Business Loan

After the COVID pandemic, India has produced many digital comeback and one is the business loan for side hustlers and home-entrepreneurs. Working from home showed another beneficiaries despite many losing their jobs to the pandemic remote work culture.

With Business Loan there are ample opportunities you can work on. There are many ideas for work from home that can bring you a strong income. Explore and experiment with business ideas at home to gain an edge in this fast moving world.Business loan characteristics include loans that range up to INR 50 lakhs.In this blog, lets understand all the basic requirements of business loans.

Eligibility Of Business Loan:

Before we plunge into the business set up, here are the basic requirements for eligibility check. It differs slightly based on lenders’ terms and conditions.

• Self-employed people, Owners, Private Ltd. Co., and Partnership Companies concerned in the business of Manufacturing, Trading, or Services.
• The business should have the lowest turnover of Rs. 40 Lakhs
• People who have existed in the current business for a minimum of 3 years, with 5 years of total business experience.
• Individuals whose business has been making a profit for the past 2 years
• The business must have a Minimal Annual Income (ITR) of INR 1.5 lakhs per anum
• The applicant must be at least 21 years at the time of applying for the loan and not be older than 65 years at the loan maturity.

Further, let's know a few of the important documents need to get a business loan.

Business Loan Documents:

subsequent documentation is required along with the Business Loan application:

• PAN Card – For Company/Company/Individual

• A copy of any of the records as identity proof:

• Aadhaar Card
• Passport
• Voter's ID Card
• PAN Card
• Driving License

• A copy of any of the records as address proof:

• Aadhaar Card
• Passport
• Voter's ID Card
• Driving License
• Bank statement- past 6 months required
• The Latest ITR along with an estimation of earnings, Balance Sheet, and Profit & Loss account of the last 2 years, Certified/Audited by a recognized and authorized CA.
• Evidence of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
• Other Mandatory Documents [Sole Prop. Declaration/ Certified Copy of Partnership Deed, Certified original copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original

Other eligibility Criteria:

• NATIONALITY: INDIA
• BUSINESS VINTAGE: AT LEAST 3 YEARS
• CIBIL SCORE: 685 OR HIGHER
• WORK STATUS: SELF-EMPLOYEE
• AGE: 24 TO 70 YEARS.

With this you further your entrepreneurial ideas and benefit the most from business loans which can be availed in a click.