Although several types of loans are provided by lenders, when you need a loan for your business expenses, a specific loan serves the purpose. It is referred to as a Business Loan. Like any other loan, you are required to fulfill certain criteria when you are availing of a business loan. So, let us get into these criteria in detail and check whether you're eligible to avail of a business loan or not.
Business loans are a type of unsecured loans. It provides financial support to your business. The loan can be used for various business-related expenses such as hiring new staff, expansion of your business, clearing out business debts, and so much more. It can also be used for starting a new business. Nowadays, availing of a business loan is a hassle-free procedure. If you are eligible and have all the required documents, you can easily get yourself a business loan in no time.
To avail yourself of a business loan, you have to fulfill the following criteria:
● You must be a self-employed individual.
● You must fall between the age group of 21 to 65 years.
● You must have business experience of at least 5 years and a minimum of 3 years of experience in the current operations.
● Your minimum ITR or Income Tax Returns per annum must be Rs 1.5 Lakhs.
If you fulfill all these criteria then you can simply apply for your business loan without any complications.
Business Loan Eligibility Calculator can easily calculate the maximum amount of business loans that you can avail of. To calculate your business loan eligibility you simply need to fill up your monthly income and Easy Monthly Installments (EMI) that you can pay. Business loan eligibility calculators are also the best way to find out which business loans suit you the best.
The businesses that are qualified for getting a business loan are as follows:
● Private Limited Companies
● Partnership Firms
● Self-employed individual
● Sole proprietorship firms
● Retailers and Traders
If your business is categorized under any one of the above-mentioned types of businesses, then you can easily apply for a business loan.
While applying for a business loan you need to provide the following documents:
● Identity proof such as Aadhaar Card, Voter ID Card, Passport, etc.
● PAN Card
● Address Proof such as Aadhaar Card, Voter ID Card, Passport, etc.
● Your bank statement for the last 6 months
● Certified Memorandum and Articles of Association copy
● Declaration of Sole Proprietorship or authenticated Partnership Deed copy
● ITR form with certified copies that include Profit and Loss statement, balance sheet, and income computation of the last 2 years
Business loans are the best way to alleviate your business expenses. Although there are several business loans available in the market, you need to choose the one that best suits your business requirements and monthly income. To do so, you can make use of a Business Loan Eligibility Calculator. Furthermore, do not forget to compare different business loans before availing one yourself.