What is a business loan?

As per convenience promoters offers different repayment options. They may work out a repayment plan as per the business cash flows to avoid facing financial difficulties while servicing the loan.

Benefits of Business Loan

As per convenience promoters offers different repayment options. They may work out a repayment plan as per the business cash flows to avoid facing financial difficulties while servicing the loan.

Monthly instalment can be lower or increased by owners as per the profitability or choose bullet payments to periodically repay the amount.

Flexibility

As per convenience promoters offers different repayment options. They may work out a repayment plan as per the business cash flows to avoid facing financial difficulties while servicing the loan.

Monthly instalment can be lower or increased by owners as per the profitability or choose bullet payments to periodically repay the amount.

No Collateral Required

• No income or collateral documents need to submit to avail the loan.
• A property or land must be owned by the borrower for a 100% loan disbursement.

Short-term Option

• Businesses which look for their fund requirements can opt short-term loan.
• This meets their requirements to fill a short-term financial gap.
• In addition, there are flexible loan options depending on the size of the business like 100% disbursement,
• 70% pay-out (if shown company tax return) etc.
• This makes easier for businessmen to expand their business and to sustain the cash flow.

Eligibility Criteria:

Banks give business loan to individual, self-employed professionals and non-professionals, Different banks have different criteria for giving business loan. Following are the most commonly used criteria by banks for individuals

• Minimum age of Applicant: 21 years
• Maximum age of Applicant at loan maturity: 65 years
• Years in business: Minimum of 3 years in current business and 5 years total business experience
• Minimum Annual Income (ITR): Rs. 1.5 Lakhs p.a.
• Documents required:

Documents required:

• Proof of Identity (Passport / Voters ID card/ Driving License/PAN Card)
• Address Proof (Ration card Tel/elect. Bill/ Lease agreement/ Passport/ Trade license /Sales Tax certificate)
• Bank Statement (latest 6 months)
• Latest ITR along with computation of income, Balance Sheet & Profit & Loss a/c for the last 2 yrs. Audited or Certified by a CA
• Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate) Other Mandatory Documents (Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original)