How to Apply for a Business Loan

 Starting your own company is a wonderful endeavour. However, we all know that it is not as simple as it appears. Capital is one of the most difficult obstacles to overcome when launching a new business. For new business owners, a business loan is one of the most convenient funding solutions. A business loan can be applied for by sole proprietorships, partnerships, and private limited companies.



There are two main categories of company loans: secured and unsecured.

Secured Business Loan: In this case, you must either offer the bank a specific amount of money or personal valuable property as collateral for the money borrowed. These loans have reduced interest rates, especially when money is put up as collateral.

Unsecured Business Loan: With this type of loan, you do not have to put up any money or collateral as security for the amount borrowed. The interest rates, on the other hand, are greater.

You can also choose from three different loan kinds based on your repayment schedule:

  1. A one-year repayment period applies to a short-term loan.
  2. The repayment period for an Intermediate Loan is one to three years.
  3. The repayment period for a Long Term Loan is three to five years.

When applying for a business loan, there are a few eligibility criteria to keep in mind. These are the following:

  • Minimum Age of Applicant: 21 years
  • Maximum Age of Applicant: 65 years
  • Minimum Annual Income of Applicant: Rs 1.50 lac
  • Minimum Loan Amount: Rs 25,000
  • Maximum Loan Amount: Rs 2 crore

When applying for a company loan, you'll also need a few key documents. They are as follows:

  • PAN Card, Voter's Card, Passport, or Driver's License Age Proof Signature Proof: PAN Card + Passport + Bank-verified Signature
  • Household Address Ration Card/Utility Bill/LIC Policy Receipt/Rental Agreement Ration Card/Utility Bill/LIC Policy Receipt/Rental Agreement
  • Income Proof: Bank Statement from Operating Account (previous 3 months) + Income Tax Returns with Income/Certified Financials calculated (last 2 years) + Proof of Turnover (latest Service Tax returns)
  • Proof of Current Business Continuity: The Bank has granted a certificate of continuity.
Conclusion

We may operate in both existing and emerging markets at any time during the loan lifecycle. We are capable of handling both simple and complex large syndicate transactions. To find about the best pricing and deals, call our toll-free number +91-9477079053. They'll help you in every way they can. Please contact me at Business Loan Online Apply if you have any more.

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