What are the eligibility criteria for Chola SBPL loans?

Since Chola offers secured business loans for very small enterprises, it is mandatory to check the capability of the customer to repay the loan. There are certain criteria to assess the loan repayment ability of business loan customers. In this article, let’s discuss in detail the eligibility criteria for Chola Secured Business and Personal Loans.

Basic eligibility criteria for a secured business or personal loan

Below are the basic eligibility criteria you should meet for easy sanction of your secured business or personal loan application.

Eligibility criteria for a secured personal loan

  • Steady source of income
  • Good credit score and credit history
  • Desirable debt-to-income ratio
  • Stable employment

Eligibility criteria for a secured business loan

  • Solid business plan
  • Proper establishment of the small business unit
  • Income proof
  • Desirable monthly cash flow
  • Minimum time period sustained in business

Eligibility based on in-person visit to the business unit

Apart from the eligibility checks made based on the value of the collateral pledged and cash flow in business, there are some more criteria that we check before sanctioning business loans to the very small enterprises. Our credit team executives make an in-person visit to each customer’s enterprise or business unit to check whether the business has the potential to sustain in the market. This in-person visit is made to check and confirm whether the small business unit is running well and has good prospect for growth and development.

Varied eligibility checks based on the business model

The eligibility criteria may vary for each and every business model based on the minimum requirements set by our organization. For example, if a dairy farmer is applying for a secured business loan from Chola, he will be eligible for the loan only if he is selling milk to any cooperative society or retail stores and should have the proof for making a minimum revenue of ₹25,000 through the sale of milk or milk products. For a grocery store business, the criteria vary. If a grocery store owner is applying for a secured business loan from Chola, he should maintain all latest purchase bills properly and should make a minimum revenue of more than ₹2,000 per day. These criteria help us to decide the creditworthiness of the customers. These eligibility checks are made to verify and ensure the loan repayment capability of small enterprises applying for a Secured Business Loan.

Easy loans to non-professional individuals

Chola also offers secured personal loans to the under-served personnel who may come under the category of non-professional individuals. For example, unskilled labourers, low salaried or cash salaried workers and labourers working based on daily wages can take advantage of Secured Personal Loans from Chola.