There are many different types of lenders available for small businesses, each with its own set of requirements.
When you’re applying for a business loan, it’s important to understand what documents you’ll need to provide.
The specific documents required may vary depending on the lender, so it’s important to check with them in advance.
However, there are certain documents required for business loans regardless of the lender.
Let’s understand the major documents required for a business loan.
Application Form
This is a form that you must fill out and sign, providing all of the necessary information about your business and the loan you are applying for.
This includes your name, address, contact information, business name, type of business, business address, and the amount of loan you are requesting.
You must also provide a detailed explanation of how you will use the loan proceeds.
Passport Size Photo
A passport-size photo of the primary applicant is required. This photo will be used to verify your identity.
Valid Identity Proof of the Applicant
You must provide a valid government-issued ID, such as a passport, driver’s license, or voter ID card. This document will be used to verify your identity and residency.
Financial Documents
You must provide financial documents that show your business’s financial health, such as the past two years’ income tax returns, current bank statements, and a balance sheet and profit and loss statement that have been audited by a CA.
These documents will be used to assess your ability to repay the loan.
Valid Proof of Residence
You must provide a document that shows your current address, such as a utility bill, lease agreement, or bank statement.
This document will be used to verify that you live in the area where you are applying for the loan.
Proof of Age
You must provide a document that shows your date of birth, such as a passport, driver’s license, or voter ID card.
This document will be used to verify that you are of legal age to apply for a business loan.
Things to keep in Mind while Submitting Documents Required for Business Loan
- Check the lender’s eligibility conditions. Before you begin gathering documents, make sure you understand the lender’s eligibility requirements. This will prevent you from wasting time gathering documentation that you will be unable to present.
- Collect all of the necessary documentation. After you’ve reviewed the qualifying requirements, you’ll need to acquire all of the necessary paperwork. This could include:
- Identity proof (passport, PAN card, Aadhaar card) of the borrower and guarantors
- Borrower and guarantors’ addresses (voter ID card, driver’s license, utility bill)
- Income documentation for the borrower and guarantors (IT returns, bank statements, and pay stubs)
- Business proof (GST registration certificate, trade license, business registration certificate)
- Collateral (if necessary)
- Check that the documents are in order. All of the documents you send should be in order and error-free. Checking spellings, dates, and signatures is part of this process.
- Some lenders may ask that the documents be notarized by a notary public. This is normally done to ensure the document’s legitimacy. Consult our experts to understand the business loan process better and how to get your document prepared the right way
- Once you have all of the necessary documents, you can submit them to the lender in person or by mail. Make sure to check with the lender on how they want your documents.
Moreover, If you want any other guidance relating to Documents required for business loan, please feel free to talk to our business advisors at 8881-069-069.
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