Documents Required For Business Loan

While it’s true that not every reason is a good reason to go into debt for your business, there are a few good reasons to get some financial help. If your business is ready to take a leap, but you lack sufficient funds, you can consider applying for a loan for business. Whether the loan is for an existing business or to start a brand new one, there are many banks in India that offers loan for both small and big businesses.

Getting approval and money is possible within few days if you meet the eligibility criteria and have all the necessary business loan documents. Each bank has their own specific requirements, criteria and eligibility factors.

Purpose of a Business loan

The purpose of the loan is the availability of liquidity to finance the everyday needs of a business and for expansion. Many businesses witness an obstacle in their growth majorly due to a lack of credit. For traders, the purpose of this loan is to maintain a healthy cash flow to make payments to the suppliers on time. Manufacturers require loan to expand their business by expanding or upgrading machinery or equipment. There are a lot of banks that provide tailor-made business loan products to meet your business capital requirements.

How to get a loan for business?

You can apply for a loan the traditional way by visiting a bank branch. However, if you are looking for quick loans without collateral, you can simply look for options to apply online. Compare your loan interest rates and check whether you are eligible for the loan with the help of an online eligibility calculator.

You can start filling your basic personal, business and income details, you will get a list of loan offers. Once we receive your details and also the bank offers you are interested in, the bank will provide you with the best loans for your business at the cheapest rates. The bank representative will guide you throughout the loan process to ensure that you get quick and easy approval with minimal paperwork.

Eligibility Criteria

To be able to qualify for a loan you need to fulfill the eligibility criteria. Most banks have their own set of criteria that needs to be fulfilled. However, applying for a business loan from Finserv MARKETS is quite simple. You just need to fulfil the following eligibility criteria to avail all the benefits of the loan:

  • The applicant should be between 26-66 years old.

  • The business must have a vintage of least 3 years.

  • You should have filed income tax for the last one year.

  • You may need to submit other relevant financial documents such as business ownership proof, bank statement of last 2 years, proof of business continuation, etc. at the time of document verification.

To know more on business loan eligibility criteria visit Finserv MARKETS

List of Common Business Loan Documents Required

  • Application Form: Fill the loan application form with necessary details and provide one passport size photograph.

  • Proof of Applicant's Identity:Passport, Photo PAN card, Voter’s identity card , Driving license and MAPIN card

  • Address Proof: Aadhaar Card/ Voter ID Card/Ration card/Telephone Bill/ Lease agreement/ Electricity Bill

  • Proof of Age: Passport, Photo PAN card, Voter’s identity card

  • Financial Documents: IT returns copies of last two years. Bank account statements of last 6 months and P & L and balance sheet for last two years audited by a C.A.

Documents required for self-employed (Private Ltd. Co. and Partnership Firms)

  • Proof of Identity of Sole Proprietorship: Proof of identity of the sole proprietorship

  • PAN Card: IT return in the name of the concerned authority like Municipal tax

  • Identity proof to be submitted for the Sole Proprietor: Passport, Driving license, Voter’s identity card, Photo PAN Card.

  • Proof of residence for the Sole Proprietor: Driving license, Ration card, Passport, Voter’s identity card

Documents Required for Self Employed Individuals-Non Professionals

  • Proof of identity of the sole proprietorship

  • Proof of individual identity

  • Three years income tax returns

  • Three years sales tax returns documents

  • A copy of periodic stock and creditors-statement for latest three months

  • Bank statement of the last 6 months of main banker

CIBIL Score for Business Loan

A CIBIL score is a summarized report of an individual’s payment history of loans taken from banks or other financial institutions. Your CIBIL Score is one of the most important loan eligibility criteria. A credit score is generated based on the timely payment of the credit. The credit score for business loans ranges from 300-900. A CIBIL score of 750 or above is considered to be a good score and this will enhance your chances of loan approval, whereas a CIBIL score of 550 or below is considered to be a poor score. Financial institution may consider you a high-risk applicant if you have a credit score of 550 or below. This will hamper the chances of your loan approval. Therefore, you must work towards improving your CIBIL score before applying for a loan. You can Check your CIBIL Score for Free at Finserv MARKETS.

Your credit score information is considered to be very important and a good CIBIL score signifies timely payment of all the loans. It is generally the first eligibility criterion that most of the banks, NBFCs, and other financial institutions apply when reviewing your loan application. A number of factors can affect the CIBIL Score and a low CIBIL score can simply mean rejection of your loan application. Even if your application gets approved you may be charged with a high-interest rate on the loan amount.

In order to manage your financial needs, you can avail a business loan at Finserv MARKETS at an attractive rates of interest. You can avail a loan up to Rs. 30 lakh. You can use the funds to invest in infrastructure, expand operations, upgrade to the latest plant and machinery or maintain inventory. Apply for a business loan online and avail pre-approved offers for an instant loan without security. You can also enjoy a high top-up loan or an interest rate reduction on your loan.

Finserv MARKETS is an online platform where you can get financial products that are affordable easy to avail. You can get a loan with affordable interest rates, zero hidden charges, quick approval and more. These unsecured business loans get approved under 3 minutes, come with easy eligibility criteria and can be applied for with minimal paperwork. These exclusive features make Finserv MARKETS the best, fastest and most hassle-free financial supermarket to meet the urgent financial needs of your business. Anyone from self-employed non-professionals to a self-employed professional can apply for a loan and finance their business.

FAQs

  • ✔️What documentation is required for a business loan?

    The documents required for a business loan are mentioned below: • Identity proof :(Passport/Id card/voter card/driving license/Aadhar Card) • Residence proof :(Passport/voter card/driving license/Aadhar Card/Ration Card). • PAN card • For salaried applicants, salary slip of the last 3 months and last 6 months bank statements. • Self-employed applicants have to submit the ITR for the last three years.
  • ✔️What are the documents required for business loan in SBI?

    Documents required for business loan in SBI are mentioned below: • Application form along with passport size photographs of all applicants and co applicants • PAN Card • Identity Proof - Voter ID / Driving License / Passport / Aadhar Card • Address Proof- Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill • Ownership proof of either residence or office. • Business Continuity Proof • Letter stating the end use of the business loan funds on Business Letterhead
  • ✔️What is the procedure of business loan?

    You can apply for a business loan by following the below-mentioned steps: • Visit the lender’s official website • Fill in the online application form consisting your personal and employment details • Specify the loan details such as your loan amount and loan tenure • Upload the required documents • The lender will verify your documents and reviews your loan application, if everything is found to be satisfactory, your loan amount will be disbursed within 24 hours.
  • ✔️Which bank is best for business loan?

    HDFC, ICICI, IDFC, Axis Bank, SBI are some of the best banks for business loan. You can also consider availing business loan at competitive interest rate and other favorable terms with leading NBFCs like Bajaj Finance.

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