Business loans are obtained for meeting various short-term and long-term financial needs. Capital is required for starting as well as for running the business. In order to get your loan approved, you must meet all the eligibility criteria and submit all the required documents to your lender.
Business Loan Eligibility:
Before applying for a business loan, it is imperative to make sure that you meet all the eligibility criteria mentioned below:
- Age Limit: Not less than 21 years and not exceeding 65 years.
- Range of Loan Amount: Minimum INR 25,000 and Maximum INR 2,00,00,000
- Minimum Annual Income Required: INR 200,000
- Loan Tenure: Minimum period of 1 year and maximum 5 years.
The list of documents required for various types of business loans are tabulated below:
|Type of Business Loan||Documents Required|
|Business Loans for Professionals
- ID Proof - Passport, Pan card, Voters ID Card and Driving License.
- Address Proof - Bank statements, ration cards, electricity bills and telephone bills.
- Degree / diploma of highest professional qualification
- Updated bank passbook along with bank statements of previous 6 months.
- ITR with full computation of income.
- Business continuation proof including sales tax certificate and trade license.
- Balance sheet and CA certified account of last two years.
- Passport size photographs
|Documents Required in case of Proprietorship or Partnership Firm:|
- Proprietor's individual identity and residential address proof - Voter identity card, passport, PAN card, MAPIN card and driving license.
- Business identity proof - Sales tax copy, excise registration receipt, service tax, PAN ID, VAT, copies of bills of water, electricity, municipality and IT returns.
- Business address proof
- Balance Sheet and IT returns paid.
- Form 60 and PAN number.
- Bank statements and passport size photographs.
|Documents Required in case of Private Limited Firm|
- Letter from board that includes copy of annual return to establish the shareholding pattern.
- Individual identity proof for authorized signatories. This should be inclusive of copies of PAN card, MAPIN card, Driving License, passport and voter's identity card.
- List of board of directors.
- Filled in Form 60.
- Documents of finance like balance sheet and income tax return copies.
- Bank statements of last six months.
- Passport size photographs.