Documents Required for Business Loans
With a business loan, it becomes easier to expand the business, manage the cash flows, and upgrade business equipments. Every bank and financial institutions have their criteria, specific requirements, and eligibility factors for offering business loans. However, following is a list of common banks document required while opting for a business loan:
Common list of documents required for all types of business loan:
- Identity Proof: PAN Card/Driving License/Passport/Voters ID Card/Aadhaar Card
- Address Proof: Telephone Bill / Electricity Bill/Ration Card/Passport/Lease agreement/Trade license/Sales Tax certificate
- Income Proof: Bank Statements of the Last 2 Years
- Financial Documents: ITR of Last 2 Years along with computation of Balance Sheet, Income & Profit & Loss a/c for the last 2 yrs
- Proof of Business Continuation
- Business Ownership[ Proof: The other mandatory documents required will be Sole Proprietorship Declaration, Certified true copy of Memorandum, and Articles of Association
- Audited financials of last 3 year
Following is a list of common documents required by all business loan lenders:
- Application Form: Complete loan application form attached with a passport size photograph
- Proof of Applicant's Identity: Photo PAN card, Voter’s identity card, Passport, Driving license, MAPIN card
- Proof of Residence: Utility Bill/Electricity Bill/Ration card/Lease agreement/Passport/Trade license/Sales Tax certificate
- Proof of Age: Photo PAN card, Passport, Voter’s identity card
- Financial Documents: IT returns copies for the last two years and latest bank statements for 6 months, along with P & L and balance sheet for the last two years that’s audited by a C.A.
Documents required for Self-Employed (Private Ltd. Co. & Partnership Firms):
- Proof of Identity of Private Limited Company: VAT/Sales tax/Service tax/Excise registration/Utility Bills /IT return/Registration under Shops and Establishment Act, PAN ID /Municipal tax bill in the name of the concern, Memorandum, and Articles of Association
- Proof of Individual Identity: PAN card, Voter’s identity card, Driving license and Passport
Documents required for Self-Employed Individuals- Professionals:
- Proof of Identity of Sole Proprietorship: Proof of identity of the sole proprietorship
- PAN ID / IT return of the concern or Municipal tax, Electricity, Water bill in the name of the concern
- Individual identity proof for the Sole Proprietor: Voter’s identity card, Photo PAN card, Passport, Driving license
- Proof of residence address for the Sole Proprietor: Passport, Voter’s identity card, Driving license, Ration card
Documents required for Self-Employed Individuals- Non-Professionals:
- Proof of individual identity
- Proof of identity of the sole proprietorship
- Three years of income tax returns
- Three years of sales tax returns
- Age-wise book-debt, copy of periodic stock, and creditors-statement for the current three months
- Copy of last 6 months bank statements of main banker/copy of bank statement for the term loan
Do bear in mind that it's mandatory to fill the Business Loan Application Form irrespective of which bank the individual is seeking to apply for a business loan. Without the necessary documentation, the loan request will not be processed. Thus, before approaching the bank or a lender keep the above paper works ready.
