A business loan sets you up with the financing you need to start or expand a business or develop and manufacture new products. But to get a loan, the first thing you have to do is gather the necessary paperwork for your application.
Pull the documents needed to prove your identity and address. To verify your identity, use one of the following:
- Aadhaar card
- Voter’s ID card
- Individual PAN card
- Driver’s license
Your Aadhaar card, passport, voter’s ID card, and driver’s license can also be used for your address verification.
Additionally, the bank will look through your company’s finances to help them determine whether or not you can repay the loan. Be ready to provide:
- Bank statements from the last six months
- Your most recent income tax return
- A recent balance sheet
- And a recent profit and loss statement
With a cloud-based accounting software, such as QuickBooks, you can run these reports and print this information in a matter of minutes.
If you have an ITR/Trade license, an establishment certificate, or a sales tax certificate, you should also provide the bank with the proper Proof of Continuation document. Depending on the type of business you own, the bank will also require one of the following:
- Sole proprietor declaration or a certified copy of your partnership deed
- Certified true copy of Memorandum and Articles of Association that’s certified by the director
- An original board resolution document
The good news is, even though banks require quite a bit of documentation to be submitted with a business loan application, it’s all pretty easy to gather. And by having the correct documentation ready to submit with your application, your bank can start processing your loan approval right away.