A loan is an opportunity for individuals to meet their demands and requirements.
The two different types of loans are Secured and Unsecured.
Furthermore, they are again classified,
SECURED LOAN is further divided into 4 types,
- Home Loan
- Vehicle Loan
- Mortgage Loan
- Consumer Loan
Similarly, 2 types of UNSECURED LOAN are,
- Personal Loan
- Business Loan
Here we will focus on BUSINESS LOAN.
BUSINESS LOAN is unsecured loan designed strictly for business oriented purposes.
Criteria for BUSINESS LOAN
We consider the following criteria:-
- For BUSINESS PERSONAL ONLY.
- Type of the Company (Proprietor/Partnership/Pvt Ltd./Ltd)
- The minimum turnover must be in 2 years 1 crore each.
- Minimum life of business should be of 5 years.
- The customer has a minimum of 60% transaction via bank.
- For the Proprietorship company, NET PROFIT should be a minimum of 5 lakhs.
- For Partnership/Pvt.Ltd/Ltd. NET PROFIT should be a minimum of 1 lakh.
- One of the owners should have a loan track record for a minimum of 18 months (i.e should have paid at least 18 EMI)
Documents Required for BUSINESS LOAN
We should require the following documents:-
- Last 3 months Salary Slip.
- 2 years old Salary slip or Appointment letter.
- Photocopy of Company ID Card.
- Xerox of PAN Card.
- Photocopy of AADHAR Card (Both sides).
- Latest Property Tax Receipt.
- Last 2 years Company's Financial Report (Audited).
- Last 2 years Trade License.
- 5 years old Trade License /Company IT Return.
- Company Address proof.
- Last 1-year Company's Current Account Bank Statement.
- MOA for Pvt Ltd. & Limited Company Registration Certificate.
- Partnership deed for Partnership Company.
- NOC from other active Partners/Directors of the Company.