Business Loan
As a business owner, you will face various business cycle phases which necessitate financial assistance to fuel the growth, or expansion of the business. Acquiring a flexible business funding for corporate purses against unencumbered security will be the ideal solution. Business loans make for the perfect financial instrument to service any short term finance and working capital requirements.
Business loans are generally of two types:
UNSECURED BUSINESS LOAN:
- An existing businessman who has a three-year ITR with all the ANNEXURE also maintains a good banking transaction record, he can get UNSECURED BUSINESS LOAN up to Rs 50 Lakhs, i.e. without any COLLATERAL SECURITY. However, only a few banks provide such business loans.
- NORMALLY New businessman does not have any business track record mentioned above – In this case, these commercial loans are generally provided by nationalized banks. For this segment a businessman can take advantage of the benefits provided under different types of government schemes.v
SECURED BUSINESS LOAN:
The benefit of this type of Business Loan can be achieved by providing COLLATERAL SECURITY i.e. the Loan AGAINST of Residential / Commercial Property. Generally, up to 70% -80% of the value of Residential Property or 60% of the value of the Commercial Property can be availed. This type of Loan is provided by all Banks i.e. Private Banks as well as Nationalized Banks.
| Profession | Salaried persons working in government, private or MNC companies and self employed professionals like Doctors, CA, CS, Architects |
| Eligible Age | 21 years to 60 years |
| Minimum Income for Loan Eligibility | Rs. 25,000 per month for salaried; Rs. 5 Lakh gross annual receipts for professionals |
| Work Experience Required | 3 years and above |
| Experience in Current Company | Varies from 1 month to 1 year |
| Minimum CIBIL Score | 650 |
| Maximum EMI as percent of Income | 65% |
- Identity proof: Aadhar Card, Valid Passport, Valid Voter ID Card or a Valid Driving License
- Address proof: Ration card/passport/telephone/rental agreement/electricity bill
- 6 months bank passbook or last 3 months bank statement
- Recent salary slip or current salary certificate.
- Latest Form 16
- PAN Card: For Company /Firm/ individual
- Identity proof: Passport/ Aadhaar Card/Voter’s ID card/Driving License/Pan Card
- Address proof: Aadhaar Card/Passport/Driving License/ Voter ID-Card
- Latest 6 months Bank Statement
- Latest ITR along with computation of income, recent Balance sheet along with Profit & Loss a/c (CA Certified /Audited) for the last 2 years
- Proof of continuation
- Apart from these documents, other compulsory documents are – Sole Proprietorship Declaration Or Certified Copy of Partnership Deed, Certified original copy of Memorandum and Articles of Association (certified by Director) and Board resolution (Original)