Mistake 1: Incomplete Documentation
Banks reject applications with missing documents. Always prepare: GST returns, ITR, bank statements, and business registration.
Mistake 2: Poor Credit Score
Business loan eligibility heavily depends on your personal and business credit scores. Maintain both above 700.
Mistake 3: Unrealistic Loan Amount
Requesting too high an amount without matching revenue can lead to rejection. Be realistic about your repayment capacity.
Mistake 4: Not Comparing Lenders
Different banks have different eligibility criteria. Compare at least 3-4 lenders before applying.
Mistake 5: Ignoring the Fine Print
Hidden charges, prepayment penalties, and collateral requirements can surprise you later. Read everything carefully.