Getting a business loan in India is no longer just about having strong collateral or a perfect credit score. While these two factors are still important, the world of business loans has changed. At BigMudra, we understand that every business has a different story. That’s why we go beyond just numbers and look at the full picture.
In 2025, our loan approval process focuses on practical things that reflect the real strength of your business, like your cash flow, your business plan, the industry you operate in, and your overall turnover.
Let’s dive deeper into what really matters when applying for a business loan with BigMudra.
1. It’s Not Just About Collateral Anymore
Traditionally, most banks and financial institutions would first ask, “Do you have something to pledge?” This could be property, gold, or any valuable asset. But we know that not every good business has collateral to offer, especially startups or young businesses.
At BigMudra, while collateral can help speed up the process, it’s not a must-have. We’re open to unsecured business loans too. What matters more is the potential of your business and how well you manage your operations.
2. Credit Score: Helpful, But Not Everything
Yes, we do check credit scores. A good CIBIL score shows us that you have been responsible with credit in the past. It helps build trust. But we also know that sometimes a credit score may not tell the full story.
For example, you might have faced financial issues during COVID, or maybe you are new to credit altogether. That’s okay. If your current business performance is strong, we are still interested.
3. Cash Flow Analysis: A Real Game Changer
This is one of the biggest trends in 2025 when it comes to business loan eligibility.
At BigMudra, we take a close look at your cash flow, which means how money moves in and out of your business. If your inflows (income) are steady and higher than your outflows (expenses), it tells us that your business is stable.
Here’s what we look at:
- Monthly sales and revenue
- Payment cycles from your customers
- Outstanding dues
- Inventory turnover
- Profit margins
Even if your business is not super profitable yet, positive cash flow gives us confidence that you are on the right track.
4. Strength of Your Business Plan
One thing that sets BigMudra apart is that we actually read your business plan.
Your business plan tells us:
- What are you trying to build?
- Who are your customers?
- How will you earn revenue?
- How will you use the loan?
- What is your growth plan?
A clear and realistic business plan shows us that you have thought things through. Even if you are a small business or a first-time entrepreneur, a solid plan can help you stand out.
5. Industry Type: Some Sectors Get Extra Attention
Every industry is different. Some are fast-growing and stable, while others may be seasonal or risky. That’s why we look at the type of industry you operate in.
For example:
- Businesses in healthcare, logistics, and digital services are often seen as stable and growing.
- Seasonal businesses like tourism or agriculture may have ups and downs, so we evaluate them differently.
- New-age sectors like green tech, electric vehicles, and e-commerce are also of great interest to us.
We don’t reject businesses just because they are in a high-risk industry. Instead, we adjust our approach depending on your field.
6. Turnover and Business Vintage (How Old Is Your Business?)
Turnover is the total income your business makes in a year. It helps us understand the size and scale of your business.
At BigMudra, we usually prefer:
- For small loans (under ₹10 lakhs): annual turnover of at least ₹12–15 lakhs
- For higher business loans: higher turnover is preferred
But again, turnover is not the only criteria. If you are a startup with low turnover but have strong growth potential, we will still consider your case.
Business vintage, or how long your business has been running, also plays a role. Businesses older than 2 years are preferred, but startups with a strong pitch can also qualify.
7. Digital Presence and Tech Adoption
In 2025, we also consider how modern and tech-friendly your business is.
If you:
- Accept digital payments (UPI, cards, etc.)
- Maintain digital records or use accounting software
- Have a good online presence (website, social media, etc.)
- Are listed on platforms like Google or IndiaMart
It tells us that your business is future-ready. This adds to your credibility and increases your business loan pre-approval chances.
8. Purpose of the Loan
We always ask: Why do you need the loan?
Some valid reasons include:
- Buying stock or raw materials
- Expanding to a new location
- Hiring more staff
- Buying equipment or machinery
- Marketing and advertising
- Building a website or app
The clearer your purpose, the faster we can approve your business loan.
10. Documents You will Need
Here’s a quick checklist of common documents we may ask for:
- PAN card and Aadhaar card
- Business registration proof
- Bank statements (last 6–12 months)
- GST returns (if applicable)
- ITR (Income Tax Return) for the last 1–2 years
- Business plan or project report
- Proof of turnover (sales report, invoices, etc.)
Don’t worry, we have made the process simple and paperless wherever possible.
Wrapping Up
At BigMudra, we believe that every business deserves a chance to grow, whether you are a shop owner, a freelancer, a startup founder, or a family-run business.
We go beyond just collateral and credit score. Our approach is practical, modern, and human. We look at your cash flow, business plan, industry, turnover, and much more to make fair decisions.
So if you’re looking to grow your business in 2025, give BigMudra a try. You might be closer to your loan than you think!
Need help with your business loan?Visit www.bigmudra.com or talk to our loan expert today.