Re: How to get a business loan in India?
Business loan is the need of every small business holder to grow their revenue. But you need a financial base to improve the revenue. When you have finance available, you can easily grow your business. But, what if there is lack of finance and more opportunities waiting to improve your business?
To opt for a business loan you need to have a valid reason. As banks verify the need for the loan and then process your loan application.
The below points define the process for loan application and approvals.
Loan Application: The first thing you need to do is fill up the loan application form. It is then submitted to the lending officer/company. The loan application would specify your entire details of personal and professional presence.
Loan Eligibility/Credit History:
Majorly all the loan applications need to have a credit check. The credit history is the record of the borrower’s credit details received from various sources like, banks, credit card companies and agencies.
Any previous unpaid loans or any credit card debts will report to a bad credit history. A score of 750-850+ is said to be a good credit score.
Documentation:
Once your eligibility for the loan is checked, and you are eligible for the loan, you need to go ahead with the documentation.The loan officer will provide a list of documents to be submitted. Once, you submit the documents the loan application process would be taken further. The documents will include your business documents like ITR, Profit and Loss Statements, Shop Registration Certificate, Property Lease Agreement if any, and also your personal documents like PAN Card, Bank Passbook etc.
Verification:
Once all the documents are submitted, the banking officers will have a background check, where your business existence will be verified.
Final Process:
After the verification,the loan offer letter is provided to you, which mentions the loan eligibility amount, EMI and tenure of the loan. Once you agree with the entire structure, the loan approval letter is provided and the final amount is sanctioned to you.
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