Business Loan 2021: Features, Eligibility, Process, Document

Business loans are a very important and popular loan in our country. Anyone with a business running for more than three years and an annual turnover of more than 50 lakhs with an annual income of 2 lakhs can apply for the business loan. It is one of the easiest ways to make your business big, without any troubles. The interest rates are also very reasonable and the tenure for the repayment of loans is also flexible which provides a lot of assist for the businessman. Also check BOI Balance EnquiryICICI Bank NEFTSBI Balance Enquiry and HDFC Balance Enquiry.

Business Loan

FeaturesBusiness loan is a very important loan in our country, as most the small businessman live on it They are unsecured loans, that means you don’t need to submit any collateral
Eligibility criteriaThe age of the applicant must be in between 21 to 65 The business should be running form the last three years and the annual income must have to be more than 2 lakhs
Application process (Online/Offline)Fill the application form, either online or offline Submit the required documents with all the necessary details about your business
Documents RequiredKYC document is required Bank account statement of the last 6 months Address proof, permanent as well as correspondence

An individual can take a maximum of 50 lakhs loan at one time, but for that, he need to show all the required documents and proof of his income. The business loan comes very handy to all the businessman who wishes to increase their business. The least amount of documentation and very fast processing makes a business loan one of the best partners of a businessman.

This kind of loan comes under the category of unsecured loan and it is very easy to get. Business loan can be used to any kind of business and there is no restrictions. Your credit score matters a lot in business loan. Also, your credibility to repay the loan and your income status. If you have all the relevant documents and knowledge then, with the help of business loan, you can achieve great heights in you life.

Eligibility criteria

There are certain criteria that must be fulfilled at any cost if you want to have a business loan. The fulfillment of these criteria is also important for you. Suppose if you’d take a loan and now you can’t repay it, then things will become worse. To prevent that scenario, these eligibility criteria are placed into work.

  • To be eligible for business loan, you have to at least 21 years old and at max 65.
  • You also need to have a running business from the last three years.
  • Your annual income must be equal to 2 lakhs or more than it. And also, the annual turnover must be equal to 50 lakhs or more.
  • Your business partner can sign the for the business loan, as a co-applicant. This will make the interest rate a bit less.

Application process (Offline/Online)

The application process of business is quite easy and hassle free. You don’t need to submit a lot of documents and the loan will also be approved in very little time. Without any collateral, the interest rate is slightly on the higher side, but the features of business loan suppress the case of interest rate. You can either choose to submit all the details online to the lender or you can visit them directly as well. Both methods are available and the choice is up to you.

The application process involves few steps, and by the help of these few steps you can easily apply for a business loan:

  • Step I – first of all, you need to choose the lender whom you prefer the most or whose deal is the best.
  • Step II – then you have to decide the kind of loan you want, or for how long and how much do you need for your business.
  • Step III – now you either need to visit the lender or you can directly apply from the official website.
  • Step IV – find the application form and fill it with utmost care.
  • Step V – add all the relevant documents with the application form, so that the process runs smooth.
  • Step VI – the lender will check on to your documents and after a successful check, your credit will be approved very soon.

Documents required

The documents required in a business loan is very few. Most of the documents are related to your business and some are related to your identity. These are the most common documents which most of us have. The documents required for a business loan is listed below:

  • Identify proof – Aadhaar card, passport, voter ID card, etc.
  • Address proof – Aadhaar card, driving license, etc.
  • Income proof – bank statement of last 6 months.
  • Income tax return of the last three years.
  • Pan card is an essential for KYC. Without a successful KYC your loan can’t be approved.
  • If you have any co-applicant, then you have to submit his KYC is well.

Frequently Asked Questions

Why should l take a business loan?

Whether you are just starting your business or you are quite experienced, it’s good to have some financial support. You can make your business really big by using the business. It is a helping hand for your business.

Can the credit limit be increased after taking the loan?

Well, it depends on the bank or the lender from whom you have taken it. But many offers this service after to make its customers more happy. This is completely a matter of your appeal.

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