Documents required for a business loan

To start any business, one needs some capital. What might be your financial strength and business skills; you must oblige to the procedures and submit most wanted documents and proofs to the Bank to get approval of your much needed business loan smartly.  We have dealt with systematic way of approaching Banks for business loan in the earlier article.  Banks or lending agencies shall insist to submit so many documents for loan processing. One should aware of these documents and collect them before approaching any Bank. Then only you can get loans easily.

1. Sole Proprietorship / Partnership Firm: Proof of identity. You can produce any of these copies like Sales Tax/ VAT/ Service Tax/ PAN ID card/ IT etc.  2. Water/ Electricity/ Municipal Tax Bill in the name of the Concern   3. Proof of individual identity: For this purpose, you can get a copy of Passport/ Voter’s Identity card / Photo PAN card/ Driving License/ MAPIN Card  4. PAN Number and Copy of  profit and loss account. Balance Sheet for the last two years audited by a Chartered Accountant also required. And copies of IT Returns of the last two years are essential. 5. Proof of residence address:  Any of these should be submitted- copy of passport/ Voter’s Identity card/ Driving License/ Ration Card/ Life Insurance policy/ Electricity Bill/ Telephone Bill.  6. Bank Statements for last 6 months. 7. Partnership deed (Required only in case of Partnership firm)  8. Two passport size photographs  9. Proof of place of business.

To start a private limited company, you need these primary documents:  1. Prof of Identity should be from any of these documents- Copy of Sales Tax/ VAT/ Service Tax or Excise tax  2. Registration under Shops and establishment Act or PAN 3. ID/IT Return of the concern/ Water/ Electricity/ Municipal Tax Bill in the name of the Concern 4. Memorandum and Articles of Association (Copy of Certificate of  Incorporation)  5. Board Resolution (Copy of Annual Return Establishing the Shareholding pattern). 6 . Proof of individual identity for the authorized signatories and 2 director , including the Managing Director (Copy of Passport/Voter’s Identity card /Photo PAN card/driving License/ MAPIN Card) 7. List of Directors 8. Copy of Form 32 filled with ROC  9. PAN Card/ Form 60 of the Concern 10. Financial Documents (Copy of profit and loss and Balance Sheet for the past two years audited by a CA. You shall also require copies of IT returns for the last two years.  11. Bank Account Statements for last 6 months  12. Proof of Place of Business. 13 Two latest passport size Photographs.



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