A business loan sets you up with the financing you need to:
– develop or manufacture new products.
But to get a loan, the first thing you have to do is gather the necessary documents for your application.
Documents Needed For Identity Verification
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.
Documents Needed For Financial Background Verification
Additionally, the bank will look through your company’s finances. This will 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. You can also print this information in a matter of minutes.
Documents Needed As Proof Of Continuation
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
Though banks require a list of documents to be submitted with a business loan application. The good news is, it’s all pretty easy to gather. By keeping correct documents handy, your bank can start processing your loan approval right away.