Back in the day, business credits had companies running from pillar to post. Fortunately, business loans have become far more comfortable to borrow today and are available in both online and offline modes.
A business loan now comes with a simpler application process, minimal documentation, and flexible eligibility criteria for quicker disbursal.
It is important to practise due diligence when filling the application form. To that end, here is a business loan guide to walk you through the entire process, from start to finish.
Before You Apply for the Loan
Consider this: what do you need the loan for? Answering the question will help you streamline the type of loan you need to borrow for profitable returns.
A business loan is available under three categories to enterprises, namely Machinery Loan, Working Capital Loan, and MSME & SME Loan. Once you have settled the type of loan you want to secure, check the eligibility criteria with the lender of your preference.
In case you have queries, you can contact the lender and resolve the same. Alternatively, you can use a free eligibility calculator, readily available online to check if you are eligible for the loan or not. Doing this makes the loan process a lot smoother.
Standard business loan eligibility criteria include:
- Applicant must be between ages 25-65 years
- A registered accountant must audit your balance sheet
- Business turnover needs to show an upward trend
- Business must be profitable for three successive financial years
Additional Read: Step by Step Business Loan Application Process Explained
How to Fill a Business Loan Application Form?
You can fill the application form either online or offline, based on convenience. Either way, the loan application is typically divided into two sections – personal details and business details. For the personal details section, you should be able to furnish information for data fields such as your residential address, PAN card number, email address, and other necessary details.
On the other hand, the application form will have data fields for information such as annual turnover, nature of the business, and business vintage – the time for which your company has been in operation. Once you have filled the requested details, read the terms and conditions carefully before submitting the application form.
Finally, for a swifter loan application approval, use the following tips:
- Double-check if you have filled in every question and checked essential boxes. A missing data field can delay the process further.
- Prepare the essential documents well in advance, including KYC documents and bank statements. You should also be ready with a detailed business report on how you plan to use the borrowed funds.
- You should ideally estimate the EMI for the stipulated amount before you apply. That way, you can quote a suitable amount in the application form to match your financial health, and avoid pocket strains.
In need of a business loan? Apply at Tata Capital to procure desired funds at highly competitive interest rates and convenient loan terms. Enjoy quick loan approval and disbursement with our easy, online documentation process.
Get in touch for further details!