What is the required eligibility to apply for a business loan?

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Understanding the required eligibility to apply for a business loan is important for aspiring entrepreneurs and established business owners alike. Securing a business loan can provide the necessary capital to start, grow, or sustain a business.

Eligibility criteria typically vary by lender but commonly include factors such as the business’s financial health, credit score, business plan, and operational history. Lenders assess these criteria to know the borrower’s ability to repay the loan.

Additionally, requirements may include providing collateral, demonstrating a certain level of annual revenue, and showing consistent cash flow. Knowing business loan eligibility can ease the application process, increase your chances of approval, and help you obtain the financial support needed to achieve your business goals.



Business Loan Eligibility Criteria

If you want to apply for a business loan, below are the eligibility criteria you should fulfil to get the required funds.

●       Borrowers should be Indian Citizens

●       The minimum income of an individual should be at least ₹30,000

●       Indian Citizens/Residents who are 23 years and above can apply for a business loan

●       To apply, Individuals must have filed the latest ITR

●       Credit score should be more than 750

●       Bureau Vintage should be at least 2 Years


Business Loan Documents

Below are the documents required for a business loan.

●       ID Proof - PAN Card

●       Permanent Address Proof -  Aadhaar Card/Driving License/Passport

●       Current Address Proof (If different from Permanent Address) - Utility Bills/Registered Rent Agreements

●       Owned House or Office Ownership Proof - Property / Municipal Tax Receipt /Latest Electricity Bill

●       In Case Rented - Rent Agreement Required

●       Business Establishment Proof - GST Registration/Shop Act/ITR Saral Copy/Bank Current Account

●       Udyam Aadhaar

●       Business Photograph - 4 Photographs (Entrance, Sign Board Inside and Locality)

●       Bank Statement - last 6 months bank statement

●       GSTR - Last 6 months GSTR 3B


Additional Documents Required For Pvt Ltd Entity

●       Photo of Applicant

●       Individual KYC of Directors and PAN to be collected

●       Board Resolution

●       MOA/AOA (Form 32 if any change in director’s name in MOA)

●       Latest CA-certified Shareholding Pattern

●       Audited Financial if Applicable


Additional Documents Required For Partnership Entity

●       Photo of Applicant

●       Individual KYC of all partners to be collected

●       Partnership Deed

●       NOC from other partners


Conclusion

Meeting the required eligibility criteria for a business loan involves demonstrating financial stability, a solid credit score, a robust business plan, and a reliable operational history.

These factors help lenders assess the borrower’s ability to repay the loan, ensuring a smooth application process. Choosing the right lender is equally important, and LoanTap stands out as an excellent option for business loans. LoanTap offers competitive interest rates, flexible repayment options, and quick approval processes customised to meet the diverse needs of business owners.

Their customer-centric approach and personalized loan solutions make them a preferred choice for many entrepreneurs seeking financial support. With LoanTap, you can secure the funding necessary to drive your business towards success and growth.



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