Lenders offer pre-approved loans to eligible borrowers with a sound financial background. All you need to do is fill and submit a preliminary business loan application to your lender, who will review your credit history and might make an offer. A lending institution might also pitch you a pre-decided pre-approved loan amount if they are aware of your financials.
The amount approved in both instances depends solely on the lender’s evaluation.
Benefits of a pre-approved business loan
Here is why you should say yes to pre-approved business finance:
#1Covers any business expenses
A lender doesn’t extend pre-approved business finance for any specific business expenditure. But, as long as you are borrowing funds for a business-related expense, you’re good. So, you can take a pre-approved loan to cover your working capital needs, payment of staff salaries, or business expansion; the choice is yours.
#2Tempting business loan interest rates
If a lending institution is pre-approving your loan for business, it means you must have high creditworthiness. And if you have a debt-free repayment history and an excellent CIBIL score, you can also collect business loan at attractive interest rates and flexible repayment tenures.
#3Quick loan disbursal
With pre-approved loan offers, you are more likely to get swift disbursal of loan funds. Why? Because the loan is already approved and takes limited time to reach your bank account.
Additional Read: How to Speed Up Your Business Loan Disbursal Process?
Business loan eligibility criteria for pre-approved finance
Here is what you need to be eligible for this type of loan:
- Lenders usually consider applicants between the age of 26 and 66 years. The minimum age can go down depending on your financial situation and latest business revenue.
- You must own a business running for 3 years and with at least 1 year of IT returns already filed.
Documents required for a pre-approved loan for business
- Identity proof –KYC documents like your Aadhar card, voter ID card, PAN card, passport, or driving license
- Address proof – Utility bills, ration card, lease agreement, or any other government document displaying your permanent residence
- Proof of business – Partnership agreement in case of a partnership business, business incorporation or registration document in case of a sole-proprietorship, and commencement certificate or Article and Memorandum of Association for companies
- Financial documents – Income tax returns filed in the last year, last 6 months’ bank account statements, balance sheet and profit and loss account statements for the previous 2 years
Additional Read: Must Follow Rules before applying for a business loan in 2021
The bottom line
If you are looking to finance your business operations quickly, choose Tata Capital. We award easy loans for business with attractive interest rates, quick processing, flexible repayment tenures, and structured EMI plans.
You can calculate your potential monthly instalments and interest payable by using our business loan EMI calculator before applying for the loan. This helps you manage your other expenses, plan your EMIs, and comfortably pay off the loan.
Moreover, we don’t burden you with heavy paperwork and ensure hassle-free processing. To know more about our business finance offerings, get in touch with us today!