application
In order: they check your credit report, read twelve months of bank statements, reconcile your GST and ITR turnover against those statements, calculate what…
How much can I borrow against my turnover?
For an established, GST-compliant business, unsecured business loans are typically sized between 10% and 25% of annual turnover — rising with how long you…
How to prepare your bank statements before applying
Download PDFs directly from net banking for the last twelve months, for every current account, with no pages removed. Then spend three to six…
Proprietorship or private limited: does it change what you can borrow?
Yes, but less than people expect. A company can access larger structured facilities and separates business credit from personal, but directors almost always give…
Term loan, overdraft or cash credit: which do you actually need?
A term loan gives you a lump sum repaid in fixed EMIs — right for buying something. An overdraft or cash credit gives you…
What is working capital, and how much do you actually need?
Working capital is the money tied up in running the business day to day — stock on the shelf and invoices not yet paid,…
Why business loans get rejected
The six most common reasons are a mismatch between banking and declared turnover, too many recent credit enquiries, cheque returns, existing obligations that are…
Secured lending
Can you get a loan against commercial property?
Yes. Commercial property is funded at around 50% to 65% of value — a little below residential — and rental income from it can…
How property valuation works, and why it comes in low
The lender appoints its own valuer, who inspects the property and works from documented comparable transactions in the area. Because registered transaction values in…
The property documents lenders ask for
The core set is your registered sale deed, previous deeds going back thirteen years, an encumbrance certificate, the approved building plan, the latest property…
What actually happens if you default on a loan against property?
Nothing happens immediately. Missed payments trigger reminders and penal interest; after 90 days the account is classified as non-performing, and only then does formal…
What is a loan against property?
A loan against property is money borrowed against a property you already own, which is mortgaged to the lender until you repay. Because the…
What LTV means, and what you will actually get
LTV is loan to value — the share of a property's assessed value a lender will advance. In India it runs from about 70%…
Home loans & process
Home loan balance transfer: when it is actually worth it
Usually worth doing if you save half a percentage point or more and have more than five years still to run. Below that, the…
Home loans for self-employed applicants
Entirely normal, but assessed differently. Instead of salary slips, lenders read two to three years of ITRs with financials plus twelve months of bank…
How long does a loan actually take, stage by stage?
An unsecured business loan takes five to fifteen working days from a complete file. A home loan takes two to four weeks. A loan…
Processing fees, and everything else you actually pay
Beyond interest, expect a processing fee of 0.5% to 3%, and on a property loan another ₹10,000 to ₹35,000 in valuation and legal charges…
What a sanction letter is — and what it definitely is not
A sanction letter is the lender saying they are willing to lend a stated amount on stated terms, subject to conditions. It is not…
What is a top-up loan, and why is it often the cheapest money you can get?
A top-up is additional borrowing on an existing home loan or loan against property, using the same mortgage. Because the lender already holds your…