What Are the Eligbility Criteria for Business Loans?
Well, everyone needs to take a loan either for the expansion of their business or a personal loan for their personal preferences, like a loan for your child’s education, or a loan for buying a new house, it can be anything. But, do you know what are all the criteria for a business loan? Documents required for business loan, well to check one person’s eligibility criteria, or eligibility for business loan, the 3 main documents are required.
Eligbility Criteria for Business Loans
- The last 1 year of bank statement in pdf form ( Make sure the statement you have, should be in pdf form, from net banking and not manually or clicking the pictures and then making it in a pdf format, that will not be acceptable by the finance bank as their system can’t accept in such form.)
- KYC ( Aadhar and Pan Card )
- Business registration proof. ( Now, let’s talk about the vintage that you must be having under registration proof. You should have atleast 2 years of vintage proof, some finance can also accept the 1 year but most of the time, 2 years is mandatory and as I have said earlier, it depends on the policies of different financial institutes and their criteria but 2 years will be accepted from any finance bank. And in some finance, if your turnover is above 40L, You should compulsory have a GST certificate registered, but again, it depends on every other finance institute, and you can check and go through their requirements under their website. )
After they check your eligibility, if they further process your case, you have to share your light bill, your co-applicant’s KYC, which is not mandatory in some finance banks, your ITR if you filing, also it is an optional one and other required documents that can be given to log in the case of yours.
These are the main required documents that any finance bank will ask to first check your eligibility criteria and further other documents that you can arrange as they process your case further for your disbursement.
Also, finance banks have gone to the strict side as very few banks will accept the CIBIL score below 700, as they do not want any check bounces in the last 6 months of your business or any late payment EMI as it will affect your score and will take it down in future which you will not be able to take a loan from any bank.
We have covered almost everything that all you should have while going for taking a loan and all are the process. You can always do the research according to the different finance banks and their policies, so even if you do not have something that we mentioned above, make sure you check the requirements of a finance bank you are looking in to go further as it will save your time and energy as well, So you can use that time to arrange few documents that you may not have with you currently or in present.