Business Loan
- Business loans, like the name implies, are loans intended for business purposes. Like other loans, the terms require the borrower to pay back both the principal and the interest. Most business loans will require monthly repayments. Many banks and non-banking financial companies (NBFC) offer quick business loans at competitive interest rates.
- Business loans also come in many different forms.
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Small Business Loan
Secured Business Loan
SME and MSME Business Loan
Business Loan for Women
Term Loan
- Benefits of Business Loans
It offer a range of benefits to entrepreneurs, including:
They allow entrepreneurs to access the capital they need to expand their business, without worrying about falling short of funds.
They facilitate making the most of business opportunities as they arise, like servicing large orders.
Online loans have a very short turnaround time, and can help small business owners when they need capital in short order.
- Eligibility Criteria for a business loan
To avail of a these loan from a particular lender, you must first ensure that you meet their basic eligibility criteria. These conditions vary from lender to lender, and in order to qualify for a business loan, you need to meet the following criteria:
Your business should be part of the manufacturing, trading or services sector.
Manufacturing businesses should be at least 1 year old; trading companies should be 2years old; and services businesses should be a minimum of 3 years old.
For business loan eligibility, loan applicants should be between the ages of 25 and 65.
The minimum annual income (ITR) must be ₹1.5 lakh per annum
- Documents Required for a Business loan
Identity Proof: PAN card/passport/driving licence/Voter’s ID
Address Proof: Aadhaar card/passport/utility bills/lease agreement
Bank statement for last 6 months
ITR form in addition with certified copies with details such as income computation, balance sheet, and Profit and Loss (P&L) statement for the last 2 years
Sole Proprietorship Declaration or authenticated copy of Partnership Deed
Certified copy of Memorandum and Articles of Association