Business Loans
Need Business Loan?
In order to understand how a business loan works, imagine borrowing a capital to fund a startup or pay for an existing business’s expansion without pledging anything against the borrowed amount. A Business Loan is thus an unsecured loan at an interest rate, giving you access to credit that can be paid back over an agreed time along with the interest, without any security against it
What are the Documents required for Business Loan?
- Application Form: Complete loan application form with one passport size photograph
- Valid Proof of Applicant's Identity
- Proof of Residence: Ration card Tel/ Lease agreement/ Electricity Bill
- Proof of Identity of Private Limited Company : GST Registration Certificate / Municipal Tax bill / PAN
- Financial Documents: Copies of IT returns for the last two years along with the latest Bank statements for 6 months and P & L and balance sheet for last two years audited by a C.A.
- Three years sales tax returns and Copy of periodic stock, age wise book-debt and creditors-statement for latest three months
Frequently Asked Questions ?
No business can run successfully in case of shortage of capital. You can get a business loan from Bajaj Finserv for your short or long term financial needs. Whether your business is at an initial stage or in the growth phase, additional finance can help you keep up the momentum.
You can get a business loan for up to Rs.30 lakh within 72 hours. The approval time may vary depending on the loan amount you apply for. Once your upload your documents, a Bajaj Finserv representative collects your documents from your doorstep. Once the documents are verified, your loan amount will be disbursed immediately.
Some banks may allow part payment while some others may have restrictions on how many times in a year you can part pay and also the minimum and maximum amounts you can part pay. Again, a clarification is to be sought from our loan advisor during the time of loan processing.
Borrower’s PAN card, address proof, last two years financial statements including profit and loss account and balance sheet, last six months bank statements, VAT/Service tax returns, partnership deed/MOA, existing loans repayment track record, partner/director’s PAN card, KYC, own house proof, ITRs, etc. Additional documents may be required on a case to case basis.
Business loan is a 1-3 year unsecured loan given by banks, NBFC’s (Non Banking Finance Companies) or P2P lending platforms without asking for any collateral, guarantor or hypothecation of any assets. Entities like proprietorship, partnership, private limited company or public limited company are eligible for this type of borrowing. The usage of a business loan is left to the discretion of the borrower and can be used for working capital purposes, meeting short term cash flow requirements, investments into plant and machinery etc.
The business loan tenure can range from 12 months to 36 months
Business Loan eligibility depends on the following factors: Credit score of the loan applicant/co-applicant The last two years financials of the borrowing entity Information about the Debt Service Coverage Ratio: This information tells the lender whether the borrower will be able to service the EMI for the current loan.
All business loans are repaid through EMIs or equated monthly installments from the borrowers bank account. The borrower or customer is required to either give PDCs or sign an ECS mandate in favor of the bank disbursing the loan.
The bank will levy certain ECS bounce charges or penalties. Additionally, that will also get reported in your credit report. Depending upon the severity and the regularity of the miss, it may have a serious impact on your future credit possibilities like in obtaining a home loan, car loan, etc. Additionally, banks may also take legal action against the borrower.
EMI (Equated Monthly Installment) is a monthly amount that you have to pay back to the bank or funding institution for the loan you have availed. The EMI is inclusive of both the principal and interest components.
