Funds are an absolute necessity to keep your business afloat, and the most effective way to acquire adequate finance for your business needs is to get an instant business loan.
What Is a Business Loan?
The main aim of a business loan is to support the critical financial requirements of your growing business. Any business such as partnership firms, sole proprietorship, privately held company, and even self-employed individuals can avail of a business loan.
Whether you are looking to buy new machinery, expand your business, or manage daily expenses, quick business loans can provide the financial assistance you need. What’s more, various lending institutions extend business loans online as well as offline at an attractive business loan interest rate to help you grow your brand and stay ahead of the competition.
How to Apply for Business Loan?
Applying for an instant business loan is quite easy and hassle-free. Even though you can apply for a business loan by visiting your financial lender, applying online makes the process more convenient. With the advent of technology, availing of a business loan online from the comfort of your homes is especially preferred given the coronavirus crises.
Here are the steps you need to follow to apply for a business loan online.
- Step 1. Visit your lender’s website.
- Step 2. Fill in the business loan application form with your personal, business, and financial details.
- Step 3. Upload the digital copies of your required documents to take your business loan application ahead. A representative from your lending institution will contact you and take the online business loan application process forward.
- Step 4. Your lender will verify your application and all your submitted documents. The verification process might also involve a personal discussion with you.
- Step 5. Once your business loan applications approved, the sanctioned loan amount will be disbursed in your chosen account.
Documents Required for a Business Loan
Given below are the documents that are commonly required by all lenders extending a business loan online.
- Duly filled application form along with passport size photographs
- Photo Identity Proof- Voter ID /Passport/Driving License/ Aadhaar card/Photo PAN card (any 1)
- Bank Statements- A copy of your company bank statements for the last six months
- KYC documents of the business owners
- Proof of Business Documents as listed below-
- Income tax returns (ITR) along with computation for the last two years
- Balance sheet along with Profit and Loss accounts for the last two years. A registered Chartered Accountant should audit the balance sheet.
- A certified copy of Partnership Deed or Sole Proprietorship Declaration
- KYC documents of your company including PAN Card, Partnership deed, Memorandum and Articles of Association, Registration of Incorporation
- Trade License/ Establishment/ Sales Tax Certificate Ownership document
- A detailed report of how the business loan will be used
Before going for quick business loans online, check your business loan eligibility criteria thoroughly. Also, always remember to calculate your EMI before applying. Most lenders provide a business loan calculator on their website to help you do this. By using the business loan EMI calculator, you will be able to understand your monthly payments better.
When you are applying for a loan for business online, always exercise due diligence and conduct proper research of the financial lenders to avail of competitive ROIs. Doing this will ensure higher affordability of your business loan.