123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

How To Apply For A Business Loan In India

By Author: Neha Sharma
Total Articles: 135

A business loan is a loan that can be used for growing and expanding the business. These type of loans may be secured or unsecured. Several banks and financial institutions give out different types of business loans which are completely unsecured. These loans are like a personal loan in the sense the lender does not dictate where they should be used. Business loan in India is a popular way to fund business expansion.

Types of business loans:

• Equipment finance loans
• Line of credit
• Working capital loans
• Invoice discounting
• Short term loans
• Cash credit facility

Steps to apply for a business loan:

Step 1: Assess your fund requirement

The lender is going to require details about the fund requirement, which is why it is important to calculate this. Preparing a thorough fund estimate will help the lender assess the loan application faster which in turn will improve the business receive funds more quickly.

Step 2: Check business loan eligibility

While each lender has different loan eligibility, it is best to do thorough research and pick a few lenders whose eligibility criteria the business meets. This will help simplify the loan application.

Step 3: Fill out the loan application

You can apply for an online business loan or visit the branch of the lender. If you’re looking for speedy approvals for business loans, apply online through the lender’s website. Several lenders have quick online approvals and fund disbursements.

Step 4: Submit documents:

Once the lender approves the loan application, you need to submit the documents. Some of the documents required for a business loan application are:

• Identity proof of the applicant (Voter ID/PAN card/ Driving License/ Passport/ Aadhar card)
• Address proof (Aadhar card/ Voter ID/ Driving license/ Passport)
• Bank statement for the previous 6 months
• Income tax returns are showing the computation of income. Some lenders insist on Balance Sheet and Profit and Loss account as well. These financial statements should be audited or certified by a chartered accountant
• Proof of establishment (Business registration documents)
• Copy of partnership deed where applicable
• Memorandum and Articles of Association where applicable

Step 5: Completion of loan formalities

Once the loan is approved and the documents submitted, the loan agreement is signed. It is essential to go over the different terms and conditions outlined in the loan agreement before signing. This will ensure there are no issues in the future.


Author Bio:- Neha Sharma is a finance student who loves to write in her free time. She has spent considerable time researching about business loan in India. Through her work, she has explained how to apply for one

Total Views: 25Word Count: 423See All articles From Author

Investing / Finance Articles

1. Excellent Reasons To Get A Personal Loan
Author: LoansJagat

2. Why For Traders Forex Education Is Important?
Author: Linda Hall

3. What Are Credit Repair Services And How They Help?
Author: Martin King

4. Impact Of Indian Festival On The Stock Market
Author: Akash Rathore

5. Moni Finex
Author: Henry Wil

6. What Is Systematic Investment Plan (sip)?
Author: Shashank Pawar

7. What Is The Importance Of Diversification?
Author: Why do we need Diversification in Capital Market?

8. How To Track Mutual Fund Performance?
Author: Shashank Pawar

9. Private Sector Economists Analysts Again Bring Down Singapore 2019 Development Forecast
Author: Epic Research Singapore

10. Explanation On The Types Of The Stock
Author: Epic Research

11. How To Save Money From Day Deposit , Be Rich, Build Wealth And 100% Change Life
Author: Danfianl

12. What Is Equity Linked Savings Scheme Fund? & Benefit Of The Elss Fund
Author: Shashank Pawar

13. Sources Of Small Business Loans
Author: Secured Lending

14. How To Repair Credit After Bankruptcy In Easy Steps
Author: Darren Burgess

15. Points To Tick Off While Taking A Personal Loan
Author: Aditya

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: