Thinking of getting self a business loan, but not sure about how to go about it? Fret not, as the business loan is easily available in the lending market today. You just need to meet the eligibility criteria for the business loan and have your documents handy to avail the best possible deal.
Apply for a business loan through a portal like Loansjagat wherein you can compare different lenders for their offerings in terms of interest rate, processing fees and charges, loan amount, loan tenure etc and also submit the requisite documents online thereby minimising the hassle of visiting the bank physically for depositing the documents.
The lenders seek your personal KYC documents and financial documents for business loan application. Here is a list of documents which shall be kept handy to make the processing of business loan smooth, quick and seamless.
- 1. Application Form
- 2. A document defining the identity of the applicant
- 3. Document acting as proof of address of the applicant
- 4. Document acting as age proof of the applicant
- 5. A document defining and acting as the income proof of the applicant
- 6. Financial documents
- 7. Documents acting as proof of business continuation
- 8. Documents pertaining to proof of ownership of business
- 9. Audited financials of past three years
1. Application Form
The applicant needs to submit the duly filled business loan application form along with one passport-sized photograph.
2. A document defining the identity of the applicant
The applicant needs to submit a proof of identity to the lender for which he can use any of the documents mentioned below:
- Driving License
- Photo PAN Card
- Passport
- Voters ID Card
- Aadhaar Card
3. Document acting as proof of address of the applicant
The applicant needs to submit a proof of address to the lender for which he can use any of the documents mentioned below:
- Ration Card
- Telephone Bill
- Passport
- Electricity Bill
- Trade license
- Lease agreement
- Sales Tax certificate.
4. Document acting as age proof of the applicant
Lenders consider age as key eligibility criteria and therefore ask for valid age proof of the applicant. Any of the below-given document can be submitted for the same.
- Passport
- Photo PAN card
- Voter’s identity card
5. A document defining and acting as the income proof of the applicant
Lenders seek your income documents to be sure of your loan repayment capability. One can submit bank statement of last 2 years for the same.
6. Financial documents
After the KYC documents, the banks seek the financial documents of the business. Failing to present these could result in your loan application getting rejected. Thus one must keep all these documents handy.
❖ Self Employed (Private Ltd. Co. and Partnership Firms):
- Last two years IT returns
- The balance sheet for the last two years
- The income statement of the past two years
- Profit and Loss statement of the past two years
❖ Self Employed Individuals-Professionals
- Bank statement of the past 6 months
- Last two years IT returns
- The balance sheet for the past two years
- Profit and Loss statement of the past two years
❖ Self Employed Individuals-Non-Professional
- Bank statement of the past 6 months
- Last two years IT returns
- The balance sheet for the past two years
- Profit and Loss statement of the past two years
The profit and loss statements and the balance sheet must be audited by a CA.
7. Documents acting as proof of business continuation
8. Documents pertaining to proof of ownership of business
The applicant needs to submit the following to prove business ownership.
- Sole Proprietorship Declaration
- A certified true copy of Memorandum & Articles of Association
9. Audited financials of past three years
❖ Self Employed (Private Limited Companies and Partnership Firms)
The businesses need to submit the documents mentioned below as proof of identity.
❖ Proof of Identity of Private Limited Company
Any of the following documents can be submitted for the same.
- Service tax
- Sales tax
- Excise registration
- VAT
- Water / Electricity / Registration under Shops and Establishment Act
- PAN
- Municipal tax bill
- Memorandum and Articles of Association
❖ Proof of Individual Identity
Identity proof needs to be submitted for two directors (inclusive of MD) and authorised signatories. Any of the following documents can be submitted for the same.
- Passport
- Driving License
- PAN Card
- Voter card
❖ Self Employed Individuals-Professionals
The following documents are required to be submitted:
- Documents pertaining to proof of identity of the sole proprietorship
- Documents pertaining to identity proof of the individual: One can submit their PAN Card, passport, Driving License or Election ID card for the same.
- Documents pertaining to address proof for sole proprietor: One can submit Ration card, passport, Election ID Card or Driving License for the same.
- IT Return or Water/Electricity bill or Municipal tax in the name of the individual.
❖ Self Employed Individuals-Non-Professional
Non-Professional self-employed individuals need to submit the below-given documents along with their application form.
- Documents pertaining to identity proof
- Documents pertaining to identity proof of sole proprietorship
- IT returns of past 3 years
- Sales returns for the last 3 years
- Bank statement of the past 6 months
- Last 3 months debt and creditor statement
