Earlier, it was very difficult to get a business loan. People had to run from one chair to another. One had to wait for heavy documents and months to get a loan. But today, very little documents are required for online business loan and the amount comes to your account in a few days.
Business loans are usually taken to increase business, buy machines and increase working capital. To get the best business loan at affordable interest rates, you also have to do research at your level.
You have to consider your financial capability before deciding on the business loan amount. If you take more business loan than you need, then you will have to pay more interest. However, if you take less loan than you need, then the purpose of taking your loan will not be fulfilled.
Let us tell you what things to keep in mind for the business loan application.
Business loan application form
Every lending institution is different from each other. But all these information ask for the same. So be ready to answer every question. While filling the loan application, keep all the information in your hand. These questions are usually asked.
– Why are you applying for a business loan?
– How will you repay the loan amount.
– Have you taken loans from other places.
– Questions related to your personal life.
Apart from this, you will have to provide personal information such as postal address, PAN and Aadhaar card.
Many people who give loans often ask to submit a business plan along with the loan application. The business plan should have a set of financial statements, PNL account, cash flow and balance sheet. The CIBIL score is also an important qualification, which is seen by every lending institution. He also sees this as part of the loan application process. But you should also see CIBIL, so that those things can be fixed, which are reducing your credit score. To get a business loan without security, it is necessary to have a large credit score.
Business loan documents
It is very important to submit these documents with the loan application.
ID proof: You have to submit Aadhar card, PAN card, voter letter etc. card as ID proof.
Residential proof: This is also an important need. You will have to submit a residence proof such as an electricity bill or rent agreement.
Age certificate: Many lenders also ask for proof of age, for which you can give PAN card, passport and voter card.
Financial documents: You have to give income tax returns of last 2-3 years, bank statement, profit and loss sheet of at least 9 months. Apart from this, you will also have to audit the PNL account with an experienced Chartered Accountant.
Track Your Credit Score: Before applying for a business loan in India, please check your credit score. On the basis of your credit score, lenders check your credibility and ability to repay the loan. Having a high credit score increases the chances of your application getting approved.
Keep documents ready: As soon as you know what documents you need for a business loan, submit them all in one place. You photocopy them or make an e-copy through scan.
Apply for a Business loan
As soon as all your documents are ready, you should apply for a business loan. For this, you have to choose the right lender according to your needs. You have to research which business loan granting institutes are in your city. Shortlist them according to the need of the documents, eligibility criteria and terms and conditions. With this you will go to the right lender instead of getting caught in various lenders’ circles. If you have fulfilled all the requirements then you will get a business loan easily. Keep in mind that the process of online lenders is easy, so that you get a loan without any hassle.