PAN Card – For Company/Firm/Individual
A copy of any of the following documents as identity proof:
A copy of any of the following documents as address proof:
- Aadhaar Card
- Passport
- Voter’s ID Card
- Driving License
- Bank statement of the previous 6 months of current account
- Latest ITR along with computation of income, Balance Sheet and Profit & Loss account for the previous 3 years, after being CA Certified/Audited
- Tax Paid, Possession Certificate, Title Deeds, Encumbrance Certificate of the property to be mortgaged
- Proof of continuation (ITR/Trade license/Establishment/Sales Tax Certificate)
- Other Mandatory Documents [Sole Prop. Declaration or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution
For takeover of existing loan, provide the sanction order copies and the account statement
Factors Affecting the Interest Rate of Business Loan
The business loan can be offered to any person who is running a legitimate business and has good turnover or want to start a new business . Different banks have different criteria and terms to validate and authenticate a person’s business. After all the evaluation the loan amount, tenure and rate of interest or even whether to provide loan falls under the purview and authority of the bank. Some of the parameters taken under consideration are:
- Credit score of the company or in the case of a new business the owners’ credit score
- Type of business: Proprietorship , Partnership , Private Limited or Public Limited
- Turnover of the business
- Profit made by the business
- Cash flow of the business
- Track record of business
Also Read: How to Get loan for startup business without security in India
