The growth and sustainability of a business depend on the continuous inflow of funds. The funds might be required to expand the business activities or purchasing equipment. The funds can be borrowed in the form of a loan from banks / financial institutions in the shape of term loan or overdraft facility . Business Loans are unsecured in nature which means no collateral or security is required to borrow a loan. . A Business Loan in India is offered at competitive interest rates, with a low processing fee, and without any security or collateral. Several leading banks and NBFCs including HDFC Bank, ICICI Bank, IDFC First, Citibank, Fullerton India, Tata Capital, Bajaj and so forth are offering business loans.
Age
Minimum- 21 years Maximum- 65 years (Age may vary from bank to bank)
Who can apply?
Sole Proprietorship Partnership Firm Private Limited Companies Closely Held Public Companies
Business Profitability
Business should be in the progressive turnover and profitable state for at least 3 consecutive years.
Company / Business /Firm Financials
Complete financials including Balance sheet and Profit & Loss statement for last 3 years, Tax audit reports, ITR and computation of income of firm/ company/directors/partners/proprietor.
Credit Score
Good Credit Score (650 and above)
Documents Required for Business Loan
Identity Proof Aadhaar Card PAN Card
Address Proof
Any one of the following: Aadhaar Card PAN Card Driving License Voter ID Passport Bank Statement (Bank Account Passbook updated and of recent six months)
Ownership Proof
Proof of ownership of residential or commercial property (including parental property), shop act registration
Financials
Complete financials including Income Tax Return of last 3 years, Balance Sheet, Profit and Loss Statement, Tax audit reports, VAT/GST returns , ITR, computation of income of firm/ company/directors/partners/proprietor
Other Documents
Loan application form Passport Size photographs duly signed across MSME / Udyam Registration Certificate GST registration Certificate Rent Deed in case of rented premises MOA in case of Companies Partnership deed with registration in case of Partnership firms. Bank statements of all Current accounts, saving accounts, loan accounts, credit cards for last 6 Months. Sanction letters and loan schedule of all existing loans/ credit facilities. Loan tracks
Business Loan Interest Rate Competitive interest rate starting at 16 to 20 %
Loan Amount Minimum 3 Lakhs Maximum 1 Crore
Nature of Business Loan Unsecured (No mortgage required)
Loan Tenure Ranges from 36 months to 60 months
Processing Fee Up to 2% of loan amount( negotiable case to case)
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