How to Check Your Small Business Loan Status
Sep 13, 2021
A small business loan is also known as a commercial loan. The loan financing option suits applicants who need cash immediately to cater to the pressing working capital requirements. Small business loans are mainly of two types, secured and unsecured business loans. One can apply for any of them based on their choices and present business conditions.
Features of Small Business Loans
Funds Are Available at an Affordable Business Interest Rate
Small businesses have to struggle significantly in the initial stages to make a place for their brand in the highly competitive market. So, to help them, the Government of India started offering small business loans to MSMEs and SMEs who need immediate financial assistance. The best part about the small business loan schemes offered by the Government of India is that it is offered after evaluating the business requirements and potential. There is no need to give collateral to the lender against the loan.
Popular Small Business Loan Schemes Offered by the Government of India
- MUDRA Loan
- Credit Guarantee Fund Government Business Loan Scheme
- Credit Linked Capital Subsidy Scheme
Option of Flexi-loan
The flexible-business loan is a great initiative started by the bank and financial institutions. Under this, the financial assistance is given to the business owner to make fund withdrawal according to the requirement of the business and after that make repayment as per the cash flow. In flexiloans, the financial institution only asks the borrower to pay the interest.
Unsecured Business Loans
Many lenders online offer unsecured business loans. However, it is challenging for them to trust the creditworthiness of a start-up or small business. Still, small business loans are granted so that they can survive in the competitive market.
Online Business Loan Application
Many government business funding schemes and financial institutions offer the facility to apply for business loans from the comfort of your home.
Benefits of Applying for a Small Business Loan
- Quick loan disbursal
- Online business loan application: 100% contactless and touchless procedure
- Minimal documentation
- Simple eligibility criteria
Small Business Loan Eligibility Criteria
- The candidate must be a resident of India to apply for a small business loan.
- The minimum age requirement to apply for a small business loan is 21 years and the maximum is 65 years.
- The minimum business turnover should be Rs 10,00,000 in the last year.
- The candidate must have filed an ITR of 2.5 lakhs in the last financial year.
- The candidate must have run the business in continuity for at least three years and have five years of the total experience of handling the business.
How to Apply for Small Business Loans?
The procedure of instant business loans is quite different from retail loans. So, the applicant sometimes faces difficulty in understanding the application procedure. However, for the convenience of the applicant, every bank and financial institution has its apps and portals to make the loan application and tracking of the business loan application simpler. They have created the customer portals so that the applicant can manage the loan accounts without any assistance. Within a few clicks, all the business loan requirements are fulfilled easily.
Check the Business Loan Eligibility Criteria
To get quick approval on the business loan application, it is a must to check the business loan eligibility criteria beforehand. When you apply for a business loan online, there is an application and business loan EMI calculator available on every lender’s portal.
Submit the Loan Application
After checking the loan eligibility criteria and terms and conditions of applying for a business loan, start filling the loan application and submit the same along with the uploading of required business loan documents.
Submit the Documents Required for a Business Loan
- Application Form: Filled business loan application form with the latest passport-size photograph
- Valid identity proof: PAN Card, passport, driving license, MAPIN Card, voter ID card
- Residence Proof: Ration card, telephone bill, lease agreement, passport, electricity bill, trade, license, sales tax certificate
- Age Proof: PAN card, voter ID card, birth certificate, passport
- Financial documents: Latest copy of income tax return of last 2 years, latest 6 months bank statements, profit and loss balance sheet of last 2 years
Wait for Loan Approval
- Real-time tracking facility: Once the loan gets approved, you will receive an acknowledgement number on your registered mobile number and email address. Using that, you can track the loan status.
How to Check Loan Status
Here are some of the common ways of doing a loan track concerning the business loan.
Check Loan Status Via the Mobile App
Most lenders have their mobile apps where one can apply for a loan, upload documents, post submission and track the application status. You can download the mobile app and enter the required loan request number. You will get to know the status of the business loan application. To do the loan tracking, enter the one-time password received on your registered mobile number.
Check Loan Status of Business Loan Offline
If you are not net savvy, you may use the offline method to check the business loan application status. You can even send a mail to the respective bank or financial institution and ask them to share the present status of the loan application. You need to share the loan application acknowledgement number to track your loan status. The applicant may also visit the bank or financial institution to know the small business loan application status.
Check the Small Business Loan Application Status Through Customer Care
Customer care is another way of checking the status of small business loans applied on any of the lender’s platforms. Contact the customer care number and share the loan details with them. It is also one of the easiest ways to track the loan application status easily.
The business loan processing time of the loan application varies from one financial institution to another. It is all based on your documentation criteria. Secondly, the loan approval is also solely the decision of the lending institutions. The financial institutions to give the business loan approval usually considers the credit score. So always check your credit score before you apply for a business loan with any of the lenders.
Online there are more small business options available than we have seen ever. Therefore, small business loan lenders have become tech-savvy so that more and more businesses approach them to apply for a small business loan. If you have to fill small business loan applications, upload scanned documents or check the real-time small business loan status, all can be done easily with a click of a mouse.
Frequently Asked Questions
- How is the business loan eligibility determined?
The business loan eligibility is determined based on various factors.
- The credit score of the director, partner, or borrowing entity is considered. Having a good credit score is not mandatory. However, it will help you in getting the best business loan interest rates.
- You need to show the latest two years of the profit and loss balance sheet of the company. The financial statement must have the following information like interest cost, net profit after tax, and latest ITRs.
- You must have been in the same business for at least 3 years.
- Is a term loan the same as a small business loan?
Term loans are a part of small business loans. The term loan proves to be a good financing option for the borrowers if they fulfil the eligibility criteria. The best part about the term loan is that it is available at a low interest rate. If a business is going for high-cost purchases like equipment, machinery, technology upgradation, or purchasing a property, a term loan will be the best financing option to meet the business requirements.
- What are the main criteria for a business loan?
The minimum income criteria to apply for a small business loan is having 1.5 lakhs per annum. The minimum age to apply for a business loan is 21 years. The maximum is 65 years at the time the loan matures.