Documents Required for Business Loan

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.

Comparison Table of Business Loan Interest Rates offered by MybankingTips Partners:

Bank/NBFC/Fintech	Interest Rate
SBI Bank	9.10% p.a.	Apply Now
HDFC Bank	10.00% - 22.50% p.a.	Apply Now
Kotak Mahindra Bank	16% p.a. onwards	Apply Now
RBL Bank	14%-26% p.a.	Apply Now
ICICI Bank	Up to 17% p.a.	Apply Now
Axis Bank	10.75% p.a.	Apply Now
IDBI Bank	8.05% to 13.45% p.a	Apply Now
Bank Of Baroda	10% to 15% p.a	Apply Now
Ujjivan Small Bank	Up to 2.50%	Apply Now
Bajaj Finserv	9.75% - 25% p.a.	Apply Now
IIFL Finance	12.75% - 44% p.a.	Apply Now
FlexiLoans	1% per month onwards	Apply Now
ZipLoan	1% - 1.5% per month (Flat)	Apply Now
Indifi Finance	1.5% per month onwards	Apply Now
Five Star Business Finance	Up to 2%	Apply Now
Lendingkart Finance	1.25% per month onwards	Apply Now
Tata Capital Finance	12% p.a. onwards	Apply Now
NeoGrowth Finance	15% p.a. onwards	Apply Now
Hero FinCorp	Up to 26% p.a.	Apply Now
Aye Finance	Up to 2.5%	Apply Now
Clix Capital	Up to 3%	Apply Now
Protium Finance	Up to 1.5%	Apply Now
HDB Finance	8% - 26% p.a.	Apply Now
U GRO Capital	Up to 9% p.a.	Apply Now
Mcapital Business	Up to 2% p.a.	Apply Now

Documents Required for Applying a Business Loan

Duly filled application form with Passport-sized Photographs
Income Proof with the Last 6 months’ bank statement
Business Vintage and Address Proofs
Last 1 years ITR for existing enterprises
Business Incorporation/Establishment Certificate
KYC documents of applicants, partners, and co-applicants: Aadhar card, Voter’s ID card, PAN card, Driving license, Passport, Utility Bills (Recent Water or Electricity Bills)
Any other document required by the lender

Frequently Asked Questions

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.