A business loan can be availed with or without security, it depends on the bank that offers loan and then the amount of risk they are ready to take. Whether business loan is for an existing business or to start a brand new one, there are many banks in India that offers loan for both small and big businesses. Getting approval and money is possible within few days if you have all necessary documents and if you meet the eligibility criteria.

One needs to meet certain business loan requirements to avail them. Here is the list of eligibility criteria to apply for a business loan in India.

• Limited or Private Limited Company
  Net income of the concern should be more than ₹150,000 per annum for business loan up to ₹1,500,000 and over ₹300,000 for business loan above ₹1,500,000.
• Partnership or Proprietorship Firm
  A minimum of 25% stake each can be clubbed to the income of the concern
• Chartered Accountant / Self Employed Professional
  Who possess diploma or degree in any of these discipline like art / craft /profession or Who possess the skill that is considered as a profession from banks perspective shall be considered for any financial assistance. For example: Dental Surgeons, Accountants, Medical Practitioners, Engineers, Craftsmen, Management consultants, Construction contractors etc.

To be eligible for a business loan there are a lot of factor that are considered. Every bank that offers loan will look into many criteria prior to sanctioning it. Few important ones are:

• Age Limit: The applicant should be min 21 years & max. 65 years.
• Income: Business should be profit making at least for the past 2 years.
• Turnover: ₹150,000 p.a. should be the minimum annual income.
• Co-applicants: This is optional to the applicant, not mandatory in case of business loan.

To avail a business loan, an applicant needs to provide the following documents as per the lender’s requirements.

• Identity Proof: Driving License / PAN Card / Passport / Voters ID Card / Aadhaar Card.
• Address Proof: Ration Card /Telephone Bill / Electricity Bill / Passport / Trade license / Lease agreement / Sales Tax certificate.
• Income Proof: Bank Statement of Last 2 Years.
• Financial Documents: Last 2 Years ITR along with computation of Balance Sheet, income & Profit & Loss a/c for the last 2 yrs.
• Proof of Business Continuation
• Business Ownership[ Proof: Other Mandatory Documents such as Sole Proprietorship Declaration, Certified true copy of Memorandum & Articles of Association
• Last 3 years audited financials.

Here is a list of documents that are commonly required by all the business loan lenders.

• Application Form: Complete loan application form with one passport size photograph
• Valid Proof of Applicant’s Identity: Passport, Photo PAN card, Voter’s identity card , Driving license and MAPIN card
• Proof of Residence: Ration card/Telephone Bill/ Lease agreement/ Electricity Bill/ Passport/Trade license /Sales Tax certificate
• Proof of Age: Passport, Photo PAN card, Voter’s identity card
• Financial Documents: Copies of IT returns for the last two years along with the latest Bank statements for 6 months and P & L and balance sheet for last two years audited by a C.A.
  1. Self Employed (Private Ltd. Co. and Partnership Firms): P & L Copies of IT returns for the last two years and P & L and balance sheet for last two years audited by a chartered accountant.
  2. Self Employed Individuals – Professionals: Copies of IT returns for the last two years and Bank statements for last 6 months and – Professionals: P & L and balance sheet for last two years audited by a chartered accountant
  3. Self Employed Individuals – Non Professionals: P & L and balance sheet for last two years audited by a chartered accountant and Copies of IT returns for the last two years and Bank statements