A business loan may be obtained with or without security or collateral, depending on the bank that provides the loan and the risk that they are willing to take. There are several banks in India that provide business loans for both small and large companies, whether it is for an established business or to start a new one. For any entrepreneur, laying the foundation for their venture can be very challenging. Raising capital and getting investors can be difficult and can take up a lot of your time. Even after one has built their company, it doesn't take long for the cash flow to deplete, forcing one to seek alternative financing. An online business loan may be the ideal option for funding your business.
To get a business loan, you must fulfil certain conditions. The following is a list of the conditions for applying for a business loan in India.
- Applicant must be over 25 years of age and maximum 65 years of age.
- Applicant’s must own a business running for at least 3 years.
- Income tax returns for the applicant’s business should be filed for minimum of 1 year
The documents required for a Business Loan include:
- Identity card – Appropriate KYC documents include Aadhar card, voter ID, PAN card, passport, driving license, or any government approved ID card
- Address proof – Documents include passport, electricity bill, ration card, telephone bill, trade agreement, trade license
- Financial documents – Copy of filed Tax Return filed for one year, 6-month bank statements, audited balance sheet and profit and loss statement of 2 years
- Business ownership proof – Proof of business ownership depending on the type of business and applicant
