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 the initial stage or in a growth phase, capital is required to keep up the momentum, Acquiring the 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 this loan to facilitate individuals to 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
People looking for Business Loan in the following sectors can apply:
- Service Provider
- Software Company
- IT Company
- Small Business
Eligibility For a Business Loan
- Age: 21 years – 65 years
- Minimum Turnover: 15 lacs
- Minimum income (annual): Rs. 2 lacs
- Loan amount: Rs. 50,000 – 50 lacs
- Loan tenure: 1 year – 5 years
Documents Required For Business Loans to Get The Lowest EMI On Your Business Loan
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
Documents For Sole Proprietorship / Partnership Firm / Pvt. Ltd. wanting to Get The Lowest EMI On Your Business Loan
- 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 the last two years, audited by a CA and Copies of IT returns for the last two years)
- Bank Statements for the last 6 months
- Partnership Deed (Required only in case of Partnership Firm)
- Proof of Place of Business
- Two passport size photographs
Get The Lowest EMI On Your Business Loan. Apply Now!!!
Table of Contents
- 1 What is a Business Loan?
- 2 Purpose of a Business Loan?
- 3 Documents Required For Business Loans to Get The Lowest EMI On Your Business Loan