In recent years, cities like Noida have witnessed a rapid development of micro, small and medium scale businesses. This explosion in the growth of these businesses can be owed partly to the easy availability of business loan in Noida from various financial institutions.
These loans have made it easier for individuals to avail the capital necessary for investing in the development of infrastructure, expansion or get upgrades for their businesses. For anyone looking to avail a business loan, they can easily do so by complying with the eligibility criteria and producing all the necessary documents.
Know all the crucial information you need to apply for a business loan.
Eligibility criteria to avail a business loan
Financial institutions have made availing business loan simple by setting very few eligibility criteria. They are -
- Individuals should be between the ages of 25-55 years
- Your business should have at least three years of vintage
- You should also have filed your business’ income tax for the past year
- Individuals seeking the loan must be a self-employed professional with a stable source of income
Following is the list of employment criteria for availing business loans –
- For self-employed professionals
Self-employed professionals include chartered accountants, allopathic doctors, architects pursuing their profession, company secretaries.
- For self-employed non-professionals
Self-employed non-professionals include retailers, traders and manufacturers, service providers, proprietors, etc.
Other than these, individual entities like limited liability partnerships, partnerships, private limited companies, etc. can avail business loans. However, everyone has to furnish the required documents for business loan to prove their eligibility and avail the loan.
Documents required to avail a business loan
Following is a checklist for business loan documents that you must keep handy
- Identity proof
ID proof includes documents like Voter’s ID card, Passport, PAN card, Aadhaar card, driving license, etc.
- Address proof
These include electricity bill, telephone bill, lease agreement, ration card, etc.
- Financial documents
Income Tax Returns for the last two years with bank statements from the past six months, past two year’s profit and loss statement for your business audited by a CA, etc.
Following is a breakdown of documents that self-employed professionals and non-professionals have to produce to avail a business loan. With the knowledge of documents one should raise application after confirming the business loan interest rates from different lenders.
Documents for self-employed professionals
- Sole proprietorship proof of identity
- PAN card and IT returns along with water, electricity bill, municipal tax, etc. in the name of the concern
- The individual’s identity proof, such as their driving license, voters’ ID, passport, or Aadhar card
- Address proof the individual, such as their ration card, electricity bills, driving license, etc.
Documents for self-employed non-professionals
- The individual’s proof of identity
- Address proof of the individual
- Income tax returns from three years
- Copies of documents like periodic stock, creditors’ statement, age-wise book debt for the last three months
- Bank statement from the previous six months
In addition to these, individuals need to submit any other documents required by their financial institution to avail business loan in Noida.
What are the benefits you can avail with business loans?
If you comply with the above criteria and submit the documents mentioned above, you can avail the following benefits –
- These are unsecured loans which can be availed without any hassle. You can get instant approval and quick disbursal.
- You can use the advance for numerous purposes, including increasing business cash flow, office renovation, expanding your trading business, stocking up on inventory, upgrading to the latest technology, etc.
- These loans are collateral-free, and therefore, you don’t have to put any of your assets on the line to seek credit.
You may avail a business loan in Noida to fulfil various purposes. However, you must ensure that you have all the documents available to make the process of applying for the loan easy.