Business Loan for Self-employed

A business loan availed with collateral or no security required, it depends on the bank that lends the loan, and the amount of risk they are willing to take. There are many banks available in India that provides credit for small and large businesses, and even business loan to start-ups. Each bank has separate qualification measurements based on the types of Loan, place, and age of the applicant etc. online applications can help the applicant with various options of each individual or a business owner.  Here is the basic list of eligibility to apply for a business loan in India.

• Age Limit: Applicant must be at least 21 years and a maximum of 65 years
• Income: A business must be profitable for at least the past 2 years
• Affiliate Applicants: This is optional, not compulsory in a business loan case for the applicant
• Good company’s credit score
• Company Turnover: turnover is defined by each bank n NBFC separately

Calculate your Monthly EMI on – Business Loan EMI Calculator

There are various sorts of business credit customers, some are self-employed or paid, and others are companies and industries. According to a business banks request, a large bank will have two types of customer. The criterion, the applicant’s judgment style, scalability, interest rate and tenure vary according to each customer category. So when applying for a loan, check the customer type you have and look for eligibility criteria.

• Self Employed Professionals (SEP) are usually Chartered Accountants, Allopathic Doctors, Company Secretaries, Architects and Designers.
• Self Employed Non-professionals (SENP) as other types of traders and manufacturers. Depend on the loan category, tenure changes as per the eligibility criteria, document requirements, and interest rates.

When the tenure is less, EMI tend to be on higher side, which means you can close the debt and pay less for the amount, and you save on paying interest. If you are comfortable with large EMIs, it is better to take this step to pay the minimum interest rate.

When you have access to the loan officer, you have to have a great business strategy that ensures to strengthen your financial position in the future. It should reflect the commitment and growth, debt security and low credit risk.

The loan application has not permitted without submitting all the necessary documents. You must be well aware of the records and proofs you need to carry. It ensures the contribution of your sincere intentions. Make sure to provide valid and authentic documents and information.

Some of the required proofs enclosed with your business documents are as follows:

• Identity proof
• Address proof
• Company’s PAN Card
• Trade License or Sales Tax Certificate
• Bank accounts report a certified copy of the joint or individual agreement privacy notice

For some of the banks and financial institutions, with a simple three-step process, it is quick and convenient to apply for this loan. The applicant must fill the online application form on the company’s website. Once the information qualifications are satisfied, bank employees will communicate with the applicant within 24-hours regarding a representative, loan issuance and documentation. Finally, the applicant should submit the required documents. After the document verification, the loan is disbursed post the processing fee payment.

More Information:

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