OMK Advisors

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Business Loan

A Business Loan is an amount that an applicant can borrow from a Bank/NBFC/HFC/ other Financial Institutions for their business use. Applicant pay it back in Equated Monthly Instalment (EMI) over tenure upto 60 months. Applicant can use a Business Loan for a variety of purposes, such as expansion of business, to increase short- term working capital needs, for buying or replenishing inventory, for purchasing equipment, for office expansion, for business marketing, debt consolidation or to meet any other business needs. Business Loans are unsecured, means lender don’t require any collateral against loan. Applicant eligibility depends on the credit history, income and other factors.

Business Loans come with numerous benefits and features to help borrowers cope with financial obligations. The following are a few features that you unlock when you count on a business loan:

  • No end-usage restriction
  • Loan amount of upto Rs. 50 lakh, which can exceed depending on lenders’ discretion
  • Flexible repayment tenure of upto 5 years and above, depending upon the lender
  • Minimal documentation
  • No Collateral
  • Quick disbursals

To apply Business Loan, applicant need to submit the following documents:

  • KYC documents : Passport size photos, Photo ID (Aadhaar Card & PAN Card or Voter ID or Driving Licence), residential proof (utility bills/ration card/ Bank Passbook, etc.)
  • Income/Financial Documents : Latest 3 years ITR with annexures of all the partner/directors/Company
  • Partnership Deed / MOA & AOA with Certificate of Incorporation
  • GST Registration Certificate with GST returns
  • Income Tax Permanent Account Number (PAN)
  • MSME Certificate
  • List of Directors and Shareholding in case of Company
  • Latest paid Utility Bill of business premises
  • Professional Qualification Documents : Degree of Doctorate/Chartered Accountant/ Company Secretary, if any, and
  • Bank Account Statement : Latest 6 months/1 year bank statement

Banks and Loan providers have preset Business Loan eligibility criteria. To procure a commercial loan with the utmost ease, stick to the following eligibility criteria:

    • Nationality : Indian
    • Age : 25 years to 65 years
    • Employment : self-employed with own business or proprietor / partner / director of an existing business
    • Turnover : Minimum Annual Turnover of INR 10 lakhs per annum and Profit After Tax (PAT) of INR 2 lakhs per annum
    • Business Experience : Must have a business that has been existing for atleast 3 years, with stable income and profits for the past 2 years
    • Credit Score : 700 or above