business loan

The Perfect Solution for Hike – ABFL Business Loan

Business

It is not just that we need funds to start the business, funding is required at every stage from procuring of resources to establishing the name, from furnishing it to promotion of the firm. These expenses can be managed by availing the credit from the lending institutions. A particular loan available to finance the business requirements is business loan. It is a type of unsecured loan that helps the people in accelerating their work and assist in fulfilling their entrepreneurial dreams.

Since it is an unsecured loan the processing is quick and less documentation is required. Also, the amount is disbursed shortly so that urgent needs can be answered quickly. These loans are provided for shorter duration ranging from 2 years to 5 years. These loans are offered by various banks and non-banking financial institution.

The purpose of managing the company/firm capital can be resolved by availing the ABFL Business Loan. The company provides quick funding at competitive interest rates to help people accelerate in their field of work. The customer can avail the facility easily as there is no hectic procedure. For taking the Business loan the customer has to fill the application form.

To apply in any of the lending institute the customer has to fill the application form and submit the necessary documents. The details the customer has to fill in the form and documents that are to be submitted are as follows:

Business Loan Application Form  

  • Name of applicant
  • Date of birth
  • Age
  • Email address
  • Contact number
  • Residential address
  • Employment details
  • Type of loan

Documents Required for Availing BL

The customer has to submit KYC and documents. The list is provided below.

KYC Documents

  • Copy of PAN Card
  • Passport Copy
  • Aadhar Card
  • Electricity Bill
  • Registered Rent Agreement
  • Job Card issued by NREGA

Income Documents

The customer as per his profile has to submit the income documents. The category wise list is as below:

Partnership Firms –

  • Registered Partnership Deed, Shop Act, Udyog Aadhaar Memorandum, VAT Registration and other Registrations Applicable
  • Last 1 year bank statement of operating bank account
  • Details of all existing loans: Sanction Letter and Loan Account Statement for last 1 year
  • Brief Profile of the Promoters and Company / Firm

Private/ Public Limited Company –

  • MOA & AOA, Certificate of Registration, Shop Act, Udyog Aadhaar Memorandum, VAT Registration and other Registrations Applicable
  • Last 1 year bank statement of operating bank account
  • Details of all existing loans: Sanction Letter and Loan Account Statement for last 1 year
  • Brief Profile of the Promoters and Company / Firm

Self-Employed Individuals / Sole Proprietorships –

  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the borrower’s main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet

For Self-Employed Professionals

  • Latest audited ITR and financials for the last 2 years. (Balance Sheet, Profit & Loss A/c., Computation of Income along with all schedules.)
  • Bank statements from the borrower’s main account/s for last 6 months and 3 months of all other bank accounts mentioned in the Balance Sheet
  • Professional Qualification Certificate and Degree Certificate for professionals. (Doctors, Architects, Chartered Accountants etc.)

If you are applying for BL in any of the lending institution say you are planning to apply for ABFL Business Loan, check whether you are eligible for it or not. Every institution has prescribed certain eligibility norms on the basis of which an application is approved or rejected.

On the basis of this eligibility criteria the disbursal amount is decided. For those having good income and decent credit history availing a loan is not an issue. Whereas, procuring funds in the absence of regular income and with poor credit score is difficult. Banks do not provide loan to the applicants whose income is below the standard income criteria. Because it is an unsecured loan the interest rates are already high in comparison to other secured loan such as loan against property, home loan etc. and if the customer has bad CIBIL score the rates offered to him are drastically high. So if you want to lower your interest just build your CIBIL score.

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