What is a Business Loan?
A business loan is a loan specifically intended for business purposes. As with all loans, it involves the creation of a debt, which will be repaid with added interest.
Eligibility Criteria for Business Loan
The following are the common eligibility criteria for a Business Loan:
- The applicant or the promoters of the business should be in the age group between 21 years to 65 years.
- Proprietorship/Partnership Firms and Pvt Ltd Companies, Self-employed individuals/professionals engaged either in Manufacturing, Services or Trading, are eligible for the loan.
- A business vintage of a minimum of 3 years with a minimum experience of 5 years in the line of activity will be required.
- A minimum business turnover and a minimum annual turnover as per the ITR will be required. The quantum of the requirement will vary from lender to lender.
- The firm/company should be profit-making for at least a period of 2 years
The following are the common documents required for a Business Loan:
|Proof of address of the promoters||Aadhaar Card, Voter’s ID Card, Driving Licence, Utility Bills, etc.|
|Photo ID proof of the promoters||PAN Card, Passport, Voter’s ID Card, Driving Licence, etc.|
|Proof of business||GST Registration, Trade Licence, Registration under Shop Act, Drug Licence, etc.|
|Income proof||Balance Sheet and Profit & Loss Account audited by an Auditor with Auditor’s report.|
Top Business Loan Providers
Bank of Baroda
State bank of india