Business Loan - Overview

Documents

1. KYC documents of the borrower
2. Income tax returns for the past 2 years
3. Bank statements for the past 6 months
4. Business proof, such as business registration certificate, GST registration, etc.
5. Proof of business ownership, such as partnership deed, memorandum of association, etc.

Fees & Charges

1. Processing fee: Up to 2.50% of the loan amount.
2. Prepayment charges: Up to 4% of the outstanding loan amount.
3. Late payment charges: 2% per month on the overdue amount.

Think About

1. Quick processing time and disbursal of funds
2. Competitive interest rates and flexible repayment options
3. Minimal documentation requirements
4. Customized loan solutions for different business needs

Eligible Criteria

1. The borrower must be a self-employed individual, a partnership firm, a limited liability partnership (LLP), a private limited company or a closely-held public limited company.
2. The minimum age of the applicant should be 21 years and maximum age should be 65 years.
3. The borrower should have a minimum annual turnover of Rs. 40 lakhs for non-professionals and Rs. 15 lakhs for professionals.
4. The borrower should have a minimum of 3 years of business vintage.
5. The borrower should have filed income tax returns for at least the past 2 years.

Documents

The specific documents required for a Bajaj Finserv business loan can vary based on the type of loan you're applying for and the lender's policies. It's recommended to refer to the official Bajaj Finserv website or contact their customer support directly for the most accurate and up-to-date information regarding the required documents. However, here is a general list of documents that you might typically need when applying for a business loan:

1. Identity and Address Proof:
  - PAN card of the business entity and promoters/partners/directors
  - Aadhaar card or passport for identity verification
  - Address proof of the business entity and promoters/partners/directors (e.g., utility bills, rental agreement)

2. Business Proof:
  - Business registration documents (Certificate of Incorporation, Partnership Deed, LLP Agreement, etc.)
  - Business PAN card
  - Business address proof (e.g., utility bills, rental agreement)

3. Financial Documents:
  - Audited financial statements (Profit and Loss Statement, Balance Sheet, Cash Flow Statement) for the past few years, if applicable
  - Income Tax Returns of the business and promoters/partners/directors for the past few years
  - Bank statements of the business account for the past few months

4. Business Plan:
  - Detailed business plan outlining the purpose of the loan, projected revenue, expenses, and how the loan will contribute to business growth

5. Collateral Documents (if applicable):
  - Details of collateral being offered as security for the loan, including property documents, valuation reports, etc.

6. Loan Application Form:
  - Bajaj Finserv's official application form, properly filled out and signed

7. Trade References:
  - References from suppliers, vendors, or customers that you have a business relationship with

8. Ownership and Partnership Details:
  - Details of the ownership structure and partnership agreements, if applicable

9. Other Documents:
  - Any other documents that Bajaj Finserv specifies as per their policy

Remember that the required documents can vary based on the specific loan product you're interested in, the loan amount, the purpose of the loan, and the lender's current policies. Before applying for a business loan from Bajaj Finserv or any other financial institution, make sure to review the exact list of required documents and prepare them accordingly.

Fees & Charges

Processing Fees: A one-time processing fee is charged by the lender for processing and disbursing the loan. This fee is usually a percentage of the loan amount and may vary depending on the loan type and amount.

Prepayment Charges: If you decide to pay off the loan before the end of the loan tenure, the lender might charge prepayment fees. Some loans might have a lock-in period during which prepayment is not allowed.

Think About

Considering a business loan from Bajaj Finserv is a significant financial decision, and it's important to make an informed choice. Bajaj Finserv is a well-known financial institution in India that offers various financial products, including business loans. Before proceeding, I recommend that you thoroughly research and understand the features, eligibility criteria, interest rates, terms, and conditions associated with their business loan offerings. 

Eligible Criteria

Eligibility criteria for a Bajaj Finserv business loan can vary based on the type of business loan you're applying for and the lender's policies. Please note that eligibility criteria might have changed since my last update in September 2021, so it's important to verify the most current information directly from Bajaj Finserv's official website or by contacting them directly. However, here are some general factors that might influence your eligibility for a Bajaj Finserv business loan:

1. Business Type: Bajaj Finserv might have specific criteria for the type of businesses they lend to. Certain industries might be favored due to their stability and growth potential.

2. Business Vintage: The length of time your business has been operating could impact eligibility. Some loans might require a minimum number of years in business.

3. Business Turnover: Your business's annual turnover or revenue could be a key factor in determining your eligibility and the loan amount you're eligible for.

4. Creditworthiness: Your personal and business credit history will likely be considered. A good credit score could increase your chances of approval and favorable terms.

5. Age of Applicant: There might be a minimum and maximum age requirement for the applicant (business owner or partner).

6. Loan Amount: Different loans might have different minimum and maximum loan amount criteria. Your eligibility could be influenced by the loan amount you're seeking.

7. Documentation: Bajaj Finserv would require various documents to verify your business's existence, financials, and other relevant information.

8. Nature of Business: The nature of your business, whether it's a sole proprietorship, partnership, private limited company, etc., could affect eligibility.

9. Purpose of Loan: The intended use of the loan funds could influence eligibility. Some loans might have specific purposes, such as working capital, expansion, equipment purchase, etc.

10. Existing Financial Obligations: Bajaj Finserv could consider your existing loans and financial commitments when determining your eligibility.

11. Collateral: Depending on the type of loan, Bajaj Finserv might offer both secured and unsecured loans. Collateral could influence your eligibility for certain loan types.

12. Business Profitability: The profitability and financial health of your business might impact your eligibility for a loan.

To determine your specific eligibility for a Bajaj Finserv business loan, I recommend visiting their official website or contacting their customer service. They will be able to provide you with the most accurate and up-to-date information regarding their eligibility criteria and the application process.

Documents

• Identity proof: Any one of the following documents can be submitted as identity proof - Aadhaar Card, Voter ID, Passport, PAN Card, or Driving License.
• Address proof: Any one of the following documents can be submitted as address proof - Aadhaar Card, Voter ID, Passport, Bank statement, or Utility bill.
• Business proof: The borrower must provide proof of business, such as a business registration certificate, partnership deed, or Memorandum of Association (MOA) and Articles of Association (AOA).
• Financial documents: ICICI Bank may ask for financial documents such as bank statements, audited financial statements, income tax returns, or balance sheet and profit and loss statements to evaluate the creditworthiness of the borrower.
• KYC documents: The borrower must submit Know Your Customer (KYC) documents, such as PAN Card or Aadhaar Card, to comply with regulatory requirements.

Fees & Charges

Processing Fee: Up to 2% of the sanctioned loan amount.

Pre-payment/Foreclosure Charges: Charged as per T&Cs under sanction letter

Think About

Competitive interest rates: ICICI Bank offers attractive interest rates on business loans, making it easier for borrowers to manage their loan repayment.

Flexible repayment options: ICICI Bank offers flexible repayment options, which allow borrowers to choose a repayment tenure that suits their financial situation.

Minimal documentation: ICICI Bank requires minimal documentation, which makes the loan application process quicker and hassle-free.

Quick disbursal: ICICI Bank has a quick loan disbursal process, which ensures that borrowers can access funds quickly and without any delays.

Customised loan options: ICICI Bank offers customised loan options based on the borrower's business needs, ensuring that they get the right loan for their requirements.

Dedicated customer support: ICICI Bank has a dedicated customer support team that is available to assist borrowers with any queries or concerns they may have throughout the loan tenure.

Eligible Criteria

• Unsecured Business Loan: ICICI Bank's unsecured business loan is a collateral-free loan product that is available at interest rates ranging from 18% to 24%.
• Secured Business Loan: ICICI Bank's secured business loan product, which requires collateral, is available at interest rates ranging from 10% to 16%.
• Working Capital Loan: ICICI Bank's working capital loan product is designed to meet the short-term financing needs of businesses and is available at interest rates ranging from 10% to 16%.
• Machinery Loan: ICICI Bank's machinery loan product is designed to help businesses purchase or upgrade their machinery and is available at interest rates ranging from 10% to 16%.

Documents

• Identity proof (PAN card, Aadhaar card, passport, or driving license)
• Address proof (Aadhaar card, passport, or utility bills)
• Business ownership proof (Certificate of Incorporation, MOA, AOA)
• Bank statement for the last 6 months
• Income tax returns for the last 2 years
• Business proof (GST registration, trade license, etc.)

Fees & Charges

• Processing fees: Up to 2% of the loan amount
• Prepayment charges: Up to 5% of the principal outstanding
• Late payment charges: 24% p.a. on overdue amount
• Cheque bouncing charges: Rs. 500 per bounce

Think About

• No need to have any security or assets
• Less documentation requirement
• Quick to arrange
• Simple loan process

Eligible Criteria

• The applicant must be an Indian citizen
• The minimum age for the applicant is 21 years, and the maximum age is 65 years
• The business should have been in operation for at least 3 years
• The business should have a minimum turnover of Rs. 40 lakhs per year
• The business should be profitable for the last two years

Documents

Identity proof : PAN Card/Driving License/ Passport/ Voter's ID/ Aadhaar Card

Address Proof : Passport/Driving License/Voter's ID/Aadhaar Card/Utility Bill/Bank Statement/Bank Account Passbook (Updated and no more than 3 months old)

Ownership proof : Agreement Copy / Electricity Bill / Maintenance Bill with share certificate / Municipal tax bill/Share certificate 

Business continuity proof : Shop and Establishment certificate/Tax registrations-VAT/Service tax/GST registrations Firm Constitution MOA/Partner Ship Deed/GST Registration Certificate

Fees & Charges

Processing  Fee : (Non-refundable)    Maximum 2% of the loan / facility amount (Plus Taxes as applicable)

Think About

• Kotak Business Loans are available from Rs. 3 lakhs to Rs. 75 Lakhs
• Minimal paperwork and speedy approvals
• Easy repayment options
• Services are made available at your doorstep

Eligible Criteria

Are you thinking of availing a business loan anytime soon? Browse through our business loan eligibility criteria mentioned below, to make sure your business loan is approved at the very first go:

• The applicant has to be in business for last 3 years with a minimum turnover of Rs.40 Lakhs
• The business must have generated profit for a minimum of 1 year
• The applicant should be a Sole Proprietor / Partnership firm / Private Ltd Co. / Trust / LLP involved in the business of Manufacturing, Trading or Services
• The main applicant should be minimum of 25 years of age & should be no older than 65 years at the time of loan maturity

Documents

The specific documents required for a business loan from IDFC FIRST Bank can vary based on the type of loan you're applying for and the bank's current policies. However, here is a general list of documents that you might be asked to provide when applying for a business loan:

1. **Identity and Address Proof:**
  - PAN card of the business entity and the promoters/partners/directors
  - Aadhaar card or passport for identity verification
  - Address proof of the business entity and the promoters/partners/directors (e.g., utility bills, rental agreement)

2. **Business Proof:**
  - Business registration documents (e.g., Certificate of Incorporation, Partnership Deed, LLP Agreement, etc.)
  - Business PAN card
  - Business address proof (e.g., utility bills, rental agreement)

3. **Financial Documents:**
  - Audited financial statements (Profit and Loss Statement, Balance Sheet, Cash Flow Statement) for the past few years, if applicable
  - Income Tax Returns of the business and promoters/partners/directors for the past few years
  - Bank statements of the business account for the past few months

4. **Business Plan:**
  - Detailed business plan outlining the purpose of the loan, projected revenue, expenses, and how the loan will contribute to business growth

5. **Collateral Documents (if applicable):**
  - Details of collateral being offered as security for the loan, including property documents, valuation reports, etc.

6. **Loan Application Form:**
  - The bank's official application form, properly filled out and signed

7. **Trade References:**
  - References from suppliers, vendors, or customers that you have a business relationship with

8. **Ownership and Partnership Details:**
  - Details of the ownership structure and partnership agreements, if applicable

9. **Other Documents:**
  - Any other documents that the bank specifies as per their policy

Please note that these are general documents that are commonly required for business loan applications. The actual documents and requirements may vary depending on factors such as the loan amount, the type of business, the purpose of the loan, and the bank's specific policies at the time of application.

Before applying for a business loan with IDFC FIRST Bank or any other financial institution, I recommend contacting the bank directly or visiting their official website to get the most accurate and up-to-date information regarding the required documents and application process.

Fees & Charges

Here are some common fees and charges that might be associated with business loans from IDFC FIRST Bank or any other financial institution:

Processing Fees: This is a one-time fee charged by the bank for processing your loan application. It's usually a percentage of the loan amount and is non-refundable.

Prepayment Charges: If you decide to pay off your loan before the scheduled tenure, the bank might levy prepayment charges. These charges vary and can be a percentage of the outstanding loan amount.

Late Payment Fees: If you miss your loan repayment deadline, the bank may charge a late payment fee.

Loan Closure Charges: Some banks may charge a fee when you close your loan account after repaying the entire loan amount.

Documentation Charges: These are charges related to the verification and processing of documents required for the loan application.

Legal and Valuation Charges: For certain types of loans, there might be charges related to legal documentation and property valuation.

Commitment Fees: In some cases, if the loan is sanctioned but not fully disbursed, the bank might charge a commitment fee.

Interest Rate: The interest rate is a crucial component of the cost of borrowing. Make sure you understand whether the interest is fixed or variable and how it will impact your repayments.

Miscellaneous Charges: There could be other charges such as administrative charges, service charges, and more. It's important to go through the loan agreement carefully to understand all potential charges.

Think About

IDFC Bank, now known as IDFC FIRST Bank, is an Indian banking institution that provides a wide range of financial products and services to its customers. It was founded in 2015 as a result of the merger between IDFC Bank and Capital First, a non-banking financial company. The bank primarily operates in India and offers services such as retail banking, corporate banking, wealth management, and various financial products.

Eligible Criteria

Eligibility criteria for a business loan can vary based on the bank's policies, the specific type of business loan you're applying for, and your financial circumstances. It's important to note that these criteria might have changed since then, so I recommend checking the official IDFC FIRST Bank website or contacting the bank directly for the most up-to-date and accurate information.

However, I can provide you with a general idea of the typical eligibility criteria that banks might consider for a business loan:

1. Business Type: Banks often have specific criteria regarding the type of business they lend to. Some industries might be considered riskier than others, and certain types of businesses might be favored due to their stability and growth potential.

2. Business Vintage: Banks might prefer businesses that have been operating for a certain period of time. This could range from a few months to a few years, depending on the bank's policy.

3. Business Turnover: Your business's annual turnover or revenue is a key factor. Banks might have a minimum turnover requirement to qualify for a business loan.

4. Creditworthiness: Your personal and business credit history plays a significant role. A good credit score and clean credit history are generally favorable.

5. Financial Statements: You might need to provide your business's financial statements, including profit and loss statements, balance sheets, and cash flow statements.

6.Collateral:Depending on the loan amount and type, banks might require collateral as security against the loan. This could be in the form of property, equipment, or other valuable assets.

7. Purpose of Loan: You'll need to clearly specify the purpose of the loan and how it will be used for the growth of your business.

8. Ability to Repay: Banks will assess your business's ability to repay the loan based on its cash flow and financial projections.

9.Documentation: You'll need to submit various documents such as business registration documents, tax records, identity proof, address proof, etc.

10. Business Plan: Some banks might require a detailed business plan that outlines your business's goals, strategies, and how the loan will be used to achieve them.

Documents

Business Plan: A detailed plan outlining your business goals, operations, marketing strategies, and financial projections.

Business Financial Statements: Income statements, balance sheets, and cash flow statements that provide a snapshot of your business's financial health.

Personal and Business Tax Returns: Personal and business tax returns for the past few years to assess your financial history.

Bank Statements: Recent bank statements for both personal and business accounts to evaluate your financial transactions and cash flow.

Business Registration Documents: Legal documents that establish the business entity, such as articles of incorporation, partnership agreements, or sole proprietorship registration.

Ownership and Management Details: Information about the ownership structure of the business and key management personnel.

Personal Identification: Valid government-issued IDs, such as passports or driver's licenses, for all owners and key individuals.

Proof of Address: Recent utility bills or other documents that verify your residential and business addresses.

Fees & Charges

Interest Rates: This is the cost of borrowing money and is a significant component of loans and credit products. Interest rates can vary based on the type of product, your creditworthiness, and prevailing market conditions.

Origination Fees: Some lenders charge an origination fee when you take out a loan. This fee covers the administrative costs of processing your application and setting up the loan.

Processing Fees: Similar to origination fees, processing fees cover the costs of evaluating and processing your application for a loan or other financial product.

Late Payment Fees: If you fail to make a payment on time, you may incur a late payment fee. This is common with loans and credit cards.

Prepayment or Early Repayment Fees: Some loans come with penalties if you pay them off early. Lenders impose these fees to recoup potential interest income.

Think About

Reputation and Trust: Financial institutions with a strong reputation for reliability, transparency, and ethical practices often attract customers who value trustworthiness.

Range of Services: If Piramal Finance offers a diverse range of financial services, customers might find it convenient to have various financial needs met under one roof.

Specialized Services: Financial institutions that specialize in a particular type of service, such as business loans or real estate financing, might attract customers seeking expertise in that area.

Competitive Rates: Favorable interest rates and fees on loans and other financial products can be a significant factor in choosing a financial institution.

Flexible Terms: Institutions that offer flexible repayment terms, customizable loan options, and adaptable solutions can be appealing to customers with unique financial needs.

Quick Approval Process: If Piramal Finance has a streamlined application and approval process, it could be attractive to businesses seeking fast access to funds.

Customer Support: Good customer service, easy communication, and responsiveness to inquiries can enhance the overall experience.

Online Services: In the digital age, convenient online platforms for applications, account management, and customer support can be a deciding factor.

Track Record: Positive customer reviews and success stories can influence potential customers to choose a particular financial institution.

Industry Expertise: If Piramal Finance has a strong understanding of a specific industry, it might be particularly appealing to businesses within that sector.

Innovative Solutions: Financial institutions that offer innovative financial products or technologies may attract customers looking for modern and efficient solutions.

Networking Opportunities: Some financial institutions offer networking events or connections that can benefit businesses by providing access to potential partners or clients.

Community Focus: Institutions that are actively involved in community development and support might attract customers who prioritize social responsibility.

Longevity and Stability: Established institutions with a long history of financial stability can provide a sense of security to customers.

Eligible Criteria

Credit Score: Lenders typically consider the credit score of both the business and its owners. A higher credit score generally improves your chances of being approved and getting favorable terms.

Business Age and Revenue: Many lenders prefer to lend to businesses that have been operating for a certain period and have demonstrated a consistent revenue stream. This helps them assess the business's stability and ability to repay the loan.

Financial Statements: Lenders often require business owners to provide financial statements, including income statements, balance sheets, and cash flow statements. These documents give the lender insight into the financial health of the business.

Business Plan: A well-structured business plan can demonstrate how you intend to use the loan funds and how the investment will help your business grow. It's particularly important for startups and businesses seeking significant funding.

Collateral: Some loans, especially larger ones, may require collateral. Collateral is an asset that you pledge to the lender as security for the loan. It could be real estate, equipment, inventory, or other valuable assets.

Debt-to-Income Ratio: Lenders assess the debt-to-income ratio to evaluate whether your business has enough income to cover existing debts and the new loan payments.

Industry and Risk Assessment: Some lenders may consider the industry your business operates in and assess the risk associated with it. Certain industries may be perceived as higher risk than others.

Purpose of Loan: Lenders may want to know how you plan to use the loan funds. Business expansion, equipment purchase, working capital, and debt consolidation are some common purposes.

Business Legal Structure: The legal structure of your business (e.g., sole proprietorship, partnership, corporation) can impact your eligibility for certain types of loans.

Personal Background: Lenders might also consider your personal background, including your experience in the industry and your role in the business.

Documents

• Identity proof (Aadhaar card, PAN card, Voter ID, etc.)
• Address proof (Electricity bill, phone bill, etc.)
• Business vintage proof (bank statements, IT returns, etc.)
• Business registration proof (GST registration, trade license, etc.)
• Financial documents (balance sheet, P&L statement, etc.)

Fees & Charges

• Fullerton India charges a processing fee of up to 6% of the loan amount.
• Late payment charges are applicable at the rate of 3% per month on the overdue amount.
• Prepayment charges may be applicable if the loan is prepaid before the completion of the tenure.

Think About

• Fullerton India offers flexible repayment options.
• The loan application process is simple and convenient.
• The company has a wide network of branches across the country.
• Fullerton India offers personalized customer service.

Eligible Criteria

• The applicant should be a self-employed individual or a business owner.
• The business should have a minimum turnover of Rs. 10 lakhs per annum.
• The business should be operational for a minimum of 3 years.
• The applicant should be between 27 to 65 years of age.

Documents

Business Plan: A detailed business plan outlining your company's operations, growth strategy, and financial projections.

Business Financial Statements: Including profit and loss (income) statements, balance sheets, and cash flow statements for the past few years, if applicable.

Personal and Business Tax Returns: Typically for the past few years to assess your personal and business financial history.

Bank Statements: Recent bank statements for your business accounts to show cash flow and financial stability.

Proof of Business Ownership: Documentation that proves your ownership of the business, such as business licenses, articles of incorporation, partnership agreements, or operating agreements.

Personal Identification: Copies of government-issued identification documents, such as driver's licenses or passports, for all business owners.

Business Legal Documents: Contracts, agreements, leases, and other legal documents related to your business operations.

Collateral Documentation: If the loan requires collateral, documents proving ownership and value of the collateral (such as property deeds or vehicle titles) will likely be needed.

Business Debt Information: Details of any existing business loans or debts.

Use of Funds: Information about how you intend to use the loan funds. This could be outlined in your business plan.

Industry-Specific Documentation: Certain industries might require additional documentation. For example, healthcare businesses might need licensing documentation, while construction companies might need building permits.

Business References: Contact information for business references who can vouch for your business's credibility and ability to repay the loan.

Financial Projections: Forecasts of your business's future financial performance, including expected revenues, expenses, and profits.

Personal Financial Statements: Especially for small businesses, lenders might request personal financial statements from business owners to assess their personal financial stability.

Management Profiles: Information about the management team, their qualifications, and experience.

Any Additional Information: Lenders may request additional documentation depending on their specific underwriting process.

Remember that providing accurate and complete documentation is essential for a smooth loan application process. Always confirm the document requirements directly with the lender you're applying to, as they can provide the most accurate and up-to-date information for their specific loan application process.

Fees & Charges

Interest Rate: This is the cost of borrowing the loan amount. It's usually expressed as an annual percentage rate (APR). The interest rate can vary based on factors such as the loan amount, the term of the loan, the borrower's creditworthiness, and prevailing market rates.

Origination Fee: Some lenders charge an origination fee, which is a one-time fee for processing the loan application and setting up the loan. It's typically a percentage of the loan amount.

Processing Fee: This fee covers the administrative costs associated with processing the loan application. It might cover things like credit checks, documentation, and verification.

Late Payment Fee: If you miss a loan payment or make a payment after the due date, the lender might charge a late payment fee.

Think About

Incred Finance is a private NFI (NBFC) in India. The company focuses on Consumer Loans - Personal Loan, Educations Loans and SME Business Loans. It is headquartered in Mumbai, Maharashtra. It was founded by Bhupinder Singh, ex-head of the Corporate Finance division of Deutsche Bank.

Eligible Criteria

Credit Score: Lenders often consider the personal and/or business credit scores of the applicants. A higher credit score generally indicates a lower risk for the lender.

Business Financials: Lenders may require detailed financial statements, including profit and loss statements, balance sheets, and cash flow statements, to assess the financial health and stability of the business.

Time in Business: Many lenders prefer to work with businesses that have been operating for a certain period of time, typically at least 1-2 years. This demonstrates stability and a track record.

Revenue and Income: Lenders often want to see a certain level of annual revenue to ensure that the business has the capacity to repay the loan.

Business Plan: For startups or businesses seeking expansion, a well-defined business plan outlining how the loan funds will be used and how they will contribute to the growth of the business can be important.

Collateral: Some loans may require collateral, which is an asset that the lender can take ownership of if the borrower defaults on the loan. This provides additional security for the lender.

Debt-to-Income Ratio: Lenders assess the borrower's ability to take on additional debt by looking at the ratio of their existing debts to their income.

Industry and Purpose: The type of industry your business operates in and the purpose of the loan can also affect eligibility. Some industries might be considered riskier than others.

Legal and Regulatory Factors: Lenders might consider factors such as the legal structure of the business, any outstanding legal or tax issues, and compliance with relevant regulations.

Personal Guarantees: Small business owners might be required to provide a personal guarantee, making them personally responsible for the loan if the business is unable to repay.

Ownership and Management: Lenders could assess the experience and qualifications of the business's owners and management team.