Funds are instrumental in managing everyday business operations and helping your business scale effectively. A business loan can cater to the immediate and long-term financial requirements of your business. Besides, a form of unsecured credit, you can avail business finance to either start a new business or grow an existing one.
In large cities like Mumbai, availing small business finance might seem like a monumental task. But with the right lender, you can quickly usher in funds to boost production, buy machinery or expand your small enterprise. Read further to learn how to take a small business loan in Mumbai.
To ensure that your loan application with Tata Capital is approved, you must fulfil the loan eligibility criteria for business finance:
- The applicant’s age limit, usually between 25 to 65 years
- The candidate’s business must be profitable for 3 successive years
- A CIBIL score of 700 or more.
- The business turnover must display an upward trajectory
- Your balance sheet must be audited by a registered Chartered Accountant
For availing business finance with Tata Capital, here is a list of documents you must submit along with your loan application:
- Photo identity proof (Aadhar card / Voter ID/ Driving license/ Passport).
- Business proof, including ownership papers, partnership deed, sole proprietorship declaration, tax certificate, etc.
- Bank statements of the company for the past 6 months.
- Income tax returns from the last 2 years.
- Balance sheet and profit-loss account for the last 2 years.
- KYC documents of the company and the business owner.
- A detailed report explaining how the candidate will utilise the money
Additional Read: How to Get a Small Business Loan from the Government
Step-by-Step Guide to Get a Business Loan
Are you wondering how to get small business loans? Here is a guide to the application process.
• Online Application
To avoid the hassle of carrying bulky paperwork and waiting in queues, you can opt for a financial institution that offers an online application process. Besides, compare various business loan interest ratesbefore choosing a lender.
• Document Submission
After fulfilling the eligibility conditions, submit the necessary documents to proceed.
The document verification process also varies depending on the lender, and it can require an in-person meeting with the loan representatives. Before the lender approves your loan, they will verify your submitted documents.
• Post Approval
Post-verification, officials approve your loan application. This is an essential step as the loan will only be sanctioned after the application is approved.
After receiving the approval, the lender sanctions your loan. You will receive the desired funds directly in your bank account.
Additional Read: Why should you apply for a small business loan?
Are you looking to grow your small business into the next big thing? Fulfil your business aspirations in the city of dreams with Tata Capital’s multi-purpose business loans.
Moreover, plan your repayment in advance using our business loan EMI calculator and receive an estimate of your monthly instalments. To know more, get in touch with Tata Capital today!