DOCUMENTS REQUIRED FOR A BUSINESS LOAN

Whether you need funding to expand operations, purchase equipment, or manage working capital, a loan for business can provide the necessary financial support. Learn about the key documentation requirements when applying for business loans.

Documents for Business Loan Applications

While applying for a business loan, online or offline, ensure you carry the following essential documents:

1. Identity Proof of Applicant(s)

• PAN Card
• Aadhaar Card
• Voter ID Card
• Passport
• Driving License

2. Address Proof of Applicant(s)

• Aadhaar Card
• Voter ID Card
• Passport
• Utility Bills (Electricity, Phone, Gas, etc.)
• Ration Card
• Rent Agreement or Registered Lease Deed

3. Business Proof and Vintage

• Business Registration Certificate
• Partnership Deed (for Partnership Firms)
• Memorandum and Articles of Association (for Private Limited Companies)
• Udyog Aadhaar / MSME Registration Certificate
• Shop and Establishment Act Certificate
• Factory Registration Certificate
• SSI / MSME Registration Certificate
• Import Export Code Certificate
• GST Registration
• Proof of Business Continuity (ITR, Trade License, Bank Statement, etc.)

4. Business Turnover and Cash Flow Documents

• Latest 2 Years Audited Financial Statements (Balance Sheet, Profit and Loss Account, etc.)
• Latest 2 Years Income Tax Returns of the Firm and Directors / Partners
• Latest 6 Months Bank Account Statements of Firm
• Processing of Order Book and Sales
• Provisional Financial Statements for the Current Year

5. KYC Documents of Directors / Partners / Proprietor

• PAN Card
• Aadhaar Card
• Passport Size Photographs

6. Collateral Documents (for Secured Business Loans)

• Property Documents (Sale Deed, Share Certificate, etc.)
• Valuation Report of Property
• Property Insurance Policy Documents

How to Submit Business Loan Documents?

To submit documents for business loans, you can choose either the online or the offline method, depending on your preference and the lender’s requirements:

Online:

• Step 1: Visit the Website or App: Visit the official website of your preferred online creditor or download their app from the Google Play Store or Apple App Store.
• Step 2: Fill Out Application: Navigate to the ‘Business Loan’ section and fill out your application form with necessary details, such as business information, loan amount and purpose.
• Step 3: Upload Documents: Scan and upload key documents like your business plan, financial statements, KYC documents, tax returns and collateral details (if needed). Ensure each document is clear and legible.
• Step 4: Submit and Track: After uploading, submit the form. You can track the application status via the online portal or app.

Offline:

• Step 1: Branch Visit: Go to the lender’s branch and collect your business loan application.
• Step 2: Complete the application: Carefully fill out the loan application, providing accurate details about your business and loan requirements.
• Step 3: Submit physical documents: Hand over photocopies of the required documents, including identity proof, financial records, collateral documents and any other paperwork required by the lender.
• Step 4: Follow-Up: The bank will review your documents and get back to you with the loan status. You can also make a visit to enquire about your application status.

Conclusion

Applying for a business loan in India is simple and requires the right preparation. Prepare the necessary paperwork in advance to streamline your business loan application process. While the documentation may seem extensive, it is important for lenders to assess your creditworthiness.

If you’re seeking a quick and reliable solution, FlexiLoans offers an easy online application, minimal paperwork and competitive interest rates. With FlexiLoans, accessing the funds you need to grow your business is straightforward. Fuel your business growth with easy access to desired business loan financing.

FAQs

1. What is an unsecured business loan?
   An unsecured business loan is a type of loan that does not require any collateral or security. The loan is granted based on your creditworthiness and business performance.
2. Can I apply for a business loan with a limited credit history?
   Yes, you can easily apply for business loans even with a limited credit history. Some lenders, like FlexiLoans, specialise in providing lines of credit loans with minimal documentation and credit history requirements.
3. How does business vintage impact your eligibility for business loans?
   The vintage or operational history of your business plays a significant role in determining your business loan eligibility. Lenders prefer businesses with a stable and proven track record, as it indicates lower risk and better repayment capacity.
4. What is the typical business loan interest rate in India?
   The business loan interest rate varies depending on factors such as the lender, loan amount, tenure and borrower’s creditworthiness. However, interest rates typically range from 12% to 24% per annum for unsecured business loans in India.
5. Can I apply for a business loan online?
   Yes, FlexiLoans, facilitates the online business loan application process. This method is convenient, fast and requires minimal documentation, making it easier to access funds.

Read More:

Unsecured Business Loan Eligibility Criteria

Documents Required for Different Types of Business Loans

How To Organize And Submit Documents For Business Loan Approval?