Business Loan Eligibility, Application Procedure. Small business loans are the ideal way to manage all the necessary expenses of an organization. With tailor-made business credit, you can boost your working capital, expand your business to a better location, upgrade your infrastructure, pay the wages of your workers, hire a skilled and efficient team, etc.
Furthermore, such advances also offer easy-to-meet eligibility criteria, minimal documentation process, a convenient application process, and several other borrower-friendly terms. Given below are some such details that you should know before availing for a business loan.
Eligibility criteria for Business Loan
To be eligible for a small business loan, you are required to fulfill some minimum criteria set by your lender. To apply you are required to be –
- Between the age of 25 and 55 years.
- In the same business for a minimum of 3 years.
- A resident of India, residing in any of the cities where the lender operates.
In addition, you are required to have filed your Income Tax Returns for at least the last year and should hold a CIBIL score of 750 or above. Consider keeping a good credit history by paying all your outstanding dues in time.
The application process of Business Loan
To apply for a small business loan, you can follow the steps as mentioned below –
- Visit the official website of your lender.
- Click on ‘Loans’ to select the product you require.
- Click on ‘Apply Now’ to be redirected to the page where you will have to fill the application form.
- Share the required personal and financial details such as name, date of birth, residential address, annual income, etc. to fill an application form.
- Step 5. Submit the required business loan documents to the representative to complete the application process.
Once your documents get verified, the sanctioned loan amount will be credited to your account directly.
To apply for advances, you will have to submit some documents to support your identity, resident, and other necessary information. Given below is a list of the documents required for a business loan –
- KYC documents (any one of the below)
- Aadhaar Card
- PAN Card
- Voter ID
- Driving license
- Residential proof (any one of the below)
- Ration card
- Electricity bill
- Water bill
- Gas bill
- Telephone bill
- Business existence proof (any one of the below)
- SEBI registration certificate
- SSI registration certificate
- GST registration certificate
- Partnership deed
- Rental agreement
- Income proof (any one of the below)
- Income Tax Returns
- Account statements (preferably of at least past one month)
- Balance sheets
- Profit and loss account statement
Apart from the above business loan documents, you are also required to submit your recent passport-sized photograph and other documents if required by your lender.
The interest rate on Business Loan
Such advances offer an affordable rate of interest that keeps your EMIs and total cost of your loan low to reduce the financial burden on your pocket. You can choose a Bajaj Finserv business loan to enjoy an attractive rate of interest along with other benefits such as minimal documentation process, relaxed eligibility criteria, substantial loan amount, flexible tenor, collateral-free loans, online account access, instant approval, quick disbursal, etc.
This NBFC also provides pre-approved offers to reduce the hassles involved in the application process and to save time.
To enjoy all the benefits provided by your small business loan, it is essential for you to pay your EMIs on time to avoid debt accumulation and hefty late payment fees. Besides, opt for the lender offering a minimal interest rate to keep your EMIs affordable.
You can use a loan EMI calculator and alter the credit amount and credit tenor to estimate the EMIs that will suit your budget.