What is a business loan?
Before expanding up any business, you need to have capital resources. Depending upon the scale of your business, you need to know how much amount of money would be required by you. When you specifically borrow a particular amount of money to start your business or to meet up the requirements of ongoing business, it is termed as business loan. For any sort of business related purchases, you sought to this facility. Now, no lender simply lends a huge amount of money without safeguarding his/her fears. The lender or any financial institution looks for a set of documents that ensures the person’s originality and credibility to seek that loan.
- Identity proof
Before sanctioning any business loan in India, a major document required is identity proof. All big or small financial institutions demand for an identity proof to prove the originality of the borrower. Specifically, for India PAN card, Aadhar card, voter ID or passports suffice the requirement. Getting any business loan in India requires an identity proof. Proving your originality is an integral part of the set of documents required for easy sanctioning of business loans. The lenders need to be sure that they are not fooled around by any arbitrary person. They can approve only after their satisfaction of you being you.
- Address proof
Any document that specifies where you live is said to be an address proof. As for business loans in India, another important document is address proof. In case of any issue the lenders need to know where to seek the borrower. Also a residence proof is important as for originality of the borrower. It can be anything ranging from Aadhar card, passport, ration card, electricity bill, driving license, telephone bill or trade license. Borrowing a business loan is really fast and easy.
- Financial statements
Checking your financial stability is important as for approving your business loan. How well you are economically stable can be proved by a set of documents like bank statements, CA certified account statement, ITR files etc. Bank statement clearly describes all the set of transactions that you’ve made in the last 6 months. The income tax documents that you submit to the bank, for obtaining a business loan have a very important role to play on your eligibility.
- Business ownership proof
A proof that specifies and ensures your ownership on the business is called a business ownership proof. Before you apply for a business loan you need to ensure your proprietorship over the business. The documents that can be considered as a business ownership proof are Sole Proprietorship Declaration, Certified true copy of Memorandum, current business license and Articles of Association.
Approval of business loan from Delhi or any other place is really easy. All you need to have is a set of documents that prove your credibility and originality. You must be able to convince the lender to lend you money by proving your eligibility. So, collect all the necessary details and documents and apply a hassle free application for business loan.