What are the requirements to get a business loan in India?
Business loans were never difficult to get until and unless requirements and documents were needed. Nowadays, acquiring a business loan is as difficult, owing to the formalities and paperwork that is required. Various banks have their own terms and conditions to accept the documents. Not every bank has the same requirements. If anyone is trying to get a business loan, then he or she must go through the policies of the particular bank or institution.
Here is the basic list of documents which one can need to fulfil the norms of getting a business loan in India for banks or Financial Institutions.
- A proof for your identity
Any bank or financial institution is definitely not going to lend you even a single penny if you don’t provide them with a strong Identity proof. One can always opt for substitutes, but they should be relevant. PAN card, passport, Voters ID Card and even driving license will work anytime. These are the basic identity proof one can give to the banks and financial institutions.
- Address proof is the must.
Acquiring a business loan is definitely not going to be easy anymore. Address proof is something that you have to give to the lenders. The trust builds up even more when you give them the address proof. Some documents which can work to address proof are Ration card, Sales tax Certificate, trade License or even a passport.
- Bank statement
A bank statement is a must needed document. One has to submit a bank statement if they want to acquire the business loan. To acquire a business loan in India, one has to go through so many formalities which are much needed.
- Audited Financials
The audited financials are needed by the lenders at the time of lending money to borrowers or while acquiring a business loan. Audited financials depict your financial position and one should always provide audited financials of the last three years to the lenders or the banking institutions to get a startup business loan.
- An application form is a must
An application for the loan is available which people must fil with honesty and loyalty. The application form has so many columns and they ask for different things. So, one should always read the form carefully and go through all the terms and conditions. A passport size photograph is needed to complete the formalities of a form.