What is needed to apply for a business loan? - Letsdiskuss
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Posted 23 Jan, 2019 |

What is needed to apply for a business loan?

sanofar banu

Human Resource | Posted 25 Feb, 2020

It is better for you to go to the bank which you are expecting to get the loan. And ask them directly, Becuase each will tel their experience. But it may differ. So its the best way

alvina clair

Financial adviser | Posted 25 Feb, 2020

In India, getting a business loan depends on the type of bank you are going to apply. Some of the basic documents you need to check before approaching a bank are:
  1. Age limit (Well, you must be above 21 at least, while the maximum age will be below 65).
  2. If you are having an existing business then, it should be a minimum of 2 years old with a turnover of Rs.3 lakh.
  3. If you’re going to start a business, there are banks that are ready to give startup loans.
  4. A Credit score is a must because without a high credit score it is not possible to get loans.
  5. ID proof, and Address proof, for communication purposes and also for banks to confirm that the business is not fake. 
  6. A surety signature in-case if the person taking the loan couldn't repay.
Not only banks but also some private financial advisory firms do provide business loans, with low-interest rates without any hidden charges. I would prefer to try them once.

Rajeev Sharma

@letsuser | Posted 20 Feb, 2020

To get business loans in India, applicant must maintain good credit score with decent repayment capacity. Private and public sector banks offer unsecured business loans without asking for any collateral from the applicant. Business loans can be availed by applicants if they want to start their own enterprise or to expand their existing businesses. The interest rate offered by banks varies from one another and loan amount offered depend on the business requirements. Government institutions also offers business loans with the help of private sector banks. Some of these loan schemes include Stand up India, Start-up India, CGTMSE, PMEGP, Mudra loan scheme etc. Applicants need to submit all the required documents with the application form in order to get business loans in India. 

james peter

Employee | Posted 06 Sep, 2019

Hi, it all depends upon good credit score and there are two types of business loans available secured loans where need to provide surety or guarantor against the loan and for unsecured loans are short-term loans without any collateral or guarantor needed. Also giving assurance to the lenders with a proper source of income and business plan

Ashish Gupta

Finance | Posted 05 Sep, 2019

Applying for a business loan can be a tedious job with a bank as you require collateral/asset against applying for a business loan. There are different requirements depending on what category your business falls under. Below is the list of type of business and the docs required for every business type.

For business registration, one can use the following docs:

1) Business Registration Certificate

2) GST filing

3) Gumastadhara

4) Trade License

5) Drug License

6) TIN

7)VAT registration

Anuj Pandey

@letsuser/financialadvisor | Posted 23 Jan, 2019

A business loan is a great way to secure your financing and increase working capital. You can easily apply online for a business loan up to Rs. 30 lakhs with minimum documentation from any NBFC.

Generally, banks involve a lengthy documentation process, so it is better to apply for a loan from an NBFC. You can apply for a business loan, if you are running a business that is:

Limited or private limited company
Partnership or proprietorship firm
Chartered accountant
Self-employed professional

You, as a business loan customer, should have a profile:

o Self-employed professional
o Self-employed non professional
o Entities like partnership or private limited

A few business loan requirement that you need to submit while applying for a loan are:
Application form
Income details like IT returns, balance sheet, P/L account statement for last 2 years
Bank account statements for last 3 months
KYC documents
Business vintage proof of 5 years minimum
Business practice proof