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Dialabank.com helps you find the most suitable offer for Business Loan

1. Personalised Service : Our trained Relationship Managers will understand your requirements and your profile and help you find the most suitable Business Loan offer.

2. Rate Comparison : We help you understand the details of all costs involved in taking a Business Loan and help you find the Cheapest Offer.

3. Research : Benefit from our detailed research on all the products from the leading Business Loan players in the market and make the right choice.

4. Zero Charges : Dialabank offers personalised service to its customers at zero fees. Use our services to find the right Business Loan deal at no extra cost.

5. Unbiased and Transparent Search : Our objective is to simplify your Business Loan search and we provide information in an unbiased and transparent manner

Find the right Business Loan Offer with help from www.dialabank.com

1. Online : Fill in your Business Loan requirements in the online application form and our trained Relationship Manager will contact you with the best Personal Loan offer basis your profile.

2. Dial “60011600” and get the personalised service of a trained Relationship Manager who will help you with your Business Loan requirements

Take benefit of our EMI calculator to check affordability of your Business Loan EMI

What is a Business Loan?

If you own a business, you will need money to run it smoothly. When you run out of money, you might face difficulties to run your business. Business loans are sought for the purpose of expansion and growth of a business.Business loans are provided by various banks to business people for their short or long term financial needs. For any business whether in initial stage or in growth phase, capital is required to keep up the momentum,Acquiring a right kind of office space is essential for the success of the business. And to fulfil these purposes various private and public sector banks provide business loans to facilitate individuals realize their dreams.

Purpose of a Business Loan?

Businesses raise their capital by inviting shares and debentures or simply borrowing from banks and other lending institutions.  And the purpose of doing so could be different –

• Expansion of an existing business
• Compensating a deficit in the operating capital
• Designing a new concept or product in a new business
• Starting a new business

Types of Business Loans

Secured Business Loans: In secured Business loans, the borrower promises his assets as collateral against the Business loan. In return, the creditor grants the loan. The assets he or she pledges then become a 'secured loan' or In case of a default, the creditor gets the possession of the collateral. As a result, the creditor can recover or regain the amount of the money loaned by selling the collateral.

Unsecured Business Loans: Unsecured Business loans are the exact opposite of secured ones. It is a kind of a loan or debt, which is not supported by collateral. It is difficult to get an unsecured Business loan; however, it is cheaper at the same time. Here, the credit rating of the business matters. It is basically an assessment of the repayment capabilities of the business. 

Professional Loans: Professional loans, as their very name suggests, are provided to self employed professionals like Doctor, Chartered Accountant, Interior Decorator, Architect, Company Secretary, etc. Unsecured in nature, this type of loan is not given to manufacturing, trading or processing units. The amount of loan varies between Rs. 25000 to Rs. 25 lakh, considering the age of the applicant, his financial standing, his repayment capacity, tenure of the loan (maximum 5 years), etc. 

Trade Loans: Trade loans are provided to traders/ businessmen, so as to help them either open a new business or operate/expand an existing one. The amount of loan varies between Rs. 25000 to Rs. 100 lakh, considering the age of the customer, his financial standing, his repayment capacity, tenure of the loan, etc. 

Short-term Business Loans: Used for short-term working capital requirements and paid within 1 year. 

Intermediate Business Loans: Used for new business, to build inventory, buy equipment or increase working capital, and paid between 1 and 3 years. 

Long-term Business Loans: Used for well established business, to increase fixed assets, for related business acquisitions or expansion, and paid between 3 and 5 years. At times, used for start-up business, to purchase land or buildings, fund construction efforts or finance long-term working capital. 

Documents Required For Business Loans

Business Loan Documents For Professional Loans

• Proof of Identity (Passport Copy/ Voters ID Card/ Driving License)
• Address Proof (Ration Card/ Telephone Bill/ /Electricity Bill/ Passport)
• Bank Statements (latest 6 months bank statement /passbook)
• Latest ITR, along with computation of income
• Balance Sheet & P&L Account for the last 2 yrs, certified by a CA
• Qualification Proof of the Highest Professional Degree
• Proof of Continuation (Trade license /Establishment /Sales Tax Certificate)
• Other Mandatory Documents (Sole Proprietorship - Declaration, Partnership - Copy of Partnership Deed, Apart from Copy of MOA, AOA & Board Resolution)
• Two passport size photographs

Business Loan Documents For Sole Proprietorship / Partnership Firm

• Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration Receipt OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern)
• Proof of Individual Identity (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card)
• Proof of Residence Address (Copy of Passport/Voter's Identity Card/Driving License/Ration Card/Life Insurance Policy/Electricity Bill/Telephone Bill)
• PAN Number/Form 60 of the Concern
• Financial Documents (Copy of P & L Account and Balance Sheet for last two years, audited by a CA and Copies of IT returns for the last two years)
• Bank Statements for last 6 months
• Partnership Deed (Required only in case of Partnership Firm)
• Proof of Place of Business
• Two passport size photographs

Business Loan Documents For Private Limited Company

• Proof of Identity (Copy of Sales Tax / VAT /Service Tax / Excise Registration OR Registration under Shops and Establishment Act OR PAN ID / IT Return of the Concern OR Water / Electricity / Municipal Tax Bill in the Name of the Concern OR MAPIN Card in the Name of the Concern)
• Memorandum and Articles of Association (Copy of Certificate of Incorporation)
• Board Resolution (Copy of Annual Return establishing the shareholding pattern)
• Proof of Individual Identity for the authorized signatories and 2 directors, including the managing director (Copy of Passport/Voter's Identity Card/Photo PAN Card/Driving License/MAPIN Card)
• List of Directors
• Copy of Form 32 filed with ROC
• PAN Card / Form 60 of the Concern
• Financial Documents (Copy of P & L and Balance Sheet for last two years, audited by a CA, and Copies of IT returns for the last two years)
• Bank Statements for last 6 months
• Proof of Place of Business
• Two passport size photographs

Eligibility For a Business Loan

• Minimum age: 21 years
• Maximum age: 65 years
• Minimum income (annual): Rs. 200,000
• Minimum loan amount : Rs. 25,000
• Maximum loan amount : Rs. 2,00,00,000 
• Minimum loan tenure : 1 year
•  Maximum loan tenure : 5 years

How to Get a Business Loan

This might be useful for a business owner to understand the qualities that a loan underwriter looks for in an applicant who is seeking a Business loan.

• First of all, you should know that some banks will base their decision purely on the financial numbers of your business. If your numbers are great, these banks are fine. If your situation is unique, you want to look for a funding source those factors in human evaluations.
• The next thing to do would be to communicate your needs very clearly to the banker. Tell them that you are looking for a certain principle at a certain rate. Communicating your requirements to the banker very early in the process will help you avoid wasting your time with banks that would never give you a loan.
•  Avoid loan brokers or third parties who arrange loans as they can charge you exorbitant fees that will add to the cost of your business.
• When approaching a bank for a business loan, make it very clear to them that you want to keep your personal and business credit separate. Some banks will approve your business loan but peg it to your personal credit history which will make it very difficult for you to make a large personal purchase such as a house or real estate
• You must understand that a bank will take all your expenses into account when they consider your business loan. This will mean that they will look at your rent, mortgage, car payments, credit card payments, utility bills and so on.