Eligibility for a New Business Loan in IndiaFor every business loan for a new business, there is a certain requirement that must be met in order to be eligible for the loan. Any startup or company looking to expand to ensure the following:
- The applicant for the start up business financing should be above the age of 21 years and should be below the age of 65 years.
- Proof of the individual must be provided in the form of a driver’s license or Aadhaar card.
- Bank statements for the past six months must be procured and presented at the time of loan negotiations.
Steps for getting a loan to start a new business:
When opting for a business loan for a new business, there are certain requirements that must be met. These facilitate the process of acquiring the new business loan and serve as a checklist to see if the bank will suffer a loss if they decide to proceed with the loan.
- It is important to get one’s costs and finances in order before proceeding with any step. Understanding and reviewing the startup cost will help you understand the purpose for which the small business start up loans are being taken in the first place and in which direction will the capital be utilized.
- Next, the person taking the loan must require the related documents and registration forms to legally and officially apply for the loan. These documents are simple ones that recount the business plan, credit score of the company and other formalities.
- There are a number of different start up business loans to choose from. Depending on the aim and goals of your startup, one needs to choose the right business loan for new business.
Documents required for a new business loan
- Identity proof: for this, one can present their driving license, passport, PAN card, Voters ID card or even their Aadhaar card.
- Income proof: the bank and financial statement for the last 2 years must be procured.
- Proof of business ownership: it is mandatory to have documents like a Sole Proprietorship Declaration or a certified true copy of Memorandum and Article of Association in order to show proof of the business and/ or startup for which the loan is being raised.
Advantages and benefits of taking up a startup loans
Capital is the most important aspect of any business and thus having a startup business loan for a new or expanding business can prove to have a number of benefits and advantages. This also greatly helps all individuals, especially in cases for startup business loan for women.
- Convenience: most people are familiar with their banks and are regular visitors to the branches. This makes bank loans for startup businesses that much more convenient and more accessible for application.
- Interest rate: bank loans tend to have lower interest rate I comparison to private equity lenders. In addition, bank loans have the added benefit of tax benefits which make it a more attractive and lucrative option for taking a new loan for a new business loan in India.
- Multiple loan options: Larger banks have specialized loan plans that are intended for small and new startups and businesses. Also, banks do not take any share from the startup like angel investors. The banks and their loan schemes are only concerned with the loan principal and have no affiliation any fund exchange of the startup or business itself.
Apply for a loan at Lendingkart!
We at Lendingkart offer multiple types of both working capital loan as well as business loans and also lays the means as to how to get a start up business loan without collateral. The process for applying for a loan id completely virtual and can be done in a few easy steps by visiting our webpage.
- Choose an application: on the website one can easily choose from the various applications, which suit your agendas the most. After choosing the desired application, fill in the required details and submit the application form for the loan.
- Attach documents: after filling and submitting the desired application, attach and upload the required documents that are mentioned and are needed for the processing of the start up business loan in India.
- Wait for approval: the final step if the wit for the approval for the loan request. Of everything is found to be in order and satisfactory, your loan application will be sanctioned to you in a span of 3 days.
Fees and charges:
There are some charges that you would have to pay as an applicant on LendingKart, which are as follows:
Between 15% and 27%
One time processing fee
Up to 2 years
Rs. 50,000 – Rs. 2 crores
Monthly or Bi-weekly