business Loan business loan/small business loan/businessline of credit

BUSINESS LOAN

Every business owner needs a certain amount of money to start their own business. However, the entrepreneur on the threshold of starting a new venture has to work out where and how he will get access to sufficient funds. Banks are one of the first organizations to be approached for funds in the form of a loan.

Explore Advantages of Business Loan

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Businesses need huge amounts of investment to fund expenditures related to expansion such as adding new lines to their existing products/services, and other growth prospects. In such a situation, business loans can come in handy as they provide much needed financial assistance to companies so that they can grow more competitive in the chosen markets.

As per convenience promoters offers different repayment options. They may work out a repayment plan as per the business cash flows to avoid facing financial difficulties while servicing the loan.
Monthly installment can be lower or increased by owners as per the profitability or choose bullet payments to periodically repay the amount.
Flexibility

According to the requirement of the fund different types, the owner avails the loan.
Many companies can choose term loans to meet the fund requirements in the short to long-term.
They may choose for working capital loans to meet the operational expenses of the business.
An overdraft facility whereby promoters may overdraw the current accounts as per the agreed terms and conditions.
The flexibility makes it easier for promoters to avail of a loan for the business facility.
No Collateral Required–

No income or collateral documents need to submit to avail of the loan.
A property or land must be owned by the borrower for a 100% loan disbursement.
For a small business start-up, these loans help to meet their business requirements and sustain the progress.
Short-term option

For a small business start-up, these loans help to meet their business requirements and sustain the progress.
This meets their requirements to fill a short-term financial gap.
Also, flexible loan options are depending on the size of the business-like

a) 100% disbursement,
b) 70% payout (if shown company tax return) etc.
c) This makes it easier for businessmen to expand their business and to sustain the cash flow

List Of Documents Required For Business Loan

Identity proof

Applicants need to provide identification proof with appropriate KYC documents including Aadhaar card, voter ID, PAN card, passport, driving license or any other valid document issued by the government.
Address proof

Other than KYC, documents like passport, electricity bill, ration card, telephone bill, lease agreement, trade license or certificate of trade license can be used as address proof when applying for a Bajaj Finserv Business Loan. Applicants can also opt for any other document issued by the government as address proof to complete their loan application
Financial documents –

The common business loan documents list that self-employed professionals and non-professionals need to submit are as follows.

• A copy of Income Tax Return filed for at least one year.
• Bank account statement for the last 6 months.
• Balance Sheet and Profit & Loss Statement for the previous 2 years, audited by a CA.
Business ownership proof –

The proof of business ownership required for a Bajaj Finserv Business Loan depends on the type of business and applicant profile. Documents for various business profiles are mentioned below.

• For self-employed professionals – Registration document in case of sole proprietors. Other proofs of business identity for self-employed professionals include documents issued in the concern’s name like PAN card, payment receipt for municipal tax, electricity bill, IT returns, etc.
• For self-employed non-professional – Sole proprietor’s registration document, individual identity proof of the owner, IT Returns, at least 6 months of bank statements of the owner, statement of creditor/book debt/periodic stock, GST return, etc.
• For other entities (partnerships and Private Limited companies) – Partnership agreement in case of partnership firms and Certificate of Commencement/Article and Memorandum of Association for Private Limited companies. Other supporting documents for these concerns including returns of Income Tax, Goods and Services Tax, registration certificate under the Shops and Establishment Act, etc. Besides, partners and directors also need to submit individual proofs of identity.