Every person wants to start a good business, but due to a low budget, he is not able to start the business properly. In such a situation, the person thinks of taking a loan. Although at present the loan process has become very easy, due to lack of correct information about the loan, many people also have to face problems. It is worth noting that there are many companies in the market that give loans, the same bank has now made it easy to give business loans.
Most of the borrowers or borrowers are scared of paperwork. They believe that to get a business loan, one has to complete the process of documents which is the most difficult part of taking a loan. However, now you do not need to worry because the bank has now simplified the loan giving process.
In such a situation, today we are going to tell you some such things related to business loans, through which you will be able to take loans easily. So let’s know what is the correct process of business loans and what are the necessary documents required in it?
What is Business Loan?
Let us tell you, a business loan is a kind of financing with the help of which you can easily meet the essential needs of your growing business. A business loan is a type of unsecured loan that aims to buy machinery, buy a new place, pay salary or any kind of rent,
Loans are taken to expand the business by purchasing raw material, increasing stock to maintain inventory properly, etc. At present, you can easily take a loan of 50 thousand to 1 lakh for your business under the scheme of the state government and central government. But before taking a business loan, you need some important documents.
What is the process to get a loan from the bank?
- If you want to start any kind of business, then for this you first prepare a business plan so that you can build your business through that process.
- After this, you decide that, for the business, you want to take a loan of up to Rs. According to the business, you should decide in advance how many forms your business can start. Only then do you proceed with the loan process. To take a loan, first, tell the bank about your business plan.
- To take a loan from a bank, it is important to have a good credit score. The better your credit score, the quicker the bank will give you the loan. Therefore, you should keep your credit score right so that you can get the business loan on time and you can start your business easily without any hassle.
- Let us tell you, the bank gives a loan to a borrower only after seeing the business plan. If the bank feels that you can repay the bank loan from the business started by you or the profits from it, then only the bank will allow you to give the loan or will approve your loan.
Which individuals can apply for a business loan?
- A person starting his own business can also apply for a business loan.
- A person starting a private limited company can also take the help of a bank loan.
- The person who has started the business in partnership can also take a loan from the bank easily.
Any kind of businessman or entrepreneur is able to take a loan from the bank.
- If you are thinking of starting any kind of plant, then you can take a business loan for it or you already have a big business and you think of pursuing it or you can fulfill your dream related to your business. You can take a business loan if you want to fulfill it or have to fulfill the need for money related to business, etc.
Eligibility criteria for a business loan
You must have such eligibility to take a business loan.
- Your age should be around 24 to 70 years.
- You must be an Indian resident citizen.
- You must also have a business of at least 3 years.
- Apart from this, your CIBIL score or credit score should be 685 or above. As we have mentioned earlier that the better your CIBIL score, the sooner the bank will help in giving the loan.
- If your CIBIL score is bad then the bank refuses to give the loan, in which case you should maintain your CIBIL score in advance.
- Apart from this, banks see whether you already have any kind of loan or not. If you have taken a loan in the past and have not paid it on time, then in such a situation the banks refuse to give the loan.
Documents required to take a loan:-
1. Aadhar Card
At present, it is very important to have an Aadhar card for any kind of loan or financial transaction. At the same time, the government has also made it necessary to link your Aadhar card with any bank. In such a situation, when you take a loan from any bank, then you need an Aadhar card. If you do not have an Aadhar card then try to get it done as soon as possible. If you want that you do not face any kind of problem in taking the loan, then you must have an Aadhar card.
2. Pan Card
A PAN card is also one such document that is required to take a loan. PAN card is issued by the Income Tax Department which is required for financial transactions or services. In such a situation, it is also necessary for you to have a PAN card. Let us tell you, a PAN card is one of the most important documents to get a business loan.
3. Bank statement
To take a business loan, it is necessary to have an account with any bank because on the basis of this loan is given to you. Also how much do you borrow? How much do you pay dues? And how much do you spend? To test all these things, you need to have a bank statement.
The lending company can understand from your bank statement whether you are able to take the loan or not? If you have a good credit score then the lender can easily understand that you are a reliable person to repay the loan who will repay your loan on time.
4. Address proof
A residence certificate is also one of the essential documents for availing of a business loan. Actually, the residence certificate is proof that the borrower resides in the place where he wants to start his business or not. Let us tell you, some companies even visit the place of residence of the borrower, only after that it decide whether the loan should be given to the person or not.
5. Certificate of business
For availing of any kind of business loan, you must have proof of business address. Through this, it is verified whether the applicant works in his area of operation or not. On the basis of this business letter proof, the borrower gets the loan easily.
6. Income tax return
An income tax return is also one of the essential documents for availing a business loan. Income tax return acts as proof of income earned by you. Not only this, but through the income tax return, the person giving the loan is aware of your exact income, on the basis of which he gives you the loan.
Actually, the person giving the loan checks through the income tax return whether you have filed your IT return on time or not? In such a situation, they estimate that the person who gives his IT return on time, that person will also make the payment on time. In such a situation, you get the loan quickly and you are a reliable borrower to the person giving the loan.