Business Loans

OVERVIEW

Unsecured loans given by the banks and by NBFC (Non Banking Financial Company) to businessman without taking any collateral security is called as business loan. Business loan are very useful to grow your business, credit card payments, dream tours, shopping or marriage, medical treatment, festivals etc. This kind of cash can be obtained easily via Business Loans. Business loan is not valid loan for start a new business or investment in shares and commodities etc.

You can get business loan with your business documents just like your KYC documents and your income documents like last 3 year IT Return with P&L, Balance sheet, 12 month current account, Business continuity proof etc. Business loan is a simple hassle free process and it is easy to avail business loan with minimum documentation and within quick time. It is just takes minimum 3 days and maximum 7 days to get results from various institutions. Process times is purely depends on entire policy of Banks and profile of customer.

You have various options to get business loan. Each bank has different interest rates different tenure and different loan amount criteria. The business loan amount and rate of interest is dependent on customers profile like Annual turnover, nature of business, Net profit, Gross profit, average bank balance, Cibil score etc. Every banks give business loan from minimum of Rs. 3 lacks to maximum of Rs. 50 lacks.

Business loan can also reject by banks because of major three reasons. Firstly if customer has CIBIL problem or customer is defaulter in some bank. Secondly if customer is over leverage and thirdly is customer stability is not proper matched with banks criteria. Some other reason also effect like customer’s Average Bank balance, current company stability, and current resident stability if he is rented then only.

Every document is verified by verification agencies such as authorized by different banks. After verifying the documents and CIBIL credit do sanction loan or reject loan. If loan is sanction then it’s disbursed after various process of agreement with banks and submission of security cheques in favor of respective bank.

After business loan disbursement repayment starts from next months. If loan is disbursed after 15th of the month then EMI will come from next to next month but bank will deduct pre EMI interest from loan amount.

Free Bird Advisors Pvt Ltd give you best platform to get offers from many banks and NBFC. By applying here you will get value of your profile and banks come to your doorsteps to give you best. Here you can take decision as per your choice, your loan amount, interest rate and in touch with as many banks as possible and get them to make loan offers to him. Then he can then try to negotiate with them and select the most cost effective option for him. The borrower will also have to take into consideration the processing fee and prepayment charges while finalizing the lender.

DOCUMENT CHECKLIST FOR BUSINESS LOAN

PVT LTD COMPANY

  • 3 years IT returns with profit and loss account, balance sheet, and statement of income (Audit Report if audited.)
  • 12 month current account statement
  • 12 month saving bank account
  • Resident latest light bill and telephone bill
  • Office latest light bill and telephone bill (Rent agreement if rented)
  • Pan card copy of all Directors and company
  • Company MOA and AOA
  • Latest share holding pattern and List of Director on company letter head
  • Welcome letter of all current live loans
  • 2 photograph passport size
  • 5 years old business continuity proof
  • Current year provision P & L and balance sheet
  • Vat return of current year
  • Creditors and debtors break up of last 2 years
  • Month wise sales purchase of last 2 years

PROPERIETORSHIP FIRM

  • 3 years ITR with profit and loss amount, balance sheet and statement of income (audit report if audited)
  • 12 months current account statement (All account mentioned in Audit report and IT return)
  • 12 months saving bank account
  • Office and resident latest light bill and telephone bill and Municipal tax bill (Rent agreement if rented)
  • Pan card copy and Aadhar card copy
  • Welcome latter of all current live loans
  • 2 photographs passport size
  • 5 years old business continuity proof (Gumasta/Vat/Excise/Cst/Gst/SSI)
  • Current year provision P&L and balance sheet
  • Vat return & GST return of current year
  • Creditors and Debtors break up last 2 years
  • Month wise sales purchase of last 2 years

PARTNERSHIP FIRM

  • 3 years ITR with profit and loss amount, balance sheet and statement of income (audit report if audited)
  • 2 Years Individual IT return of All Partners
  • 12 months current account statement (All account mentioned in Audit report and IT return)
  • 12 months saving bank account Individual Partners
  • Office and resident latest light bill and telephone bill and Municipal tax bill (Rent agreement if rented)
  • Pan card copy and Aadhar card copy of all partners and pan card of company
  • Partnership deed
  • Welcome latter of all current live loans
  • 2 photographs passport size
  • 5 years old business continuity proof (Gumasta/Vat/Excise/Cst/Gst/SSI)
  • Current year provision P & L and balance sheet
  • Vat return & GST return of current year
  • Creditors and Debtors break up last 2 years
  • Month wise sales purchase of last 2 years