What is Business Loan?
Funding done by financial institutions to borrowers for financing their business needs so that their business run smoothly is known as “Business Loan”.
Why Business Loan?
The growth of nation building is in the hands of MSME (Micro, Small & Medium Enterprise) which contributes ~6% in manufacturing GDP & ~25% of service sector GDP. MSME produces ~45% of total Indian manufacturing output. MSMEs accounts for 16% of bank lending.
Due to recent changes in macro economic scenarios and implementation of new laws like GST in business world, the requirement of finance has increased multiple times. We as a team are committed in helping such business houses to avail the credit facility so that lack of finance never becomes hindrance in their business growth.
Benefits of Business Loan:
- Easy to avail as it involves minimal documentation
- Flexible repayment options
- Loan amount ranges from Rs. 50,000 to Rs. 1 Crs.
- Business loan is a type of Unsecured loan
- Deduction of interest repayment on loan amount under Income Tax Act, 1961
Documents required for Business Loan:
|Identity Proof (Any two)||Address Proof (Any two)|
|PAN Card (Mandatory)||Utility bill (Example: Electricity bill, Telephone bill etc.)|
|Aadhaar Card||Aadhaar Card|
|Voting Id Card||Rent Agreement|
|Driving Licence||Lease Agreement|
- Loan Application form duly filled and signed
- Passport size photographs duly signed across
- Signature proof
- Registered Partnership deed (in case of partnership firm)
- Memorandum of Association (MOA) / Articles of Association (AOA) (in case of companies/LLP)
- Board resolution from Companies or LLP
- Latest shareholding pattern (in case of companies/ LLP)
- Last 2 years financials with Audit report
- Last 12 months banking of all bank accounts
- Repayment Track Record (RTR) of existing loans, if any
- Shop Establishment Certificate
- GST Registration certificate
- Declaration that borrower, Company or any of its Directors have not been debarred / blacklisted / penalized by any Stock Exchanges / SEBI/ RBI (in case of listed companies)
Interest rate & Charges:
- Processing fees ranges between 1% to 2% of the loan amount
- Interest rate ranges between 12% to 24%