Table of Contents
Business loan – Read this article in Hindi
What are the Eligibility Criteria for business loan (Best business loan)?
What is Banking Parameters for Business Loan-SME Lending ?
- Bank statement should be current account or OD/CC account and it’s open date should be 1 years old for business loan.
- Main business account will be considered.
- Minimum 36 Business Credit Transection should be in Bank statement.
- Saving account will be considered for Professional ( CA/DOCTOR).
- Average bank balance should be good as minimum equal to EMI of Proposed loan amount..
- No EMI bounce in last 6 months.
- Maximum 5% cheque return allowed in bank statement.
What is financial obligation meaning(business loan)?
Any type of debt , liability taken form bank or any other sources is called financial obligation such as any type of loan , CC/OD account, credit card etc. It’s represent any type of outstanding debt.
During Loan application process, bank count monthly obligation which customer repay each month to bank. Bank also count 5% of total outstanding of credit card limit.
How to calculate debtor days?(business loan)
Debtor days;- After how many average days you get your money from debtor as you sells goods to your Debtor.
(AVS one day means average sells everyday)
At first your find your average sells in single day AVS per day =Total sells per annum/365 days
How to calculate creditor days?(business loan)
Creditor days:- After how many average days you will pay money to your creditor as you purchase goods form creditor.
(AVP one day means average purchase in a single days).
At first, your Find your average purchase in single days AVP one day= Total purchase/ 365 days.
NOTE:- Good debtor days and creditor days should be 90 days or maximum it should not be more than 120 days.
Mandatory Documents(business loan):-
Business Address Proof (any one of partners, directors or individual) & Residence Address Proof (all partners, directors or individual, coapplicant). | Both business & residence address proof is mandatory for all cases. Any one from the below mentioned documents: · Latest Landline/ WLL/ Postpaid mobile bill · Latest Electricity bill. · Valid Aadhaar Card. · Valid Passport. · Valid Driving license. · Valid shop & establishment certificate (only for business add proof). · Gas book / bill / receipt (only for residence add proof). · Bank statement with address for last 6 months · Latest Leave & License Agreement. · Latest LIC premium receipt/ policy (only for residence add proof). · Latest Property tax / maintenance bill. · Property papers as Sale deed/ Share certificate or any other doc -related to property. |
Ownership Proof (any one of partners, directors or individual, co- applicant). | Any one from the below mentioned documents: · Latest Electricity bill. · Latest Property tax / maintenance bill. · Property papers as Sale deed/ Share certificate or any other doc related to property. |
| Signature Proof (SCUF agreement signing partner, director or individual, co-applicant). | Any one from the below mentioned documents: · Valid Passport. · PAN card. · Signature verified by bank from where repayment. cheque is issued(applicable for applicant/s). · Signature verified by bank (applicable for co-applicant/s) |
| Identity Proof (all partners, directors or individual, coapplicant). | Any one from the below mentioned documents: · Valid Passport. · Valid Aadhaar card. · PAN card. · Valid Driving license. · Valid Voter ID (only for co-applicant). · Valid Photo credit card. · Bank pass book with photo stamped (previous 6 months). · Photo attested by bank. · Property registered deed. |
| Date of Birth Proof (SCUF agreement signing partner, director or individual, coapplicant). | Any one from the below mentioned documents: · Birth certificate. · School leaving certificate. · Valid Passport. · Valid Aadhaar card. .· Valid Driving license. Latest LIC premium receipt/ policy. · PAN card · Any other valid Govt ID card. |
| Stability Proof (any one of partners, directors or individual, co- applicant). | Any one from the below mentioned documents: · Postpaid mobile bill. · Landline/ WLL phone bill. · Electricity bill. · Valid Passport. · Valid Driving license. Bank statement with address. · Property tax / maintenance bill. Property papers as Sale deed/ Share certificate or any other doc related to property. · Gas book / bill / receipt. LIC premium receipt/ policy. · Valid Voter ID. · Sales tax certificate. · Service tax certificate. Shop & establishment certificate. · Excise duty certificate. · TDS certificates. Partnership deed (Registered / notarized) / MOA. · Document issued by a government agency · IT Returns. |
| Business continuity & YIB proof specifying nature of business & date, year mentioned to be in accordance with YIB norms requirement. | Any one from the below mentioned documents: · Sales tax certificate. · Service tax certificate. · Shop & establishment certificate. · Excise duty certificate. · TDS certificates. · Partnership deed (Registered / notarized) / MOA. · Company PAN Card. · Document issued by a government agency. · IT Returns – should mention current business type (ITR filling date to be considered as YIB date and not assessment/ financial year). · Current Account opening date under same business name. |
| Income Proof Documents. | Audited Annual report, Tax audit report with annexures for last 3 years for TO >= INR 100 Lakhs. · Statement of Income for tax computation, P&L Account & Balance sheet for last 3 years · · Bank statement for latest 12 months. Latest 12 month Gst return required. |
FAQ(BUSINESS LOAN)
If you want to start a business and for this you need a business loan, then you can contact the bank manager in any government bank. Funds for many start-up businesses from the government in the bank comes from the government, which you can take advantage of.
If your business is old and it has been two years while doing business. Any government bank, private bank and finance company can give you loan. You can contact them by visiting their branch.
Business loan can be given to you by private banks and private finance companies. In private banks, HDFC Bank, ICICI Bank, Kotak Bank, Axis Bank and in finance company Bajaj Finance, Tata Capital, Aditya Birla Capital etc. are giving you loans, from where you can take a loan.
Business loan is an unsecured loan, so its interest is higher as compared to other loans. It starts at 15% reducing rate and goes up to 28% reducing.
The minimum business loan amount ranges from Rs 50000/- to Rs 50,00,000/-. It depends on the financial condition of the company that how much the bank will give him the loan.
HOW TO APPLY FOR BUSINESS LOAN IN INDIA