How much ITR required for a Business Loan?

For successfully applying for a business loan, you need a Minimum Annual Income greater than INR 2 lakhs for the past 2 years. And in the income documents, you need to furnish the latest 2 years ITR along with the audited income statement, balance sheet, profit and loss statement for the past two years.

Can an LLC get a Small Business Loan?

Yes, both LLC, limited liability company and LLP, limited liability partnership is eligible to apply for a small business loan. Entities such as private limited companies, limited liability partnership firms, partnership and closely held limited companies are eligible to apply for a business loan. Apart from that self-employed professionals and self-employed non-professionals can too apply for the business loan.

What Business Loan Documents do you need for a New Business?

You need to provide the following documents to be eligible for a business loan: Identity Proof ( for both company and individual) Address Proof (Voter ID, Passport or Driving License) Last six months bank statement Last two years of income documents Proof of continuation (ITR, Trade License, Sales Tax Certificate) Other documents (copy of sole proprietorship declaration, partnership deed, MOA & AOA, Board resolution)

How can I improve my chances of getting a business loan?

To enhance your chances of securing a business loan, consider the following steps: Select the appropriate loan type that aligns with your business needs, maintain healthy cash flows and financial records, meet the eligibility criteria set by the lender, have a good personal and business credit score, develop a well-structured growth plan, and use a business loan EMI calculator to estimate and plan for monthly EMIs effectively.

Business Loan Documents Required: Complete Checklist

SMFG India Credit offers business loans tailored to meet diverse needs, from expanding operations to managing cash flows. We provide loans at competitive rates and offer flexible repayment tenure, making your borrowing process smoother and more convenient. To be eligible for a loan, you must meet certain requirements and provide the necessary business loan documents. For instance, your business should be operational for at least 3 years and have a minimum annual turnover as specified in our guidelines. Maintaining a good credit history and a CIBIL score of over 750 is also a necessary pre-requisite.

We have kept our business loan document requirements minimal to ensure a smooth application process without any heavy paperwork. The documents required for a business loan include financial statements and business proof documents, among others. This helps us verify crucial information such as your identity, creditworthiness, and financial stability in order to decide upon loan offers customised for your business. Let us go over the business loan documents list, along with the process for calculating EMI and applying for a business loan.

Documents Required for Business Loan

To receive an approval for your business loan, you will need to submit the following documents:

Identity Proof

For a company, firm or individual - a valid identity proof and PAN Card

Address Proof

Voter ID Card, Ration card, Passport, or Driving License

Bank Statements

Latest Bank Statements for last 6 month

Income Documents

This should include the latest 2 years ITR along with the computation of income, balance sheet, profit and loss account for the past two years. This has to be submitted after the requisite CA certification

Proof of Continuation

ITR/Trade license/Establishment/Sales Tax Certificate

Other Documents

Sole Proprietorship Declaration or Certified Copy of the Partnership Deed, certified true copy of the Memorandum & Articles of Association (certified by the company Director) and the Board resolution

The above is just a basic list. The actual list of business loan documents will depend on your profile, requirement and SMFG India Credit’s policy at the time of application.

How to Apply

You can apply for a business loan at SMFG India Credit in a few easy steps:

Provide Basic Details and Wait for the Decision

Start your business loan application here. Click on ‘Business Loan’ or ‘SME Loan’ based on your requirements. Enter the requested information and upload the necessary business loan documents. Next, specify the loan amount and select the tenure you desire. Based on the provided information, you will receive an instant decision on whether your application will be going forward. If yes, you will be given a reference number, which you should save for future communication.

Provide Additional Information, If Necessary

An SMFG India Credit representative will get in touch with you for any further information if required. Your loan application will then go through several verification stages, including document and physical address verification, as well as collection of the documents required for a business loan. This process helps us ensure the accuracy and validity of your application details.

Loan Approval and Disbursement

Upon successful verification, we will provide a customised offer on the loan amount as well as the rate of interest. After you accept the offer, the loan amount will be disbursed to your account. After this, you can access the funds needed for your business.

Business Loan EMI Calculator

Getting a clear view of your monthly obligations is an important part of loan management. SMFG India Credit’s business loan EMI calculator can help you plan your loan repayment and monthly expenditure by providing a realistic picture of your monthly EMI obligations. It helps you adjust your budget according to your existing liabilities and decide what loan amount you can comfortably repay. This way, you can make sound financial decisions regarding your loan amount and tenure. Using our EMI Calculator is quick and easy. You just have to input the loan tenure, rate of interest, and total loan amount. With this, you can get an estimate of your EMI in seconds.

Conclusion

With competitive interest rates, and flexible repayment tenure, SMFG India Credit stands as a reliable partner to support your business finance needs. By understanding and preparing for the eligibility criteria and the documents needed for a business loan, you can increase your chances of getting the loan approved quickly and secure favourable loan terms. For a hassle-free application process, our business loan documents checklist includes only essential documents related to your identity, address, income, and business proof.

Tools like the business loan EMI calculator and eligibility calculator further aid financial planning by giving you an estimate of the monthly repayments and the loan amount you may qualify for. Apply for a business loan at SMFG India Credit today or visit your nearest branch to know more!

Page also available in: हिन्दी - Hindi

* Please note that loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms and disbursal process will be subject to SMFG India Credit's policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.

FAQs

What is the maximum time to repay a business loan?

Our business loan tenures can go up to 48 months*. However, this can vary depending on your individual profile and SMFG India Credit’s policies at the time of loan application.

What is the CIBIL score required to be eligible for a business loan?

At SMFG India Credit, you need to have a good repayment history as well as maintain a CIBIL score of 750 or above to meet the eligibility criteria. This can improve your chances of approval and allow you to secure favourable terms.

Is the Collateral Required for a Business Loan?

At SMFG India Credit, for business loans amounting up to Rs 75 Lakhs*, you don’t need to pledge your personal or business assets. These loans are unsecured in nature and are similar to personal loans.

However, for a business loan of amount Rs 75 Lakhs* and above, you need to provide collateral for successful processing of the business loan application.

What is the Credit Score Required for a Business Loan?

Credit score plays a crucial role in determining the eligibility criteria. You need to have a CIBIL score of over 700 to meet the business loan eligibility criteria.

A CIBIL score of below 700 points can impact your business loan eligibility or the lender may ask for the additional personal guarantee to successfully process the business loan application.