Think you have a great business idea but are struggling to find the funds to set the ball rolling? Funding a business is one of the most critical decisions any business owner has to make. Once you have determined the amount of funding needed for the business, taking a business loan is one of the options you can consider.
Several banks offer quick business loans to startups at affordable interest rates and flexible repayment options. Business loans tend to be of three types – working capital loan, machinery loan and MSME & SME loan.
• Working Capital Loan:
This is a loan that helps you cover your funding needs so you can run your daily operations seamlessly.
• Machinery Loan:
A machinery loan helps you update your existing equipment or buy the latest machines that can help your business.
• MSME & SME Loan:
These loans help MSME and SME business owners with money that can give their ventures the boost they deserve.
Additional Read: What Are the Different Types of Secured Business Loans?
To avail a business loan, you must meet the following eligibility criteria:
- You must be between 25 to 65 years of age.
- You must have a CIBIL score of 750 or above.
- You should own a business that must be profitable for three consecutive financial years.
- Your business turnover must reflect an upward trend.
- Your balance sheet must be audited by a registered Chartered Accountant.
Additional Read: When You Need to Opt for Business Loan
The documentation required for applying for a business loan is as follows:
- Duly filled application form (physical or virtual, depending on how you apply)
- Company bank statements for the last six months
- Income Tax Returns for the last two years
- KYC documents of the company that includes the Partnership Deed, Registration of Incorporation, PAN Card, Memorandum & Articles of Association
- Business owners’ KYC documents
- Details of how the business loan will be used
Each business has different requirements. As a business owner, you will have to understand what is best suited for your enterprise and choose the financing option that works well with your long-term vision.
If you already have a business plan ready and are wondering how to get a business loan, you can reach out to Tata Capital for all your loan-related needs and queries. Tata Capital offers a maximum business loan of up to Rs 75 lakh, although it largely depends on each borrower’s eligibility and business returns. You can also use the business loan EMI calculator to get an exact picture of the EMI you’d be paying each month.