The Relation of Credit Score with HDFC Business Growth Loan
The credit score element is considerably associated with the HDFC Bank Business Growth Loan as it determines most of the approval of your application.
Take a look at the post below to understand how the credit score is so relative to HDFC Bank Business Growth Loan .
What is a Credit Score?
Prior to proceeding, you must get a precise understanding of your credit score. A credit score signifies 3 digit figure which is authorized to the business.
It is determined based on the assessment of the credit history of a business that involves the credit card utilization, bank accounts held & shut, payment history and the credit enquires carried out by the business.
What is a Good Credit Score for HDFC Bank Business Growth Loan ?
A good credit score for HDFC Bank Business Loan is considered above 750. Moreover, the standard range of credit score is 300 to 900, where 900 is a great score and 300 is poor.
To comprehend the behaviour of a credit score, take a look at the below-drawn smooth and easy-to-understand pointers shown below:
0-1 If you’ve never availed of any sort of official credit facility, the score will lead to zero.
300 – 550 This score is considered to be bad. It also occurs because of the consistent defaults in the payment and consequently, the chances of getting the credit becomes low.
550 – 650 This score range states, your business is consistent with the payments. Therefore, there are positive odds of availing of new credit facilities.
650-750 This credit score range is taken into consideration as a safe side and there are greater chances of obtaining a loan based on the current payment habits of your business.
750 – 900
As we stated before, this is an excellent array and you can avail of the HDFC business growth loan if you have this score.
Importance of Credit Score for HDFC Bank Business Growth Loan
Following are the pointers clarifying why credit score stands out to be essential for HDFC Bank Business Growth Loan :
HDFC Bank look upon your credit score before determining to give a Business Loan to you.
Your potential employer can also demand a credit score from you to drive the background verification process before offering a job.
A good credit score facilitates you in availing the best of HDFC Business Loan Interest Rate .
Moreover, the bank can check your credit score before the opening of your bank account too.
How to Avail HDFC Bank Business Growth Loan with a Bad Credit Score?
If you do not have a good credit score, the reason behind it is that you might have defaulted on credit card dues, loan instalments, etc.
A bad credit score reduces the chances of getting a Business Loan. Have a look at a number of the ways that you can opt for even if you have a bad credit score:
Attach Collateral/Security Consider attaching collateral to avail of the HDFC Bank Business Growth Loan even in a bad credit condition. If you’ve assets such as a house or business land, machinery, equipment, etc. that you can mortgage with HDFC Bank then it can stand out as your best companion and you can also get a lower rate of interest.
Apply with Future Revenue You can choose to apply for HDFC Bank Business Growth Loan on future revenue even with a bad credit score. The deal gets built between you and the bank where the Business Loan amount is given as hoped by you. A percentage of the monthly revenue of your business gets deducted and paid as an instalment until the entire loan amount is repaid.
Tips to Maintain a Good Credit Score for HDFC Bank Business Growth Loan
If you have a bad credit score, you can also consider improving it and later consider to apply for HDFC Bank Business Growth Loan with a good credit score.
Following are certain fundamental tips that if you follow, you can maintain a good credit score. Have a look.
Use a credit card but do not let yourself surpass 40% of the credit limit.
Repay the credit card dues and instalments timely.
Manage inquires and application for the credit facilities.
Stay consistent in using your old credit card as the closing of the card can lower your credit score from a few points.
Control your existing loans since multiple debts can impact your score.
Conclusion To conclude, if you keep up a good credit score health, your chances of getting a higher amount of HDFC Bank Business Growth Loan becomes greater. Thereby, credit score fulfils a crucial relation with HDFC Bank Business Loan.
To get the best deal on Business Loan, you can also download the Afinoz loan app from the play store, compare multiple offers, and apply accordingly across a seamless process.