Business Loan
- Collateral-Free Loans : These unsecured loans are offered without collateral or security. However, before sanctioning the loan, the banks check your credit report and score, age and income over the past few years.
- Reducing Interest Rate : The rates of interest on the business loan are fixed, which implies that the rates of interest remain constant across the tenure. The rate of interest on a business loan is around 13-30% reducing a year.
- Flexible Repayment Tenure : Business loans come with flexible repayment tenure. This is a key feature of business loans that makes them an attractive funding option for businessmen.
- Loan Amount : An individual can avail of a maximum business loan of up to Rs 2 Cr. provided he has a good credit score and a steady source of income. Banks check the financial credibility of the borrower before sanctioning the business loan.
- Zero Paperwork : You can also avail of business loans online by visiting the website of bank or through the mobile banking apps of the bank. You can also avail of business loans from online loan aggregators. Online business loans require minimum documentation and can be uploaded and submitted for verification.
- Fast Processing : Once you submit the documents, banks scrutinize them and approve the business loan. The loan approval is followed by the disbursal process. Expect fast processing of the business loan.
- Business loan convert in OD facility
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Eligibility Criteria for Business Loans
Business loans can be availed by self-employed, limited and private liability companies, manufacturers and services providers. The banks have certain eligibility criteria that must be fulfilled by the applicant. Loans are easily approved without wasting much time.
- The applicant must be 21 years to 70 years of age.
- The applicant must have run the business for the last 1 year.
- The annual business turnover must be Rs 10 Lakh.
- Show the last 3 years' Income Tax Returns filed for higher loan amount and best rate.
- The business partner can sign the business loan as a co-applicant. This helps you avail of a business loan at a lower interest rate.
Who can avail of a Business Loan?
- Individuals
- Startup enterprises
- Retailers, Artisans, Traders
- MSMEs
- Private and Public Limited Companies
- Closely Held Limited Companies
- NGOs, Co-operative Societies and Trusts
- Self Employed individuals like doctors, architects, CAs, designers ect, CS, CMS, Services Provider.
Documentation for Business Loans
The list of documents required for a business loan to be submitted varies based on type of business entity. Submit the following documents to begin with the loan process:
For Lower Loan Amount Documents
- KYC
- ALL Current/CC Bank Account Statement for the last 12 months
- Business registration proof
For Higher Loan Amount Documents
- ITR for the past 2-3 years
- ALL Current/CC Bank Account Statement for the last 12 months
- Photocopy of PAN Card
- Address Proof for Residence such as Voter Card, Passport, Aadhaar Card, Telephone Bill, Electricity Bill
- Address proof for Business such as the Telephone Bill or Electricity Bill
- Last Financial Year's provisional Financials and future year's projections.
- Company's business profile on the letterhead
- 2 photographs of promoters and property owners.
- Sanction letter and Repayment schedule of existing loan
- GST registration certificate and GST returns of latest 2 years.
- D-Vat/Sale tax registration copy
- Udhayam Aadhaar registration certificate
- Rent agreement copy of factory and residence (if property is rented)
- Business Continuity proof of 3 years (3 years old ITR/Company registration etc)
- Company PAN Card, Certificate of Incorporation, MOA, AOA, List of Directors, and Shareholding pattern for Pvt Ltd companies
- Partnership Deed, Company pan Card for Partnership Companies