Business Loan :
Unsecured business loans in the form of term loans for purpose of business use allows the borrower to borrow funds without keeping any asset mortgaged with a bank or NBFC. The maximum loan amount is generally Rs. 50-75 lakhs and maximum loan tenure is generally 3 years for the borrower. Most banks or financial institutions require 5 years of business or employment vintage to avail of a business loan.
Documents Required:
For any loan application, a minimum set of documents are generally required by any financial institution in order to process the application. The list of documents required are as follow:
- Identity Proof: Identity proof can include PAN card, Aadhar card, Voter ID card, Passport, etc.
- Address Proof: Address proof can include Aadhar card, Passport, Utility Bills, etc.
- Income Proof: Income proof can include ITR documents, Form 16, Salary slips, Form 26AS and Bank statements.
- Business Existence Proof: This is usually required in the case of a self-employed borrower and can include a GST registration certificate, trade license, partnership deed, etc. In the case of a self-employed professional like CA or Doctor, a certificate of practice and degree is also required.
- Loan Details: This includes sanction letter or repayment schedule of any existing running loans along with its repayment bank account statement.