A business unit may be constructed or expanded using a loan. The obtained cash can be used for general company expenses like buying machinery for plants, recruiting personnel, leasing office space, paying off mortgage, and more. Thankfully, obtaining a business loan is simple. You can get the money in a few days if you match the eligibility requirements and have the necessary business loan paperwork

You must provide a certain set of supporting papers when requesting for a business loan. Among the crucial common documents are:

  • Application form.
  • Passport size photograph
  • Identity documentation of the applicant
  • Proof of Address for verification
  • Verification of age
  • Financial Records
Document list that can be used for identity verification
  • Passport
  • MPIN (Market Participant Identification Number) card
  • Voter’s ID card
  • Driver’s license
  • PAN card
Document list that can be used for address verification
  • Voter ID
  • Ration card
  • Telephone bill
  • Lease agreement 
  • Power bill
Document list that can be used for age verification
  • PAN card
  • Voter’s ID
  • Passport
Financial records needed for obtaining business loans
  • Bank account statements from the previous six months
  • IT returns from the previous two years
  • A chartered accountant’s audited P&L
  • balance sheet from the previous two years

The self-employed sector requires different papers for the professional and non-professional categories.

Documents needed for self employed professionals
  • Identity proof of the applicant (any documents mentioned above can be used)
  • returns of income taxes for at least three years
  • A driver’s license, ration card, passport, or voter ID that serves as proof of residency for the single proprietor
Documents needed for self employed non- professionals
  • Identification documentation for the proprietorship
  • Documents for the last three years’ tax returns, including sales tax.
  • A copy of the most recent three months’ worth of monthly stock and creditors statements
  • Last six months’ value of the primary banker’s bank statements
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You might also like to read the article on the documents required for obtaining a MUDRA Loan.