Business Loan – Taraqki ki EMI
Starting a business depends on two things one is IDEA and other one is Capital Fund. To have any business grow rapidly the investment has to be stable and well calculated to get higher returns.
Almost every Banks or Financial institution offers business loan which can be used to start or expand a business. These funds can be used for renting or buying a place, buying goods, hiring people, improving services and expanding.
Business loan can be classified in two loans
Professional loan :The professional loans are for individuals who are self employed like a doctor, charted accountant, etc. Different banks have different offers for the professional loan. The amount of loan and the required security varies from bank to bank. You have to present the complete business Model and personal financial statements to the bank in order to apply for the loan. You must also bring the proof of ownership. Your tax return references are to be submitted too. Loan payment period and condition varies from bank to bank, however there are some common condition that all banks apply according to regulatory requirements.
Trade loan:Trade loans are given by the banks to the businessmen. Some banks even grant you a trade loan up to Rs. 35 lakhs. The amount of loan depends on the factors like the size of the business and the loan period. You have to submit proof for two year’s existence of the business. You also need to present complete financial statements to the bank.
Calculate you EMI
Business Loan Features
List of documents Required for Business Loan
- Application Form
- Self-attested copy of KYC Documents
- Bank Statements (not more than 45 days old)
- All fields should be duly filled & Signed
- Entity proof – Partnership deed/Certificate of Incorporation/Shops and Establishment certificate
- Copy of PAN Card of Entity, Proprietors/Partners/Directors, Security providers and guarantors
- Address Proof of Entity, Proprietors/Partners/Directors, Security providers and guarantors
- Last 3 years Audited/Provisional Financials (Audited financials to include Balance Sheet, Profit and Loss Account along with schedules and Notes to Accounts, Tax audit reports, Statutory Audit report). In case of Provisional financials, VAT returns are also required.
- Current year performance and projected turnover on letterhead of the entity
- Last 1 year Income Tax returns of the borrowing entity (along with Computation of Income and copy of acknowledgement), if filed online, acknowledgement number is required
- Latest Bank Statements for last 6 months (in case of First Time Borrower) and 12 months (in case of Takeover proposals). In case of multiple banking, a statement covering minimum 75% of banking turnover is to be provided.
List of Document required
- Previous 3 inland LC transaction details for ascertaining track record
- Orders in hand and status along with order copies/Letters of intent/Contract agreements
- Project report containing cost of project, means of finance, expenditure incurred and projections along with justifiable details
- Government approvals for power, Pollution, Building plan along with documentary proofs
- Performa invoices of assets to be purchased, copy of allotment letter/conveyance deed in case of land, architect certificate for validating cost of building to be constructed
Business Loan FAQ’s
- Self Employed Individuals/Professionals
- Age (Min. 21 Years)
- Sole Proprietorship Firms
- Partnership Firms
- Private Limited Companies
- Sanctioning of the Loan