What are the Documents Required for Business Loan?
There are tough times in every business's span when there are fewer sales, when business wants to invest in a new project, filling up of inventory etc. Along with this, there are multiple regular expenses such as payment of wages, maintenance of machinery, electricity and many other undeniable expenses that need to be cleared from time to time. There are many documents required for business loan to be submitted by the business.
Business Loan documents required
With the help of a business loan, it is quite easier for a business to manage cash flows, expand the business, upgrading business equipment and many other things. Every financial institution has its own criteria and procedure of lending money. Below is the checklist of documents required for getting the loan.
• Identity Proof: The business owner can submit their PAN card/ Passport/ Driving License/ Voter ID card as a proof of identity.
• Address Proof: Submit an electricity bill/ passport/ trade license/ sales tax certificate/ lease agreement can be the document for address proof.
• Bank Statement: To show that your business is earning a desired profit.
• The business owner should submit the recent ITR.
• Audited financials of last three years.
• Other important documents such as a certified true copy of memorandum and article of association.
List of general documents required for business loan
Apart from the different requirements of financial institutions for granting the loan, following is the list of common documents that every business needs to submit.
• Application Form: Every business needs to provide an application for getting the loan to their loan provider along with one passport sized photograph.
• Applicants should provide a valid proof of their identity.
• A compulsory document for valid proof of residence.
• Passport, voter identity or photo PAN card for the proof of age.
• Financial documents: Business should provide the copies of their income tax returns for the last two years, recent bank statements for last six months along with the balance sheet for the last two years.
It is important to get your documents intact before making an application to the bank. If the required documents are not complete, the application cannot be accepted.