Mandatory Documents
Duly filled application form, PAN Card
Documents Required for Business Loan
When applying for a Business Loan, you need to provide certain documents to support your application and verify your eligibility. These documents help lenders assess your financial standing, business stability, and creditworthiness. The required Business Loan documents list may vary based on the lender and the loan type, but commonly requested documents include:
Identity Proof
Voter ID Card/ Photo ID issued by GOI/Passport/ Driving Licence/Aadhaar Card or any other government-issued ID proof.
Address Proof
Aadhaar Card/ Voter ID Card/ Property Tax Receipt/ Driving Licence/ Utility Bill/ Registry Copy/Property Tax Receipt/ Lease or Rent Agreement
Business Continuity Proof
Certificate of incorporation VAT/ Excise/ Sales Tax/ Service Tax Registration, Trade License/ Copy of partnership deed/ Registration Certificate issued by RBI or SEBI/ Certificate of Practice
Signature Proof
Banker's Verification/ Passport/ PAN Card
Proof of Income
Latest ITR, GST returns for the financial year, Latest audited financials, Last 6 months bank statement
Other Documents (if applicable)
Profit and loss statements, balance sheets, and tax returns for the past few years to showcase your business's financial performance.
How to Submit Business Loan Documents?
Knowing what are the documents required for a Business Loan help in loan requests as it is a crucial step in the loan application process. To ensure a smooth and hassle-free submission, follow these steps:
Organise Your Documents
Gather all the necessary documents mentioned by the lender. Sort and arrange them in a systematic manner to avoid any confusion during submission.
Make Copies
Create photocopies or scan the original documents needed for a Business Loan to have multiple sets of each document. This ensures that you have backup copies in case any documents are misplaced or lost.
Verify Requirements
Double-check the lender's specific requirements regarding document format, size, and any additional Business Loan documents checklist they may request. Ensure all documents are up to date and meet their criteria.
Submit Online or Offline
Determine the submission method preferred by the lender. Some lenders may offer online portals or email submissions, while others may require physical copies to be submitted at a branch office.
Prepare a Cover Letter
Include a cover letter summarising the enclosed documents and any additional information or clarifications you wish to provide.
Review Before Submission
Thoroughly review all the documents to ensure accuracy and completeness. Cross-verify the checklist provided by the lender to ensure you haven't missed anything.
Timely Submission
Submit the documents within the specified timeframe to avoid any delays in processing your loan application. Remember to keep copies of all the submitted documents for your records. By following these steps, you can ensure a streamlined and efficient submission process for your Business Loan documents.
Frequently Asked Questions (FAQs)
The documents required for Business Loans typically include business registration documents, identity proof, address proof, financial statements, bank statements, proof of ownership, business plan, KYC documents, and any other documents specified by the lender. The specific documents may vary based on the lender's requirements and the nature of the loan.
To get a Business Loan approved for an online business, follow these
steps:
Prepare a detailed business plan and financial projections.
Gather necessary documents such as bank statements, tax returns, and
business registration documents.
Research and compare lenders offering online Business Loans.
Apply through Hero FinCorp's online loan application, providing
accurate information and uploading the required documents.
Await approval, which may involve verification and assessment of
your business's online presence and financial viability.
Once approved, review the loan terms, sign the agreement, and
receive the funds directly in your bank account. Hero FinCorp offers
a convenient online loan application process for quick and efficient
Business Loan approvals.
Business Loan documents are important as they serve multiple purposes:
Verification: Documents help lenders verify the authenticity of the
borrower, their business, and financial information.
Risk Assessment: Lenders assess the borrower's creditworthiness,
business stability, and ability to repay the loan based on these
documents.
Legal Compliance: Documents ensure compliance with regulatory
requirements, protecting both the lender and the borrower.
Loan Evaluation: Financial statements and business plans help
lenders evaluate the feasibility and profitability of the business.
Record Keeping: Documents create a record of the loan transaction,
terms, and conditions, facilitating transparency and future
reference.
The credit score required for a Business Loan can vary depending on
the lender and the specific loan program. Generally, a good
credit score
of 700 or above is preferred by lenders to demonstrate
creditworthiness and reduce the risk of default. However, some lenders
may consider lower credit scores depending on other factors such as
business performance and collateral.
To download the NOC (No Objection Certificate) for your Business Loan
account, log in to your lender's online portal or visit their website.
Navigate to the loan account section, locate the NOC option, and click
on it. Follow the prompts to generate and download the NOC document in
PDF format.
Submitting Business Loan documents is necessary as they provide
essential information for lenders to assess the borrower's
creditworthiness, evaluate the viability of the business, verify legal
compliance, and determine the loan terms. These documents serve as
evidence of the borrower's financial stability, business performance,
and ability to repay the loan.
Yes, in most cases, you can access the Business Loan documents list
online. We provide the list of required documents here. This allows
borrowers to easily access and download the necessary forms and
checklists, simplifying the document submission process for a Business
Loan application.
documents required for business loan Related Blogs
