How to Get a Business loan in India
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How to Get a Business loan in India: In today’s time everyone wants to be financially independent. Starting a business is a good way for this, but many people are not able to start a business due to lack of capital. In such a situation, taking a Business Loan is a good way. The government is also focusing on Business Loans to make the Indian economy worth Rs 5 trillion. For this, many schemes are also being run, under which you can take a loan up to Rs 10 lakh.

How to Get a Business Loan

First of all, you have to present your business plan to the bank and convince the bank that your business can be profitable and have good growth. For this, you will also have to show the financial statements of your business etc. to the bank.

Must Read : THE POWER OF BUSINESS LOANS: A COMPREHENSIVE GUIDE IN 2023

Eligibility to take Business Loan

Generally banks and financial companies prefer to give Business Loans to companies with a turnover of Rs 10 lakh or more. To avail a Business Loan, your age should be between 21 to 65. Also, the business should be active for two to three years and the credit score should be good.

At the same time, if you are going to start a new business, then you can apply under the Central Government’s Business Loan scheme Pradhan Mantri Mudra Yojana.

Who can take Business Loan

  • Entrepreneur
  • Self-employed person
  • Partnership Firm
  • Private or public companies

    What is the process of taking loan from bank?

    • If you want to start any kind of business, then first of all prepare a business plan so that through that process you can build your business.
    • After this, you decide how much loan you want to take for business. You should decide beforehand the number of forms in which your business can be started as per your business. Only after this you should proceed with the process of taking the loan.
    • To take a loan, first tell the bank about your business plan.
    • To take a loan from the bank, your credit score must be correct. The better your credit score, the quicker the bank will give you a loan. Therefore, you should keep your credit score correct so that you can get Business Loan on time and you can start your business easily without any hassle.
    • Let us tell you, the bank gives loan to a borrower only after seeing the business plan. If the bank feels that you can repay the loan from the business started by you or from the profits earned from it, then only the bank will give you permission to give the loan or will approve your loan.

    Documents required to take loan

    1. Aadhaar Card: At present, it is very important to have Aadhar card for any kind of loan or financial transaction. At the same time, the government has also made it mandatory to link your Aadhar card with any bank. In such a situation, when you take a loan from any bank, you definitely need Aadhar card. If you do not have an Aadhar card, then try to get it made as soon as possible. If you want not to face any kind of problem in taking loan then it is necessary for you to have Aadhar card.
    2. PAN Card : PAN card is also a document which is required to take a loan. PAN card is issued by the Income Tax Department which is required for financial transaction or service. In such a situation, it is also necessary for you to have PAN card. Let us tell you, PAN card is one of the most important documents for taking a Business Loan.
    3. Bank Statement : To take a Business Loan, it is necessary to have an account in any bank because the loan is given to you on the basis of this. Also how much do you borrow? How much dues are paid? And how much do you spend? To verify all these works, it is necessary for you to have the bank statement. The loan giving company can understand from your bank statement whether you are capable of taking the loan or not. If your credit score is good then the lender can easily understand that you are a reliable person to repay the loan and will repay your loan on time.
    4. Residence Certificate : Residence certificate is also one of the essential documents for taking a Business Loan. Actually, residence certificate is the proof of whether the borrower lives in the place where he wants to start his business or not. Let us tell you, some companies even go to see the residential place of the borrower, only after that they decide whether the loan should be given to the person or not.
    5. Certificate of Business : To take any kind of Business Loan, you must have proof of business address. Through this it is verified whether the applicant works in his operational area or not. On the basis of this business letter proof, the borrower can easily get the loan.
    6. Income Tax Return : Income tax return is also one of the essential documents for taking a Business Loan. Income tax return acts as proof of the income earned by you. Not only this, but through the income tax return, the person giving the loan has information about your true income on the basis of which he gives you the loan. Actually, the person giving the loan checks through the income tax return whether you have filed your IT return on time or not. In such a situation, they estimate that the person who submits his IT return on time will also make the payment on time. In such a situation, you get the loan quickly and you are a reliable borrower for the person giving the loan.
    7. Passport : To take a loan from the bank, it is necessary for you to have passport documents, however, even without a passport, the loan is easily available.
    8. Driving License : Driving license is also an essential document for the loan.
    9. Voter ID : If you use Voter ID along with all the documents to take the loan, then it will be a good option.