Due to the rising cases of NPAs, frauds, and bad debts, the financial services sector in India has undergone numerous changes in recent years.
Earlier, the branch manager had all the power to approve or disapprove a business loan application.
Now, all the financial institutions follow a stringent and transparent procedure to process the loan application.The application for a business loan is approved only if the borrower meets the eligibility criteria of the borrower.
All lenders require a few documents, and they have pre-determined criteria, which is mentioned on their website.
Therefore, lenders offer loans at lower interest rates.The CIBIL score is affected by several factors; they can bring down the score.
It is calculated by TransUnion CIBIL through a pre-determined algorithm.