A Business Loan is a type of loan that doesn't require collateral and can be used for different purposes such as expanding your business, buying equipment, acquiring office space, covering rent or salaries, hiring employees, consolidating debts, managing inventory, boosting stock, investing in infrastructure, purchasing raw materials, or starting a new business. To apply for a business loan, lenders consider factors like your financial history, ability to repay the loan, and credit score. Additionally, below are the basic documents you'll need for a business loan application.
Get detailed information on the documents necessary to apply for various types of business loans, including Working capital loans, Overdrafts, Invoice discounting, Term loans, Letters of credit, machinery loans, and Loans under Government Schemes, is essential for a smooth application process.
The minimum turnover required for a business loan is solely determined by the discretion of the lender. It also varies depending on the specific requirements of the business and its nature.
The basic documents required for a business loan include the applicant’s KYC (Know Your Customer) documents, address proof, income proofs, proof of business vintage, certificate of practice (if applicable), and documentation related to the business location, such as clinic address, if applicable.
To qualify as a micro enterprise, two main criteria must be met: Firstly, the investment should be less than Rs. 1 crore, and secondly, the turnover should be less than Rs. 5 crore.
Yes, If you're starting a new business or micro-enterprise, banks won't require income tax returns (ITR). However, if it's an existing business or if you're looking to expand, you'll usually need at least one year of ITR.
