Applying for a Business Loan? Find a Complete List of Documents
Business Loans are perfect for small business owners and entrepreneurs looking for financial assistance without increasing their cost of borrowing. These loans are unsecured credit products that can be used for a variety of business expansion-related expenses. Before you apply for the loan, it is important to collect all the Business Loan documents for the application process.
This will help you speed up the loan application process and help you fill out the application form properly with all the Business Loan documents. Below is the list of documents required for a Business Loan online.
Business Loan documents required
| Documents | Requirement |
| KYC documents |
|
| Business address proof | Lenders accept your utility bills/ rent agreement as business address proof |
| Financial documents | You are required to submit the bank account statement for the past 6 months |
Eligibility Criteria for Business Loans
| Criteria | Requirement |
| Age | The applicant should be 24 years old at the time of loan origin and 65 years old (maximum) at the time of loan maturity |
| Business Vintage | The applicant’s business should have a business vintage of at least 2 years |
| Annual Turnover | The applicant’s business should have a minimum annual turnover of ₹6 Lakh |
How to use a Business Loan for your enterprise?
Every enterprise is unique, with varied financial requirements. However, Business Loans come with no end-use restrictions and can be used for various business-related purposes. Apart from covering emergency expenses, you can use a Business Loan for the following cases:
- Buying machinery and equipment: Technologically advanced machinery and equipment can be expensive to acquire. It is important to stay up-to-date with the latest machinery and equipment to generate the maximum output and revenues. You can use a Business Loan to finance expensive machinery purchases.
- Debt consolidation: Consolidate your high-interest debt with a Business Loan if you have multiple ongoing loans. Debt consolidation is the process of combining multiple EMIs into a single payment for better management of finances.
- Service expansion: If you wish to introduce more products and services, a Business Loan will definitely come in handy. Such situations give rise to various unexpected expenses, and you can take care of these expenses with a Business Loan.
- Procuring raw materials: Expanding your product portfolio means the introduction of new products and raw materials. If you wish to buy high-quality raw materials for your new products, you can use a Business Loan for the same.
- Hiring staff: You can use these funds to hire trained staff to help you manage company-related operations. If you do not have enough personnel and cannot find trained staff, you can use the funds to help your existing staff upskill.
How to apply for a Business Loan online?
You can apply for a Business Loan with your chosen lender by following simple steps. Most lenders offer online application processes, so you don’t have to visit a branch or the lender’s office to submit your application. Simply gather soft copies of your Business Loan documents and follow the below-mentioned steps.
- Step 1: Click on the dedicated page for Business Loans
- Step 2: Read the eligibility criteria and the list of required documents carefully
- Step 3: Click on ‘Apply Now’
- Step 4: Fill in the online Business Loan application form carefully
- Step 5: Upload soft copies of the supporting documents
- Step 6: Await confirmation and disbursal
In conclusion
Business Loans are unsecured credit instruments that are beneficial for small business owners and entrepreneurs. You can get a Business Loan online at attractive interest rates. Before applying for the loan, you can use an online EMI calculator to determine your monthly payments.
Also Read: Can You Get an Instant Personal Loan in Bangalore?
These tools are available online for free and are easy to use. Calculating your monthly payments beforehand will help you create a monthly budget, ensuring that you don’t miss out on any EMI payments.
