If you want to start your own new business, or want to expand your business, but not sure if you have proper adequate funds or not, then you have an option to take a business loan from any government or private bank or financial agency.
A business loan is basically a borrowed amount of capital that is used for an investment in a new or existing business set up. Whether you are a small or medium-sized enterprises or large business house, you may need a business loan for your business.
Eligibility Criteria:
If you want a business loan, your eligibility criteria would depend on your business requirements:-
- Minimum age of the applicant should be 21 years and maximum up to 65 years at time of maturity of loan.
- Work Status: Self-employed.
- Business Tenure: Minimum 1 year or above.
- Minimum Annual Turnover: Varies from person to person.
- Credit Score: 750 or above.
- Applicant must have no past loan defaults with any financial institution.
Eligible Entities
- Individuals, Business Owners, Entrepreneurs, Self-employed professionals (CAs/CSs/Doctors/Architects), Startups, and MSMEs.
- Private and Public Limited Companies, Sole Proprietorships, Partnership Firms, Limited Liability Partnerships (LLPs), and Large Enterprises engaged only in the Manufacturing, Trading, or Services Sectors.
- NGOs, Co-operative Societies and Trusts, etc.
Documents required while applying for a Business Loan
While applying for a business loan, you should keep the following documents ready to be submitted in the bank:-
- Duly filled application form along with recent passport size photographs.
- KYC Documents of the applicant, such as PAN card, Passport, Aadhar Card, Driving License, Voter ID card, Utility Bills like water bill or electricity bill.
- Last 1 year bank statement.
- Copy of Non-Collateral Overdraft, if any.
- Copy of Business Incorporation.
- Any other document required by the lender.
Fee and Other charges:-
Depending upon the applicant’s profile, creditworthiness, nature and type of business, desired loan amount, offered interest rate, repayment tenure, and several other factors, bank and other financial companies charge processing and other fee.
Apply for your Business Loan online
Even while sitting at home, you can apply for Business Loan via online mode. For this, you just have to sit at home and make a few taps in different steps, which are as follows:-
Step 1: Fill in the required fields as mentioned in the form and Check the box to agree on terms. Then tap to ‘Unlock first Offers’.
Step 2: Further you will be required to mention your company’s details and your basic personal information, along with your registered mobile number and email address.
Step 3: After submitting all the details, the bank’s representative will contact you to proceed with loan formalities.
Step 4: Once your loan application and documents are verified and approved by the bank, within 2-3 working days, the loan amount shall get disbursed in your bank account, whose details you have given.
