What is a Business loan?
Business loans are loans for all your business needs including additional investment, business expansion and working capital requirements. Business loans can be either secured or unsecured.
Who can apply?
Individuals aged between 21 and 65 years of age and legal business entities in India, with a proven record of profitability and existence in a particular line of business for at least 3 years.
Is a guarantor required?
A guarantor is not mandatory. However, the existence of a co-borrower or a guarantor increases the chances of the loan getting sanctioned.
Is collateral security required?
Again, collateral security is not mandatory. However, the availability of a collateral security increases the chances of the loan getting sanctioned.
What is the maximum funding?
The maximum funding is ₹ 20,00,000/- with tenures extending up to 60 months.
What are the documents required?
- Copy of PAN and proof of address of the individual or the legal business entity,
- Bank statements for the last 6 months
- Balance sheet
- Statement of profit and loss
- GST returns
- Income tax returns for last 3 years audited by a Chartered Accountant
- For legal entities KYC documents issued by the government for proof of identity and address of the sole proprietor or all the partners/directors/trustees as the case may be.
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Apart from these,
a) partnership firms shall submit a copy of the deed of partnership and certificate of registration of partnership,
b) trusts shall submit a copy of the registered trust deed,
c) companies shall submit a copy of the certificate of incorporation, memorandum of association and articles of association. - Other additional documents such as registration under Shops and Establishments Act, Food Safety and Standards Authority of India and other departments concerned shall also be submitted.