How does Business Loan Document Checklist help With Loan Application?

10 min read
Business loan

When you are running your own business, there are numerous emotions that you experience along the journey, it is these experiences which shape your personality and decide the course of your future as a businessman. You can put in all your hard work, time, and resources to get your business venture started and have only one wish and that is to see your business become a successful venture. Now, in order to ensure the success of your business venture, only hard work and dedication is not enough. It requires street smart thinking to take advantage of every possible opportunity to ensure that your efforts reap the desired results.

In order to ensure maximization of the opportunities presented to you, you must have adequate Financial resources at your disposal also. For instance, if a client is giving you a huge order but is asking for a thirty days credit period, you must be able to lap up this opportunity otherwise, it might pass on to your competitors. If you do not have such kind of spare cash with you, then the best option at your disposal is to apply for a business loan. There are numerous financial institutions operating in the country who offer a wide range of business loans to small business owners to help them meet their business-related funding requirements.

Out of the various financial institutions operating in the market, the most popular option for small businessmen to apply for the business loan without collateral has emerged as online lending companies.

About Online Lending Companies and how to apply to them?

Online lending companies have emerged as a really popular option for business owners seeking urgent funds for their various business requirements. This is so because online lending companies allow you to apply for various types of Business loans online itself from the comfort of your home through a hassle-free paper-less process. These companies conduct their entire operations through online channels only and provide all the relevant information, such as types of loan, terms, and conditions, and business loan documents checklist using their website or mobile App. It helps you save a lot of time and effort which would otherwise be spent visiting the banks. They follow an efficient processing system wherein your applications are processed within a few working days after you apply for a business loan. The disbursal process is also highly efficient with the money directly transferred to your bank account within a few working days.

In order to be eligible for an unsecured loan of up to Rs. 5 Lakhs, your annual turnover in the previous year must have been more than Rs. 10 Lakhs. You are also entitled to an extended repayment tenor of 24 months and have the freedom to use the money according to your discretion albeit for business purpose only. The rate of interest starts from 23% p.a. and can go up to 28% as per your credit profile. You also have the option to prepay your loan account without incurring any additional charges.

These companies follow a transparent working style wherein you receive regular updates regarding the status of your business loan application through SMS or Email, without any need of going anywhere. They also have an independent creditworthiness evaluation process which they use in combination with CIBIL and enhance your eligibility for a business loan significantly.

About Business Loan Documents Checklist and its Benefits

When you apply for a business loan of any kind, the lender has a particular list of documents that you need to furnish. This is called the business loan documents checklist and is an integral part of a business loan application process. The list usually varies from lender to lender but there are certain documents that are integral to every such business loan documents checklist. Some such documents are:

Business Loan Document Checklist help With Loan Application

Requirements for a business loan for a new business:

  • Income Tax Returns ( for last 2 years)
  • GST Returns ( for last 12 months)
  • Bank Statements (for last 12 months)
  • KYC Documents (Owner)
  • Registration Documents (Business)
  • Loan Repayment Track Record
  • Net worth statement

Benefits of a Business Loan Documents Checklist

Although it might initially appear tiresome, there are numerous benefits associated with a business Loan documents checklist when you apply for a business loan. Here are some of the major benefits available:

  1. You get to know if any documents that the lender requires are not available with you. Thus, you get adequate time to arrange such documents.
  2. This checklist helps you understand the requirements of the lender and you get to know if your application for a business loan would be successful or not.
  3. If you provide all the required documents in a single go, your application would be processed at earliest.
  4. Lenders are also impressed with your seriousness and diligence when you provide all the documents required by them.
  5. You can ask any questions that you have from the lender, even before applying for a business loan.

With so many benefits to entail, it is thus very important for you to procure the business loan documents checklist before you apply for a business loan, in order to ensure speedy processing of your application.

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