Business Loan

A business loan is a financial product that provides capital to businesses for various purposes, such as expansion, working capital, or equipment purchase, with terms, interest rates, and eligibility criteria that can vary depending on the lender and the type of loan.

Get Started

Features and Benefits of Business Loan

  1. Capital for Growth: Business loans provide the capital needed for expansion, allowing companies to invest in new opportunities and scale their operations.
  2. Flexible Repayment Terms: Business loans offer various repayment terms, which provides companies the flexibility to choose a schedule that aligns with their cash flow and financial goals, leading to enhanced Financial Control.
  3. Interest Deductions: The interest paid on business loans is often tax-deductible, reducing a company's tax liability and providing potential Cost Savings.
  4. Quick Access to Funds: Business loans can be obtained relatively quickly, which can be crucial for covering unexpected expenses or seizing time-sensitive opportunities, resulting in Financial Agility.
  5. Improved Credit: Responsible use of business loans and timely repayment can enhance a company's creditworthiness and open doors to better financing options in the future.
  6. Collateral Options: Business loans can be secured or unsecured, allowing businesses to choose the option that best suits their financial situation and assets, leading to Risk Management.

Business Loan Eligibility Criteria

  1. Credit Score:Lenders often require a good credit score to demonstrate the business's creditworthiness.
  2. Business Age: The business should typically have a minimum operational history, often at least one to two years, to qualify for a loan.
  3. Annual Revenue:Lenders may have a minimum annual revenue requirement, which varies based on the type and size of the loan.
  4. Collateral (if applicable): Secured loans may require collateral, such as business assets or real estate, to secure the loan.
  5. Business Plan and Purpose: Lenders may ask for a well-structured business plan outlining how the loan funds will be used and how they will benefit the business.
  6. Debt Service Coverage Ratio (DSCR):Lenders may assess the business's ability to cover loan repayments by evaluating the DSCR, which compares the business's net operating income to its debt obligations.

Documents required to apply for Business Loan

  • ITR for the past 2-3 years
  • Current Bank Account Statement for the last 12 months
  • Photocopy of PAN Card
  • Address Proof for Residence such as Voter Card, Passport, Aadhar Card, TelephoneBill, Electricity Bill
  • Address proof for Business such as the Telephone Bill or Electricity Bill
  • Last Financial Year's provisional Financials and future year's projections.
  • Company's business profile on the letterhead
  • 2 photographs of promoters and property owners.
  • Sanction letter and Repayment schedule of existing loan
  • GST registration certificate and GST returns of latest 2 years.
  • D-Vat/Sale tax registration copy
  • Udhayam Aadhar registration certificate
  • Rent agreement copy of factory and residence (if property is rented)
  • Business Continuity proof of 3 years (3 years old ITR/Company registration etc)
  • Company PAN Card, Certificate of Incorporation, MOA, AOA, List of Directors,s and Shareholding pattern for Pvt Ltd companies
  • Partnership Deed, Company pan Card for Partnership Companies

LOANS

Personal Loan Home Loan Business Loan Car Loan