Back in the day, applying for a business loan seemed like an uphill battle. There was a lot of paperwork involved, and applicants had to run from one counter to another to submit their loan application and necessary documentation. And even after going through all the trouble, applicants had to wait a while for loan approval and disbursal.
But, those days are long gone! Lenders have now relaxed the documentation requirements and simplified the entire loan application and disbursal process. Candidates can even fill out the loan application and submit the necessary documents online.
Additional Read: Business loan Disbursal process
Moreover, they can use tools like the business loan calculator to explore different repayment options. With businesses facing liquidity issues and suffering substantial losses because of the Coronavirus pandemic, these reforms are more than welcome.
Given below is a list of business loan documents that applicants must get in order to improve their chances of approval.
- The duly filled loan application form.
- Two passport size photographs of the applicant(s).
- Identity proof, which could be any of the following – Aadhar card, voter ID, driving license, passport.
- Address proof, which could be any of the following – Aadhar card, voter ID, driving license, passport, bank passbook, utility bills, lease agreement, sales tax certificate, trade license.
- The company’s bank statements from the past six-month period.
- The applicant’s certified bank records for the past six months.
- Profit & loss accounts and balance sheet for the past two years.
- Income tax returns (including computation) for the past two years.
- Documents to prove ownership.
- Declaration of sole-proprietorship or a certified copy of the partnership deed.
- The company’s KYC documents including memorandum & articles of association, registration of incorporation, PAN card, partnership deed.
- KYC documents of the business owner(s).
- A detailed report explaining how the loan amount is going to be used.
* Note that before submission, applicants must have a registered CA (Chartered Accountant) audit the profit & loss accounts and balance sheets.
Business loan eligibility criteria:
- The applicant(s) must be between 25 and 65 years of age.
- The applicant’s CIBIL score must be 700 or more.
- The business must record a profit for three financial years consecutively.
- The business turnover must exhibit an upward trend.
With business loan from Tata Capital, you can work around cash flow issues, upgrade equipment, scale operations, etc. We also offer various tools like the business loan EMI calculator, GST calculator, prepayment calculator, and foreclosure calculator to help you determine which repayment option works best for you to plan your repayment schedule.
At Tata Capital, you can apply for business finance with minimal documentation and flexible repayment tenures. With attractive business loan interest rates, dedicated after-sales support and years of experience in the industry, we are the ideal business finance provider for you.
Additional Read: How to Apply for a Business loan in 4 easy steps
To get more information about our business finance offerings, log on to our website or give us a call today!