Business Loans

Capital is a vital component for the success of commerce today. Irrespective of whether a firm is in proprietorship or big organization, finance holds the key to its development, and managing finance is certainly not a child’s play. Keeping all this in mind, several institutions have come up with business Loans to help budding and existing entrepreneurs.

Very frequently, every company has to face a make-or-break situation which calls for immediate investment to reap long term benefits. If one is not having the finances at that time, he might well opt for a business Loan which is designed specifically to fulfill urgent business requirements. These Loans not only help in expanding a business, but also play a vital role in modernizing and improving small as well as medium scale business.

What are the documents required for taking a Business Loan?

• Personal Documents
  1. Application form with Passport Size Photographs of all applicants and co-applicants.
  2. PAN Card of applicant and co-applicant.
  3. Identity Proof – Driving License / Passport / Aadhar Card.
  4. Address Proof – Driving License / Passport / Aadhar Card.
  5. Ownership proof of both residence and office either in the name of the applicant or jointly with family members.
  6. Business Continuity Proof – Any one document dated 3-5 years old like a Bank Statement, Sales Tax Challans, IT Returns, Shops & Est. Certificate, Certificate of Incorporation or a Partnership Deed.

• Financial DocumentsSelf-Employed Individuals / Sole Proprietorships
  1. Latest audited ITR and financials for the last 2 years including Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.
  2. Past 12 months Bank statements from the borrower’s main account/s and 3 months of all other bank accounts mentioned in the Balance Sheet.

  Partnership Firms / Private Limited Companies

  1. Latest audited ITR and financials for the last 2 years including Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.
  2. Past 12 months Bank statements from the borrower’s main account/s and 3 months of all other bank accounts mentioned in the Balance Sheet.
  3. Partnership Deed and partnership authority letter for partnership firms.
  4. Memorandum and Articles of Association for private limited company.
  5. Certificate of Incorporation (COI) for the private limited company.
  6. Latest shareholding pattern.

• • What is the advantage of a Business loan?

Unlike a personal loan, business loans could be availed for business needs and the amount is much bigger than the personal loans. Also, in case of companies, the liability belongs to the companies and not just to the individuals as is the case with the personal loans. Also, the online loan enablers like Valubiz offer easy business loans without the requirement of any collaterals.

Clarity of Objective and Proper documents:
Financial institutions will ask how much loan you want, the purpose of the loan and how would you repay back. The borrower should have clear answers against each along with income proofs like business balance sheets and ITR submitted.

• Affordability – The borrower should have a clear idea about their current business market value and how much they can take in order to repay easily.
• Credit History – Banks & NBFCs have a policy of checking past loan history and repayment history. Any default without proper reasoning can cost the borrower with the rejection of application.
• Terms & Conditions of Loan – One should be vigilant while signing a business loan agreement, one needs to read the document and understand the clauses like prepayment penalty and late EMI payment fees. Valubiz provides easy business loans with transparent terms and conditions.