How to get Business Loan from Bank? If you want to start your business then know the whole process
Most of the banks in the country offer online business loan facility.
The bank can be contacted after submitting the documents required for the loan.
Apart from banks, the government also provides business loans to young entrepreneurs under various schemes.
New Delhi. Many young fellows in the country have a better business idea and plan but lack sufficient capital to start it. To help such people, the bank offers business loans. Apart from this, the Central and State Governments also give loans under various schemes to people willing to do their own business and to promote their existing business. Many private and public sector banks in the country offer business loans and there are different schemes associated with them.
Banks and Non-Banking Financial Companies (NBFCs) provide term and flexi loans to meet the business needs of a company. These loans are available to sole proprietors, privately run companies, partnership firms, self-employed individuals and shopkeepers.
Will get business loan sitting at home
Most of the banks offer online business loan facility. To apply for the loan, download the application form and upload the required documents. Once the documents are verified, the sanctioned loan amount reaches the beneficiary’s account within a week.
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How many types of business loans are there?
term business loan It is a common type of loan. It can be secured or unsecured. The loan amount is determined by the credit history of the company, while the tenure ranges from 1 to 5 years for unsecured business loans and 15 to 20 years for secured company loans.
for young entrepreneurs start-up loan The concept of has been brought. For this, the personal credit history of the entrepreneur taking the loan and the credit record of the company are looked into. Turnover data and other factors are also considered while deciding the loan amount, tenure and interest rate. The company must be established and operational and the applicant must provide proof of its existence and licensing.
working capital loan There are small business loans which are used to meet the cash crunch required to run the business. This maintains the cash flow balance required to run the business. Service providers, manufacturers, distributors, traders and merchants involved in exports and imports generally avail working capital loans.
Government also promotes young entrepreneurs
At the same time, at the government level, the central government has also brought such a scheme, in which loans ranging from 10 lakh to 1 crore can be available. Start up India scheme has been started to promote entrepreneurship in the country. Under this, scheduled caste, scheduled tribe and women who want to start their business across the country can take a loan of up to 1 crore.
Required documents for business loan
There are some important documents that are required before applying for a business loan. So that it can help the bank to know about you and your business. These include some basic and important documents.
- Passport size photo, ID proof- photocopy of passport, driving license
- Residential Certificate, Voter ID will also be valid for this.
- If there is a partnership firm, then the documents of partnership deal will have to be given.
- Rent agreement related to shop or other establishment
- Balance sheet of the business or company for the last three years
- Net asset and liability information
Apart from this, if the bank wants, then some other documents can also be asked from you. Because there is a slight difference in the rules of every bank.
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Tags: bank loan, business loan, business news, RBI
FIRST PUBLISHED : November 15, 2022, 08:00 IST