What documents would I need for my business loan application? What are its benefits?

Several businesses that are well established and have succeeded in building a brand name had their humble beginnings in the past. Most of them started with just enough funds. However, these funds weren’t always sufficient to expand their operations. This means they’ve had to look elsewhere to get extra funds to expand their business activities and to become established in their respective fields. Who gave them the funds required? The Banks.

Most the people approach a bank for a loan whenever they require some extra funds. People usually take short term loans like a personal loan or a loan against gold to meet their immediate requirements. Gold loan interest rates are quite low because it’s taken against gold in the form of jewelry or coins. However, if you are looking for a loan to expand your business you can apply for a business loan.

The Benefits Of A Business Loan

A business loan comes along with certain benefits. Given below are a few of them.

  • Minimal Amount of documentation

Only a minimum amount of paperwork is required for getting a business loan. Some of the banks even provide doorstep services for their clients.

  • Collateral security is not necessary
  • 100% of the loan amount will be disbursed if the borrower has land or property in his/her name
  • Loans are provided for short term as well as long term requirements
  • Business loans are flexible
  • These loans are convenient as different options for re-payments are available
  • Flexible tenures

If you are looking for a short-term loan you can take a business loan for a year.  A long term loan for 4 years or more is required to expand your company. 

  • Interest rates are competitive

The interest rates on these loans are very reasonable due to growing competition between banks. The business loan interest rates could be anywhere between 11% and 24%.

  • Quick disbursal of the loan amount

E-Commerce Business Loan Benefits

E-commerce business loans come with a variety of benefits including the following:

  • Expansion of your range of products
  • Developing a website
  • A sufficient amount of working capital or stock
  • Building an infrastructure to provide the best quality services to its customers. This includes storage facilities, channels for delivery, manufacturers and payment gateways
  • Having ready working capital/stock
  • Hire personnel that are competent
  • Restructuring of finances based on requirements
  • Business promotions to maximize their presence online 

The Documents Required For A Business Loan

Given below are some of the documents required while applying for a business loan.

  • A duly filled and signed business loan application form attached with a passport-sized photograph of the applicant.
  • Certificate/proof of the existence of the business
  • Business profile
  • Proof of Identity: Election ID Card/ Passport/ PAN Card/ Driver’s License
  • Proof of Residence: Passport/ Ration Card/ Lease Agreement/ Telephone Bill/ Electricity Bill/ Election ID Card
  • Proof of Age: Voters ID Card/ Passport/ PAN Card/ Driver’s Licence
  • Financial Documents like:

Bank statement for the past 6 months, Tax returns for the past two years, Profit and Loss statement and balance sheet for the past two years audited by a Chartered Accountant

  • Proof of continuation
  • Audited financials for the past 3 years

Compare the business loans offered by a few of the major banks and choose the one that’s best for your business. This will give you the push required to make the vision of your company a reality.

This blog is maintained by the Finaura team. Finaura is a solution that will help you find the best gold loan solution from gold loan company nearest to you. If you have any queries please feel free to contact us. Call us on +91 484 2388285 or email us at [email protected]

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