If you’re running a business and considering applying for a business loan, you’ve probably asked yourself: “Is my turnover enough to qualify?” Turnover, or the total revenue your business generates, is one of the key factor’s lenders look at when deciding whether to approve your business loan application. This blog explores why turnover is key for business loans and how to manage it if it doesn’t meet the required level.

What is Business Turnover, and Why Does It Matter?

Business turnover is the total income your business earns from sales or services over a specific period (usually a year).

For lenders, turnover shows how much revenue your business generates and gives them an idea of how stable and reliable your business is. A healthy turnover suggests that your business is doing well and is more likely to repay the loan on time. On the other hand, low or inconsistent turnover might make lenders hesitant because it signals potential risks.

How Much Turnover Do You Really Need?

Most lenders generally expect a turnover of ₹4 lakhs per month to approve a business loan. But turnover alone isn’t enough—how you manage your current account matters just as much.

This is where many businesses need to catch up. Even if their turnover looks good on paper, issues like frequent withdrawals or a very low average bank balance can raise concerns for lenders. To avoid this:

• Maintain a stable average monthly bank balance to reflect financial discipline.
• Avoid sudden, significant fluctuations in your transactions, as these can signal instability.

A steady turnover, backed by a well-managed bank account, builds trust with lenders and improves your chances of getting the loan you need—faster and on better terms.

If you found this blog interesting, you can read more about this by clicking How Much Turnover Should I Have For a Business Loan