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Business vintage: how long your business has been trading

Business vintage is how long a business has been trading, counted from evidence of real activity such as GST filings, banking and tax returns. No law sets a minimum. Each lender sets its own, and two banks we checked ask for at least 3 years for an unsecured business loan.

Loan products, rates, and eligibility are determined by the lenders on our panel. Capnix is not a lender and does not lend its own capital. We run your loan journey end to end.

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Business vintage in practice

Vintage is the lender's word for years in business. A lender reads it from records filed elsewhere: GST returns, bank statements and income tax returns. A business registered three years ago that only began trading last year usually has about one year of vintage, not three.

Lenders care because a business that has traded through slow seasons, price changes and late payers has records that show how it behaves when things go wrong. A business in its first year has not shown that yet.

How lenders use vintage

No law or regulator sets a minimum vintage. Each lender writes its own into its credit policy. Two banks publish theirs for unsecured business loans:

Lender Minimum years in business Source
Kotak Mahindra Bank 3 years Kotak Mahindra Bank
IndusInd Bank 3 years IndusInd Bank

Lenders also ask for proof that the vintage is real. Kotak, for example, asks for proof of business continuity for at least 3 years, such as an Udyam certificate, a GST registration certificate, a certificate of incorporation or a shop licence (Kotak Mahindra Bank).

Some routes do not ask for a trading history. A Mudra loan is open to any Indian citizen with a business plan for a non-farm income-generating activity, for credit needs up to ₹20,00,000 (Mudra FAQ). CGTMSE covers new as well as existing micro and small enterprises (CGTMSE scheme document).

Frequently asked questions

How long a business has been trading, counted from evidence of real activity rather than from the registration date.

It depends on the lender. Kotak Mahindra Bank and IndusInd Bank both ask for 3 years for their unsecured business loans (Kotak Mahindra Bank, IndusInd Bank). Scheme loans such as Mudra do not ask for a trading history (Mudra FAQ).

With records that show continuous trading, such as an Udyam certificate, a GST registration certificate, a certificate of incorporation or a shop licence (Kotak Mahindra Bank), backed by GST returns, bank statements and tax returns.

Sources

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