An entity may construct or expand a business unit using a loan. You can use the obtained cash for general company expenses such as purchasing machinery for plants, hiring personnel, renting office space, paying off the 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. Important documents required for business loan: 

  • 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
  • Income tax 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.

About Finline!

Finline is an online platform for creating financial reports for getting bank loans and investments. It’s like ‘Canva’ but for financials. If you are an entrepreneur looking for a bank loan, you need to have a well-crafted project report. We, at Finline help you with that. Our team will help you create a powerful business plan in ten minutes. That too in your language. Our reports are accepted by all public and private sector banks working in India. Click to create your report.