Looking for Business Loan ?

The survival & growth of small scale enterprises/industry are essential to a developing economy. The small scale industry that flourishes, offers employment & livelihood to multitudes from all strata of society.

vailability of Capital is essential for the smooth running of any business enterprise: the requirement for funds was traditionally fulfilled by borrowing from family/friend or a money lender who charged exorbitant amounts as interest. With the emergence of banks &NBFC‘s funding is now readily available for business expansion & growth. Unsecured loans without any collateral are offered to small & medium business men to fulfil their financial requirements.

Eligibility Criteria for a Business loan

The eligibility for a Business Loan depends on the valuation of the Business, the industry and the number of years in operation. Lenders will check the cash flows, total outgoings and the current credit being used. A financial analysis will be done professionally prior to approving the loan.

To be eligible for a Business loan the Business entity must be in existence for a minimum of 5 years or more with the Income Tax returns filed for 3 years.

• The Business must be profitable with a turnover of ₹ 1 crore or more per year, with visible positive trend and increase in turnover.
• It is mandatory for the company to have a credit history of 12 months or more: the CIBIL score should be above the required benchmark.
• The financials of the company should be in order; the borrowings should be easily paid back as per the income.
• The Banking should be healthy, with the average balance maintained above the required benchmark. There should be no bounces cheque or EMI returns in the statement.
• A self owned property which can be residential, commercial or industrial registered in the name of company or any of the directors is required.

Benefits of a Business Loan

Banks focus on providing credit amenities via business loans in order to promote comprehensive growth of small and medium size businesses. Applying for business loan provides the following benefits:

• A Business loan is processed without any security or guarantees on basis of the financial of the company and documentation, the profitability of the business being the main criteria.
• Finance achieved via a Business loan can be used to further any Business activity or expenses whether it is for daily needs or further expansions without any encumbrance.
• A Business loan is processed within a week, contributing to manage unexpected expenses: making funds available for you when you need them most.
• Repayment of the Loan taken can be made conveniently through equated monthly installement, over a flexible tenure from 12 to 48 month.
• Unlike investments from private equity firms or entities, there is no need for profit sharing funds appended as a business loan can be used as required.
• The rate of Interest is reasonable as compared to funding from local money lenders, charged @ monthly reducing Balance.

Documents Required For Processing Your Loan

Business Loans are processed as per the Profile of the Applicant /nature of Business Entity

• Proprietorship
• Partnership
• Private Limited/Limited Company

Photo I.D. of All Individual Applicants

• Copy of any one of following documents is Eligible as a Photo I.D
• Pan Card/Aadhaar Card/ Passport/Driving Licence

For Non Individual business entities valid ID proof documents

• Pan Card/Sales tax Certificate/Vat registration certificate/GST registration certificate

As an Address Proof for Individuals

• Aadhaar Card/ Passport/Driving Licence/Mobile or Land line bill

Business Continuity proof for 3 years vintage

SENP

• Partnership deed/MOA & AOA with certificate of incorporation.
• Shop & Establishment Certificate
• Service Tax/Sales Tax/ Vat registration/ GST registration certificate.
• Audit report with nature of business & I.T return
• Previous 6 months Bank Statement

SEP

• 3 years old Business, Professional or Practising documents
• Registration Certificate
• Audit report with nature of Business

As Ownership Proof

• Utility Bills/Property Tax Receipts/Copy of Title Deed

Income Document

• Income Tax Return for the last 2 years with audited Financials.
• Income Tax Return with computation of Income for the last 1 year for all Partners/Directors coming on the Loan.

Bank Statements

• 6 Months Bank Statements for all Business operating accounts.
• 6 Months Savings account Statements of Proprietors.
• Statements of all loans taken to date